on the subject of RESPA reform

I listened to some of yesterday’s testimony on RESPA in the House Small Business Committee hearing.

I’ve read many of the public comments posted on RESPA.

Here are a few random thoughts……

Hold in your hand a closed mortgage loan file. Measure its depth and tell me how many of those forms are required by HUD or even the federal government? Some, but not many. Most of the forms and disclosures I see in files have been designed by mortgage lenders to either secure their interests, cover their concerns over law suits, route to various and sundry departments for servicing or other needs, instructions to settlement agents, etc. then we have the group of disclosures created by title companies and settlement agents to cover their various housekeeping and legal concerns. And, of course, don’t forget the voluminous sales agreement and agency disclosures and multi-list disclosures.

Mortgage lenders, title companies and real estate brokers never hesitate to subject the consumer to another form if it suits their fancy. It’s a cost of doing business.

Mortgage lenders, title companies and real estate brokers never hesitate to create software to support new procedures or forms if it suits their fancy. It’s a cost of doing business.

Mortgage lenders, title companies and real estate brokers never hesitate to seek legal counsel and pay attorneys if it suits their fancy. It’s a cost of doing business.

Mortgage lenders, title companies and real estate brokers never hesitate to create training seminars to cover new forms and procedures if it suits their fancy. In fact, there’s a whole cottage industry that thrives on maintaining a constant environment of change just so they can sell tickets to seminars and summits. It’s a cost of doing business.

Mortgage lenders, title companies and real estate brokers never hesitate to subject appraisers and settlement agents to procedural changes and documentation changes which cost money and time and training if it suits their fancy. It’s a cost of doing business.

Mortgage lenders, title companies and real estate brokers didn’t hesitate to pay many thousands of dollars in illegal kickbacks, gifts, etc. as documented in the ridiculous number of lawsuits, settlements, and regulatory actions of these last two or three years if it suits their fancy. It was a cost of doing business.

Mortgage lenders, title companies and real estate brokers never hesitate to spend millions to create super automated systems that replace human underwriters, appraisers, and title examiners if it suits their fancy. It’s a cost of doing business.

Mortgage lenders, title companies and real estate brokers never hesitate to create affiliations which shut out independent small business owners if it suits their fancy. It’s a cost of doing business.

The consumer is alone. Not a one, but HUD, is trying to find a better way to comparison shop.

These “folks” just don’t want anybody to monkey around with the referral net.

They want to control the point of sale.

They do not want to empower the consumer.

They do not want the consumer to have information.

The freedom consumers are enjoying in some of the new real estate shopping platforms is the new world.

Perhaps we need not depend upon HUD for consumer relief. Politicians tied to old school back room deals will likely put the kabash on the HUD effort.

Consumers have power even if HUD can’t help.

Consumers can and will demand access to information.

In my market I am there, giving it freely and will continue to do so.

Like minded title agents and other providers, let’s create our own free platforms and little bits of freedom here on the internet.

For now we have free speech. Let’s use it.

Consumers have the power.

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