In response to a suit over the Real Estate Settlement Procedures Act (RESPA) by the National Association of Home Builders, Housing and Urban Development has delayed implementation of a controversial rule change for 90 days until April 16.
The new rule would have barred home builders from offering incentives to buyers when they agree to use buildersâ€™ affiliated mortgage and title companies. It was set to take effect Jan. 16.
NAHB argues that the new rule is arbitrary because it only applies to businesses operated by home builders. Affiliated businesses run by title insurers could still offer discounts.
Home builders say their incentives programs increase competition and offer consumers “a full range of options to explore the best possible deal to purchase a home.”
William P. Killmer, vice president of NAHB’s advocacy group, said in a court filing that the new rule would “greatly obstruct NAHB’s members from stimulating consumer demand and moving excess supply.”
Source: Inman News, Matt Carter