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HUD finalizes rule to protect children from lead poisoning

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Regulatory News
Monday, January 16, 2017

Just one day after the Senate Banking Committee held a confirmation hearing for Ben Carson, president-elect Donald Trump’s nominee to lead HUD, the department issued a final rule amending its lead-based paint regulations to reduce blood lead levels in children under age 6 who reside in federally owned or assisted pre-1978 housing.

The Lead Safe Housing Rule formally revises the definition of “elevated blood lead level” (EBLL) in accordance with guidance from the Centers for Disease Control and Prevention (CDC) and establishes more comprehensive testing and evaluation procedures for the housing where such children reside. Specifically, the rule lowers the action-level of EBLL from 20 micrograms of lead per deciliter of blood (µg/dL) to 5.

The rule becomes effective Feb. 13.

Childhood lead poisoning has been documented as causing reduced intelligence, low attention span and reading and learning disabilities; it additionally has been linked to juvenile delinquency, behavioral problems and many other adverse health effects.

Despite public health efforts that successfully have reduced toxic lead exposure in children nationwide, blood lead monitoring continues to reveal children with elevated blood lead levels because of exposure in their specific housing environments. The CDC consistently has affirmed its position that lead-based paint and lead-contaminated dust are the most hazardous sources of lead for U.S. children.

This rule will cover about 3 million HUD-assisted housing units built before 1978, the year lead-based paint was banned for residential use. Of these homes, about 500,000 are estimated to have children under age 6 residing in them.

When a child under age 6 resides in HUD-assisted housing and has an elevated blood lead level, the housing provider will have to test the home and other potential sources of the child’s lead exposure within 15 days, and ensure that hazards from lead-based paint, dust or soil are controlled within 30 days.

The housing provider also must report the case to HUD so that the department can ensure that follow-ups are completed in a timely manner.

To assist housing providers in preparing for these more stringent requirements, HUD is providing a six-month phase-in period before compliance will be required. The compliance date is July 13.

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12 USC Section 2605 or Section 6 is titled Servicing of mortgage loans and administration of escrow accounts. It pertains to qualified written requests, notices of transfer of servicing and the administration of escrow accounts.
An arrangement that involves a person who is in a position to refer business as part of a real estate settlement service and who has an interest in a settlement services provider.

In the arrangement, the person, who has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent in a settlement services provider, directly or indirectly refers business to that provider or influences a consumer to select that provider.
An arrangement that involves a person who is in a position to refer business as part of a real estate settlement service and who has an interest in a settlement services provider.

In the arrangement, the person, who has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent in a settlement services provider, directly or indirectly refers business to that provider or influences a consumer to select that provider.
A mortgage disclosure that lists all estimated charges and fees associated with your loan. In addition to fees and charges, it will list your loan amount, mortgage rate, loan term and estimated monthly payment. Your escrows due at closing for insurance and taxes will also be outlined. Mortgage lenders are legally required to provide a GFE within three days of receiving your application.
A mortgage disclosure that lists all estimated charges and fees associated with your loan. In addition to fees and charges, it will list your loan amount, mortgage rate, loan term and estimated monthly payment. Your escrows due at closing for insurance and taxes will also be outlined. Mortgage lenders are legally required to provide a GFE within three days of receiving your application.
Under RESPA Section 2605(e)(1)(B), a qualified written request is a written correspondence that includes: 1) the name and account of the borrower, or has enough information to allow the servicer identify that information; and 2) a statement of the reasons for the belief of the borrower that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

A QWR cannot be written on a payment coupon or other payment medium supplied by the servicer.
Under RESPA Section 2605(e)(1)(B), a qualified written request is a written correspondence that includes: 1) the name and account of the borrower, or has enough information to allow the servicer identify that information; and 2) a statement of the reasons for the belief of the borrower that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

A QWR cannot be written on a payment coupon or other payment medium supplied by the servicer.
12 USC Section 2609 or Section 10 is titled Limitation on requirement of advance deposits in escrow accounts. It governs escrow accounts including notifications and statements to borrowers. Section 10 also sets out penalties for those who violate the section.
RESPA Section 3 provides that a thing of value includes any payment, advance, funds, loan, service or other consideration

Regulation X says thing of value includes: monies, things, discounts, salaries, commissions, fees, duplicate payments of a charge, stock, dividends, distributions of partnership profits, franchise royalties, credits representing monies that may be paid at a future date, the opportunity to participate in a money-making program, retained or increased earnings, increased equity in a parent or subsidiary entity, special bank deposits or accounts, special or unusual banking terms, services of all types at special or free rates, sales or rentals at special prices or rates, lease or rental payments based in whole or in part on the amount of business referred, trips and payment of another person’s expenses or reduction in credit against an existing obligation.
A form used by a settlement or closing agent itemizing all charges imposed on a borrower and seller in a real estate transaction. This form represents the closing transaction and provides each party with a complete list of incoming and outgoing funds. RESPA requires the HUD-1 to be used as the standard real estate settlement form in all transactions in the U.S. involving federally related mortgage loans.
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