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RESPA TIMELINE
Dec. 22, 1974: The Real Estate Settlement Procedures Act (RESPA) goes into effect.
Jan. 2, 1976: Congress repeals pre-closing settlement statement requirement, added section 4(b).
1990: Section 6 mortgage servicing requirements added.
1992: amendment to extend coverage to controlled business arrangements implemented, RESPA extended to all residential mortgage loans with a lien, realty companies permitted to affiliate with allied services and offer discounts for packaged services.
June 1996: HUD issues final RESPA rule that reversed a 1992 HUD regulation permitting compensation of employees by employers for marketing settlement services of an affiliated company. Revision also:
- Introduces more narrow exemptions for an employer's payments to its managerial employees and to employees who don't perform settlement services in any transaction;
- Adds exemption language clarifying that an employer's payments to "bona fide" employees for generating business for the employer were permissible;
- Revises certain controlled business disclosure requirements;
- Withdraws exemptions for payments by borrowers for computer loan origination services;
- Issues three HUD policy statements dealing with computer loan originations, sham controlled business arrangements and office space, lockouts and retaliation.
October 2001: HUD Secretary Mel Martinez issues RESPA Statement of Policy 2001-1, which clarifies HUD’s position on lender payments to mortgage brokers, and guidance concerning unearned fees under Section 8(b).
June 26, 2002: Martinez announces proposal to reform the regulatory requirements under RESPA to simplify the home buying process by requiring greater disclosure, allow consumers more choices, limit excessive settlement fees and encourage innovation and competition in the marketplace. He also vows to put more emphasis on enforcements for RESPA violations.
March 2004: New HUD Secretary, Alphonso Jackson, announces that HUD was withdrawing the reform rule due to the number of concerns from real estate industry and consumer groups. “There are many groups concerned that they have not had a chance to see the changes that have been made to the rule since it was proposed two years ago. They deserve to see those changes,” he said.
2005: HUD holds series of seven roundtables with industry members, consumer groups and small businesses to talk about RESPA reform, unveils proposals including a revised GFE form and a new Mortgage Package Offer form and a Settlement Services Package concept which would allow for the bundling of settlement services separate from the package.
January 2006: RESPA News releases its inaugural issue. Top Headline: RESPAgate exposed: NY lawyers, lenders, title cos. plead guilty to kickback conspiracy.
March 14, 2008: HUD releases new proposed rule to reform the more than 30-year-old rules of RESPA. The proposed rule is accompanied by a report detailing the results of its consumer testing of the new disclosures and a nearly 600-page Regulatory Impact Analysis, among other things.
May 13, 2008: Commend period scheduled to end, but extended to June 12, 2008
Nov. 17, 2008: HUD releases final RESPA reform rule.
July 2010: Congress passes Dodd-Frank Wall Street Reform Act and Consumer Protection Act, which created the Consumer Financial Protection Bureau (CFPB).
July 2011: CFPB takes over RESPA regulatory duties.
May 2011: CFPB releases first round of prototypes for TILA-RESPA disclosure reform.
January 2012: CFPB gains full power, President Barack Obama names Richard Cordray director of the CFPB.
Oct. 24, 2013: CFPB enforces against Kentucky law firm Borders & Borders for alleged RESPA violations.
Nov. 20, 2013: CFPB releases final 1,099-page TILA-RESPA Integrated Disclosure (TRID) rule, giving industry 21-months to prepare for Aug. 1, 2015 implementation date.
Sept. 30, 2014: CFPB brings action against Lighthouse Title for alleged kickback scheme in violation of RESPA.
Jan. 22, 2015: CFPB cites Wells Fargo, JPMorgan Chase and Genuine Title for RESPA violations.
Feb. 10, 2015: CFPB cites NewDay Financial for alleged kickbacks in violation of RESPA.
July 2015: Wells Fargo and Prospect Mortgage discontinue marketing services agreements because of regulatory scrutiny.
July 21, 2015: CFPB announces TRID implementation period will be delayed until Oct. 3, 2015.
Oct. 3, 2015: TRID goes into effect.
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