BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.  20551

DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS

CA 09-11

November 6, 2009

TO THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS SECTIONS

SUBJECT: Revised RESPA Interagency Examination Procedures

The Task Force on Consumer Compliance of the Federal Financial Institutions Examination Council (FFIEC) recently approved the attached interagency examination procedures for the Real Estate Settlement Procedures Act (RESPA), which incorporate recent changes to the Department of Housing and Urban Development’s (HUD) Regulation X. The revised procedures replace those transmitted as part of CA 97-7.

On November 17, 2008, HUD issued a final RESPA reform rule (73 F.R. 68204) that included both technical and substantive changes to its Regulation X. Both the technical changes, which previously became effective on January 16, 2009, and the substantive changes, which will become effective on January 1, 2010, are addressed in the attached revised interagency examination procedures. The technical changes provide streamlined mortgage servicing disclosure language, eliminate outdated escrow account provisions regarding the phase-in period, and permit an “average charge” to be listed on the Good Faith Estimate (GFE) and HUD-1/1A Settlement Statement. The key substantive changes include a standardized and binding GFE form and revised HUD-1/1A Settlement Statement. HUD has issued FAQs for the new rule, which can be found at the following internet web link: http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm. HUD periodically updates the FAQs.

If you have any questions, please contact Tim Robertson, Senior Supervisory Consumer Financial Services Analyst, at (202) 452-2565, or Paul Robin, Manager, Oversight and Policy, at (202) 452-3140.

Sincerely,
(signed)

Sandra F. Braunstein
Director
Division of Consumer and Community Affairs

Revised Interagency RESPA Examination Procedures (168 kb PDF)

Supersedes: CA Letters 97-7, 92-4, and 00-6