Lenders, Settlement Service Businesses Ask for Rehearing Of RESPA Ruling That Limits Use of Third Party Providers
October 14, 2004
The Mortgage Bankers Association, the Consumer Mortgage Coalition, and several settlement service trade associations are all urging the federal appeals court in New York to reconsider a recent decision that could make it difficult or impossible for lenders to outsource settlement services. The groups are worried that, by upholding the Department of Housing and Urban Development’s policy on what constitutes an illegal “markup” by a lender of another company’s services, the court will discourage lenders…