HUD Reiterates 1997 Guidance in Wake of Pacts with Captive Users
July 31, 2006
Mortgage lenders and settlement service providers need to take another long hard look at existing guidance issued by the Department of Housing and Urban Development concerning the legality of captive title insurance programs under the Real Estate Settlement Procedures Act. Compliance experts say a review of the 1997 guidance may be necessary in the wake of HUD’s $1.6 million settlement with a major lender and home builders over alleged misuse of captive structures to