The Hidden Costs of Builder Incentives and Discounts
Builders often dangle tempting cash discounts, rebates, closing costs, upgrades and other lures in front of buyers – but only if they agree to use the builder’s own affiliated mortgage lender. In the real estate business, this practice is known as “required use.” And now, the Obama administration is considering a change in the laws that would mean that any discount or rebate must be bona fide, and “not made up by higher costs elsewhere in the settlement process,” such as above-market loan terms. But before they consider a change that would implement this change, they want to hear from you.
Interested persons are invited to submit comments regarding this ANPR to the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street, SW., Room 10276, Washington, DC 20410–0500. Communications must refer to Docket No. FR-5352-A-01 and Rule Title Real Estate Settlement Procedures Act (RESPA): Strengthening and Clarifying RESPA’s ‘‘Required Use’’ Prohibition Advance Notice of Proposed Rulemaking.
There are two methods for submitting public comments. All submissions must refer to the above docket number and title.
1. Submission of Comments by Mail: Comments may be submitted by mail to the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street, SW., Room 10276, Washington, DC 20410–0500.
2. Electronic Submission of Comments. Interested persons may submit comments electronically through the Federal eRulemaking Portal at Regulations.gov. HUD strongly encourages commenters to submit comments electronically. Electronic submission of comments allows the commenter maximum time to prepare and submit a comment, ensures timely receipt by HUD, and enables HUD to make them immediately available to the public. Comments submitted electronically through the www.regulations.gov Web site can be viewed by other commenters and interested members of the public. Commenters should follow the instructions provided on that site to submit comments electronically.
For Further Information, Contact: Teresa Payne, Deputy Assistant Secretary for Regulatory Affairs and Manufactured Housing, Office of Housing, Department of Housing and Urban Development, 451 7th Street, SW., Room 9162, Washington, DC 20410–8000; telephone number 202–708–6401 (this is not a toll-free number).