WASHINGTON -- A House Financial Services subcommittee held ahearing last week on the Department of Housing and Urban

Development's proposed rule on Real Estate Settlement ProceduresAct reform. But HUD might have the last word on the widely opposedrule as it has already sent the regulation to OMB for finalclearance (CU Times, Sept. 10).

In a case of legislative d?(C)j? vu, bankers, mortgage brokersand consumer groups once again voiced their objections before theSubcommittee on Oversight and Investigations to HUD's take onmortgage settlement reform.

Many have already filed comment letters highly critical of theagency's proposed rule during the official comment period. And morethan 240 Capitol Hill lawmakers have already signed a letter sentto HUD asking it to scrap the rule and to work with the FederalReserve on crafting a new one. NAFCU, CUNA and the NCUA did nottestify at the hearing but also have filed comment lettersexpressing their opposition to many parts of HUD's proposedamendment.

Many dislike the rule for different reasons. Consumer advocateswarn that it will confuse consumers. Brokers don't like the rule'shandling of yield spread premium disclosures. One Capitol Hilllawmaker said HUD hadn't examined the impact of the proposed ruleon small business owners. Others said HUD's rule conflicts withfederal Truth-In-Lending requirements.

HUD was a no show to what Rep. Mel Watt (D-N.C.) said in openingremarks would have been a "bipartisan pummeling of a federalgovernment agency" if the agency had appeared. HUD reportedlydeclined to participate because, as it had already sent the rule toOMB, it said it is obliged not to comment.

The Fed also declined to testify, citing reluctance to bepublicly critical of another federal agency, Watt said. However, ina staff letter the Fed has expressed its concerns with HUD'sproposed rule on RESPA reform.

HUD has said it needs to move fast to help homebuyers.

RESPA regulates closing costs and settlement procedures,requiring that consumers receive disclosures at various timesduring a mortgage transaction and outlawing certain types ofpayments to mortgage brokers.

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Ohio CUs Get FHLB Funding

CINCINNATI -- Several credit unions in Ohio have received grantmoney from the Federal Home Loan Bank of Cincinnati to helphomeowners fight off foreclosures.

The funding, amounting to $200,000, was awarded to sevenfinancial institutions, including Wright?EUR'Patt Credit Union, DayAir Credit Union, River Valley Credit Union and Universal 1 CreditUnion. Additionally, Fifth Third Bank, Liberty Savings Bank FSB andNational City Bank received funds as part of the "Preserving theAmerican Dream" program.

"This grant will help Dayton-area families sustain homeownership and protect their wealth," said Doug Fecher,president/CEO of Wright-Patt Credit Union.

Under the program, up to $3,500 will be made available to help ahomeowner receive foreclosure prevention counseling or benefit fromother foreclosure mitigation steps.

Ohio has been one of the states hit hard by foreclosures.

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