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

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

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

Many have already filed comment letters highly critical of the agency's proposed rule during the official comment period. And more than 240 Capitol Hill lawmakers have already signed a letter sent to HUD asking it to scrap the rule and to work with the Federal Reserve on crafting a new one. NAFCU, CUNA and the NCUA did not testify at the hearing but also have filed comment letters expressing their opposition to many parts of HUD's proposed amendment.

Many dislike the rule for different reasons. Consumer advocates warn that it will confuse consumers. Brokers don't like the rule's handling of yield spread premium disclosures. One Capitol Hill lawmaker said HUD hadn't examined the impact of the proposed rule on small business owners. Others said HUD's rule conflicts with federal Truth-In-Lending requirements.

HUD was a no show to what Rep. Mel Watt (D-N.C.) said in opening remarks would have been a "bipartisan pummeling of a federal government agency" if the agency had appeared. HUD reportedly declined to participate because, as it had already sent the rule to OMB, it said it is obliged not to comment.

The Fed also declined to testify, citing reluctance to be publicly critical of another federal agency, Watt said. However, in a staff letter the Fed has expressed its concerns with HUD's proposed 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 times during a mortgage transaction and outlawing certain types of payments to mortgage brokers.

[email protected]

Ohio CUs Get FHLB Funding

CINCINNATI -- Several credit unions in Ohio have received grant money from the Federal Home Loan Bank of Cincinnati to help homeowners fight off foreclosures.

The funding, amounting to $200,000, was awarded to seven financial institutions, including Wright?EUR'Patt Credit Union, Day Air Credit Union, River Valley Credit Union and Universal 1 Credit Union. Additionally, Fifth Third Bank, Liberty Savings Bank FSB and National City Bank received funds as part of the "Preserving the American Dream" program.

"This grant will help Dayton-area families sustain home ownership 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 a homeowner receive foreclosure prevention counseling or benefit from other foreclosure mitigation steps.

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

[email protected]