Skip Header

Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

Home > News & Events > Inactive Financial Institution Letters 

Inactive Financial Institution Letters 

Real Estate Settlement Procedures Act

October 31, 1997


SUBJECT: Proposed Revisions to HUD's Regulation X

The U.S. Department of Housing and Urban Development (HUD) is seeking comment on the attached proposal to revise Regulation X, which implements the Real Estate Settlement Procedures Act (RESPA). The proposed rule is designed to promote meaningful disclosures about the functions and fees of mortgage brokers, while protecting consumers from fees that are illegal under Section 8 of RESPA. The proposal may have a significant impact on the manner in which some FDIC-supervised institutions provide disclosures for RESPA-covered transactions to their customers.

The proposed changes to the regulation include:

C Revising the definition of "mortgage broker"; C Amending requirements for providing customers with "good faith estimates"; and C Creating a "qualified safe harbor" provision to allow mortgage brokers to receive direct and indirect fees for performing certain settlement services. This would require the execution of a contract between the mortgage broker and the customer that discloses the amount of fees the mortgage broker would be receiving for its services.

The proposed revisions are open for comment through December 15, 1997. Comments on the proposal should be sent to the following address:

Rules Docket Clerk
Office of General Counsel, Room 10276
Department of Housing and Urban Development
451 Seventh Street, SW
Washington, DC 20410-0500

For more information, please contact one of the following HUD staff members: David R. Williamson, Director of the Office of Consumer and Regulatory Affairs (202-708-4560); Kenneth A. Markison, Assistant General Counsel for GSE/RESPA (202-708-1550); or Grant E. Mitchell, Senior Attorney for RESPA (202-708-1550).

FDIC staff members who may provide further assistance are Ken Baebel, Senior Review Examiner in the Division of Compliance and Consumer Affairs (202-942- 3086, e-mail:, or Susan M. van den Toorn, Counsel in the Legal Division (202-898-8707, e-mail:

Carmen J. Sullivan

Attachment: Federal Register, 16, Oct. 1997, pp 53912-53928; available from the FDIC web site:

Distribution: FDIC-Supervised Banks (Commercial and Savings)

NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street, N.W., Room 100, Washington, D.C. 20434 (800-276-6003 or (703) 562-2200). FDIC FILs and Press Releases are available on the FDIC web site:

Last Updated 07/16/1999

Skip Footer back to content