H.R. 4627 (107th): Real Estate Settlement Fairness Act

107th Congress, 2001–2002. Text as of May 01, 2002 (Introduced).

Status & Summary | PDF | Source: GPO

HR 4627 IH

107th CONGRESS

2d Session

H. R. 4627

To amend the Real Estate Settlement Procedures Act of 1974 to prohibit certain unearned fees in connection with settlement services involved in residential mortgage loan transactions.

IN THE HOUSE OF REPRESENTATIVES

MAY 1, 2002

Mr. BARRETT of Wisconsin (for himself, Mr. RUSH, and Ms. SCHAKOWSKY) introduced the following bill; which was referred to the Committee on Financial Services


A BILL

To amend the Real Estate Settlement Procedures Act of 1974 to prohibit certain unearned fees in connection with settlement services involved in residential mortgage loan transactions.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ‘Real Estate Settlement Fairness Act’.

SEC. 2. PROHIBITION OF CERTAIN UNEARNED FEES.

    (a) IN GENERAL- Subsection (b) of section 8 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2607(b)) is amended--

      (1) by inserting ‘(1)’ after ‘(b)’; and

      (2) by adding at the end the following new paragraph:

    ‘(2) PROHIBITION OF CERTAIN UNEARNED FEES-

        ‘(A) IN GENERAL- No person shall, in connection with a transaction involving a federally related mortgage loan, make or receive a charge for a real estate settlement service rendered by another person in an amount that exceeds the amount paid for such service to the person actually rendering such service.

        ‘(B) NO SPLITTING REQUIREMENT- Charges in excess of the amount specified in subparagraph (A) shall violate the prohibition under such subparagraph whether such excess amount is retained by a single person or split between two or more persons.’.

    (b) REGULATIONS- Not later than 90 days after the date of the enactment of this Act, the Secretary of Housing and Urban Development shall prescribe final regulations pursuant to section 19(a) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2617(a)) to carry out the amendments made by subsection (a) of this section.

    (c) EFFECTIVE DATE- The amendments made by subsection (a) shall be made on, and shall apply to charges made on and after, and the regulations prescribed pursuant to subsection (b) shall take effect upon, the expiration of the 270-day period beginning on the date of the enactment of this Act.