The U.S. Department of Housing and Urban Development (HUD) today announced that it will once again delay the implementation date of the proposed changes in RESPA’s new required use definition by 3 months, from April 16th until July 16th, and that HUD intends to seek further public comment on required use practices to determine whether HUD’s proposed rule changes are necessary, or whether HUD should withdraw its new required use definition altogether. 

The changes to the required use definition, which would have effectively banned the offering of incentives or discounts to a consumer in exchange for the use of a settlement service provider in which the builder had an equity interest, were originally due to take effect in January, but were delayed as a result of lawsuits filed against HUD challenging these changes. While the announcement today will affect the implementation date of the required use definition changes, the timetable of all other changes to RESPA remains unaffected. Click here for a link to the announcement from HUD. For further information on the other changes to RESPA that HUD has proposed, please click here.

Authored By: 

David H. Sands

(213) 617-5536


Sherwin Root

(213) 617-5465