The uncertainty surrounding the enforcement of the Real Estate Settlement Procedures Act (RESPA) raises concerns with potential changes under the Trump administration. If the Consumer Financial Protection Bureau (CFPB) were dismantled, the enforcement role may return to the Department of Housing and Urban Development (HUD), which previously lost this responsibility. Experts predict that state regulators, particularly in Democratic states, will intensify their enforcement of RESPA, leading to possible inconsistencies and confusion due to varying state interpretations. This decentralized approach could create challenges for businesses operating across different states with disparate rules.
If the Bureau isn't there to administer this stuff, someone has to and it might move back to HUD, but this job was taken away from HUD for a reason, Cain said.
I think we are going to see some of the state attorneys general get involved to try to circumvent the loss of power that the bureau has, Marx Sterbcow said.
The problem is, is that you don't get uniformity, Cain said. What the New York attorney general thinks, the Pennsylvania attorney general, Colorado and California think may all be different things.
You may see more of that where state regulators have their own views of what they think is permissible or not permissible under RESPA and then we end up with 30 different views on the statute, Rich Andreano said.
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