New Law Regarding Builder Incentives Delayed
January 21, 2009 by Danilo Bogdanovic
Filed under Buyer Resources, New Construction/Builders
Last month, HUD passed a new law banning home builders from tying their incentives to the use of an affiliated lender (and for good reason - post about this to follow soon). This law is part of HUD's RESPA reform and was supposed to go into effect January 16. Unfortunately, HUD has delayed putting that law into effect.
One reason may be that the National Association of Home Builders (NAHB) is suing HUD in an attempt to block that law from passing. If the law passes, builders will lose revenue generated by their affiliated lender businesses so they have quite a lot at stake.
HUD has agreed to delay implementation of the law by 90 days (as of earlier this month). As I hear more, I'll keep you posted.
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