Plan to Create Guaranteed Mortgage Package Comes Under Fire
In testimony this week before the Senate Banking Committee on HUD's proposed RESPA changes, House Small Business Committee Chairman Donald Manzullo (R-IL) said that he is drafting a letter to HUD that would suggest the agency "essentially deep-six" plans to create a Guaranteed Mortgage Package (GMP). ICBA strongly shares this view about the GMP plan, a bundling of settlement services that would place community banks at a competitive disadvantage to the largest mortgage lenders. This was the second Senate Banking Committee hearing on the RESPA plan in recent weeks. Committee Chairman Richard Shelby (R-AL) has already suggested that HUD consider reissuing its entire RESPA reform proposal because of criticism about the GMP and other aspects of the plan.