HUD's Interpretive Rule of RESPAHUD's Interpretive Rule of RESPA
Home Warranty of America, Inc. "HWA" continues to be a leading innovative provider of home warranty contracts and services in the industry. We realize many of you rely on us for information pertaining to this area. Thank you for that confidence.
In response to the recent "interpretive rule" published by the U.S. Department of Housing and Urban Development "HUD" in the June 25, 2010 Federal Register, many questions have recently been raised regarding service fees paid by home warranty companies to real estate professionals on a 'per transaction' basis.
HUD's "interpretive rule" declared the practice of paying real estate agents and brokers for compensable services as part of a transaction to be in accordance with section 8 of RESPA. While its pronouncement still left many unanswered questions, it did provide new information pertaining to their view on the nature of how they may interpret compensable versus non-compensable services on a case by case basis.
We encourage everyone to review the new information HUD has made available via it its June 25, 2010 interpretive rule by clicking on this link to the Federal Register's website http://edocket.access.gpo.gov/2010/pdf/2010-15355.pdf.
HWA wants to assure you that we are currently seeking all information available on this matter. Our goal is for HWA, its partners and affiliates to continue providing great service to consumers in clear accordance with the guidance provided by HUD. Please watch for another communication in the very near future.
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