by Tammy Campbell
Even the Madison Avenue ad agency executives from the AMC television series Mad Men might have a difficult time selling the mortgage industry on HUD’s new RESPA rule. The effort to reform the 34-year old law began in 2002. President Bush, speaking from the Rose Garden late in 2007, promised new mortgage rules as part of a plan to address the country’s already rising foreclosure rate. However, HUD’s latest proposal, published in March, faced significant criticism from the industry and some lawmakers. Despite such opposition, the rule became final on November 12, 2008 and is effective January 16, 2009 (although lenders have until January 1, 2010 to implement the new disclosure formats). This article summarizes the rule’s major provisions and offers some thoughts about what may happen when the Obama administration takes office in January 2009.