Two months into what may be considered the new normal with RESPA reform we are wondering what the changes accomplish. Click here for the new HUD settlement booklet, FAQs, procedures and more. Our perspective on RESPA reform is more work, same fees, same deck reshuffled, and settlement costs set high so as to not get caught short. This is not really about consumer protection; rather, it is about maximizing or forcing better efficiencies in the settlement agent industry – both financial and product. Those who can afford to upgrade or work with greater efficiencies will survive, maybe even benefit. The settlement agent industry will need to embrace technology to make itself more efficient (i.e. lower operating costs and faster delivery time). We deal with real estate information. That is our widget. Delivering the product in an efficient and meaningful manner will be the key. Will the consumer have a better understanding of the transaction, now that the Settlement Statement and GFE are both 3 pages, instead of 2? The jury is still out deliberating this question.

On another front, New Jersey recently passed legislation authorizing the counties to establish Homelessness Trust Funds as a means of eliminating homelessness throughout the state. The method of funding is to tack on a $3.00 charge to virtually every document that we now have to send for recording. Four counties have enacted ordinances that establish their Funds: Middlesex, Passaic, Bergen and Hudson, with another one, Somerset, coming on line on June 1, 2010. Click here for details on these developments per county. The real estate industry is one of the few shining stars of New Jersey. Over the last decade, however, our state legislature has sought to ride the back of the real estate product by increasing transfer fees (twice); tacking on so called mansion taxes and now a Homelessness Trust Fund charge, as a means of attempting to balance the out of control State Budget. Talk about killing the Golden Goose, or maybe it should be Goosing the Golden Goose . . .