Some Congressional leaders fear that a proposed federal housing regulation could put thousands of small real estate settlement companies out of business and increase the cost of buying a home.
Changes proposed by the Department of Housing and Urban Development unfairly would give mortgage lenders the ability to bundle support services when offering home mortgages, said Rep. Don Manzullo (R-Ill.), chairman of the House Small Business Committee.
The bundled services could force home buyers to spend more money buying a home by preventing them from finding less expensive services to handle title searches, appraisals or other required elements.
“The continued existence of tens of thousands of American small businesses is at stake, depending on HUD’s revisions to its initial proposal,” Manzullo said. He said HUD is trying to evade public comment by first seeking approval of the plan from the Office of Management and Budget.
“This flawed strategy by HUD … could cost thousands of American jobs,” he said.