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Informational Memorandum
Subject:RESPA Amendments
Date of Memorandum:03/18/1997
Expiration Date:
Signed By:Siefkes, Roger for R.Smith
FCA Contact Person:Holland, Tom
Contact Phone:703-883-4484
List of Attachments:Five Separate Issuances

March 18, 1997

To: The Chief Executive Officer
All Farm Credit System Institutions

From: Roland E. Smith, Director /s/ Roger G. Siefkes for
Office of Examination

Subject: Informational Memorandum--Real Estate Settlement Procedures Act Amendments

The Farm Credit Administration (FCA) is distributing five separate issuances from the Department of Housing and Urban Development (HUD) that address regulatory amendments to Regulation X, which implements the Real Estate Settlement and Procedures Act of 1974 (RESPA). The purpose of RESPA is to provide borrowers pertinent and timely disclosures regarding the nature and costs of real estate settlements.

The amendments primarily address employer-employee payments, computer loan origination services, other related issues, and reflect statutory changes that occurred in 1996 that impacted certain features of the covered subjects. Although the following summaries highlight the general content of each issuance, you should refer to the attached Federal Register (FR) copies to independently determine how the changes impact your operations.

A. 61 FR 29238, June 7, 1996, Final Rule. This rule was to have become effective October 7, 1996 (see discussion below for changes to the effective date). Among other things, the rule:
B. 61 FR 41944, August 12, 1996, Correction and Revision of 61 FR 29238. This included a technical revision to Appendix D, "Controlled Business Arrangement Disclosure Statement Format," and a correction to the "Paperwork Reduction Act Statement" in the preamble to the June 7, 1996 rule.

C. 61 FR 51782, October 4, 1996, Notice of Delay of Effectiveness. This issuance notified readers that the "Economic Growth and Regulatory Paperwork Reduction Act of 1996" (signed into law on September 30, 1996) delayed the effective date of the June 7, 1996 rule (originally scheduled for October 7, 1996). This issuance indicated an effective time schedule would be provided within 30 days, noted that the entire June 7, 1996 rule was delayed, but noted that Appendix D, "Controlled Business Arrangement Disclosure Statement Format," that was issued on August 12, 1996, could be used on an optional basis.

D. 61 FR 56624, November 4, 1996, Notice of Time Schedule for Establishing Effective Date of Rule. This issuance notified readers that, within 15 days, HUD would publish a final rule that would make effective those provisions of the June 7, 1996 rule that were delayed by the "Economic Growth and Regulatory Paperwork Reduction Act of 1996."

E. 61 FR 58472, November 15, 1996, Final Rule. This rule implements parts of the June 7, 1996 rule to be effective January 14, 1997. Among other things, this rule:

The FCA strongly encourages the appropriate members of your staff to become familiar with applicable portions of these documents. If you have questions regarding this document or similar previous documents, please call Jerry Erickson in the Office of Examination at (703) 883-4483.