Thirty-four members of the House of Representatives have signed a letter urging the new chief of the Department of Housing and Urban Development to clarify rules for compensating mortgage brokers.

The March 12 letter to HUD Secretary Andrew Cuomo comes as mortgage lenders face scores of class actions over alleged violations of the Real Estate Settlement Procedures Act, which governs payments to brokers.

"Given the legal uncertainty by the courts and the potential loss of a significant resource for homeownership, HUD's clarification of RESPA's applicability to the lender-paid broker fees is eminently necessary," said Rep. Rick Lazio, R-N.Y., in a statement. He is chairman of the House Banking Committee's housing subcommittee.

-Heather Timmons

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