A tug-of-war is heating up over an amendment to the Real Estate Settlement Procedures Act, and mortgage lenders are finding themselves at both ends of the rope.

Last week, Henry G. Cisneros, secretary of housing and urban development, sent a letter to Rep. Jim Leach, chairman of the House Banking Committee, opposing an amendment that would roll back a HUD rule banning referral fees in mortgage transactions. That rule is to take effect Oct. 7.

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