Controversial regulations under the Real Estate Settlement Procedures Act are scheduled to go into effect Dec. 2. Stephen B. Ashley, president-elect of the Mortgage Bankers Association, in an interview with The Mortgage Marketplace, critiques the regulations. Ashley is chairman and chief executive officer of the Sibley Mortgage Corp., Rochester, N.Y. He also has been chairman of the MBA's legislative committee. MMP: What are the principal concerns mortgage bankers have about the Respa regulations? Ashley: There are two fundamental issues. First, should a real estate sales person have a financial interest in any way, shape or form in deciding where the borrower/home buyer obtains financing?
That is fundamental because the minute a real estate sales person has a financial interest in the source of funding that individual's ability to fairly present choices of mortgage financing to a borrower is compromised.