"RESPA reform is alive and well," said the Secretary-designee, a Texan who was president and chief executive of the Dallas Housing Authority from 1989 through 1996 and served as deputy secretary under Martinez.

While many observers had ventured that Martinez's departure would doom the controversial proposal, Jackson said otherwise. "Let me make this as clear as I can," he said. "The department will continue the work Sec. Martinez began -- making the process of buying and refinancing homes simple and less expensive to consumers across this country."

In front of lawmakers who have urged HUD to slow down the rulemaking process and rethink its proposal to allow lenders and others involved in the closing process to bundle all the services required into a single package at a guaranteed price and rework the now practically worthless good faith estimate borrowers receive after applying for a mortgage, Mr. Bush said:

"We understand that buying a home for the first time is complicated and we want to simplify the process. We want to help people understand the pros and cons of buying a home and be fully aware of what it means to buy a home and what it takes.

"We need to make the home buying process more affordable. Some of the biggest up-front costs in a home purchase are the closing costs. Sometimes they catch you by surprise. Many home buyers do not have the time to shop around looking for a better deal on closing costs. You're kind of stuck with what you're presented with. So they end up paying more than they should. So we have proposed new rules to make it easier for buyers to shop around and to compare prices on closing costs so they can get the best deal and the best service possible...

"...we want to make buying a home simpler. Many first-time buyers look at the paperwork from a loan application and frankly get a little nervous about all the fine print. Those forms can be intimidating to a first-time home buyer. They can be intimidating to the second- and third-time home buyer! This Administration has proposed new rules to simplify the forms home buyers and homeowners fill out when they apply for a loan or close on a mortgage. We understand that buying a home is a big step and so these recommendations we're making, these changes in the rules, will make that step easier...will enable people to make that step to buying a home...they'll be able to do so with more confidence.

"These are practical ways we are working to expand homeownership across the country. The dream of homeownership should be attainable by every hard-working American."

"The Hill view is that HUD has broken promises made to committee leadership that no rule would move in the near future," said lobbyist Howard Glaser. "HUD says they only promised not to publish anything prior to Congress' return from recess, and that HUD honored that promise. Whatever the reality, the transmittal to OMB is sure to be seen as a sign of bad faith by HUD and is not being received kindly on the Hill."

OMB has 90 days to review the bill, and unless it orders changes, HUD can publish the rule in final form anytime after that. Congress must be notified at least 15 days prior to publication.

Nevertheless, Rep. Dan Manzullo, R-Ill., chairman of the House Small Business Committee, plans to hold hearings Jan. 6 on what he called HUD's "flawed" RESPA rule. And in the upper chamber, Sen. Richard Shelby, D-Ala., said he was "disappointed" HUD did not heed his advice to reissue a revised rule for another round of comments by those impacted by the changes.

Rep. Manzullo, who has been critical of the economic impact study HUD made in connection with the RESPA rewrite it first proposed in July 2002, said the decision "to sneak through (the) flawed rule during the congressional recess once again demonstrates HUD's disdain for small business and the United States Congress."

The Illinois solon has argued that the new rules do not adequately address the impact that packaging settlement services will have on title firms, appraisal companies and other small businesses. "In addition to destroying thousands of small businesses, it is highly questionable that the proposed rule will save consumers money when they take out a mortgage," he has said.