Endorsing a joint Department of Housing and Urban Development-Federal Reserve Board plan, the White House has thrown its considerable weight behind efforts to enact comprehensive reforms to out-dated laws designed to protect mortgage borrowers. But it probably won't help move the issue off dead-center.

In fact, House Republicans have grown so weary of waiting for regulators, the housing lobby and consumer interests to reach a consensus that they are now ready to proceed on a piecemeal basis.

"We may need to lower our sights," says a member of Rep. Marge Roukema's, Rep.-N.J., staff. "It would be a shame to wait until next year, but we probably won't get comprehensive legislation this year." Rep. Roukema chairs the House Financial Institutions and Consumer Credit Subcommittee.

However, Democrats oppose what one minority staffer calls "tinkering around the edges." Their side wants it all or nothing at all, the staffer says. "The issues are linked. That said, it looks like we won't be doing anything."

HUD hasn't given up, though. Sec. Andrew Cuomo continues to meet on a regular basis with industry and consumer groups in an effort to bring the two sides together. So far, though, no one seems willing to.

The HUD-Fed plan, developed more than a year ago, would revise the Real Estate Settlement Procedures and Truth in Lending Acts by addressing four major issues -- the annual percentage rate computation lenders are required to provide consumers, the good faith estimate of closing costs also required from lenders, the timing of these disclosures and abusive lending practices.

One of the most promising proposals calls for the "bundling" of settlement services into a comprehensive package with a single and guaranteed fee. There are important questions still to be answered. For example, should the package cover just closing costs or the mortgage rate and points, too? Another sticking point is whether or not packaging should be mandatory?

These and other issues notwithstanding, though, if the concept becomes law, borrowers not only would be able to compare loan fees more easily, they would not be surprised at the closing table with unexpected charges. But don't hold your breath. And certainly don't put off buying a house until lawmakers get the message that divorce is often easier than closing on a house.

Although Sec. Cuomo has been trying to orchestrate an agreement between industry and consumer interests for months, each side has refused to look beyond its own self-interests. Lenders, for example, don't like the idea of a dual system in which borrowers could choose to shop for better deals on appraisals, surveys and the like. The want one or the other, but not both. They also want the right to refuse to do business with closing-cost packagers who aren't up to their standards.

Realty brokers don't think packaging should be compulsory. They also think packages should be itemized so home buyers can shop the various services more easily, and that anyone should be allowed to offer a bundle of services, not just lenders. Title companies, on the other hand, are not convinced that a case has even been made for bundling. And consumer groups remain adamant that their price of admission is stronger laws to protect borrowers from unfair and deceptive lending practices.

Until the various factions can reach an acceptable compromise, congressional action isn't likely, even with a push from President Clinton. The issues are just too complicated for lawmakers to deal with on their own, according to key staffers. "When I have to brief Congressmen or staff, their eyes just glaze over," says one.

Published: May 10, 1999

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When Lew Sichelman first started writing about housing in 1969, he was the youngest real estate writer in the country. Now, 37 years later, he's one of the oldest -- and most decorated. He has been rated the top housing columnist in the country by the National Association of Realtors as well as by his peers in the National Association of Real Estate Editors. Indeed, NAREE has recognized his work on numerous occasions. One year - due to his advancing age, he can't recall which one - he earned top honors in the annual NAREE Journalism Contest in three out of the four major writing categories. It was the first time one writer has won so many NAREE awards in a single year. Known for his ability to make even the most difficult topics understandable, Sichelman also has been honored by the National Association of Home Builders and the Mortgage Bankers Association. He began providing in-depth coverage of and consumer-oriented information about housing and housing finance at the Washington Daily News, where he was real estate editor. He held that same position for nine more years at the Washington Star, which purchased the News in 1972. The Star, a so-called "writer's newspaper" which also had the misfortune of being an evening paper, was put out of its misery in 1981, and Sichelman, who had begun self-syndicating his column in 1978, decided to become a full-time columnist. Today, his column, "The Housing Scene," is distributed by United Media to newspapers throughout the country. He also is on the staff of National Mortgage News, an independent newspaper which is considered the bible of the mortgage business. And he writes for numerous other publications, including MarketWatch.com, where he answers readers questions once a week, Sports Illustrated (don't ask), RealtyTimes.com, BigBuilder and others. Sichelman is married, the father of five and grandfather of eleven.