OCC 96-41
Subject: Real Estate Settlement Procedures Act (RESPA)            Description: Final Rule and                       Regulation X                                                                                      Policy Statement 

TO:  Chief Executive Officers of all National Banks, Department
     and Division Heads, and all Examining Personnel


The Department of Housing and Urban Development (HUD) has issued
the attached final rule amending its Regulation X, which
implements the RESPA.  The final rule withdraws an exemption for
employer-employee payments and for payments made by borrowers for
computer loan origination (CLO) services.  It also introduces two
limited exemptions for payments that would otherwise be
prohibited by the statute.  The rule will become effective
October 7, 1996.

Also attached are three HUD policy statements.  One policy
statement sets forth HUD's interpretation of the statute and
regulations concerning the applicability of RESPA to the payments
for services from CLOs, and explains the regulatory and statutory
framework for HUD's treatment of payments to CLOs.  The second
policy statement sets forth the factors that HUD uses to
determine whether a controlled business arrangement is a sham
under RESPA or whether it constitutes a bona fide provider of
settlement services.  This policy statement also provides an
interpretation of the legislative and regulatory framework for
HUD's enforcement practices involving sham arrangements.  The
third policy statement provides HUD's interpretation of Section 8
of RESPA and the regulations concerning the rental of office
space, lock-outs and retaliation, and sets forth HUD's position
on the enforcement of this section of RESPA.

If you have questions contact your supervisory office or
Compliance Management at (202) 874-4428.





                                              
Bert A. Otto
Acting Deputy Comptroller
   for Compliance Management
Date:  July 30, 1996


Attatchments