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Supreme Court case may leave big mark on industry, part 1
Posted Date: Monday, December 8, 2014
Must a federal agency engage in a notice-and-comment procedure before it can significantly alter an interpretation of a rule of agency regulation? This is the question presented to the U.S. Supreme Court in a case that could significantly impact the way government agencies issue, regulate and enforce regulations through the use of “interpretive” rules — including the CFPB’s approach to interpreting RESPA. Don’t miss our summary of this important case and recent oral arguments presented to the high court.
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Supreme Court hears TILA case, part 1
Posted Date: Friday, November 21, 2014
On Nov. 4, the U.S. Supreme Court heard oral arguments in Larry and Cheryle Jesinoski v. Countrywide Home Loans Inc., et al., (No. 13-684), a case that will resolve a circuit court split on portions of the Truth in Lending Act (TILA) that give a borrower the right to rescind, or cancel, a mortgage loan. At issue in the case, which has been making its way through the courts for nearly five years, is whether under TILA, a borrower can exercise his right to rescind a transaction by notifying the creditor in writing within three years of the transaction’s consummation
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Lessons from Lighthouse: New best practices for MSAs
Posted Date: Thursday, December 11, 2014
As the settlement service industry continues to absorb the impact of the CFPB’s consent order with Lighthouse Title Inc., parties engaged in marketing service agreements should lock their agreements down, according to discussions during a recent October Research, LLC webinar. Read on for practical tips and analysis of the views stated by the bureau in the consent order, and to find out how you still can take advantage of this instructional webinar.
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Are lead generators, lenders CFPB’s next target?
Posted Date: Monday, December 15, 2014
Do you work with a lead-generation company that solicits mortgage information from consumers and sells or passes that information on to a lender? You could run afoul not only of the CFPB, but many consumer lending laws as well, according to a recent October Research, LLC webinar.
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RESPA experts: Expect high state activity in 2015
Posted Date: Monday, November 24, 2014
With the CFPB making headlines for enforcement actions and company investigations across the country, and RESPA lawsuits being filed in various federal courts, it’s important to focus on legislative and regulatory efforts at the federal level — but it’s becoming equally important to stay aware of state activities, many industry leaders caution. Here’s a list of states in which they expect to see increased activity in 2015.
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CFPB expands mortgage servicing rules
Posted Date: Friday, November 21, 2014
Nearly a year after implementing new mortgage servicing rules for the industry, the Consumer Financial Protection Bureau on Nov. 20 proposed new rules that would provide foreclosure and additional servicing transfer protections for consumers. Read on to see the details of the proposed rule.
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Liability after foreclosure disclosure highlighted in webinar
Posted Date: Friday, November 21, 2014
Disclosures for liability after foreclosure on the new TILA-RESPA integrated mortgage forms were highlighted in remarks at a Consumer Financial Protection Bureau webinar conducted Nov. 18 in San Francisco. Read on to find out the details of when and how to make the disclosure correctly.
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CFPB webinar addresses more Closing Disclosure questions
Posted Date: Monday, November 24, 2014
More questions about Closing Disclosure forms were answered by the Consumer Financial Protection Bureau (CFPB) in a webinar conducted Nov. 18 in San Francisco. Read on to find out what CFPB officials had to say about the form.
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Plaintiffs attempt to muck up required use
Posted Date: Thursday, November 13, 2014
Can the mere provision of a real estate contract by settlement service providers establish a violation of RESPA’s required-use prohibition? When a Pennsylvania couple discovered undisclosed water damage to their newly purchased home, they filed suit against a relocation company for allegedly requiring at closing that title insurance be provided by a specific company. They also sued their title company for failing to disclose an alleged AfBA. But were their claims all wet? Read on as the court airs out RESPA Sections 2607 and 2608.
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Class-action RESPA suit falls short with equitable tolling defense
Posted Date: Monday, November 17, 2014
Many attorneys in the RESPA world may be interested in a recent victory in a decision rendered by the Third Circuit Court of Appeals, which shot down the plaintiffs’ attempt to revive a captive reinsurance case with an equitable tolling argument. With equitable tolling becoming a common defense in many RESPA cases, you won’t want to miss this latest decision.
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Does servicer have to respond to QWR involving prior servicer?
Posted Date: Monday, November 24, 2014
A homeowner being considered for loss mitigation sent a qualified written request (QWR) to his loan servicer that disputed information from a prior servicer. When the servicer failed to respond in a timely fashion, the homeowner sued for RESPA violations, among other counts. With little case law on the subject to draw from, a Massachusetts court decided the issue itself. Read on to see what it had to say.
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CFPB speech includes bank admonishment
Posted Date: Monday, November 24, 2014
In a speech aimed at discussing electronic payment networks, Consumer Financial Protection Bureau Director Richard Cordray made a statement to the banking industry along the way. Read on for the details of what he said.
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Former CFPB exec joins HUD
Posted Date: Thursday, December 4, 2014
The Senate confirmed the next deputy secretary of the U.S. Department of Housing and Urban Development. Read on to find out who it will be.
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Comments urge changes to TILA-RESPA amendments
Posted Date: Thursday, December 4, 2014
In the response period to the Consumer Financial Protection Bureau’s latest tweaks over its final TILA-RESPA disclosure form rule, commenters took time to point out ways to improve the recent changes as well as other changes that would improve the overall rule. Read on to find out what they had to say.
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Zillow employees allege company’s MSAs violate RESPA
Posted Date: Thursday, December 18, 2014
Two employees of Zillow Inc., have filed workplace discrimination lawsuits in California federal court, alleging the online home and real estate marketplace retaliated against them when they brought potential RESPA violations to the attention of their superiors. The lawsuits describe an alleged marketing service agreement between Zillow and lenders. Will the plaintiffs’ high-powered celebrity attorney file RESPA lawsuits next?
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NAR offers MSA ‘do’s’, ‘don’ts’ to members
Posted Date: Thursday, December 18, 2014
As the real estate and settlement service industries wait to hear whether the CFPB will take action against the real estate brokers involved in Lighthouse Title Inc.’s marketing service agreement, the National Association of Realtors is advising its members on what steps they should take to make sure their MSAs are compliant and in line with the CFPB’s thinking in the consent order.
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Who is a borrower under RESPA?
Posted Date: Thursday, December 18, 2014
Is it the loan borrower? Is it the title holder, if that party happens to be a different person, and she takes over loan payments? Can both be considered borrowers if they bring a RESPA claim? These are the questions recently put to a California district court. Read on to find out how the court resolved this conundrum.
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Discovering when clock starts on RESPA violation statute
Posted Date: Thursday, December 18, 2014
A California resident whose home fell into default filed action to stop the trustee sale of her home. In her amended complaint, the plaintiff alleged that her originating loan documents were frauds, that the servicers concealed a fraudulent scheme from her for seven years, and that they did not have the rights to her mortgage loan. But was she able to prove the fraud was concealed from her, and thereby toll the statute of limitations? Read on for the details.
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SEC charges NY attorney in Ponzi scheme
Posted Date: Thursday, December 18, 2014
The Securities and Exchange Commission on Dec. 12 charged a New York attorney with conducting a Ponzi scheme that defrauded legal clients, close family members and friends. Read on for the details that led to the charges.
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Plaintiffs issue charges, but do they state a claim?
Posted Date: Monday, December 15, 2014
A homeowner who made timely payments on her mortgage for 15 years fell into default, and when disputing her debt, filed a complaint to the Consumer Financial Protection Bureau. Read on to find out whether the plaintiffs in this Michigan case were able to state a claim for 20 counts of RESPA violations.
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NCOIL reaches out to CFPB, Cordray
Posted Date: Monday, December 15, 2014
Hoping for a way to foster “common understanding” with the Consumer Financial Protection Bureau, the National Conference of Insurance Legislators wrote to CFPB Director Richard Cordray to initiate a formal dialogue between the two groups.
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Ohio judge says Regulation X claim can proceed
Posted Date: Monday, December 15, 2014
After finding irrelevant a servicing firm’s argument that RESPA did not apply to a couple’s claim because they did not live in the property at issue when the alleged violations occurred, an Ohio federal judge on Dec. 2 refused to dismiss the case. Read on to find out what section of Regulation X is still on the table in this case.
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Supreme Court case may leave big mark on industry, part 2
Posted Date: Thursday, December 11, 2014
Must a federal agency engage in a notice-and-comment procedure before it can significantly alter an interpretation of a rule of agency regulation? This is the question presented to the U.S. Supreme Court in a case that could significantly impact the way government agencies issue, regulate and enforce regulations through the use of “interpretive” rules — including the CFPB’s approach to interpreting RESPA. In part 2 of this story we explore the potential fallout from the eventual decision.
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Indiana plaintiff denied second bite at RESPA apple
Posted Date: Thursday, December 11, 2014
The plaintiff asked a court to reconsider its award of summary judgment to her mortgage loan servicer in a case in which she alleged the servicer failed to properly respond to her qualified written request for information about her loan. Although the court said the plaintiff’s pro-se motion was difficult to follow, it quickly concluded that the plaintiff offered no persuasive basis for reconsidering the previous ruling.
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MBA, NAR, ALTA team up for TILA-RESPA training
Posted Date: Thursday, December 11, 2014
The Mortgage Bankers Association, the National Association of Realtors and the American Land Title Association will host five regional forums to help train their respective industries to comply with the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosure rule. Read on to find out where you can take advantage of these educational sessions.
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HUD, VA reach out to homeless vets
Posted Date: Thursday, December 11, 2014
The Department of Housing and Urban Development and the Department of Veteran Affairs are offering a second round of housing assistance to nearly 2,000 homeless veterans nationwide.
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Wells Fargo discusses Closing Disclosures plan
Posted Date: Wednesday, December 10, 2014
Wells Fargo is addressing questions from title agents and other settlement services professionals about their plans for the Closing Disclosure, after the lender announced in September that it would deliver the Closing Disclosure to borrowers when the new rules take effect Aug. 1, 2015.
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FHFA requires servicing oversight from Fannie, Freddie
Posted Date: Monday, December 8, 2014
An advisory bulletin issued by the Federal Housing Finance Agency will require Fannie Mae and Freddie Mac to provide ongoing oversight of sellers and servicers with which they do business. Read on for the details and what it means for those sellers and servicers.
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Appeal calls for bifurcation of liability, damages in Section 2605
Posted Date: Monday, December 8, 2014
A couple appealing a summary judgment against their RESPA claim suggested the court should have used its authority to bifurcate the issues of liability and damages under Section 2605. Read on to find out whether the appellate court agreed with their argument.
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Cordray ties financial education, libraries
Posted Date: Monday, December 8, 2014
Consumer Financial Protection Bureau Director Richard Cordray said in an address to an Ohio library that the bureau wants to provide libraries and librarians the tools to help consumers take care of their financial needs. Read on to find out the reason behind the bureau’s push.
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Supreme Court hears TILA rescission case, part 3
Posted Date: Thursday, December 4, 2014
On Nov. 4, the U.S. Supreme Court heard oral arguments in Larry and Cheryle Jesinoski v. Countrywide Home Loans Inc., et al., (No. 13-684), a case that will resolve a circuit court split on portions of the Truth in Lending Act (TILA) that give a borrower the right to rescind, or cancel, a mortgage loan. At issue in the case, which has been making its way through the courts for nearly five years, is whether under TILA, a borrower can exercise his right to rescind a transaction by notifying the creditor in writing within three years of the transaction’s consummation. In the final part of this series, we hear the arguments from the defense and what the Justices asked of counsel.
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N.Y. plaintiffs, servicer dispute RESPA’s statute of limitations
Posted Date: Thursday, December 4, 2014
Confused by multiple servicing transfers of their mortgage loan, a father and son continued to make timely mortgage payments — to the wrong company. After several subsequent transfers, the plaintiffs took to court to battle thousands of dollars in late fees, harm to their credit scores and erroneously applied forced-placed insurance. But were their claims filed in time to meet RESPA’s statutes of limitations?
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Illinois court tackles ‘threadbare’ RESPA claim
Posted Date: Thursday, December 4, 2014
In a RESPA complaint the court said was “not immediately clear,” a plaintiff alleged that her mortgage lender and other settlement service providers received improper fees related to her loan. But after struggling to decipher the plaintiff’s precise allegations, the court found that the plaintiff failed to plausibly state a claim for relief under RESPA.
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Supreme Court hears TILA rescission case, part 2
Posted Date: Monday, November 24, 2014
On Nov. 4, the U.S. Supreme Court heard oral arguments in Larry and Cheryle Jesinoski v. Countrywide Home Loans Inc., et al., (No. 13-684), a case that will resolve a circuit court split on portions of the Truth in Lending Act (TILA) that give a borrower the right to rescind, or cancel, a mortgage loan. At issue in the case is whether under TILA a borrower can exercise his right to rescind a transaction by notifying the creditor in writing within three years of the transaction’s consummation. The second part of this series examines the plaintiff's oral arguments and justices' questions.
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QWR final dispute after long process to recover damages
Posted Date: Friday, November 21, 2014
After a sinkhole caused damage to a Florida home, the homeowner went through a long and litigious process to get the repairs paid for through his homeowners insurance policy with his lender. More than three years after the damage, including a divorce which put into question whose name was and should be on the mortgage note, all claims were resolved except for the homeowner’s attorney fees and costs. That award, related to RESPA claims, led to both parties asking for summary judgment.
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Hensarling, Walters remain atop Financial Services Committee
Posted Date: Friday, November 21, 2014
House Financial Services Committee Chairman Jeb Hensarling (R-Tex.) has been re-elected for a second term as chairman of the committee. Maxine Walters (D-Calif.) was re-elected as the ranking minority member of the committee. Read on for more committee news, including the selection of subcommittee chairmen.
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Nevada provides guidance on rebate, inducement laws
Posted Date: Tuesday, November 18, 2014
The Nevada Division of Insurance on Nov. 10 issued a bulletin to provide guidance to title insurers and agents, and others in the industry, on how it interprets and enforces rebate and inducement laws. Curious about this latest development? Don’t miss our webinar, “Marketing Services Agreements in the New Era of RESPA Enforcement,” at 2 p.m. EDT Tuesday, Nov. 18. Click here for more information about Nevada’s bulletin and to find out how to register for the webinar.
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CFPB’s Regulation X amendments spoil plaintiff’s RESPA claim
Posted Date: Monday, November 17, 2014
An Oklahoma federal court recently granted summary judgment to Wells Fargo after a plaintiff alleged the bank violated RESPA by failing to inform her of insurance changes, as the plaintiff alleged conduct that predated the CFPB’s January 2014 amendment to Regulation X.
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Which letter qualifies as QWR?
Posted Date: Monday, November 17, 2014
A California homeowner whose house went through foreclosure proceedings brought a RESPA lawsuit against his mortgage servicer, alleging it did not respond to repeated qualified written requests (QWRs). Read on to find out whether the district judge ruled that any of his correspondence qualified as QWRs.
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CFPB settles with lender over loan originator compensation rules
Posted Date: Monday, November 17, 2014
Franklin Loan Corp. agreed to a $730,000 settlement with the Consumer Financial Protection Bureau after the bureau claimed the lender violated Federal Reserve loan originator compensation rules for bonuses that it gave employees. Read on to learn about the issues the bureau had with the compensation.
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