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Lighthouse: ‘We did not agree to the CFPB findings’
Posted Date: Thursday, November 13, 2014
Lighthouse Title, which made headlines last month for entering into a consent order with the CFPB to settle concerns about its marketing service agreements (MSAs), is speaking out on what it called a “watershed moment” for MSAs. The company recently defended its integrity and ethics, voiced its disagreement with the CFPB’s findings and thanked the industry for the support it has received since the consent order was announced Sept. 30. And if you’re still eagerly following this story, you won’t want to miss RESPA News’ webinar next week on the increased regulatory scrutiny on MSAs. Read on for Lighthouse’s response and to find out how you can hear more about it in our upcoming webinar.
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C&C Mortgage responds to claims in class-action suit
Posted Date: Thursday, October 30, 2014
A California federal court judge received response on some of the claims, including RESPA, filed against Castle & Cook Mortgage LLC in a class-action lawsuit seeking more legal remedies and restitution than homebuyers were offered by a settlement reached last year between the mortgage lender and the CFPB. Read on to find out what’s next for this case.
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Top 6 leg-reg challenges for AfBAs in 2015
Posted Date: Thursday, October 30, 2014
What are the top Dodd-Frank implementation and RESPA compliance challenges for affiliated businesses in the near term? Read on as two top RESPA attorneys and RESPRO leaders provide an overview of the major legislative, regulatory and legal trends facing affiliated mortgage lenders, real estate brokers and title insurance/settlement service companies in the next year.
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Court goes in-depth on RESPA Sections 2605 and 2607
Posted Date: Monday, October 20, 2014
A federal court in New York last month tackled two tricky sections of RESPA alleged by a plaintiff who filed suit against Wells Fargo Bank NA: Section 2605, which concerns qualified written requests (QWRs), and Section 2607, which involves unearned fees and illegal kickbacks. The court’s in-depth analysis of the plaintiff’s complaint serves as a virtual primer on these portions of the statute. To reap the benefits of the court’s tutorial, keep reading.
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CFPB intends to be ‘cop on the beat,' Cordray says
Posted Date: Monday, October 27, 2014
Consumer Financial Protection Bureau Director Richard Cordray talked recently about the bureau living up to its “cop on the beat” status envisioned by its creation within the Dodd-Frank Act. He said the bureau feels “a special intensity toward those who lie, cheat, and steal from consumers.” Read on to see what else Cordray had to say about the CFPB’s future role in rulemaking and enforcement.
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CFPB updates compliance guides
Posted Date: Monday, November 10, 2014
After finalizing amendments to its Ability-to-Repay rules under the Truth in Lending Act, the Consumer Financial Protection Bureau said it was updating its compliance guides to reflect the changes. Read on for the details.
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Precedent leads ruling on actual damages
Posted Date: Thursday, November 13, 2014
An Ohio magistrate judge asked to rule on whether actual damages were stated by a plaintiff relied on a 6th Circuit Court ruling to side with the plaintiff. Read on to find out why.
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Mortgage servicing regulations at issue
Posted Date: Thursday, November 13, 2014
Three banking associations have told federal regulators that upcoming requirements regarding mortgage servicing assets are too restrictive for the marketplace. The topic was addressed in a session at the Mortgage Bankers Association convention as well. Read on to find out the association’s views.
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Senators push SEC on potential information disparity
Posted Date: Thursday, November 13, 2014
Two senators are pushing Securities and Exchange Commission Chairwoman Mary Jo White to explain the agency’s potential disparity between getting information to the public and to private subscribers. Read on for the details.
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Survey: TILA-RESPA disclosures have lenders wary of loan quality
Posted Date: Monday, November 10, 2014
What better place to find out some of the impact of the RESPA-TILA integrated mortgage disclosures than the Mortgage Bankers Association’s annual convention? At least that’s what Capsilon Corp. thought, taking time to survey more than 100 executives from mortgage lenders during the convention. Read on to find out the details of their survey.
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Judge blasts plaintiffs for ‘gaming the system’ in RESPA case
Posted Date: Monday, November 10, 2014
In the wake of the U.S. financial system collapse and national foreclosure crisis, some plaintiffs are using loan modification offers to stay in their homes “rent-free” in schemes designed to “game the system” — and in this case, “this is not the first rodeo for these plaintiffs,” a federal Alabama court judge recently said. Read on to find out what the judge had to say about the plaintiffs’ claim that their loan servicer violated RESPA, and how such claims are becoming part of this unfortunate trend.
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Idaho judge cites 9th Circuit Court opinions on QWRs in RESPA case dismissal
Posted Date: Monday, November 10, 2014
In recommending that a couple’s claim under RESPA Section 2605(e) be dismissed, the judge relied on decisions by the 9th Circuit Court regarding the definition of loan servicing related to QWRs. Read on to make sure you are up to date on the latest circuit court trends.
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CFPB faces management challenges, OIG says
Posted Date: Monday, November 10, 2014
A report from the Office of Inspector General highlights five major management challenges for the Consumer Financial Protection Bureau. According to the OIG, not addressing the challenges could hamper the bureau’s work on its strategic objectives.
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N.Y. emergency reg places restrictions on AfBAs
Posted Date: Thursday, November 6, 2014
For more than a decade, New York legislators and regulators fought to enact title insurance licensing laws — and with the industry’s support, they were successful in doing that earlier this year. But now regulators have issued an emergency rule amending the new title insurance licensing law that some say could have serious implications for title insurance providers who are involved in affiliated business arrangements. Read on for the latest development in New York’s longstanding title insurance regulation saga.
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Don’t waste time suing over Section 2604 compliance
Posted Date: Thursday, November 6, 2014
A recent case included a charge made against a lender for failing to comply with Section 2604 of RESPA. But for nearly a decade now, courts have ruled that private actions cannot be brought over Section 2604 compliance. Read on to find out why.
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Plaintiffs allege PNC Bank failed to timely provide GFE
Posted Date: Thursday, November 6, 2014
The pro-se plaintiffs, no strangers to the court system, alleged that the bank’s conduct violated RESPA Section 2604, but the bank countered that Section 2604 does not provide for a private right of action. Read on for the court’s decision in this case.
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Maine pro-se plaintiff keeps QWR claim alive
Posted Date: Thursday, November 6, 2014
A mortgage servicer’s failure to adequately respond to a homeowner’s multiple QWRs eventually caught up with it, as the plaintiff prevailed on his claim that the servicer violated RESPA Section 2605(e). However, Freddie Mac was cleared of the charge, which was just one of 17 counts in the plaintiff’s pro-se complaint filed against multiple parties.
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NAHB report shows housing market recovery continues
Posted Date: Thursday, November 6, 2014
The latest index from the National Association of Home Builders showed that nationwide housing markets moved closer to normal activity levels in the third quarter. Read on for full details.
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Some mortgage servicers cited by CFPB
Posted Date: Thursday, October 30, 2014
In a review of supervisory actions that wrapped up between March and June, the Consumer Financial Protection Bureau said it found that several mortgage servicers were well within compliance of new rules instituted in January. Some, however, fell short. Read on to find out why.
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Proper QWR response at issue on appeal
Posted Date: Thursday, October 30, 2014
A homeowner who fell behind on her mortgage payments tried to get her account caught up, only to find her payments returned from her servicer. When she followed up with a qualified written request (QWR), she claimed that her servicer did not answer properly and filed suit alleging RESPA violations, among other complaints. Read on to find if an appellate court reversed the summary judgment granted against her.
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RESPA complaint charges negligence by servicer
Posted Date: Thursday, October 30, 2014
A plaintiff who claimed his mortgage loan payments were current filed suit against his mortgage servicer, who returned his payment and claimed his loan was in default. The plaintiff charged the servicer with RESPA violations stemming from negligence in servicing the account. The servicer sought for a motion to dismiss. Read on to find what the district judge ruled.
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Misplaced proof of QWR hurts RESPA claim
Posted Date: Monday, October 27, 2014
A Michigan homeowner sued his mortgage servicer for RESPA violations stemming from failure to respond properly to his qualified written requests (QWRs). But when he couldn’t provide proof that he sent one of his QWRs, did his claim survive a summary judgment ruling? Read on to find out.
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RESPA not designed for plaintiffs to ‘flood’ servicers with requests, judge says
Posted Date: Monday, October 27, 2014
Noting that “RESPA was not designed to enable borrowers to flood their servicers with requests for securitization documentation unmoored from the borrower’s clear obligations with respect to the loan,” a Washington federal court recently dismissed a plaintiff’s complaint alleging his mortgage loan servicer violated RESPA by failing to properly respond to his QWR.
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Illinois judge denies loan servicer’s motion to dismiss RESPA Section 2605 claim
Posted Date: Monday, October 27, 2014
A loan servicer failed to persuade an Illinois federal court that it was not required to respond to a homeowner’s QWRs because her loan modification agreement with her previous servicer did not exist at the time the loan was transferred, and was thus invalid. Read on to find out how this homeowner’s relationship with the servicer turned sour.
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Castro says agency prepared to assist housing market
Posted Date: Monday, October 27, 2014
Housing and Urban Development (HUD) Secretary Julian Castro told the Mortgage Bankers Association that his agency is ready to help the housing market improve for the good of the country. Read on to find out how HUD plans to help.
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Court cleans up attempt to ‘muddy waters’ on broker commissions, fee splitting, AfBAs
Posted Date: Thursday, October 23, 2014
A Georgia federal court last month issued a decision defeating RESPA claims filed against a listing service and real estate brokers and agents in connection with an alleged illegal kickback and fee-splitting scheme. The plaintiffs alleged that a listing service provider and real estate brokers and agents engaged in a quid pro quo arrangement in which the brokers and agents referred business to the listing service in exchange for kickbacks in the form of patronage dividends. The defendants attacked each claim, and the court agreed with them in a sweeping rejection of the plaintiffs’ case. Read on to find out why the court said the plaintiffs’ claims sought to “muddy the waters” regarding RESPA’s purview on broker commissions, business referrals, fee-splitting and AfBAs.
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‘Don’t forget the states,’ RESPRO panel warns
Posted Date: Thursday, October 23, 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 you must stay aware of state activities that affect affiliated businesses, a panel of industry leaders told RESPRO members at the nonprofit trade group’s 2014 Regulatory Seminar last month. Read on to find out which states are taking a closer look at affiliated businesses, and how their efforts could extend to your state.
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District court considers RESPA claims in post-Regulation X era
Posted Date: Thursday, October 23, 2014
First, Bank of America extended a loan modification offer to a woman who inherited her son’s home. Then, the bank didn’t confirm the modification. The bank accepted payments under the modification agreement anyway, but later rejected them, saying the homeowner was “not in the system.” The homeowner continued to make her payments on time, but the bank rejected them, saying they were not certified. The bank initiated foreclosure proceedings, but repeatedly stayed and rescheduled them. In a case where the plaintiff seemed to do everything right, a court ultimately denied in part and affirmed in part her RESPA claims — and the difference seemed to be new obligations promulgated by Regulation X. Read on to find out how new regulations ultimately swayed the outcome of this complex case.
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Alabama federal court cites 11th Circuit precedent in RESPA Section 2605 case
Posted Date: Thursday, October 23, 2014
An Alabama federal court this month found that a plaintiff sufficiently alleged her lender and mortgage servicer violated RESPA Section 2605, but the plaintiff still has work to do before the case can proceed in a manner favored by the 11th Circuit Court. Read on to find out how the plaintiff missed the mark.
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Class-action RESPA suit asks for more than year-old CFPB settlement
Posted Date: Monday, October 20, 2014
Nearly a year ago, CFPB announced a settlement with a Utah mortgage lender for alleged violations of the Consumer Financial Protection Act and Regulation Z. Unsatisfied with their share of the restitution the company was ordered to pay to consumers, a nationwide class of plaintiffs has filed a lawsuit in California federal court seeking relief under RESPA, TILA and state law. Could other recent CFPB consent orders see private litigation?
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Couple claims actual damages to combat summary judgment on RESPA claim
Posted Date: Monday, October 20, 2014
A couple who “couldn’t buy a postage stamp, if we wanted to, on credit at that time” sued their mortgage servicer for RESPA violations in a dispute involving their Chapter 13 bankruptcy action. Read on to see whether their claims of actual damages survived a summary judgment motion from their mortgage servicer.
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Fed to discuss final QRM rule
Posted Date: Monday, October 20, 2014
The Board of Governors of the Federal Reserve will meet Oct. 22 to discuss the final rule on qualified residential mortgages.
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NTC study highlights mortgage servicing concerns
Posted Date: Monday, October 20, 2014
An in-house study by Nationwide Title Clearing found that nearly a half-million homeowners could be affected by faulty mortgage servicer database records.
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Attorney to RESPA world: Beware of UDAAP
Posted Date: Thursday, October 16, 2014
Although certain companies that are subject to RESPA are exempt from the CFPB’s Unfair, Deceptive or Abusive Acts or Practices enforcement and rulemaking authority, the bureau’s mindset of carrying out this vague provision of the Dodd-Frank Act could extend to areas outside of that authority, an attorney recently warned attendees of RESPRO’s Fall Seminar. Read on to make sure you are aware of and ahead of this potential threat.
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Plaintiff files RESPA claims to prevent eviction
Posted Date: Thursday, October 16, 2014
A Michigan homeowner who lost her house to foreclosure sued Freddie Mac after it bought the property and started eviction proceedings against her. Among the complaints in the 10-count lawsuit were violations of TILA and RESPA.
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Plaintiff claims hit to credit score proves actual damages
Posted Date: Thursday, October 16, 2014
In the third amended complaint in a case between a real estate developer and U.S. Bank, the lender sought to dismiss the plaintiff’s RESPA claims on the grounds that it was not a “servicer” of the loan, and that the plaintiff did not prove actual damages. Read on to see whether the plaintiff’s claim of actual damages stemming from a hit to his credit score survived a motion to dismiss.
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N.C. pro-se plaintiff files flurry of lawsuits aimed at reversing foreclosure
Posted Date: Thursday, October 16, 2014
In one of several lawsuits the plaintiff filed in an attempt to stave off foreclosure, the plaintiff sought relief under RESPA Section 2605(e) and more than $1 million in damages and penalties. Read on to find out if this last-ditch effort allowed her to keep her home.
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CFPB proposes plan for no-action letters
Posted Date: Thursday, October 16, 2014
The Consumer Financial Protection Bureau took the first step toward the introduction of no-action letters when it issued a proposed plan Oct. 10. Read on to find out the details of the CFPB’s plan.
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