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What should you do when the CFPB comes knocking?
Posted Date: Monday, September 19, 2016
The Consumer Financial Protection Bureau has very broad authority to issue civil investigative demands to uncover violations of federal consumer laws. What should you do if you receive a CID? What have been some of the arguments made for and against the CFPB’s investigative authority? When should you fight a CID? RESPA News explored these questions with prominent RESPA attorney Marx Sterbcow of Sterbcow Law Group.
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Can selling washing machines be 'financial service'?
Posted Date: Thursday, September 15, 2016
In an amicus brief supporting J.G. Wentworth in its battle to set aside a civil investigation demand from the Consumer Financial Protection Bureau, the U.S. Chamber of Commerce has argued that supporting the bureau’s interpretation of “financial advisory services” would expand the bureau’s authority to regulate mere discussions of the financial benefits of products.
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Takeaways from Wells Fargo practices
Posted Date: Monday, September 12, 2016
The Consumer Financial Protection Bureau issued its largest penalty against Wells Fargo after discovering employees’ creating fake deposit and credit card accounts to reach sales goals under the bank’s incentive-compensation program. David Stein, chair of Bricker & Eckler’s Banking and Financial Services group, spoke with RESPA News about key takeaways from this enforcement action.
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8th Circuit applies Spokeo to privacy retention case
Posted Date: Thursday, September 15, 2016
The 8th Circuit Court of Appeals weighed in on the Supreme Court’s ruling in Spokeo, Inc. v. Robins when it considered an appeal of a case where Charter Communication, Inc. was alleged to have violated the Cable Communications Policy Act by retaining a plantiff’s personally identifiable information (PII). The district court granted Charter’s motion to dismiss on grounds that an injury in fact had not been established. Find out how the 8th Circuit ruled.
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Alleging kickbacks, inflated inspection fees dismissed
Posted Date: Friday, September 2, 2016
The U.S. District Court for the Northern District of California has dismissed plaintiffs Victor and Loralee Giotta’s amended class-action complaint that Ocwen Financial Corp. and other companies allegedly participated in a scheme resulting in inflated property inspection fees. Find out why.
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PHH calls for dismissal of reinsurance class action
Posted Date: Thursday, September 15, 2016
As it awaits the results from the D.C. Circuit Court of Appeals for PHH Corp. v. CFPB, financial services provider PHH Corp. has called on the U.S. District Court for the Eastern District of California to dismiss a class-action lawsuit alleging kickback schemes through its reinsurance agreements. Counsel for PHH drew on the recent Supreme Court decision in Spokeo, Inc. v. Robins, its interpretation of RESPA Section 8 and the filed rate doctrine to support its argument for dismissal. Find out how the industry giant articulated its case.
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5th Circuit examines sufficiency for QWRs
Posted Date: Thursday, September 15, 2016
The 5th Circuit was tasked with determining whether the U.S. District Court for the Eastern District of Texas properly dismissed plaintiffs Kendall and Monica Parker’s lawsuit against Wells Fargo Bank, Mortgage Electronic Registration Systems, Inc. (MERS) and Wells’ counsel in their lawsuit to quiet title on their property and for allegedly improperly responding to a qualified written request. The Parkers were seeking information on whether Wells had the right to receive monthly mortgage payments.
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Disparate impact examined in follow-up
Posted Date: Friday, September 2, 2016
After deciding that disparate impact is cognizable under the Fair Housing Act, the U.S. Supreme Court remanded The Inclusive Communities Project, Inc. v. The Texas Department of Housing and Community Affairs to the district court to decide whether the non-profit organization established a prima facie case for disparate impact.
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Court addresses when statute of limitation applies
Posted Date: Monday, September 12, 2016
In a pro se compliant against Fannie Mae and PHH Mortgage, the U.S. District Court for the Eastern District of Michigan was tasked with answering whether the plaintiff brought her claims within the requisite statute of limitations. The court specifically determined when tolling under the doctrines of equitable estoppel for fraudulent concealment and equitable tolling apply. Read on to learn more.
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Magistrate judge tasked with predicting the future
Posted Date: Monday, September 19, 2016
“I went to the fortune teller/Had my fortune read/I didn’t know what to tell her/I had a dizzy feeling in my head,” quoting The Rolling Stones song “Fortune Teller,” is how U.S. Magistrate Judge Jonathan Goodman began his order to grant defendants Caliber Home Loans Inc. and American Security Insurance Co.’s motion to dismiss. Read on to learn more.
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TRID led to 50 percent increase in defects
Posted Date: Thursday, September 8, 2016
ACES Risk Management, ARMCO has released its Mortgage QC Industry Trends Report, finding that beginning from 2015 through the first quarter of 2016, loan package documentation and legal and regulatory compliance defects continued to be the leading causes of quality control issues. ARMCO Chief Operating Officer Phil McCall spoke with RESPA News about how their clients have been improving their TRID compliance. Read on for more details.
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CFPB seeks to expand ability to share CSI
Posted Date: Monday, August 29, 2016
The Consumer Financial Protection Bureau has published a proposed rule in the Federal Register that not only would amend the procedures for obtaining information under the Freedom of Information Act but also expand its discretion to share confidential supervisory information with state attorneys general and other agencies that do not have supervisory authority over companies. Why is this significant? Ballard Spahr’s James Kim spoke with RESPA News.
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CFPB follows up with students after ITT closes its doors
Posted Date: Thursday, September 8, 2016
Shortly after ITT Technical Institute announced that its schools will be closing their doors, the Consumer Financial Protection Bureau released consumer information for dealing with the aftermath. The recent enforcement actions against ITT Tech are just one in many as the bureau and Department of Education continue its sweep of the lending practices of for-profit colleges such as Corinthian Colleges and Trump University.
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What Ocwen did wrong
Posted Date: Monday, September 12, 2016
The Office of Mortgage Settlement Oversight recently issued a report to the U.S. District Court for the District of Columbia detailing Ocwen Financial Corp.’s mortgage servicing compliance. Ocwen had two systemic failures. Get the details on what Ocwen did wrong and what has been listed within the mortgage servicer’s Corrective Action Plan to address the issues.
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RESPRO’s Fall Seminar takes over Washington
Posted Date: Monday, September 19, 2016
This is an exciting time to be in Washington, D.C. Not only is the city buzzing with excitement as presidential candidates Hillary Clinton and Donald Trump prepare to face off in their first presidential debate, prominent industry attorneys and compliance officers will be convening this week at the Real Estate Services Providers Council’s (RESPRO) Fall Seminar from Sept. 21-23. RESPRO President and Executive Director Ken Trepeta spoke with RESPA News about the exciting sessions to come.
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Chase seeks to dismiss class action on mortgage satisfaction delays
Posted Date: Monday, September 19, 2016
JPMorgan Chase Bank has asked the U.S. District Court for the Southern District of New York to dismiss the putative class action against it for its alleged violation of New York’s lien release statutes. Plaintiff Tina Bellino had alleged that the bank failed to timely file notices that mortgages had been satisfied. How did Chase support its argument? Read on to find out.
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A bad inheritance: PNC Financial class action to go before arbitrators
Posted Date: Monday, September 19, 2016
PNC Financial Services Group has agreed to pay $24 million after a predecessor institution it bought allegedly overcharged fees and interest for its secondary mortgages without accurately disclosing business arrangements or the terms of its loans, a violation of TILA and racketeering laws. The class is looking for more, however. Read on for the details.
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HUD: LEP policies can lead to discrimination
Posted Date: Monday, September 19, 2016
Discriminatory housing practices came under strong scrutiny after the Supreme Court determined that disparate impact is cognizable under the Fair Housing Act. Now, the Department of Housing and Urban Development has issued a guidance bulletin discussing how limited English proficiency may be applied to FHA cases. Read on to learn more.
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Underwater homes decreased in Q2 2016, CoreLogic says
Posted Date: Thursday, September 15, 2016
The percentage of homes with positive equity increased to 92.9 percent of all mortgaged properties from the first quarter of 2016 to second quarter of 2016, according to findings released by CoreLogic. Read on to learn more.
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Hunt discusses how CFPB could earn more respect
Posted Date: Monday, September 12, 2016
As the new(est) financial regulator in town, the Consumer Financial Protection Bureau is extremely powerful, has a reputation for being aggressive and is at times strongly disliked. Consumer Bankers Association President and CEO Richard Hunt dished out some hard honesty on his latest blog post, “Five things the CFPB should do to be more widely respected.” What topped the list? Read on to find out.
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Case against Wells Fargo remanded to state court
Posted Date: Monday, September 12, 2016
The U.S. District Court for the Southern District of Alabama, Northern Division decided to remand plaintiff Ashley Gill’s case against Wells Fargo Bank back to Circuit Court of Dallas County, Alabama, after she alleged violations of TILA and the Fair Debt Collection Practices Act. Find out why.
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Mass. AG lands settlement for improper force-placed insurance practices
Posted Date: Monday, September 12, 2016
Massachusetts Attorney General Maura Healey has announced that her office has identified potentially improper force-placed insurance charges that could result in more than $1 million in relief to homeowners under a settlement agreement with QBE Insurance Corp. Read on to learn more.
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Nevada court examines RESPA claims against PHH Corp., HSBC Bank
Posted Date: Thursday, September 8, 2016
After his initial complaint was dismissed in state court, pro se plaintiff Matt Jacobsen brought six claims against HSBC Bank USA, N.A.; PHH Mortgage Corp. and others for their alleged mishandling of his loan and the subsequent foreclosure on his home. Read on to find out what the U.S. District Court for the District of Nevada determined.
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10th Circuit discusses Rooker-Feldman doctrine
Posted Date: Thursday, September 8, 2016
After a Colorado state court completed foreclosure proceedings against plaintiff R. Kirk McDonald’s home, he filed a lawsuit in the U.S. District Court of Colorado, which later dismissed 10 of his 13 claims under the Rooker-Feldman doctrine. McDonald then argued to the 10th Circuit that the lower court misapplied this principle. Read on to find out how the 10th Circuit weighed in on this question.
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PHH update: Industry holds its breath
Posted Date: Wednesday, September 7, 2016
It would seem that some cases are just easier than others. When the Consumer Financial Protection Bureau and PHH Corp. took its legal battle to the D.C. Circuit Court of Appeals on April 12 for oral arguments, many industry stakeholders expected the court to have issued a decision by now. Sept. 9 marks the 150th day since those arguments took place. What’s taking so long?
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Florida court ends homeowners’ decade-long spat
Posted Date: Friday, September 2, 2016
The U.S. District Court for the Middle District of Florida had enough of pro se plaintiffs’ “copious” motions and appeals, finally putting an end to a spat between them and Bank of America. The bank had acquired ownership of the plaintiffs’ home through a foreclosure sale. Read on to learn more.
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Even refunds can spark consumer dissatisfaction
Posted Date: Friday, September 2, 2016
CoreLogic has warned that the number of overpayment-related escrow account refunds can lead to more complaints from consumers and possible enforcement actions from the Consumer Financial Protection Bureau. What do you need to know?
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CFPB hones in on bank account complaints
Posted Date: Friday, September 2, 2016
The Consumer Financial Protection Bureau released its monthly complaint snapshot, highlighting consumer complaints about bank accounts and services and trends seen in complaints from Ohio. The CFPB has handled approximately 954,400 total complaints across all products, as of Aug. 1, 2016. Read on to learn more.
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MBA releases multifamily mortgage servicer rankings
Posted Date: Friday, September 2, 2016
The Mortgage Bankers Association (MBA) has released its mid-year ranking of commercial and multifamily mortgage servicers’ volume. Find out who was at the top of the list, for which categories and more.
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Force-placed insurance class actions continue to brew
Posted Date: Monday, August 29, 2016
Attorney Mark Strauss of Kirby McInerney LLP – a prominent class-action litigation firm – has confirmed with RESPA News that it is investigating the force-placed insurance practices of Cenlar FSB and other mortgage servicers. Force-placed insurance remains in the compliance spotlight, with American Modern Insurance Group recently being imposed with a $1 million penalty by the Minnesota Department of Commerce and continuing its legal battles in New Jersey. Read on to learn more.
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HARP, HAMP to receive procedural make-over
Posted Date: Monday, August 29, 2016
The Federal Housing Finance Agency and Federal Housing Administration have announced several changes to the Home Affordable Refinance Program (HARP) and the FHA-Home Affordable Modification Program (FHA-HAMP) to streamline processes and help struggling homeowners. For more details on the upcoming changes, and to access HUD’s original letter to FHA mortgagees, read on.
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Processing error leads to $3.45 million payment for Wells
Posted Date: Monday, August 29, 2016
A previous settlement agreement between Wells Fargo and the Department of Justice has led to an additional $3.45 million to the bank’s customers who did not receive enough notice regarding monthly mortgage payment changes. How was the processing error discovered? Read on to find out.
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Colorado AG reaches foreclosure scheme settlement
Posted Date: Monday, August 29, 2016
The Colorado Attorney General’s office has reached a $125,000 settlement against Austin Home Ventures, LLC and four of its employees for allegedly running a foreclosure scheme that involved renting out distressed homeowners’ properties and charging fees for services those consumers could have received at no cost. Read on for more details.
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NMLS to begin second phase electronic tracking soon
Posted Date: Monday, August 29, 2016
The Nationwide Multistate Licensing System (NMLS) will begin receiving and tracking Electronic Surety Bonds (ESB) soon. Many states require financial services licensees to obtain a surety bond as a condition of licensure, in accordance with the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the SAFE Act). What should your surety bond companies be doing in the meantime? Read on to learn more.
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CFPB takes action against Wells Fargo’s student loan servicing
Posted Date: Thursday, August 25, 2016
The Consumer Financial Protection Bureau has filed a consent order against Wells Fargo after determining that the bank committed unfair and deceptive practices regarding its student loan payment allocation and aggregation practices. What did the bank do that the CFPB found in violation of the law? Read on to find out.
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Court weighs abuse of discretion in foreclosure case
Posted Date: Thursday, August 25, 2016
After her home was foreclosed upon and the sale ratified, Delores Johnson challenged the circuit court’s decision denying her motion to amend. Johnson argued in her motion that the judgment was the result of fraud, mistake or irregularity, and that the sale of the property was improper because of the appellant’s failure to provide adequate notice of the foreclosure proceedings and appellant’s failure to respond to a letter sent prior to the sale that sought information under RESPA.
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HUD fails to collect partial claims, interest for FHA insurance fund
Posted Date: Thursday, August 25, 2016
The Office of the Inspector General has found that HUD failed to collect an estimated 1,361 partial claims that became due in fiscal year 2015, resulting in approximately $21.5 million not being returned to the Federal Housing Administration insurance fund. Read on to find out what the office recommended.
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NAR report details Realtor market confidence
Posted Date: Thursday, August 25, 2016
What are the three major issues leading to settlement contracts being delayed or terminated? Find out – along with some of the common characteristics of buyers and sellers – from the National Association of Realtors’ Realtors Confidence Index.
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Here are the key characteristics of effective community networks
Posted Date: Thursday, August 25, 2016
The Consumer Financial Protection Bureau Office for Older Americans has issued a report titled, “Fighting elder financial exploitation through community networks,” detailing the key characteristics of effective networks. Want to help stop elder abuse? Read on to find out how.
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