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Webinar to deliver in-depth RESPA training - Webinar

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Monday, April 15, 2013

The RESPA statute is among the most controversial consumer protection laws impacting mortgage and settlement services, and companies year after year defend themselves in court over violations. But industry professionals and business owners can prevent lawsuits and government enforcement actions by understanding what can and cannot be done under this unwieldy federal law and staying abreast of new guidance and judicial decisions.

RESPA News is hosting a 90-minute educational webinar on Tuesday, April 23, 2 pm ET on current RESPA regulations and the top areas where compliance issues lurk. The webinar is Part 2 of a 3-part series covering a host of RESPA and mortgage-related topics.

“Drilling Down on RESPA: How to Comply” will feature two top-rated RESPA compliance trainers, Phil Schulman and Holly Spencer Bunting, both partners in the Washington, D.C., office of K&L Gates. The two of them will cover significant items within RESPA’s Regulation X that have been troublesome for many businesses in the past. Topics will include:

  • Section 8(a) anti-kickback provisions and “thing of value”
  • Section 8(b) splitting of unearned fees
  • Affiliated business arrangements
  • Section 8(c)(2)
  • Section 9 sellers and title insurance

Schulman and Bunting will also cover penalties and enforcement and will test webinar participants’ knowledge of RESPA with a 10-question interactive quiz. Participants will have an opportunity to ask their questions through a live webinar instant chat feature and will receive relevant handouts, including articles featured in RESPA News.

“2013 has proven to be a significant time of transition for mortgage and settlement services companies,” said Angela Rulffes, editor of RESPA News and moderator for the webinar. “While all this change is taking place, trouble with existing regulations, such as those within the scope of RESPA, can creep up when you least expect it. This webinar will provide a good understanding of the important sections of RESPA, and I highly encourage anyone within mortgage or settlement services to join us for this training.”

Register for Part 2 here.

Or Register for all three webinars in the series and save! Go here for details.

  • Part 1: The New Loan Servicing Standards (Recording Available)
  • Part 2: Drilling down on RESPA: How to comply (April 23)
  • Part 3: Reviewing your Marketing Agreements and the Interpretive Rule: What is the right agreement for you? (May 22)
Today's other top stories
Trump nominates former CFPB deputy director to lead the bureau
FTC to disperse $3M to consumers affected by 2022 mortgage assistance relief scheme
Court considers servicer’s role in responding to QWR, debt collection
Panelist speaks to housing market expectations for rest of the year
HUD rescinds guidance that classifies emotional support animals as ‘reasonable accommodations’


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RESPert Holly Bunting talks RESPA litigation risk


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12 USC Section 2605 or Section 6 is titled Servicing of mortgage loans and administration of escrow accounts. It pertains to qualified written requests, notices of transfer of servicing and the administration of escrow accounts.
An arrangement that involves a person who is in a position to refer business as part of a real estate settlement service and who has an interest in a settlement services provider.

In the arrangement, the person, who has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent in a settlement services provider, directly or indirectly refers business to that provider or influences a consumer to select that provider.
An arrangement that involves a person who is in a position to refer business as part of a real estate settlement service and who has an interest in a settlement services provider.

In the arrangement, the person, who has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent in a settlement services provider, directly or indirectly refers business to that provider or influences a consumer to select that provider.
A mortgage disclosure that lists all estimated charges and fees associated with your loan. In addition to fees and charges, it will list your loan amount, mortgage rate, loan term and estimated monthly payment. Your escrows due at closing for insurance and taxes will also be outlined. Mortgage lenders are legally required to provide a GFE within three days of receiving your application.
A mortgage disclosure that lists all estimated charges and fees associated with your loan. In addition to fees and charges, it will list your loan amount, mortgage rate, loan term and estimated monthly payment. Your escrows due at closing for insurance and taxes will also be outlined. Mortgage lenders are legally required to provide a GFE within three days of receiving your application.
Under RESPA Section 2605(e)(1)(B), a qualified written request is a written correspondence that includes: 1) the name and account of the borrower, or has enough information to allow the servicer identify that information; and 2) a statement of the reasons for the belief of the borrower that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

A QWR cannot be written on a payment coupon or other payment medium supplied by the servicer.
Under RESPA Section 2605(e)(1)(B), a qualified written request is a written correspondence that includes: 1) the name and account of the borrower, or has enough information to allow the servicer identify that information; and 2) a statement of the reasons for the belief of the borrower that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

A QWR cannot be written on a payment coupon or other payment medium supplied by the servicer.
12 USC Section 2609 or Section 10 is titled Limitation on requirement of advance deposits in escrow accounts. It governs escrow accounts including notifications and statements to borrowers. Section 10 also sets out penalties for those who violate the section.
RESPA Section 3 provides that a thing of value includes any payment, advance, funds, loan, service or other consideration

Regulation X says thing of value includes: monies, things, discounts, salaries, commissions, fees, duplicate payments of a charge, stock, dividends, distributions of partnership profits, franchise royalties, credits representing monies that may be paid at a future date, the opportunity to participate in a money-making program, retained or increased earnings, increased equity in a parent or subsidiary entity, special bank deposits or accounts, special or unusual banking terms, services of all types at special or free rates, sales or rentals at special prices or rates, lease or rental payments based in whole or in part on the amount of business referred, trips and payment of another person’s expenses or reduction in credit against an existing obligation.
A form used by a settlement or closing agent itemizing all charges imposed on a borrower and seller in a real estate transaction. This form represents the closing transaction and provides each party with a complete list of incoming and outgoing funds. RESPA requires the HUD-1 to be used as the standard real estate settlement form in all transactions in the U.S. involving federally related mortgage loans.
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