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Are two hats fatal for Mulvaney’s FVRA appointment?Subscriber Access OnlyAre two hats fatal for Mulvaney’s FVRA appointment?
Monday, April 23, 2018
The ability of Mick Mulvaney to hold two hats at once in the executive branch has been at times a source of humor.  Yet in oral arguments before the D.C. Circuit Court of Appeals, the joint jobs Mulvaney has as director of the Office of Management and Budget and the acting director of the Consumer Financial Protection Bureau are at the heart of what the three-judge panel may rule in English v. Trump.
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CFPB adds director to regulations divisionSubscriber Access OnlyCFPB adds director to regulations division
Monday, April 23, 2018
The Consumer Financial Protection Bureau (CFPB) has a new director in its Research, Markets and Regulations division this week, albeit one with a familiar face.  Thomas Pahl is returning to the CFPB, where he worked as a managing counsel until leaving in the fall of 2016 for private practice.
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Open story: Does $1 billion penalty create new ‘sea change’?Open story: Does $1 billion penalty create new ‘sea change’?
Monday, April 23, 2018
In the fall of 2016, the Consumer Financial Protection Bureau came out with what was termed a “sea change” settlement action – a record $100 million civil penalty against Wells Fargo.  Less than two years later, the CFPB and OCC announced something 10 times stronger.  What does a $1 billion penalty mean for regulatory compliance and risk management?   RESPA News   talked with Richard Horn, principal at Garris Horn PLLC, to find out.
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This Week in Washington This Week in Washington More This Week in Washington articles
Audit of CFPB budget details stale obligations
Monday, April 23, 2018
An annual audit of operations and budgeting at the Consumer Financial Protection Bureau (CFPB) recently was released, with auditors KPMG LLP discovering one deficiency related to the bureau’s closing out of undelivered orders.
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Subscriber Access OnlyCRA: What could be repealed next?
Monday, April 23, 2018
According to a report by   The Hill , the House plans to vote on repealing the Consumer Financial Protection Bureau’s indirect auto lending bulletin guidance the week of May 7.  But it is far from the only step which Congress can take with use of the Congressional Review Act over guidance.
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Subscriber Access OnlyQuestions over ‘undisputed evidence’ of mailing
Monday, April 23, 2018
Homeowners in Ohio sued their loan servicer for violations of RESPA, stemming from the servicer’s failure to timely provide a response to a loan modification application.  The servicer moved for summary judgment, arguing there was “undisputed evidence” of the mailing of the response.
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Mulvaney refers leak for investigationSubscriber Access OnlyMulvaney refers leak for investigation
Thursday, April 19, 2018
Three days after Reuters published a report, citing three unnamed sources, that the Consumer Financial Protection Bureau was considering a $1 billion civil money penalty for Wells Fargo, acting director Mick Mulvaney told staff he was referring the leak for investigation.  In a memo to staff April 12, made available by the CFPB, Mulvaney said he was “extraordinarily concerned.”
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Mulvaney rejects CFPB authority to promulgate under UDAAPSubscriber Access OnlyMulvaney rejects CFPB authority to promulgate under UDAAP
Thursday, April 19, 2018
The second act of Mick Mulvaney’s appearance before Congress representing the Consumer Financial Protection Bureau (CFPB) was supposed to be more fraught with fireworks than his appearance before the House Financial Services Committee a day earlier. Although it  failed to live up to the billing,  the headline of the day was Mulvaney’s rejection of the CFPB’s authority to create rules under its authority to protect against unfair, deceptive and abusive acts and practices.
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NS3 Preview: Underwriters, lenders, regulators take the stage
Thursday, April 19, 2018
The National Settlement Services Summit (NS3) comes home to the Midwest for the 14th edition of the annual conference that brings all parties of the real estate transaction together in one place.  One thing that remains the same, though, is the ability for attendees to learn from top executives and companies representing the industry, with panels scheduled featuring leading underwriters, lenders and regulators.
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Subscriber Access OnlySenate takes first step in CRA rejection of 2013 CFPB guidance
Thursday, April 19, 2018
For the first time, Congress has voted on a resolution to disapprove regulatory guidance, using its authority under the Congressional Review Act.  By a 51-47 vote, the Senate voted to reject the five-year-old Consumer Financial Protection Bureau bulletin on indirect auto lending guidance. The resolution now heads to the House, where a majority vote for disapproval will put it on the president’s desk to be signed.
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Subscriber Access OnlyHouse bill requires CFPB guidance as Senate repeals it
Thursday, April 19, 2018
A new bill introduced by the House seeks to encourage the Consumer Financial Protection Bureau (CFPB) to issue guidance.  The bill was introduced the same time in which the Senate voted to disapprove a five-year-old bulletin the CFPB issued providing guidance on indirect auto lending.
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Is CFPB deputy director working?Subscriber Access OnlyIs CFPB deputy director working?
Monday, April 16, 2018
The dispute over leadership at the Consumer Financial Protection Bureau has been going on for nearly five months since then-Director Richard Cordray’s resignation.  What hasn’t been in question since Nov. 24, 2017, is that Leandra English is employed as the deputy director.  Yet public statements and reports are bringing into question English’s role at the bureau since Cordray’s departure.
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Bureau headed to jury trialSubscriber Access OnlyBureau headed to jury trial
Monday, April 16, 2018
In a case involving the Consumer Financial Protection Bureau’s allegations against an Ohio-based debt collector, each side filed for summary judgment.  The judge ruled against both requests, determining that there were facts in dispute on each side of the case. The judge kept the case on schedule for a jury trial May 1.
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PHH: A case about ‘Nothing’ and everything

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RESPA News Monthly
April 2018

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Kider: PHH ruling ends regulation by enforcement


 
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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.
Under Regulation X, required use means a situation in which a person must use a particular provider of a settlement service in order to have access to some distinct service or property, and the person will pay for the settlement service of the particular provider or will pay a charge attributable, in whole or in part, to the settlement service.

However, the offering of a package or (combination of settlement services) or the offering of discounts or rebates to consumers for the purchase of multiple settlement services does not constitute a required use. Any package or discount must be optional to the purchaser. The discount must be a true discount below the prices that are otherwise generally
12 USC Section 2607 or Section 8 is titled Prohibition against kickbacks and unearned fees. It prohibits fees or kickbacks for referrals. It also prohibits accepting a portion of fee except for services actually performed. Section 8 provides information on what payments are allowed under this section and the penalties for violations.
12 USC Section 2608 or Section 9 is titled Title companies; liability of seller. This section states that a seller cannot require, as a condition of selling the property, that title insurance be purchased by any particular title company. Section 9 states that a seller who violates this section is liable to the buyer for treble damages.
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.
Under RESPA, settlement service includes any service provided in connection with a real estate settlement. The statute provides a list of services.

Under Regulation X, settlement service means any service provided in connection with a prospective or actual settlement. The regulation provides an extended list of services as compared to the statute.
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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