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Captive reinsurance issues resurface, part 1
Posted Date: Monday, January 19, 2015
Nearly a year since the CFPB filed a notice of charges against New Jersey mortgage lender PHH Corp., and its subsidiaries for alleged illegal captive reinsurance activities, a final decision soon will be made on an administrative law judge’s recommendation that the companies be deemed guilty of violating RESPA and pay almost $6.5 million in disgorgement. At the same time, a class-action lawsuit filed against PHH — which is believed to have created the first captive reinsurance entity in the mortgage industry in the 1990s — has been winding its way through a California federal court since 2008 and finally could be decided. Will 2015 be the year that the 20-year-old debate over captive reinsurance is finally is settled? Read on to find out how we got here, what’s going on right now and where we may be headed with regard to captive reinsurance.
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Captive reinsurance issues resurface, Part 2
Posted Date: Thursday, January 22, 2015
Nearly a year since the CFPB filed a notice of charges against New Jersey mortgage lender PHH Corp., and its subsidiaries for alleged illegal captive reinsurance activities, a final decision soon will be made on an administrative law judge’s recommendation that the companies be deemed guilty of violating RESPA and pay almost $6.5 million in disgorgement. Will 2015 be the year that the 20-year-old debate over captive reinsurance is finally is settled? Read on to find out how we got here, what’s going on right now and where we may be headed with regard to captive reinsurance.
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Selling yourself to lenders in the new TILA-RESPA era
Posted Date: Monday, January 5, 2015
Companies in settlement services can expect intensified scrutiny by their lender partners once the CFPB’s TILA-RESPA Integrated Disclosure rule takes effect Aug. 1, but the sea change to the mortgage transaction also presents an opportunity to set your company apart from others in the marketplace and act as a sales tool — particularly if you work with small, community lenders or credit unions, according to one industry leader. Here are five tips to use the new process as a way to gain a competitive advantage.
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RESPA rules highlighted in Washington mortgage fraud bill
Posted Date: Friday, January 9, 2015
Legislation pre-filed in Washington that seeks to amend the state’s mortgage fraud law also aims to reinforce the duty of mortgage brokers and loan originators to provide RESPA and TILA disclosures to borrowers, limit charges for goods and services by third-party providers and clearly define rules for responding to borrowers’ qualified written requests for loan information.
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Scalia suggests courts not defer to agencies when criminal penalties at stake
Posted Date: Monday, January 19, 2015
In rare statement attached to denial of judicial review, Justice Scalia suggested that courts deference to executive agencies in cases involving criminal penalties might be in contravention of the principal of separation of powers, as well as the traditional rule of lenity.
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TILA-RESPA rule technology: Don’t ‘get ready to get ready’
Posted Date: Monday, December 29, 2014
If, on Aug. 1, 2015, you want to be able to demonstrate compliance readiness and value proposition to lenders, differentiate your company from others in the marketplace, properly prepare and train your staff to handle the new process and forms and even reduce the risk transactions may pose on the secondary market, you’ll have to use technology to automate processes that you and your lender partners don’t currently have. Here’s a top 10 list of questions to ask and concerns to resolve now so you are ready well in advance for implementation.
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New rules put spotlight on ‘business day’
Posted Date: Monday, January 19, 2015
TILA and RESPA contain many nuanced definitions which, if you don’t understand their meaning, can mean the difference between compliance and the CFPB knocking on your door.
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CFO: RESPA compliance on lenders’ minds
Posted Date: Monday, January 12, 2015
Associated Banc-Corp Chief Financial Officer Christopher Del Moral-Niles recently provided the public with some unique insight into the RESPA compliance world that some lenders are dealing with today. Read on for the details of his online interview.
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Homeowner charges fraud after foreclosure action begins
Posted Date: Monday, December 22, 2014
A Pennsylvania homeowner whose mortgage went into default took his mortgage servicer and others to court, charging violations of TILA, RESPA and the Fair Debt Collection Practices Act, to try and keep his house. Read on to see whether he could prove fraud charges leveled at the defendants.
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Michigan plaintiff’s ‘cookie-cutter’ complaint nets sweet decision for lender
Posted Date: Monday, December 29, 2014
A Michigan district court on Dec. 16 dismissed a plaintiff’s 22-count, 269-paragraph complaint against her lender and mortgage loan servicer, calling the plaintiff’s filings a “cookie-cutter” complaint, and admonished her law firm for “cutting and pasting” inappropriate arguments from another case. Read on to find out why the plaintiff’s RESPA claims fell flat.
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Court opens door for successful QWR argument
Posted Date: Monday, January 12, 2015
A borrower filed claims of RESPA violations against Ocwen Loan Servicing, saying the borrower sent Ocwen multiple qualified written requests, which the servicer either failed to answer or to which they failed to give an adequate response. Read on to find out whether the Illinois district court upheld Ocwen’s motion to dismiss.
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CFPB press releases under scrutiny
Posted Date: Monday, December 22, 2014
The Ombudsman’s Office at the CFPB is investigating concerns that the bureau’s press releases do not accurately represent the consent orders they describe. According to complaints received, press releases often fail to reflect the respondent’s side of the story. Read on to find out how the industry thinks the bureau’s press releases fall short.
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Golden First Mortgage, owner admit to fraud
Posted Date: Monday, January 5, 2015
Golden First Mortgage Corp. and its president admitted, acknowledged and accepted responsibility for conduct that did not conform to HUD or FHA regulations. Read on for the details of the government’s allegations.
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An address can make all the difference, court says
Posted Date: Friday, January 30, 2015
After missing 15 mortgage payments, a Kansas borrower claimed he sent a qualified written request (QWR) to his bank about his residential mortgage loan. Unfortunately for the borrower, he made one critical mistake. Read on to see how the court handled the case.
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Wells, Chase agree to reporting, fines in RESPA order
Posted Date: Monday, January 26, 2015
The Consumer Financial Protection Bureau (CFPB) hit two of the biggest banks in the country with RESPA enforcement actions last week for allegedly allowing loan officers to receive kickbacks. Although they would not admit to or deny the allegations levied against them, both banks are paying the cost.
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More successful QWR actions may be on the horizon
Posted Date: Monday, January 26, 2015
Borrowers in Ohio prevented the courtroom door from closing on their RESPA qualified written request (QWR) action against troubled lender Ocwen Loan Servicing when they made a novel actual damages argument, which may lead to more successful QWR actions. Read on to find out what the court said.
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OCC issues updated TILA handbook
Posted Date: Monday, January 26, 2015
The Office of the Comptroller of the Currency (OCC) issued an updated TILA booklet of the Comptroller’s Handbook, which provides revised guidance and procedures in regards to the Regulation Z changes to mortgage lending procedures. The Handbook replaces the December 2010 version of the booklet.
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New opposition joins CFPB Rate Checker debate
Posted Date: Monday, January 26, 2015
The Consumer Financial Protection Bureau’s new Rate Checker tool still is taking heat from industry leaders. Read on to see what they are saying.
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CFPB prepares to fill advisory positions
Posted Date: Thursday, January 22, 2015
The Consumer Financial Protection Bureau announced that it will begin accepting applications for membership on all three of its advisory groups. Read on for the details of how to apply.
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CFPB cites Wells, Chase, Maryland title firm for illegal kickbacks
Posted Date: Thursday, January 22, 2015
The Consumer Financial Protection Bureau and the Maryland Attorney General announced actions against Wells Fargo and JPMorgan Chase for engaging in illegal marketing services with a now-defunct title company, Genuine Title. In addition to the banks, the bureau and Maryland took action against a former Wells Fargo employee and his wife for their involvement. In all, the penalties for the enforcement total more than $35 million.
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An inside look at CFPB’s Rate Checker
Posted Date: Monday, January 19, 2015
RESPA News took the Consumer Financial Protection Bureau’s new rate-check tool for a spin. Read more about what we found here.
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An inside look at CFPB’s Rate Checker
Posted Date: Monday, January 19, 2015
RESPA News took the Consumer Financial Protection Bureau’s new rate-check tool for a spin. Read more about what we found here.
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Rate Checker opposition increases
Posted Date: Monday, January 19, 2015
Following up on reports of the Mortgage Bankers Association asking for the removal of the Consumer Financial Protection Bureau’s new mortgage Rate Checker, the National Association of Mortgage Bankers issued a statement in opposition to the new tool as well.
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Court finds RESPA violation, no actual damages in QWR case
Posted Date: Thursday, January 15, 2015
Borrowers in Florida were reminded that to have damages under RESPA’s QWR requirements, they must show that their harm was a direct result of the violation. Read on to find out why they were unable to support their claim.
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CFPB adds tools, but urges consumers to shop mortgages
Posted Date: Thursday, January 15, 2015
After release an online toolkit to help potential homebuyers learn more about their mortgage, Consumer Financial Protection Bureau Director Richard Cordray said the kit was not meant to replace having a consumer shop around for mortgages. Read on for the details of why.
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Is the CFPB breaking its own rules?
Posted Date: Thursday, January 15, 2015
This week, the CEOs of the American Land Title Association and the Mortgage Bankers Association criticized the CFPB for potentially misleading consumers about the costs associated with their mortgages with their rules and tools. Read on to see what they had to say.
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Castro touts FHA change, says tinkering done
Posted Date: Thursday, January 15, 2015
Department of Housing and Urban Development Secretary Julian Castro told the National Press Club that the Federal Housing Administration was done adding programs to help homeowners afford to enter the market. Read on for the details.
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Report shows mortgage performance improving
Posted Date: Monday, January 12, 2015
A recent report from the Office of the Comptroller of the Currency shows that the number of distressed mortgages serviced by major lenders declined in the third quarter of 2014. Read on for the details.
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CFPB gets new enforcer
Posted Date: Monday, January 12, 2015
The Consumer Financial Protection Bureau reportedly has a new chief enforcement officer, but the selection is a familiar name. Read on to find out who it is.
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Michigan court admonishes borrowers filing multiple frivolous RESPA claims
Posted Date: Friday, January 9, 2015
A Michigan couple filed several RESPA claims against JPMorgan Chase Bank alleging that the bank failed to respond to several of their qualified written responses (QWRs) regarding their mortgage loan in violation of the regulation. Yet the bank had had some difficulty in even finding information about the account, considering the couple had not had an active loan with Chase for over eight years.
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Congress passes TRIA reauthorization
Posted Date: Friday, January 9, 2015
The first piece of legislation passed by the 114th Congress is the reauthorization of the Terrorism Risk Insurance Act, which cleared the House and then was approved by the Senate on Thursday and now awaits the president’s signature.
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QuestSoft provides RESPA compliance solution
Posted Date: Friday, January 9, 2015
QuestSoft, a provider of automated mortgage compliance software, has updated its Compliance Eagle software to help lenders comply with new integrated mortgage disclosure changes set to take effect Aug. 1, 2015.
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California court dismisses QWR claims
Posted Date: Monday, January 5, 2015
According to court documents, the servicers responded to the plaintiff’s qualified written requests for loan information, but not within the five-day deadline prescribed by RESPA. So why did the court dismiss the plaintiff’s claims? Read on to find out.
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Maryland case disputes five-day deadline for QWRs
Posted Date: Monday, January 5, 2015
At issue in the case was whether Ocwen Loan Servicing LLC had a duty to respond to a borrower’s qualified written request for loan information five days after the plaintiff sent it, or five days after the loan servicer received it. Read on for the court’s interpretation of RESPA Section 2605(e).
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Report says CFPB wants high-performance workforce
Posted Date: Monday, January 5, 2015
A new report from the Consumer Financial Protection Bureau says the bureau has made considerable progress in building out its human capital policies the past three years. Read on for the details of the bureau’s workforce and plans.
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Happy holidays, here’s a thing of value
Posted Date: Monday, December 29, 2014
’Tis the season for giving — but make sure you’re not giving a thing of value to your partners, affiliates and clients, or the regulator Grinches could come steal your holiday cheer. Here are three tips for title agents who want to spread tidings of joy, but remain RESPA-compliant while doing so.
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Servicer chided in QWR case
Posted Date: Monday, December 29, 2014
A mortgage servicer charged with RESPA violations was chided by a district judge for its motion to dismiss. Read on to find out what the judge said was “disingenuous” in the case.
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CFPB backs proposed MLA changes
Posted Date: Monday, December 29, 2014
The Consumer Financial Protection Bureau on Dec. 29 released a report highlighting how loopholes in the current Military Lending Act are costing servicemembers and their families.
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Alabama homeowner’s QWR case can proceed
Posted Date: Monday, December 22, 2014
Although a court struck down the plaintiff’s initial attempt to sue One West Bank FSB and IndyMac Mortgage Services for allegedly failing to respond to his qualified written requests for mortgage loan information, the 11th Circuit Court of Appeals reviewed the case and decided he is entitled to written explanations in response to his QWRs — thanks to his pro-se status. Read on to find out how choosing to represent himself in the lawsuit ended up working in the plaintiff’s favor.
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CFPB targets mobile payment processing
Posted Date: Monday, December 22, 2014
Reaching for the first time into the wireless carrier industry, the Consumer Financial Protection Bureau filed a lawsuit against Sprint Corp. for what it called illegal billing of unauthorized third-party charges.
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Senators push for lower FHA premiums
Posted Date: Monday, December 22, 2014
A group of Democratic senators wrote to HUD Secretary Julian Castro to urge the lowering of FHA mortgage insurance premiums, which have risen more than 145 percent in the last five years.
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