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Industry News

Schulman’s peers reflect on ‘Mr. RESPA’s’ contributions to industry

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Industry News
Thursday, January 7, 2021

As Mayer Brown Partner Phil Schulman prepares to transition to a new role as senior counsel at the Washington, D.C. firm, his friends and colleagues looked back on the RESPA expert’s best jokes and what he’s meant to the settlement service industry.

Don't miss, "Schulman to begin new chapter," an in-depth interview with the man who wrote the book on RESPA.

“My all-time favorite Phil Schulman schtick is when he was presenting to a group of unsuspecting real estate agents in Louisiana and he asked them all to give him their business cards,” Sterbcow Law Group Partner Marx Sterbcow told RESPA News. “He then held a faux contest where he promised the winner of the contest a brand new Toyota. He then unveiled his contest, which was premised on which real estate agent looked most like their business card. 

“The unsuspecting agents were proud as peacocks eagerly handing him their business cards, and then Phil caused shock and awe as he refocused his RESPA presentation towards the agents who were using photos from 40-50 years ago on their business cards.  I’m positive that after this contest every single one of those agents made new business cards. 

“The winning agent who looked nothing like her business card actually thought she had won a Toyota.  Phil threw her a matchbox Toyota car, and she was speechless.  Phil often has me laughing hysterically but this was the first time my sides hurt so bad from laughing that it took a week for the pain to subside.” 

Katten & Temple, LLC, Of Counsel Brian Levy said he’s been on so many panel presentations with Schulman and has heard his jokes so many times that they just now refer to them by number.

“Like, I could say to Phil, ‘Hey, that reminds me of Number 6,’ and he’d laugh,” Levy said. “But seriously, my favorite is where he says that tickets to the __________ game (fill in your favorite lousy sports team, e.g, NY Jets) are not a ‘thing of value’ under RESPA.”

Levy added, “Somehow, the late Grant Mitchell got the moniker ‘Mr. RESPA’ by working in HUD’s basement writing RESPA opinions in the 1980’s and ‘90’s, but everyone knows who the real Mr. RESPA is today. Sorry Marx Sterbcow, it’s Phil.  Phil has earned that not only through excellence in RESPA legal knowledge and interpretation, but even more so through spreading the ‘gospel’ of RESPA beyond lawyers to title insurance, Realtor, lender, and trade association audiences and entertaining us all the while.” 

Franzen & Salzano Partner Loretta Salzano said she’ll never forget beating the master in a joke-off at a RESPRO conference.

“My ‘story’ involved my son who was young at the time, Catholic school, nuns and Jesus on the cross,” she said. “Not only was he gracious in defeat, but he acknowledged that he could never steal my joke because of the subject matter!”

Another favorite moment was during a Mortgage Bankers Association super session.

Somehow, Salzano ended up sitting on Schulman’s lap during their presentation, and he didn’t miss a beat.

“To the industry, Phil is FUN! Funny people are smart, and Phil proves it by entertaining us while educating us – even when we might not like the message,” she said. “Those are gifts that I hope he keeps on giving!

“Another one of the things that I found surprising to learn about Phil when I first presented with him is his degree of preparation. While he is hilarious extemporaneously, most would be surprised to see his detailed color-coded notes which guide each of his presentations. I can’t imagine he really needs them, but he always prepares them. I admire that. No matter how good he is, he is not cavalier!”

RESPRO President and Executive Director Ken Trepeta said Schulman has been a friend and mentor since 2006, when Trepeta was the National Association of Realtors’ director of real estate services.

“I think half the time when I am doing a RESPA session of my own, I am hearing his voice in my head and I certainly use his way of explaining a number of things, especially, ‘thing of value,’” Trepeta said. “Nobody tells a joke like Phil, but I have recycled a couple and used them in other settings.  My favorite is one of the first.  I call it the ‘peas’ joke.”

Saul Ewing Arnstein & Lehr Partner Francis Riley III noted that most of Schulman’s best jokes cannot be told in public.

“Phil is the consummate professional and always knows the audience to whom he is speaking or telling a joke – or as he puts it, ‘a story,’” Riley said. “Phil’s ability to explain RESPA and other compliance issues to the people in the industry who actually have to live with complying with these rules has been incredibly important.  He has set the standard for the law.”

Today's other top stories
Borrower claims several servicers violated RESPA concerning her loan modification
Housing Affordability Act would raise FHA loan limit
House committee votes to slash CFPB funding
HUD provides $1.8M to support housing for those aging out of foster care
Mortgage credit availability plateaus


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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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