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Life After RESPA: Addressing Modern Practices the Rule Missed webinar

Thursday, July 9th @ 2:00 p.m. ET


FREE WEBINAR for paid RESPA News Subscribers
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As the mortgage and settlement services marketplace continues to evolve, businesses face new opportunities alongside increasingly complex regulatory considerations. Join two leading experts, RESPRO’s Ken Trepeta and Ballard Spahr’s Rich Andreano, as they discuss how RESPA's core principles intersect with modern practices, and why certain activities may draw attention from regulators even when they fall outside RESPA's traditional framework.

Together they will share their insights on:

  • The foundation of RESPA
  • The exemptions to the kickback and referral fee prohibitions
  • When activities outside RESPA are still subject to anti-inducement laws
  • The status of lead generation
  • Regulators broad view of RESPA as an anti-steering statute
  • RESPA and the Internet, including social media posts and Likes
  • Recommendations and consumer expectations

Learn how regulatory thinking is evolving around these practices to ensure you stay compliant. Register today.

 

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Featured Speakers Moderator

Rich Andreano
Senior Counsel
Ballard Spahr

Richard J. Andreano, Jr., is the Practice Leader of the Mortgage Banking Group at Ballard Spahr, and a member of the Consumer Financial Services Group. He has devoted over 40 years of practice to mortgage banking, and consumer finance law. Rich advises the mortgage and settlement service industries on regulatory compliance and related matters, including issues arising out of the COVID-19 national emergency, as well as issues concerning the Dodd-Frank Act, Real Estate Settlement Procedures Act,, Truth in Lending Act, Equal Credit Opportunity Act, Fair Housing Act, Fair Credit Reporting Act, Home Mortgage Disclosure Act, and Gramm-Leach-Bliley Act. He assists clients with government agency examinations and investigations and with regulatory issues, including affiliated business arrangement and other RESPA matters, and loan originator compensation, ability to repay, TRID, fair lending and HMDA matters. Rich is the author of the MBA Compliance Essentials Loan Originator Compensation Rule Resource Guideâ„¢ and co-author of the MBA Compliance Essentials TILA/RESPA Integrated Disclosure (TRID) Resource Guideâ„¢.

Ken Trepeta
President and Executive Director
Real Estate Services Provider's Council (RESPRO®)

Ken Trepeta became President and Executive Director of RESPRO® in July of 2015. Prior to joining RESPRO®, Ken served as Director of Real Estate Services for the National Association of Realtors®. He was liaison to senior executives at large real estate firms and their affiliated businesses and NAR’s in house RESPA expert.

Ken worked in government affairs for five years prior to joining NAR as a vice president at both JP Morgan Chase and representing the CEOs of the largest financial services firms in the world at the Financial Services Forum.

Ken began his career in government serving as the Deputy Director for Commission on Affordable Housing and Health Facility Needs for Seniors in the 21st Century and for five years as counsel to Representative Rick Lazio (R-NY).

Ken has a Bachelor of Arts in Economics, Political Science, and Law and Society from Binghamton University (SUNY Binghamton, 1992). He has a J.D. from Hofstra University School of Law (1995) and is a member of the bar in New York and the District of Columbia.

Mike Holzhiemer
Senior Editor
October Research, LLC


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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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