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MoFo Reenforcement The Enforcement Blog

Tag Archives: RESPA

CFPB Hit by Major Setback in D.C. Circuit

Posted in CFPB, Mortgage

In a decision eagerly awaited by the financial services industry, the D.C. Circuit this week handed the CFPB a major defeat, throwing out a mortgage lender’s $109 million disgorgement remedy on constitutional, statutory, and administrative-law grounds. See PHH Corp. v. CFPB. This may not be the last chapter in the story, however, as it is… Read More

D.C. Circuit Rules CFPB Unconstitutional, and Wrong on RESPA

Posted in CFPB, Mortgage

The D.C. Circuit held today that the single-director structure of the CFPB violates Article II of the United States Constitution, and added important substantive rulings on the Real Estate Settlement Procedures Act (RESPA). The issue presented in PHH Corp. v. Consumer Financial Protection Bureau, Case No. 15-1177 (Oct. 11, 2016), was “Whether, under Article II… Read More

CFPB Argues Statute of Limitations Not Applicable in Certain UDAAP Actions

Posted in CFPB, Enforcement Actions, Mortgage, UDAAP

On January 15, 2016, the CFPB filed a brief opposing a motion to dismiss in the Matter of Integrity Advance, LLC (“Integrity”) asserting that there is no time bar for certain CFPB actions under its UDAAP authority.  The CFPB’s argument cites its own RESPA enforcement action, which is currently on appeal, in contending that the… Read More

#ThrowbackThursday: CFPB as HUD: Another Section 8 Consent Order Displays CFPB’s RESPA Approach

Posted in CFPB, Enforcement Actions, Mortgage

In October 2014, Morrison & Foerster published the client alert “CFPB as HUD: Another Section 8 Consent Order Displays CFPB’s RESPA Approach.” Summary: In a recent RESPA enforcement action, the CFPB  negotiated a consent order with Lighthouse Title, Inc. (“Lighthouse”) for alleged violations of RESPA’s prohibition against kickbacks. RESPA Section 8(a) and its implementing regulation,… Read More

EVENT: RESPA Threat: The CFPB Challenges MSAs and More

Posted in Events, Mortgage

Thursday, October 29, 2015 2:30 pm – 4:00 pm EDT Morrison & Foerster Partner Don Lampe is speaking on the Inside Mortgage Finance webinar “RESPA Threat: The CFPB Challenges MSAs and More.” Click here to register.

CFPB Bulletin on Marketing Services Agreements: Not Per Se Unlawful, But . . . .

Posted in CFPB, Mortgage

The CFPB on October 8, 2015 issued Compliance Bulletin 2015-05, RESPA Compliance and Marketing Services Agreements (Bulletin). The Bulletin represents another significant signpost along the agency’s continuing journey to limit common arrangements that settlement-side parties have established and operated over the years under the Real Estate Settlement Procedures Act. Read our client alert.

CFPB Watch: MSAs Going the Way of Arbitration Clauses?

Posted in CFPB, Mortgage

Following a now familiar approach, the CFPB issued a bulletin today that suggests deep disapproval of an entirely legal practice.  This time, its target is marketing servicing agreements (MSAs), which are agreements that generally outline marketing initiatives to be undertaken jointly by real estate market participants.  When structured appropriately, these arrangements are legal under RESPA… Read More

#ThrowbackThursday: The CFPB Targets Mortgage Reinsurance Yet Again

Posted in CFPB, Enforcement Actions, Mortgage

In February 2014, Morrison & Foerster published the client alert “The CFPB Targets Mortgage Reinsurance Yet Again.” Summary: The Consumer Financial Protection Bureau filed an administrative enforcement action against PHH Corporation, alleging a nearly 15-year “mortgage insurance kickback scheme” by its mortgage origination and reinsurance subsidiaries involving “hundreds of millions of dollars” in allegedly improper… Read More

#ThrowbackThursday: No RESPA Respite – Continued

Posted in CFPB, Enforcement Actions

The CFPB continues to crack down on basic RESPA violations. On August 12, 2014, the CFPB announced yet another Consent Order with alleged violations of RESPA. In this case, an on-line retail mortgage company, the company’s CEO, and an affiliated management corporation agreed to pay $14.8 million in restitution to consumers. The CFPB also demanded… Read More

CFPB Ups the Ante in RESPA Crackdowns

Posted in CFPB, Mortgage

On April 29, 2015, the CFPB, in conjunction with the Maryland Attorney General, filed six proposed consent orders—five of which are against individual defendants—in its latest RESPA enforcement action. The Bureau alleges that a title company, two of its executives, and four loan officers concocted and carried out a mortgage-kickback scheme. These consent orders follow… Read More

April Fool’s – Not

Posted in CFPB, Mortgage, Regulatory Developments

On April 1st, the Bureau issued updated exam procedures on the new TILA and RESPA rules.  They cover TILA RESPA Integrated Disclosures (applicable for exams after the August 2015 effective date), Higher-Priced Mortgage Loan Appraisals, Escrow Accounts, and Mortgage Servicing Requirements.  For more information on the new rules and their implementation, check out our handy… Read More

CFPB Section 8 Enforcement Continues

Posted in CFPB, UDAAP

On February 10, 2015, the Consumer Financial Protection Bureau (“CFPB”) added another company to its litany of alleged Real Estate Settlement Procedures Act (RESPA) Section 8 offenders (Lighthouse Title, PHH Corporation, Stonebridge Title, Fidelity Mortgage Corporation). In its Consent Order (“Order”) against NewDay Financial, LLC (“NewDay”), the CFPB claimed that the company violated Section 8’s… Read More