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
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
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
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
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.
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.
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
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
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
On August 24, 2015, the Ninth Circuit found that the CFPB’s interpretation offered in an amicus brief of 12 U.S.C. § 2607(c)(2) of the Real Estate Settlement Procedures Act (RESPA) was not entitled to Chevron deference (Edwards v. The First Am. Corp., No. 13-55542). The provision at issue was the statutory safe harbor for the… Read More
Thursday, July 9, 2015 2:00 p.m. – 3:00 p.m. EDT Morrison & Foerster Partner Don Lampe will speak on National Mortgage News’ “TRID: It’s Coming – Ready or Not” webinar. With the deadline on the horizon, what can you do now to test your TRID readiness? More importantly, what can you do if you—or your… Read More
In October 2014, Morrison & Foerster partner Donald Lampe presented “TILA-RESPA Combined Disclosures: The Executive Perspective” with the Community Mortgage Lenders of America. The presentation is available here.
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
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
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