RESPA Lawyer BlogMarx Sterbcow will provide a “RESPA Compliance and CFPB Update“ at the Minnesota Land Title Association “MLTA” 2020 Spring Conference at the Marriott Minneapolis Northwest hotel on Monday, April 6, 2020 from 10:15 to 11:15 AM. The session will first focus on the “Do’s and Don’ts of the Real Estate Settlement Procedures Act (RESPA)” covering such topics as marketing services agreements, affiliated business arrangements, real estate lead generation program compliance, referrals and gifts. The second part of the presentation will discuss the latest in Consumer Financial Protection Bureau “CFPB” enforcement trends and outlook for the coming year.
Articles Posted in RESPA REINSURANCE KICKBACK ARRANGEMENT
RESPA Conference: Marx Sterbcow and Charles Cain to present at the 2016 National Settlement Services Summit in Charlotte, North Carolina
Marx Sterbcow, the Managing Attorney, of the Sterbcow Law Group, and Charles Cain, Vice President, Agency, WFG National Title Insurance Co. will present at the 2016 National Settlement Services Summit [NS3] at the Le Meridien & Sheraton Hotel in Charlotte, North Carolina on Wednesday, June 8, 2016.
The session titled “Ethics: UDAAP, Reverse Vendor Oversight and Legal Malpractice” will discuss how Title agents and attorneys are expected to adhere to the highest ethical standards, and how Dodd Frank’s ban on Unfair, Deceptive or Abusive Acts or Practices (UDAAP) have given the CFPB broad authority to root out questionable activities. Learn how UDAAP is requiring agents to gear up when it comes to ethical conduct, particularly in the area of RESPA compliance. The presentation will explain how UDAAP could make vendor management liability and oversight a two-way street through a new enforcement tactic known as “Reverse Vendor Management Oversight”. Reverse Vendor Management Oversight could challenge the bounds of legal malpractice by requiring title agents, lawyers, and attorney notaries to be on the lookout for vendor compliance issues with their clients. Speakers will share real-world examples, and attendees will walk away with actionable tips for remaining UDAAP compliant in an increasingly active RESPA and UDAAP enforcement environment.
October Research Corporation has generously offered a Discount Code to attend NS3 for all friends and clients of the Sterbcow Law Group. To receive your Discount Code please contact the Sterbcow Law Group and we will send you the special discounted rate code to attend NS3.
RESPA KICKBACKS: CFPB GOES AFTER LENDER FOR MORTGAGE INSURANCE KICKBACK ARRANGEMENT
The Consumer Financial Protection Bureau announced they initiated an administrative proceeding against mortgage lender PHH Corporation on Thursday, Jan. 30, 2014. The CFPB alleges that PHH originated consumer mortgages it steered consumers to certain mortgage insurance companies it partnered with because PHH was incentivized with reinsurance kickback fees which violated the Real Estate Settlement Procedures Act (RESPA). The CFPB believes consumers wound up paying higher mortgage insurance premiums because of the arrangement. The CFPB believes PHH violated Section 8 of RESPA (12 U.S.C. §2607).
The CFPB filed the administrative proceeding against New Jersey-based PHH Corporation and its residential origination subsidiaries, PHH Mortgage Corporation and PHH Home Loans, LLC, and PHH’s wholly-owned subsidiaries, Atrium Insurance Corporation and Atrium Reinsurance Corporation. The CFPB investigation picked up this investigation from the US Department of Housing and Urban Development (HUD) who began investigating this practice in July of 2011.
The CFPB has been very active in its enforcement of captive mortgage reinsurance business models as HUD was with captive reinsurance title insurers business models in the mid-2000’s. Previous CFPB investigations involving mortgage insurance reinsurance models included actions against United Guaranty Corp., Genworth Mortgage Insurance Corp., Radian Guaranty Inc., and Mortgage Guaranty Insurance Corporation. The CFPB now appears to be shifting their enforcement actions against lenders who may have received money from these companies.