Links in “Real Estate Settlement Procedures Act (RESPA/Regulation X)”
- How to Keep your Marketing Services Agreements Off the Naughty List
Earlier this year, the CFPB released compliance bulletin warning mortgage lenders that marketing service agreements, or MSAs, present substantial risks involving illegal kickbacks and referral fees under RESPA, the Real Estate Settlement Procedures Act. With these risks on the rise, hereâs what you need to know from the compliance bulletin. [12/8/15]
- CFPB v. PHH: RESPA Round Three
The CFPB hits PHH Corp. for $109 million for its RESPA violations. An administrative law judge took that number down to $6.4 million this summer. The CFPB isn't giving up so easily and is overruling the recommendation. The case is controversial because it calls into question the legality of market services agreements. [11/10/15]
- No Dice: Homeowners Fail in Attempt to Use RESPA as a Foreclosure Shield
A Florida court sides with mortgage servicers in two cases where the homeowners attempted to use RESPA as a shield against foreclosure. In one case, the homeowner argued that the mortgage servicer should not be able to foreclose because it didn't respond to repeated requests for payment history that included a previous financial institution. In the other case, the borrower claims the servicer failed to respond in detail to a borrower's inquiry about why the property was being subjected to drive-by inspections. In both cases, the court found the servicers sufficiently responded. [10/14/15]
- CFPB to Lenders: Use MSAs as a RESPA End-Around at Your Peril
The bureau warns lenders against the tactic of using marketing service agreements for advertising as a disguise for kickbacks designed to get around RESPA. See also this. [10/9/15]
- Spanish-Language Translation of the Home Buying Information Booklet Now Available
The CFPB has made available a Spanish-language translation of the recently revised Home Buying Information Booklet required under TILA and RESPA. It is available for download on the Bureauâs website. [9/23/15]
- RESPA Worries Push Wells Fargo to Kill Marketing Arrangements
Effective Aug. 1, Wells Fargo will end the practice of providing payments or services to agents and builders that refer home buyers over concerns about the CFPB's regulatory oversight of these types of arrangements. [7/31/15]
- Hallelujah! CFPB Pushes Back TILA/RESPA Deadline
CFPB Director Richard Cordray stated that the bureau will propose a delay of the final implementation of the TILA/RESPA integrated mortgage disclosure rules until Oct. 1. The decision was made to correct an administrative error that was just discovered  concerning meeting federal law requirements. [6/18/15]
- Trade Groups Continue to Press Congress for Hold-Harmless Period
A letter was sent from 19 trade groups to ranking House leadership urging passage of a measure that would provide a hold-harmless period of enforcement for TILA-RESPA Integrated Disclosures. [6/11/15]
- What Is Meant By a âGood Faithâ Effort to Comply?
Thatâs the question that many are asking in light of the CFPBâs statement that it will consider a financial institutionâs good faith effort to comply with the requirements for the new TILA/RESPA combined disclosure in its examinations. Other regulators have been urged to follow suit. A new Fact Sheet issued by the CFPB clarifies some of the delivery issues being raised by financial institutions. [6/8/15]
- Mortgage Lender Incurs Big Fine for Illegal Kickbacks
The CFPB has fined PHH Corporation, a New Jersey lender, $109 million for illegally accepting kickbacks in the form of mortgage reinsurance premiums paid by mortgage insurance companies to a PHH subsidiary. RESPA prohibits the payment of kickbacks for the referral of mortgage services. [6/8/15]
