Tag Archives: HUD

CFPB Loses Borders Case: the Court Construes RESPA’s Statutory ABA Exemption according to its Plain Language

On July 12, 2017, a federal district court in Kentucky issued a summary judgment ruling for the defense in the ongoing Borders & Borders case1 brought by the Consumer Financial Protection Bureau (CFPB or Bureau).  In this long-running case, the Bureau alleged that profit distributions paid to joint venture partners constituted illegal kickbacks in violation of … Continue reading this entry

PHH v. CFPB: "What is a Kickback?"

On April 12, 2016, a panel of the U.S. Court of Appeals for the D.C. Circuit heard oral argument in PHH Corporation’s (PHH) milestone legal battle with the Consumer Financial Protection Bureau (Bureau). During the argument, the Bureau had a lot to worry about: whether the agency’s unusual structure, headed by a single director who has … Continue reading this entry

Final Rule Issued on Ability-to-Repay/Qualified Mortgages

The Consumer Financial Protection Bureau (CFPB) issued its final ability to repay rule (Rule) on January 10, 2013. The Rule implements ability-to-repay provisions of the Dodd-Frank Act, which imposed strict underwriting standards upon lenders to ensure that prospective buyers have the ability to repay their mortgages. A failure to comply with these requirements will constitute a … Continue reading this entry

The Consumer Financial Protection Bureau Targets Mortgage Advertising in Its Continuing Enforcement Efforts

Just on the heels of announcing settlements of enforcement actions against several credit card companies, the Consumer Financial Protection Bureau (the “Bureau”) seems to have set its sights on the target of its next round of enforcement actions – lenders who are allegedly violating the Mortgage Acts and Practices – Advertising Rule (“MAP Rule”). The … Continue reading this entry

HUD Provides Long-Sought Clarification on Home Warranty Guidelines

On February 21, 2008, the U.S. Department of Housing and Urban Development (HUD) issued an informal (and non-binding) staff interpretation regarding home warranty companies, which seemed to raise more questions than it answered, primarily on the issues of marketing agreements and the marketing of home warranties. The agency found itself besieged by industry groups demanding … Continue reading this entry

HUD Clarifies How Real Estate Broker Commission Fees Should Be Disclosed Under RESPA

On January 22, 2010, the Department of Housing and Urban Development’s (“HUD”) general counsel, Helen Kanovsky, provided “clarification of how real estate broker and real estate agent commission fees are to be disclosed.” The clarification came in the form of a letter responding to an inquiry by RESPA attorney Jay Varon of Foley & Lardner, … Continue reading this entry

HUD's New Settlement Cost Booklet

The Department of Housing and Urban Development has released a new Settlement Cost Booklet, much of which is dedicated to the new Good Faith Estimate and HUD-1 Settlement Statement (read more about the changes here). Pursuant to the new rules promulgated under RESPA, effective January 1, 2010, lenders and mortgage brokers must provide the Settlement … Continue reading this entry

HUD Offers Online Outreach Program to Assist With Implementation of New RESPA Rules

Effective January 1, 2010, the amended regulatory requirements of the Real Estate Settlement Procedures Act (“RESPA”) will require lenders and mortgage brokers to provide consumers with a standard Good Faith Estimate (“GFE”) designed to disclose key loan terms and closing costs. Read more on the new RESPA rules here. The Department of Housing and Urban … Continue reading this entry

HUD Announces 120-Day Enforcement Delay on New RESPA Rule, Subject to Good Faith Efforts to Comply

HUD announced today that it will follow a resolution of its Mortgage Review Board to show restraint during the first 120 days of 2010 with respect to enforcement of the new RESPA rule scheduled to go into effect on January 1, 2010 — so long as good faith efforts are being made to comply with … Continue reading this entry