Tag Archives: Real Estate Settlement Procedures Act

RESPA and UDAAP Enforcement Following The PHH Decision: What To Expect

As anyone who is associated with the residential real estate settlement services industry can appreciate, resolution of the PHH case by the full bench of the D.C. Circuit Court of Appeals[1] has brought much-needed clarity and reason to fundamental issues under the Real Estate Settlement Procedures Act (RESPA). This includes clarifying that Section 8(c) of RESPA really is … Continue reading this entry

CFPB Seeks Rehearing of D.C. Circuit Panel Ruling in PHH: What Now?

Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau (Bureau) Friday filed a petition in the closely-watched PHH case, seeking to undo a ruling by a panel of judges for the D.C. Circuit Court that was highly critical of the Bureau’s interpretation of the Real Estate Settlement Procedures Act (RESPA).  The Bureau also seeks to challenge a ruling in … 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

Supreme Court Vacancy Leaves Spokeo Outcome Even More Uncertain

The consumer financial services industry is wondering how the sudden passing of United States Supreme Court Justice Antonin Scalia will affect the pending Spokeo, Inc. v. Thomas Robins case. Spokeo is a key case dealing with whether a class action lawsuit may be brought by a consumer who suffered no actual injury, based solely on a claimed … Continue reading this entry

CFPB Director’s Divisive View of RESPA Limitations Period Central to Ongoing UDAAP Action

In the ongoing Integrity Advance enforcement action by the Consumer Financial Protection Bureau (“CFPB” or “Bureau”), the Office of Enforcement this January filed a brief arguing that its claims for alleged unfair, deceptive, or abusive acts or practices (“UDAAP”) in a payday lending case are not subject to the three-year statute of limitations (“SoL”) set forth … Continue reading this entry

Reply Brief filed in Spokeo v. Robins – Oral Argument next on Nov. 2

In its reply brief in Spokeo v. Robins, petitioner Spokeo comes out of the gate with the consequential argument that for Robins to prevail, the Supreme Court must accept his position that every violation of a statutory right qualifies as an injury-in-fact. Indeed, the case is much larger than Fair Credit Reporting Act (FCRA) inaccuracies … Continue reading this entry

CFPB Extends TRID Effective Date to October 1

The Consumer Financial Protection Bureau (“CFPB”) announced that it would provide mortgage lenders with additional time to prepare for the highly anticipated TILA-RESPA Integrated Disclosures (“TRID”). Since the issuance of TRID’s final regulations in November 2013, mortgage lenders have been frantically preparing for its effective date of August 1, 2015. Generally speaking, TRID will consolidate … Continue reading this entry

A Bit of Grace

The Consumer Financial Protection Bureau (CFPB) has finally agreed to bend under the strain of numerous requests from financial industry participants and 255 bi-partisan House members and 41 senators, who requested that the CFPB delay the implementation of the new Truth in Lending Act and Real Estate Settlement Procedures Act Integrated Disclosures (TRID) requirements.  Although … Continue reading this entry

CFPB Unveils New Integrated Disclosures Under RESPA and TILA

Today, in a broadcast streamed live on the internet, the CFPB unveiled the long awaited final rule that contains the Integrated Mortgage Disclosures under the Real Estate Settlement Procedures Act (“RESPA”), Regulation X, and the Truth-In-Lending Act (“TILA”), Regulation Z.[1] The final rule applies to most closed-end consumer mortgage loans (including timeshare estate products), but … Continue reading this entry

CFPB Gives Heads Up to Mortgage Servicers

During the Great Recession courts expressed frustration with sloppy paperwork and borrowers’ inability to get anyone to help them work out problem loans. Many courts refused to allow mortgage foreclosures to proceed because of the perceived mess. The Consumer Financial Protection Bureau just made it clear it was not going to tolerate these problems when it comes … Continue reading this entry

"Qualified Written Request" Under RESPA – No “Magic” Words, But the Right Questions Must be Asked

For the first time, the federal Court of Appeals for the Ninth Circuit recently opined on what constitutes a “qualified written request” under the Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. Section 2605(e), in Medrano et al. v. Flagstar Bank, FSB et al., 2012 U.S. App. LEXIS 25274 (9th Cir. Dec. 11, 2012). While the … Continue reading this entry

CFPB Issues Final Rules Amending Regulation X and Regulation Z

Today, the CFPB issued final rules amending Regulation X (Real Estate Settlement Procedures Act (“RESPA”)) and Regulation Z (Truth in Lending Act (“TILA”)). The amendments focus on mortgage servicing requirements and servicer obligations, and largely track the CFPB’s proposed rules issued August 10, 2012. The CFPB’s announcement of the final rules includes the preamble, regulatory text and … Continue reading this entry

TILA Does Not Require a Loan Servicer to Identify the Loan’s Owner

The Ninth Circuit recently sided with a loan servicer who was sued by a borrower for failing to provide him with the loan owner’s information. In Gale v. First Franklin Loan Services et al., 686 F.3d 1055 (9th Cir. 2012), amended, 2012 U.S. App. LEXIS 18545 (9th Cir. Aug. 31, 2012), the Ninth Circuit held that … Continue reading this entry

Hot Off of the Regulatory Printer -- CFPB Releases Its Proposed “Know Before You Owe” Disclosures

For weeks the Consumer Financial Protection Bureau has been advertising the pending release of its proposed mortgage loan disclosures that “are easier for both consumers and lenders to understand and use.”  Alas, await no more.  The CFPB released its proposed mortgage loan disclosures today.   The purpose of the new, supposedly friendlier disclosures, is for the … Continue reading this entry

Court Rules Semicolon in Statute Means Force-Placed Insurance Provision of RESPA is Not Yet Effective

In Williams v. Wells Fargo Bank, N.A., Judge Cecilia M. Altonaga of the United States District Court for the Southern District of Florida, ruled that a semicolon contained in the Dodd-Frank Wall Street Reform and Consumer Protection Act means that force-placed insurance provisions contained in the amendments to the Real Estate Settlement Procedures Act (“RESPA”) … Continue reading this entry

U.S. Supreme Court Grants Review Regarding RESPA Standing in the Absence of Economic Injury

On Monday, the U.S. Supreme Court granted certiorari in a proposed class action to determine the scope of a home-buyer’s standing to sue a title insurer company that allegedly violated the Real Estate Settlement Procedures Act of 1974 (RESPA). In First American Financial Corporation, et al. v. Edwards (10‑708), the question before the Court is … Continue reading this entry

The Ninth Circuit Analyzes Procedure for Review of Arbitration Awards

In Johnson v. Wells Fargo Home Mortgage, Inc., the Ninth Circuit addressed issues regarding a district court’s review of an arbitration award, as well as the substantive merits of the plaintiff’s Real Estate Settlement Procedures Act (“RESPA”) claims. 2011 WL 505016 (9th Cir. Feb. 15, 2011). The plaintiff, Wes Johnson, brought suit against Wells Fargo … Continue reading this entry

Any Reasonably Stated Written Request for Account Information can be "Qualified Written Request" Under RESPA

In Catalan v. GMAC Mortg. Corp., a three-judge panel of the Seventh Circuit Court of Appeals has reversed a grant of summary judgment to defendant, GMAC Mortgage (“GMAC”) on the plaintiffs’ claims under the Real Estate Settlement Procedures Act (“RESPA”). The court held that GMAC failed to establish that, as a matter of law, it … Continue reading this entry

Third Circuit Holds Mortgage Escrow Cushion Subject to Bankruptcy Process

In In re Rodriguez, No. 09-2724 (3rd Cir. Dec 23, 2010), a three-judge panel for the Third Circuit considered whether an automatic stay under the Bankruptcy Code prevented a mortgage servicer from accounting for a pre-petition shortage on a mortgage escrow account in its post-petition calculation of the bankrupt debtors’ future monthly escrow payments. The majority … Continue reading this entry

Eleventh Circuit Holds That Charging Loan Discount Points is not a "Settlement Service" Within the Meaning of RESPA

In Wooten v. Quicken Loans, Inc., the Eleventh Circuit Court of Appeals has affirmed the dismissal of a class action complaint that alleged improper fees under Section 8(b) of RESPA. At issue was whether charging loan discount fees — otherwise known as “points” or “discount points” — to provide a specific interest rate constitutes the … Continue reading this entry

HUD Solicits Comment on Possible Changes in Regulations Concerning Warehouse Loans and Other Finance Mechanisms

On November 16, 2010, the U.S. Department of Housing and Urban Development (HUD) issued a notice announcing that it is considering changes in its regulations on warehouse lending and other finance mechanisms that are used to fund federally insured mortgages.… Continue reading this entry

Challenged Fee Must be Split with Third Party Under RESPA §8(b), Fifth Circuit Holds

In Freeman et al. v. Quicken Loans, Inc. et al., the Fifth Circuit has ruled that that RESPA §8(b) is “exclusively an anti-kickback provision” which requires that the challenged fee be split with another party to be actionable. The Court noted the split of authority that exists among the federal courts concerning this issue. The … Continue reading this entry

Third Circuit Reverses Dismissal of RESPA 8(b) Markup Claim

In Tubbs v. North American Title Agency, Inc., No. 09-2757, 2010 U.S. App. LEXIS 16342, 2010 WL 3044067 (3d Cir. Aug. 5, 2010), the Third Circuit held that a lower court erred in dismissing a RESPA Section 8(b) claim. Plaintiffs’ allegations concerned North American Title Agency’s role as settlement agent for their refinancing of two … Continue reading this entry

Ninth Circuit Affirms Dismissal of RESPA Claim for Overcharges

The Ninth Circuit affirmed the dismissal of a purported class action under the Real Estate Settlement Procedures Act (“RESPA”) because the plain language of RESPA does not apply to the practice of “overcharging,” as well as the dismissal of three state law claims that are preempted under the National Bank Act. The Plaintiffs claimed that they … Continue reading this entry