Archives: Real Estate

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CFPB Fines Lender and Real Estate Brokers for Improper Kickback Scheme

On Jan. 31, 2017, the Consumer Financial Protection Bureau (CFPB) filed consent orders against one of the largest independent residential mortgage lenders, two real estate brokers and a mortgage servicer for their roles in an improper “kickback” scheme involving mortgage referrals. The fines here were notable given that the CFPB targeted realtors for accepting payments … Continue Reading

Federal Appellate Court Deems CFPB ‘Unconstitutionally Structured’ and Overturns PHH Penalty

On Oct. 11, the U.S. Court of Appeals for the D.C. Circuit deemed the Consumer Financial Protection Bureau (CFPB) “unconstitutionally structured” and overturned its enforcement action, including a $109 million penalty, against PHH Corp., a New Jersey-based mortgage lender. Despite its rulings, the D.C. Circuit made clear that the CFPB will continue to operate and … Continue Reading

Transitional Authority Bill Passes House Committee Unanimously

The House Financial Services Committee unanimously approved a bill that would enable registered mortgage loan originators to move from a depository mortgage lender to a state-licensed mortgage lender almost immediately. This would allow eligible originators time to complete SAFE education and testing requirements while still earning a living. Introduced by Rep. Stivers of Ohio, H.R. … Continue Reading

CFPB Finalizes New HMDA Reporting Requirements

The Consumer Financial Protection Bureau (CFPB) finalized a rule yesterday aimed at providing the public and regulators with meaningful information concerning the lending practices of financial institutions. The rule updates the reporting requirements under the Home Mortgage Disclosure Act (HMDA), typically known as Regulation C, which requires lenders to report information about home loan applications, loans originated, … Continue Reading

CFPB Bulletin Cautions That Marketing Services Agreements Often Violate RESPA

Lenders utilizing “marketing services agreements” (“MSAs”) beware: On October 8, the Consumer Financial Protection Bureau (“CFPB”) issued a new bulletin strongly cautioning that MSAs often violate Real Estate Settlement Procedures Act’s (“RESPA”) “primary purpose” of preventing kickbacks. Lenders that use MSAs bear a high risk of eventually facing a CFPB enforcement action, which could carry … Continue Reading

CFPB Issues Bulletin on Private Mortgage Insurance Cancellation

On August 4, 2015, the Consumer Financial Protection Bureau (CFPB) issued a bulletin providing guidance to mortgage servicers regarding cancellation and termination of private mortgage insurance. The bulletin, discusses certain Homeowners Protection Act requirements and should assist servicers with compliance. The guidance summarizes existing requirements under the law and does not create any new standards. … Continue Reading

Lawsuit Seeks to Address Illegal Scheme Connected to Consumers’ Home Mortgage Transactions

“Secret and unlawful payments keep consumers in the dark and put honest businesses at a disadvantage, and the Consumer Bureau will continue to take action against them,” said Consumer Financial Protection Bureau (the Bureau) director Richard Cordray. On April 29, 2015, the Bureau and the Consumer Protection Division, Maryland Attorney General (CPD), filed a complaint … Continue Reading
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