Webinar Tuesday, April 23, :00 3:30 p.m. ET. Audio Dial-in:

Size: px
Start display at page:

Download "Webinar Tuesday, April 23, 2013 2:00 3:30 p.m. ET. Audio Dial-in: 800 404 5245"

Transcription

1 Webinar Tuesday, April 23, :00 3:30 p.m. ET Audio Dial-in:

2

3

4 Webinar Tuesday, April 23, :00 3:30 p.m. ET Audio Dial-in:

5 Moderator Angela Rulffes Editor RESPA News October Research, LLC

6 Submit questions and comments through the instant chat box feature. Questions can be submitted at any time throughout the Webinar.

7 Handouts The following materials can be downloaded at Today s PowerPoint presentation Articles from RESPA News Supreme Court takes stance in RESPA action Keep your affinity relationship RESPA compliant Could your use of social media violate RESPA? Real estate agents have to beware of RESPA too

8 Presenters Phillip L. Schulman, Esq. Holly Spencer Bunting, Esq. K&L Gates LLP 1601 K Street NW Washington, DC phil.schulman@klgates.com holly.bunting@klgates.com

9 INTRODUCTION Real Estate Settlement Procedures Act (RESPA) 1. Most important and most controversial statute affecting settlement service industry 2. Statute defies BUSINESS LOGIC 3. Why is RESPA important for my business? Criminal penalties and fines Treble damages Loss of license, reputation 9

10 Real Estate Brokers and Mortgage Companies Occupy 1 st Class Seats on the Train to Homeownership 1. Uniquely situated at the Crossroads 2. Real estate brokers and mortgage companies find themselves Referrers of settlement service business 3. Mortgage companies and title/escrow companies, Referees of such business 10

11 Outline for Today s Session 1. RESPA Primer Section 8(a) Anti-Kickback Provisions Section 8(b) Splitting of Unearned Fees 2. Exceptions Affiliated Business Arrangements Section 8(c)(2) 3. Penalties and Enforcement 4. Section 9 Sellers and Title Insurance 5. RESPA Compliance Quiz 11

12 RESPA Primer 1. Early 70 s mortgagees and title companies approach Congress 2. Result: Real Estate Settlement Procedures Act Passed 1974 Consumer disclosure and anti-kickback act 12

13 Consumer Disclosure Law 1. Idea: Give Buyers and Sellers full disclosure of costs of transaction 2. Disclosures GFE Special Information Booklets HUD-1 Settlement Statements Recent Additions Servicing transfer information Escrow Information Full disclosure Mortgage Broker Fees 13

14 Section 8(a) Anti-Kickback Provisions 14

15 Anti-kickback Law 1. Idea: Eliminate abusive practices such as payment of kickback fees which drive up cost of product to consumers 2. 5 Elements of a Section 8(a) kickback Section 8(a) says it is illegal to Give or Receive any: (i) thing of value pursuant to (ii) an agreement or understanding to (iii) refer (iv) settlement services, in connection with (v) a federally related mortgage loan 15

16 Anti-kickback Law (cont d) i. Federally Related Mortgage Loan = Any loan secured by a first or subsequent lien on a 1 4 family residential property includes Refinances Purchase money mortgages Second liens ARMs Reverse mortgages Interest only mortgages excludes Commercial loans Construction loans Temporary financing Property over 25 acres Business purpose loans 16

17 Anti-kickback Law (cont d) ii. Settlement Services = Anything done by Title Agents; Attorneys; Real Estate Agents; Mortgage Brokers; Banks Title searches Credit reports / appraisals Origination of loans Title insurance, etc. 17

18 Anti-kickback Law (cont d) iii. Referral = Any conduct intended to influence the selection of a particular settlement service provider iv. Agreement or Understanding = Need not be in writing or even articulated or verbalized may include a practice or course of action where the receipt of a THING OF VALUE is understood Wink, wink 18

19 Anti-kickback Law (cont d) v. Thing of Value = Broadly defined to be virtually anything one receives in consideration for making a referral $ Trips Fax machines Free advertising Commissions Discounts Computer VIAGRA Property Low interest loans Ipods Football tickets IMPORTANT: ALL 5 ELEMENTS MUST BE PRESENT. ANY ONE MISSING: Not a violation of RESPA 19

20 Section 8(b) Splitting of Unearned Fees 20

21 Splitting Fees May Also Be a Problem Section 8(b) says No person shall give... No person shall accept a split or percentage in connection with a real estate settlement service other than for services rendered A referral is not required to violate Section 8(b). 21

22 Circuit Courts Split on Fee Splitting 1. 4 Circuit Courts (7, 4, 8 and 5) say if you don t split mark-up = no violation of 8(b) 2. 3 Circuit Courts (11, 2 and 3) say if you mark up a third-party fee without doing any service = violation of 8(b) 3. U.S. Supreme Court settles the split 22

23 Circuit Courts Split on Fee Splitting (cont d) 4. HUD Statement of Policy i. 2 or more persons split a fee for settlement service where fee is unearned ii. One settlement service provider marks up cost of service performed by another iii. One settlement service provider charges a fee where no nominal or duplicative work is done, or the fee is in excess of the reasonable value of the services actually performed 23

24 Circuit Courts Split on Fee Splitting (cont d) 5. Nearly every court rejects HUD s (iii) point Courts say a direct charge by a settlement service provider that is not a mark-up of a third-party vendor fee is not covered by RESPA 24

25 Until Cohen v. JP Morgan Chase August 2007 Second Circuit Court 1. Plaintiff alleges $225 closing fee was a junk fee = no services performed 2. Much to surprise of RESPA junkies, 2 nd Circuit Court says We adopt HUD s view If no service for fee = 8(b) violation 25

26 Until Cohen v. JP Morgan Chase August 2007 Second Circuit Court (cont d) 3. Calls into question real estate broker administrative fees 4. Even if not RESPA violation, to avoid state unfair/deceptive trade practice laws Be able to defend fee Make sure you are doing actual services 26

27 Freeman v. Quicken Loans Split in the Circuit Courts resolved by the U.S. Supreme Court during 2012 term Does the charging of a fee for no services constitute a violation of Section 8(b)? Defendant charged a discount fee that allegedly did not reduce the interest rate Defendant argued: Statute requires two parties for violation RESPA is not a rate-setting statute Court sided with Defendant and held that two or more parties must split an unearned fee to violate Section 8(b) 27

28 Section 8(c) Exceptions to RESPA Anti-Kickback Provisions 28

29 Exceptions - Section 8(c) Congress recognized certain exceptions where paying a referral fee is ok To an Attorney for services actually performed By a Title Company to its duly appointed Title Agent for services performed in issuance of a title policy By a Lender to its duly appointed Agent Cooperative Agreements between listing and selling agents 29

30 Exceptions - Section 8(c) (cont d) Congress recognized certain exceptions where paying a referral fee is ok (cont d) Payments by Employer to Employee Section 8(c)(2) payments for services rendered or goods/facilities actually provided Secondary Market Transactions Affiliated Business Arrangements 30

31 Affiliated Business Arrangements (AfBAs) Exception A. AfBAs 1. Prior to 1983 affiliations unlawful 2. Example: ABC Mortgage Company Real estate broker A and B, and mortgage broker C form ABC Mortgage Company RESPA Act amendments 4-part Safe Harbor Test 31

32 Affiliated Business Arrangements (AfBAs) Exception (cont d) B RESPA Regulations Give Distinct Advantages to AfBAs 1. Employer may pay Employee for any referral activities 2. Discounts or rebates to consumers to entice them to use AfBAs are permitted 32

33 Affiliated Business Arrangements (AfBAs) Exception (cont d) C HUD Policy Statement 1. HUD addresses abuses factors considered to determine bona fide AfBAs 3. Need not meet all 10 factors 4. Weigh factors to determine if AfBA is bona fide 33

34 Affiliated Business Arrangements (AfBAs) Exception (cont d) D. Elements of a Lawful AfBA 1. Capitalization 6. Contracting out services 2. Employees 7. Who receives contracts 3. Management 8. How contracts priced 4. Separate Space 9. Competing in marketplace 5. Core Services 10.Exclusivity with owners 34

35 Elements of Section 8(c)(2) RESPA Does Not Prohibit Payments for Goods Provided and/or Services Performed Goods/Services must be actual, necessary and distinct Payment must be commensurate with the value of goods/services 35

36 Two Examples A. Marketing and Service Agreements 1. Perform actual marketing services 2. Pay fair market value for marketing services B. Office Rental Agreements 1. Provide actual office space 2. Pay fair market value rent for office space 36

37 Section 8(d) Penalties and Enforcement 37

38 RESPA Statutory Penalties and Enforcement A. Section 8(d): 1. A person that violates Section 8 of RESPA could face: Fine of up to $10,000 and/or imprisonment for up to one year Treble damages in class actions Government actions to enjoin violations 38

39 First American Financial Corp. v. Edwards 1. Does consumer have standing to bring suit under RESPA if a kickback does not affect the price or quality of the services provided? Edwards purchased title insurance from a title agency in an exclusive referral relationship with First American First American argued: i. Same title insurance rate charged to all borrowers in state ii. Constitutional doctrine of standing requires an actual injury 2. Federal Circuit Courts split on this issue 3 Federal Circuit Courts say no injury needed to prevail under RESPA 2 Federal Circuit Courts say without injury, no standing to sue 39

40 First American Financial Corp. v. Edwards 3. In 2012, Edwards case goes to U.S. Supreme Court for definitive decision U.S. Supreme Court held that cert. was improvidently granted U.S. Supreme Court punts 4. Split in Federal Circuit Courts continue 40

41 Consumer Financial Protection Bureau Penalties 1. Nuclear arsenal of weaponry, including: Rescission Refunds Restitution Damages Unjust enrichment Public notification 2. Enforcement authority beyond original statutes 3. Civil money penalties 41

42 Section 9 Sellers and Title Insurance A seller cannot require a buyer to purchase title insurance from a particular title company. If a seller pays for title insurance, then the seller can require the use of a particular company for title insurance. What if seller only pays for owner s title policy issued by its preferred title company? At least one court says an economic incentive for buyer to purchase lender s policy from seller s title company does not amount to required use. If a seller violates Section 9, it is liable to the buyer in an amount equal to 3 times all charges paid by the buyer for title insurance. 42

43 RESPA Compliance Quiz 43

44 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls * * * SCORING * * * Get yourself fitted for prison garb Still susceptible to visit from RESPA Police Impressive What are you trying to do? Put me out of business? 44

45 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 1. A real estate agent agrees to buy an interest in a joint venture title agency, along with 10 other agents. However, the agent never refers any business to this title agency. What can they do to the real estate agent? a. Put a provision in the Operating Agreement that allows the title agency to remove partners that refuse to refer business. b. Nuttin Honey. They re stuck with the real estate agent for life. c. The venture can buy the agent out, if they offer the agent at least twice what the agent paid for his interest. 45

46 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 1. A real estate agent agrees to buy an interest in a joint venture title agency, along with 10 other agents. However, the agent never refers any business to this title agency. What can they do to the real estate agent? b. Nuttin Honey. They re stuck with the real estate agent for life. 46

47 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 2. A real estate agent tells her former customers that if they refer a friend or relative to the agent, and that friend or relative buys or sells a house through the agent, the agent will give that former customer $250. RESPA violation? a. No. While RESPA prohibits paying a thing of value to settlement service providers, the Act does not prohibit paying consumers. b. Yes. Act says no person shall receive a thing of value for referral of business, and that includes former customers. c. Tough call. Most customers can t remember the name of their agent ten minutes after closing, and besides, most of them don t seem to have any friends. 47

48 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 2. A real estate agent tells her former customers that if they refer a friend or relative to the agent, and that friend or relative buys or sells a house through the agent, the agent will give that former customer $250. RESPA violation? b. Yes. Act says no person shall receive a thing of value for referral of business, and that includes former customers. 48

49 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 3. You re a real estate broker sponsoring a charity golf tournament. You ask a local lender to sponsor a holein-one contest for the outing. RESPA violation? a. Because it s a charitable event, no RESPA violation. b. OK, if the lender is allowed to put up a sign advertising that his mortgage company is a sponsor of the event. c. Not a RESPA violation, because those hole-in-one contests are rigged. No one ever wins. 49

50 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 3. You re a real estate broker sponsoring a charity golf tournament. You ask a local lender to sponsor a holein-one contest for the outing. RESPA violation? b. OK, if the lender is allowed to put up a sign advertising that his mortgage company is a sponsor of the event. 50

51 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 4. A real estate agent wants to send out post cards advertising homes he is listing, so he contacts a local title agency and offers to let them put their logo on the post card if the title agency pays for the printing and mailing of the cards. RESPA violation? a. Sure, by paying the cost of printing and postage, the title agent is providing the agent a thing of value with the hope the agent will refer him business. b. No, the agent is providing the title agent access to his customer base; in lieu of paying for that, the title agency picks up the tab for cards. c. Yes, it s a violation if the real estate agent requests payment from the title agent, but if he offers to pay, with no expectation of being reimbursed for expenses, not a violation. 51

52 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 4. A real estate agent wants to send out post cards advertising homes he is listing, so he contacts a local title agency and offers to let them put their logo on the post card if the title agency pays for the printing and mailing of the cards. RESPA violation? a. Sure, by paying the cost of printing and postage, the title agent is providing the agent a thing of value with the hope the agent will refer him business. 52

53 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 5. A real estate agent offers to sell a mortgage banker the names and addresses of individuals that visit the agent s open houses. The agent asks $10 per name, does not refer the individuals to the mortgage banker, and gets paid the $10 even if the individuals do not get a loan from that mortgage banker. RESPA violation? a. No. Sure, there is a thing of value being paid to the real estate agent, but since the agent is not recommending the mortgage banker, no RESPA violation. b. Yes, even if the real estate agent does not refer the individuals to the mortgage company, there is an agreement or understanding that the payment is for settlement service business (i.e., a mortgage loan). c. Yes, RESPA prohibits a settlement service provider from divulging confidential personal information about customers. 53

54 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 5. A real estate agent offers to sell a mortgage banker the names and addresses of individuals that visit the agent s open houses. The agent asks $10 per name, does not refer the individuals to the mortgage banker, and gets paid the $10 even if the individuals do not get a loan from that mortgage banker. RESPA violation? a. No. Sure, there is a thing of value being paid to the real estate agent, but since the agent is not recommending the mortgage banker, no RESPA violation. 54

55 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 6. A real estate brokerage firm owns a majority interest in a title agency. The broker tells all the agents in the office that they don t have to refer their clients to the title agency, but if they do, and the deal closes at the broker s title agency, the broker will pay the agent s commission split at the closing table. RESPA violation? a. No. While the commission is to be paid to the broker, the broker can ask the settlement agent to pay a portion of the commission directly to the real estate agent. b. No. As long as the real estate broker does not require the agent to use the broker s title agency, not a violation. c. Yes. Real estate broker is offering a thing of value for the referral of settlement service business. 55

56 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 6. A real estate brokerage firm owns a majority interest in a title agency. The broker tells all the agents in the office that they don t have to refer their clients to the title agency, but if they do, and the deal closes at the broker s title agency, the broker will pay the agent s commission split at the closing table. RESPA violation? c. Yes. Real estate broker is offering a thing of value for the referral of settlement service business. 56

57 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 7. A builder insists that the buyer use a preferred attorney for closing services and a preferred title agency for title insurance. The builder requires the buyer to pay for both services. RESPA violation? a. Section 9 of RESPA prohibits a seller from requiring the use of a settlement agent or a title agent. b. Section 9 of RESPA permits a seller to require the use of a title agent, but not a settlement agent. c. The builder could avoid this issue altogether, if it paid for the cost of title insurance, but we know builders don t like to put their hands in their own pockets. 57

58 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 7. A builder insists that the buyer use a preferred attorney for closing services and a preferred title agency for title insurance. The builder requires the buyer to pay for both services. RESPA violation? c. The builder could avoid this issue altogether, if it paid for the cost of title insurance, but we know builders don t like to put their hands in their own pockets. 58

59 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 8. A new title agent in town pays every real estate agent and lender a $250 finder s fee for each customer they refer whose loan closes with the title agent. In this particular state, the state sets the title rates and all customers pay the exact same title insurance fees. Can the customers successfully sue the title agent under RESPA since the title agent paid a kickback in violation of Section 8? a. No. The U.S. Supreme Court said that the customer has to suffer some economic damage in order to have standing to sue. Since the customer did not suffer economic damage, the customer may not sue. b. Yes. RESPA does not require that the customer suffer economic harm to recover only that a kickback occur in connection with her transaction. c. It depends on where the customer lives. Some federal courts require the customer to suffer damages in order to sue in court. Other federal courts say that RESPA does not require a showing of harm and, therefore, a customer can sue for a violation of Section 8, even if no harm is suffered. 59

60 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 8. A new title agent in town pays every real estate agent and lender a $250 finder s fee for each customer they refer whose loan closes with the title agent. In this particular state, the state sets the title rates and all customers pay the exact same title insurance fees. Can the customers successfully sue the title agent under RESPA since the title agent paid a kickback in violation of Section 8? c. It depends on where the customer lives. Some federal courts require the customer to suffer damages in order to sue in court. Other federal courts say that RESPA does not require a showing of harm and, therefore, a customer can sue for a violation of Section 8, even if no harm is suffered. 60

61 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 9. A mortgage company pays its loan officers $100 for every title order that they refer to the mortgage company s affiliated title insurance company. Violation of Section 8 of RESPA? a. Yes. Section 8 of RESPA prohibits the payment of referral fees or kickbacks to any person that refers settlement service business. b. No. As long as the loan officers are W-2 employees of the mortgage company, the mortgage company can pay referral fees to its loan officers. c. Yes. $100 is a valuable incentive to refer title insurance business, but if the mortgage company had only paid the loan officers $25 for every title order they referred to the affiliated title company, there would be no RESPA violation. 61

62 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 9. A mortgage company pays its loan officers $100 for every title order that they refer to the mortgage company s affiliated title insurance company. Violation of Section 8 of RESPA? b. No. As long as the loan officers are W-2 employees of the mortgage company, the mortgage company can pay referral fees to its loan officers. 62

63 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 10. A home warranty company sells a home warranty to a buyer of a home for $250. After the home warranty is issued, the home warranty company pays $75 of the $250 fee to the buyer s real estate agent. Violation of Section 8(b) of RESPA? a. It depends. Section 8(b) of RESPA prohibits the split of a fee for a settlement service between two or more parties, unless the split is compensation for services performed. We need to know if the buyer s real estate agent performed services for the home warranty company. b. Yes. The U.S. Supreme Court was clear that Section 8(b) prohibits the split of a fee for a settlement service between two or more parties. c. No. Because a home warranty is not a settlement service, Section 8(b) is not applicable to this split in fee. 63

64 RESPA Pop Quiz for Real Estate Agents, Lenders, Title Agents and Wayward Souls (cont d) 10. A home warranty company sells a home warranty to a buyer of a home for $250. After the home warranty is issued, the home warranty company pays $75 of the $250 fee to the buyer s real estate agent. Violation of Section 8(b) of RESPA? a. It depends. Section 8(b) of RESPA prohibits the split of a fee for a settlement service between two or more parties, unless the split is compensation for services performed. We need to know if the buyer s real estate agent performed services for the home warranty company. 64

65 QUESTIONS Submit questions through the instant chat feature. 65

66 Thank You You will be receiving a short feedback survey at the conclusion of this Webinar. A CD of today s webinar can be purchased on October Research s product site at Today s PPT presentation and other handouts can be found at: 66

AMERICAN LAND TITLE ASSOCIATION

AMERICAN LAND TITLE ASSOCIATION AMERICAN LAND TITLE ASSOCIATION A Compliance And Survival Guide To The REAL ESTATE SETTLEMENT PROCEDURES ACT Presented by September 12, 2013 Phillip L. Schulman, Esq. K&L Gates, LLP 202-778-9027 phil.schulman@klgates.com

More information

MARKETING AND SERVICES AGREEMENTS IN AN ENFORCEMENT ERA

MARKETING AND SERVICES AGREEMENTS IN AN ENFORCEMENT ERA NATIONAL ASSOCIATION OF REALTORS MARKETING AND SERVICES AGREEMENTS IN AN ENFORCEMENT ERA Phillip L. Schulman K&L Gates LLP 1601 K Street NW Washington, DC 20006 (202) 778-9027 phil.schulman@klgates.com

More information

FAQs About RESPA for Industry

FAQs About RESPA for Industry FAQs About RESPA for Industry 1. What kinds of transactions are covered under RESPA? Transactions involving a federally related mortgage loan, which includes most loans secured by a lien (first or subordinate

More information

9/8/2015. What Does RESPA Stand For? Background of RESPA. Real Estate Settlement Procedures Act. Instructor: Susan Barnette

9/8/2015. What Does RESPA Stand For? Background of RESPA. Real Estate Settlement Procedures Act. Instructor: Susan Barnette Instructor: Susan Barnette What Does RESPA Stand For? Real Estate Settlement Procedures Act Background of RESPA 1 Purpose of RESPA What Entities Are Subject To RESPA? 2 RESPA Section 8(a) No person shall

More information

RESPA. A Guide to Complying with the Real Estate Settlement Procedures Act

RESPA. A Guide to Complying with the Real Estate Settlement Procedures Act RESPA A Guide to Complying with the Real Estate Settlement Procedures Act For a complete listing of the business solutions offered from the NATIONAL ASSOCIATION OF REALTORS, visit us online at www.realtor.org/store.

More information

Webinar Tuesday, November 18, 2014 2:00 3:30 pm ET. For Audio Dial (800) 741-3792

Webinar Tuesday, November 18, 2014 2:00 3:30 pm ET. For Audio Dial (800) 741-3792 Webinar Tuesday, November 18, 2014 2:00 3:30 pm ET For Audio Dial (800) 741-3792 Webinar Tuesday, November 18, 2014 2:00 3:30 pm ET For Audio Dial (800) 741-3792 Moderator Nathan Marinchick Editor, Dodd

More information

FAQs About RESPA for Industry

FAQs About RESPA for Industry FAQs About RESPA for Industry Scope of RESPA 1. What kinds of transactions are covered under RESPA? Transactions involving a federally related mortgage loan, which includes most loans secured by a lien

More information

The Naked Gun: Real Stories from the Files of the CFPB

The Naked Gun: Real Stories from the Files of the CFPB The Naked Gun: Real Stories from the Files of the CFPB American Land Title Association March 19, 2015 Benjamin Olson, Esq. Buckley Sandler LLP 1250 24th Street NW, Suite 700 86 Willow Street Washington,

More information

CFPB and Real Estate Agents. A course on the Consumer Financial Protection Bureau and its significant impact on real estate agents

CFPB and Real Estate Agents. A course on the Consumer Financial Protection Bureau and its significant impact on real estate agents CFPB and Real Estate Agents A course on the Consumer Financial Protection Bureau and its significant impact on real estate agents What is the Consumer Financial Protection Bureau (CFPB)? Independent agency

More information

NMLS #1820 RESPA Policy - Section 8 and MSAs

NMLS #1820 RESPA Policy - Section 8 and MSAs COMPLIANCE POLICY AND PROCEDURES FOR The Real Estate Settlement Procedures Act (RESPA) and its Implementing Regulation X INTRODUCTION Section 8 Prohibition on Payment of Kickbacks and Referral Fees Affiliated

More information

Webinar Thursday, January 16, 2014 2:00 3:30 pm ET

Webinar Thursday, January 16, 2014 2:00 3:30 pm ET Webinar Thursday, January 16, 2014 2:00 3:30 pm ET Webinar Thursday, January 16, 2014 2:00 3:30 pm ET Moderator Roger Blauvelt Vice President & National Agency Counsel WFG National Title Insurance Company

More information

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA CASE NO.:

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA CASE NO.: UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA CASE NO.: CONSUMER FINANCIAL PROTECTION BUREAU, Plaintiff, v. GENWORTH MORTGAGE INSURANCE CORPORATION, Defendant. / COMPLAINT FOR PERMANENT INJUNCTION

More information

Presenting a live 90-minute webinar with interactive Q&A. Today s faculty features:

Presenting a live 90-minute webinar with interactive Q&A. Today s faculty features: Presenting a live 90-minute webinar with interactive Q&A RESPA Sec. 8 Enforcement: CFPB Scrutiny of Settlement Fees, AfBAs and Marketing Service Agreements Best Practices for Mortgage Lenders, Insurers,

More information

CFPB Compliance Bulletin 2015-05. Date: October 8, 2015 Subject: RESPA Compliance and Marketing Services Agreements

CFPB Compliance Bulletin 2015-05. Date: October 8, 2015 Subject: RESPA Compliance and Marketing Services Agreements Consumer Financial Protection Bureau 1700 G Street NW, Washington, DC 20552 CFPB Compliance Bulletin 2015-05 Date: October 8, 2015 Subject: RESPA Compliance and Marketing Services Agreements The Consumer

More information

KEEPING IT LEGAL. REALTOR Resource for RESPA Issues: Transaction Fees & Home Warranty Rule. 2010 Convention Celebrating 100 Years

KEEPING IT LEGAL. REALTOR Resource for RESPA Issues: Transaction Fees & Home Warranty Rule. 2010 Convention Celebrating 100 Years KEEPING IT LEGAL REALTOR Resource for RESPA Issues: Transaction Fees & Home Warranty Rule 2010 Convention Celebrating 100 Years Copyright 2010 Ohio Association of REALTORS Fee Charged by Brokerage Violates

More information

CFPB and Lenders. A presentation on the Consumer Financial Protection Bureau and its impact on the lending industry

CFPB and Lenders. A presentation on the Consumer Financial Protection Bureau and its impact on the lending industry CFPB and Lenders A presentation on the Consumer Financial Protection Bureau and its impact on the lending industry What is the Consumer Financial Protection Bureau (CFPB)? Independent agency of the United

More information

Mortgage Lenders, REALTORS and RESPA. While it may be hard to just say no to the freebies that mortgage lenders

Mortgage Lenders, REALTORS and RESPA. While it may be hard to just say no to the freebies that mortgage lenders Mortgage Lenders, REALTORS and RESPA While it may be hard to just say no to the freebies that mortgage lenders sometimes offer REALTORS for the referral of loan business, just saying no is clearly the

More information

July 26, 2010. RESPA: Home Warranty Companies Payments to Real Estate Brokers and Agents Docket No. FR-5425-IA-01

July 26, 2010. RESPA: Home Warranty Companies Payments to Real Estate Brokers and Agents Docket No. FR-5425-IA-01 American Bankers Association Consumer Mortgage Coalition Housing Policy Council of the Financial Services Roundtable Independent Community Bankers of America Mortgage Bankers Association July 26, 2010

More information

CFPB REVIEW Regulations & Enforcement Actions

CFPB REVIEW Regulations & Enforcement Actions NATIONAL ASSOCIATION OF REALTORS CFPB REVIEW Regulations & Enforcement Actions November 9, 2014 Phillip L. Schulman K&L Gates LLP 1601 K Street NW Washington, DC 20006 202.778.9027 phil.schulman@klgates.com

More information

Regulatory Practice Letter June 2012 RPL 12-11

Regulatory Practice Letter June 2012 RPL 12-11 Regulatory Practice Letter June 2012 RPL 12-11 Mortgage Rule Modifications under CFPB Consideration Executive Summary The Bureau of Consumer Financial Protection ( CFPB ) has announced that it intends

More information

Chapter 47. The Closing THE REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA)

Chapter 47. The Closing THE REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) Chapter 47 The Closing THE REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) For federally related first mortgages to purchase one-to-four-family dwellings (i.e., almost all residential first mortgage loans

More information

Case 1:15-cv-00179-RDB Document 1 Filed 01/22/15 Page 1 of 14 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND BALTIMORE DIVISION

Case 1:15-cv-00179-RDB Document 1 Filed 01/22/15 Page 1 of 14 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND BALTIMORE DIVISION Case 1:15-cv-00179-RDB Document 1 Filed 01/22/15 Page 1 of 14 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND BALTIMORE DIVISION CONSUMER FINANCIAL PROTECTION BUREAU 1700 G Street NW Washington,

More information

New GFE/HUD-1 Mortgage Brokers Really Need to Know This Stuff

New GFE/HUD-1 Mortgage Brokers Really Need to Know This Stuff United Wholesale Mortgage 2009 RESPA Webinar New GFE/HUD-1 Mortgage Brokers Really Need to Know This Stuff November 18, 2009 Phillip L. Schulman, Esq. phil.schulman@klgates.com 202-778-9027 DC-1381985

More information

Real Estate Settlement Procedures Act

Real Estate Settlement Procedures Act Background The Real Estate Settlement Procedures Act of 1974 (RESPA) (12 USC 2601-17), which is implemented by the Department of Housing and Urban Development s Regulation X (24 CFR 3500), became effective

More information

22. What amount is the buyer debited for the real estate taxes? A) $666.67 B) $1,600 C) $933.33 D) $133.33

22. What amount is the buyer debited for the real estate taxes? A) $666.67 B) $1,600 C) $933.33 D) $133.33 Name: Date: 1. Norman agrees to purchase Gusela's property for $185,500. He deposits the purchase price with Vincent, and Gusela deposits a warranty deed for the property with Vincent. Vincent is instructed

More information

MORTGAGE TERMS. Assignment of Mortgage A document used to transfer ownership of a mortgage from one party to another.

MORTGAGE TERMS. Assignment of Mortgage A document used to transfer ownership of a mortgage from one party to another. MORTGAGE TERMS Acceleration Clause This is a clause used in a mortgage that can be enforced to make the entire amount of the loan and any interest due immediately. This is usually stipulated if you default

More information

Are You Ready for TRID? Dodd Frank the CFPB & You Featuring TRID

Are You Ready for TRID? Dodd Frank the CFPB & You Featuring TRID WELCOME! www.grantsimon.com Are You Ready for TRID? Dodd Frank the CFPB & You Featuring TRID 1 TRID TILA-RESPA INTEGRATED DISCLOSURE Ready For It New Jargon Lender Borrower Closing GFE & TIL HUD 1 & TIL

More information

Summary of RESPA Rules... 1 Summary of Changes... 2 Required Use... 2 Average Cost Pricing... 3 Calculating the Average Charge...

Summary of RESPA Rules... 1 Summary of Changes... 2 Required Use... 2 Average Cost Pricing... 3 Calculating the Average Charge... Summary of RESPA Rules... 1 Summary of Changes... 2 Required Use... 2 Average Cost Pricing... 3 Calculating the Average Charge... 4 Good Faith Estimate... 5 Curing Tolerance Violations... 9 Lenders Disclosure

More information

Update on CFPB s TILA- RESPA Integrated Disclosure Rule

Update on CFPB s TILA- RESPA Integrated Disclosure Rule Update on CFPB s TILA- RESPA Integrated Disclosure Rule Mortgage Bankers Ruth A. Dillingham, Special Counsel First American Title Insurance Company This presentation is for informational purposes only

More information

CONSUMER MORTGAGE PROTECTION ACT Act 660 of 2002. The People of the State of Michigan enact:

CONSUMER MORTGAGE PROTECTION ACT Act 660 of 2002. The People of the State of Michigan enact: CONSUMER MORTGAGE PROTECTION ACT Act 660 of 2002 AN ACT to prohibit certain lending practices; to require disclosure of certain information for home loans; to prescribe certain duties and obligations of

More information

Legal Issues to Consider When Creating a Health Care Business Model

Legal Issues to Consider When Creating a Health Care Business Model Legal Issues to Consider When Creating a Health Care Business Model Connie A. Raffa, J.D., LL.M. Business practices considered standard in other industries may in the health care industry be considered

More information

RESPA s Anti-Kickback and Unearned Fee Provisions. etc. Some examples of prohibited practices

RESPA s Anti-Kickback and Unearned Fee Provisions. etc. Some examples of prohibited practices MORTGAGE LOAN BULLETIN Arnold Schwarzenegger, Governor Sunne Wright McPeak, Secretary, Business, Transportation and Housing Agency Jeff Davi, Real Estate Commissioner Spring 2006 RESPA s Anti-Kickback

More information

AFFINITY RELATIONSHIPS UNDER RESPA: MAKING MONEY THE OLD FASHIONED WAY 1

AFFINITY RELATIONSHIPS UNDER RESPA: MAKING MONEY THE OLD FASHIONED WAY 1 An Introduction AFFINITY RELATIONSHIPS UNDER RESPA: MAKING MONEY THE OLD FASHIONED WAY 1 Affinity relationships are a wonderful means of developing a supplemental income stream. Unfortunately, many affinity

More information

ESCROW ACCOUNT OPTION NOTICE TO BORROWER

ESCROW ACCOUNT OPTION NOTICE TO BORROWER ESCROW ACCOUNT OPTION NOTICE TO BORROWER The mortgage interest rate and discount points agreement which you are entering into with Mission Mortgage is based on the assumption that you will be making monthly

More information

A Primer on the New CFPB Regulations Governing Residential Closings. Navigating the New Forms (Loan Estimate and Closing Disclosure.

A Primer on the New CFPB Regulations Governing Residential Closings. Navigating the New Forms (Loan Estimate and Closing Disclosure. A Primer on the New CFPB Regulations Governing Residential Closings. Navigating the New Forms (Loan Estimate and Closing Disclosure.) For loan applications received beginning October 3, 2015. Disclaimer:

More information

TILA-RESPA Integrated Disclosure (TRID) Correspondent Division. Overview. Loan Estimate (LE) Key points. Topic The Regulation

TILA-RESPA Integrated Disclosure (TRID) Correspondent Division. Overview. Loan Estimate (LE) Key points. Topic The Regulation Overview The Regulation The Consumer Financial Protection Bureau (CFPB) issued a final rule amending Regulation Z (Truth in Lending Act) and Regulation X (Real Estate Settlement Procedures Act) to integrate

More information

FINANCE HELPLINE PRESENTS: TRID WHAT TO EXPECT ON AUG. 1ST finance.car.org (213) 739-8383 financehelpline@car.org

FINANCE HELPLINE PRESENTS: TRID WHAT TO EXPECT ON AUG. 1ST finance.car.org (213) 739-8383 financehelpline@car.org FINANCE HELPLINE PRESENTS: TRID WHAT TO EXPECT ON AUG. 1ST finance.car.org (213) 739-8383 financehelpline@car.org Thank you for joining the Webinar! We will begin at 11:00 a.m. Your phone will be muted,

More information

General Resources CFPB Resources ALTA Best Practices Closing Insight Notaries Business & Commercial Loans Foreign Consumers

General Resources CFPB Resources ALTA Best Practices Closing Insight Notaries Business & Commercial Loans Foreign Consumers Remember, a knowing or reckless violation of TRID, even if done under instructions from the lender, may result in penalties of up to $1 million a day per violation against the individual settlement agent.

More information

Loan Originator Compensation: The New Paradigm

Loan Originator Compensation: The New Paradigm Loan Originator Compensation: The New Paradigm Presented for Maryland Association of Mortgage Professionals on March 3, 2011 by Marjorie A. Corwin Gordon, Feinblatt, Rothman, Hoffberger & Hollander, LLC

More information

Lesson 15: Closing Real Estate Transactions

Lesson 15: Closing Real Estate Transactions 1 Real Estate Principles of Georgia Lesson 15: Closing Real Estate Transactions 2 Closing Closing: Final stage in real estate transaction. Also called settlement. Buyer pays seller; seller transfers title

More information

MORTGAGE BANKERS ASSOCIATION OF THE GENESEE REGION MAY 21, 2015. Presenter: Bonnie S. Nachamie

MORTGAGE BANKERS ASSOCIATION OF THE GENESEE REGION MAY 21, 2015. Presenter: Bonnie S. Nachamie MORTGAGE BANKERS ASSOCIATION OF THE GENESEE REGION MAY 21, 2015 Presenter: Bonnie S. Nachamie The Closing Disclosure ( CD ) is the new form that amends, enhances and replaces the Final TIL and HUD-1 The

More information

Updated January 2014. X = Required to Provide = Provide if applicable = Optional. At Loan Application (or within 3 business days)

Updated January 2014. X = Required to Provide = Provide if applicable = Optional. At Loan Application (or within 3 business days) Sample List of Closed-End Residential Mortgage Disclosures Required to be Given to Consumers at Loan Application by Maryland Mortgage and Brokers Updated January 2014 Prepared by Marjorie A. Corwin, Esquire

More information

FRESH. Agenda. Credit Union Integrated Mortgage Disclosures Are you Prepared?

FRESH. Agenda. Credit Union Integrated Mortgage Disclosures Are you Prepared? MCUL & Affiliates 2015 Annual Convention and Exposition Credit Union Integrated Mortgage Disclosures Are you Prepared? Glory LeDu Thursday, June 4, 2015 2:00 p.m. Sponsored by: FRESH Ideas to Reinvent

More information

A CONSUMER GUIDE TO FAIR LENDING

A CONSUMER GUIDE TO FAIR LENDING FAIR HOUSING LEGAL SUPPORT CENTER A CONSUMER GUIDE TO FAIR LENDING AND HOME OWNERSHIP PRESERVATION A CONSUMER GUIDE TO FAIR LENDING AND HOME OWNERSHIP PRESERVATION OVERVIEW This guide explains your right

More information

BROWN, FOWLER & ALSUP A Professional Corporation Attorneys at Law MEMORANDUM

BROWN, FOWLER & ALSUP A Professional Corporation Attorneys at Law MEMORANDUM BROWN, FOWLER & ALSUP A Professional Corporation Attorneys at Law J. Alton Alsup 10333 Richmond, Suite 860 Telephone 713/468-0400 Board Certified in Residential Real Estate Law Texas Board of Legal Specialization

More information

A Primer for a New Era in Closings: For loan applications received beginning August 1, 2015 some info courtesy of ALTA

A Primer for a New Era in Closings: For loan applications received beginning August 1, 2015 some info courtesy of ALTA A Primer for a New Era in Closings: For loan applications received beginning August 1, 2015 some info courtesy of ALTA A New Era in Closings Applicable Loans Final rule applies to most consumer mortgages,

More information

Delaware s Bank Commissioner Adopts Mortgage Regulations

Delaware s Bank Commissioner Adopts Mortgage Regulations April 21, 2014 Delaware s Bank Commissioner Adopts Mortgage Regulations By Louis Danastorg Delaware has adopted the amended regulations that had been published in the February 2014 edition of the Delaware

More information

TILA-RESPA Integrated Disclosure Rule

TILA-RESPA Integrated Disclosure Rule TILA-RESPA Integrated Disclosure Rule May 13, 2015 Joseph J. Reilly Partner Benjamin K. Olson Partner 1 Key Changes Effective for applications received by the creditor or mortgage broker on or after August

More information

(1) a description and explanation of the nature and purpose of each cost incident to a real estate settlement;

(1) a description and explanation of the nature and purpose of each cost incident to a real estate settlement; Page 1 United States Code Annotated Currentness Title 12. Banks and Banking Chapter 27. Real Estate Settlement Procedures (Refs & Annos) 2601. Congressional findings and purpose (a) The Congress finds

More information

A Court authorized this notice. This is not a solicitation from a lawyer.

A Court authorized this notice. This is not a solicitation from a lawyer. UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ALABAMA A Court authorized this notice. This is not a solicitation from a lawyer. If you were a RealtySouth customer and were involved in a real

More information

Borrower Fees and Charges and the VA Funding Fee

Borrower Fees and Charges and the VA Funding Fee VA Pamphlet 26-7, Revised Chapter 8: Borrower Fees and Charges and the VA Funding Fee Chapter 8 Borrower Fees and Charges and the VA Funding Fee Overview Introduction This chapter contains information

More information

HCCA 2013 COMPLIANCE INSTITUTE ANTI-KICKBACK STATUTE 101 SEATTLE, WASHINGTON

HCCA 2013 COMPLIANCE INSTITUTE ANTI-KICKBACK STATUTE 101 SEATTLE, WASHINGTON UW MEDICINE HCAA 2013 Compliance Institute HCCA 2013 COMPLIANCE INSTITUTE ANTI-KICKBACK STATUTE 101 April 23, 2013 Robert S. Brown Senior Compliance Specialist UW Medicine Compliance SEATTLE, WASHINGTON

More information

REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA)

REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) THE EFFECT OF RECENT COURT DECISIONS AND NEW LEGISLATION ON OUR CLIENT S LIABILITY IN REAL ESTATE TRANSACTIONS NBI CLE: 2009 REAL ESTATE LAW UPDATE Ronald

More information

Know Before You Owe. TILA-RESPA Integrated Disclosure (TRID) Rule

Know Before You Owe. TILA-RESPA Integrated Disclosure (TRID) Rule Know Before You Owe TILA-RESPA Integrated Disclosure (TRID) Rule Background of CFPB The Consumer Financial Protection Bureau (CFPB) was established in 2010 under the Dodd-Frank Act Directed to publish

More information

VA Borrower Fees and Charges

VA Borrower Fees and Charges VA Borrower Fees and OVERVIEW Purpose The VA home loan program involves a veteran s benefit. VA policy has evolved around the objective of helping the veteran to use his/her home loan benefit. Therefore,

More information

CHAPTER 6 FLORIDA PATIENT BROKERING ACT

CHAPTER 6 FLORIDA PATIENT BROKERING ACT CHAPTER 6 FLORIDA PATIENT BROKERING ACT A. Summary of the Florida Patient Brokering Act The Patient Brokering Act is a criminal statute which specifically prohibits any health care provider or health care

More information

a consumer guide to insurance INSURANCE ADMINISTRATION

a consumer guide to insurance INSURANCE ADMINISTRATION a consumer guide to Title insurance INSURANCE ADMINISTRATION a consumer guide to title insurance Table of Contents Introduction... 1 What Is Title Insurance... 1 Who Is Protected By Title Insurance?...

More information

TRID Quick Reference Guide

TRID Quick Reference Guide TRID General Rules and Definitions New Required Disclosures Loan Estimate (LE) replaces the GFE and Initial TIL Closing Disclosure (CD) replaces the Final TIL and HUD-1 Home Loan Toolkit replaces the HUD

More information

STATE OF OKLAHOMA. 1st Session of the 50th Legislature (2005) COMMITTEE SUBSTITUTE

STATE OF OKLAHOMA. 1st Session of the 50th Legislature (2005) COMMITTEE SUBSTITUTE STATE OF OKLAHOMA 1st Session of the 50th Legislature (2005) COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 1581 By: Piatt COMMITTEE SUBSTITUTE An Act relating to professions and occupations; amending 59 O.S.

More information

Mission: to make markets for consumer financial products and services work for Americans.

Mission: to make markets for consumer financial products and services work for Americans. TRID with Norman Roos, Robinson and Cole LLP William McCue, McCue Mortgage Company Lawrence Garfinkel, Hunt Leibert Jacobson P.C. Jeremy Potter, Norcom Mortgage Agenda Introduction Overview and Framework

More information

RESPA REFORM 2010 THE NEW GOOD FAITH ESTIMATE

RESPA REFORM 2010 THE NEW GOOD FAITH ESTIMATE 2010-2011 UPDATE COURSE SECTION THREE RESPA REFORM 2010 THE NEW GOOD FAITH ESTIMATE AND HUD-1 FORMS Outline: Real Estate Settlement Procedures Act RESPA s Purpose Applicability of Law Reforms Implemented

More information

CUNA s COMPLIANCE HIGHLIGHTS

CUNA s COMPLIANCE HIGHLIGHTS CUNA s COMPLIANCE HIGHLIGHTS TILA/RESPA INTEGRATED MORTGAGE DISCLOSURES For more than 30 years, Federal law has required lenders to provide two different disclosure forms to consumers applying for a mortgage.

More information

HUD-1. GFE vs. HUD-1: HUD-1 Introduction:

HUD-1. GFE vs. HUD-1: HUD-1 Introduction: HUD-1 GFE vs. HUD-1: The new HUD-1 Settlement Statement (the HUD-1 ) is designed to allow the borrower to compare the document with the Good Faith Estimate (the GFE ) received before closing, including

More information

The Good Faith Estimate

The Good Faith Estimate Module 3 Module 3 The Good Faith Estimate Explanation: This pdf is only a copy of the module slides. To proceed through the course, you must read and click through each slide. The Good Faith Estimates

More information

The Final RESPA Rule

The Final RESPA Rule The Final RESPA Rule GFE 2 GFE Triggers borrower s name Social Security number property address monthly income house value or best estimate amount of loan & any other information 3 GFE General provided

More information

How To Understand The Veteran Loan Policy

How To Understand The Veteran Loan Policy Chapter 8. Borrower Fees and Charges and the VA Funding Fee Overview In this Chapter This chapter contains the following topics. Topic Topic Name See Page 1 VA Policy on Fees and Charges Paid by the Veteran-Borrower

More information

The New Mortgage Lending Process: A 2014 Check-Up and 2015 Planning

The New Mortgage Lending Process: A 2014 Check-Up and 2015 Planning The New Mortgage Lending Process: A 2014 Check-Up and 2015 Planning Copyright 2012 Tata Consultancy Services Limited No Legal Advice, Opinions, or Services Provided This presentation does not constitute

More information

Case 1:08-cv-03178-JEI-KMW Document 31 Filed 06/05/2009 Page 1 of 11 UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

Case 1:08-cv-03178-JEI-KMW Document 31 Filed 06/05/2009 Page 1 of 11 UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY Case 1:08-cv-03178-JEI-KMW Document 31 Filed 06/05/2009 Page 1 of 11 UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY ARTHUR R. and JANE M. TUBBS, : individually and on behalf of : others similarly

More information

Appendix C: HUD-1 Settlement Statement

Appendix C: HUD-1 Settlement Statement Appendix C: HUD-1 Settlement Statement HUD-1 Settlement Statement The Settlement Statement, or HUD-1 Form, details the exact breakdown of all the money paid or received by both the buyer and the seller.

More information

Consumer s Guide to Title Insurance and Escrow Services

Consumer s Guide to Title Insurance and Escrow Services Consumer s Guide to Title Insurance and Escrow Services Table of contents Introduction................... 1 Section 1 - Title insurance What is title insurance?......... 1 Why title searches are important..

More information

DEPARTMENT OF REGULATORY AGENCIES DIVISION OF REAL ESTATE MORTGAGE LOAN ORIGINATORS 4CCR 725-3. NOTICE OF PROPOSED RULEMAKING HEARING March 16, 2011

DEPARTMENT OF REGULATORY AGENCIES DIVISION OF REAL ESTATE MORTGAGE LOAN ORIGINATORS 4CCR 725-3. NOTICE OF PROPOSED RULEMAKING HEARING March 16, 2011 DEPARTMENT OF REGULATORY AGENCIES DIVISION OF REAL ESTATE MORTGAGE LOAN ORIGINATORS 4CCR 725-3 NOTICE OF PROPOSED RULEMAKING HEARING March 16, 2011 5-1-2 MORTGAGE LOAN ORIGINATOR DISCLOSURES Pursuant to

More information

Analyzing complex federal law for real estate professionals. RESPA Section 8. Title Insurance Co., agreed.

Analyzing complex federal law for real estate professionals. RESPA Section 8. Title Insurance Co., agreed. Analyzing complex federal law for real estate professionals Marketing agreements: Are you RESPA compliant? Marketing services agreements, or MSAs, have been around a long time and have become commonplace.

More information

Loan Estimate (LE) TILA-RESPA Integrated Disclosure (TRID) Rule Requirements

Loan Estimate (LE) TILA-RESPA Integrated Disclosure (TRID) Rule Requirements Loan Estimate (LE) TILA-RESPA Integrated Disclosure (TRID) Rule Requirements New Definitions; New Forms New Work Flow New Rule creates new definition of Covered Loan Loan Application Consummation (Closing)

More information

Real Estate Principles Chapter 14 Quiz

Real Estate Principles Chapter 14 Quiz Real Estate Principles Chapter 14 Quiz 1. A broker helps a buyer apply for financing and explains the loan processing costs involved at closing. A copy of the HUD booklet "Special Information Booklet"

More information

Plaintiffs, OPINION. This matter comes before the Court upon the motion [D.E. 17] brought by defendant

Plaintiffs, OPINION. This matter comes before the Court upon the motion [D.E. 17] brought by defendant Case 2:09-cv-03549-KSH-PS Document 36 Filed 06/17/10 Page 1 of 13 Not for Publication UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY PAUL KILEY and CRISTINA R. KILEY, on behalf of themselves and all

More information

BUYING A HOME Office of the Staff Judge Advocate, MacDill Air Force Base, Florida (813) 828-4422

BUYING A HOME Office of the Staff Judge Advocate, MacDill Air Force Base, Florida (813) 828-4422 BUYING A HOME Office of the Staff Judge Advocate, MacDill Air Force Base, Florida (813) 828-4422 BUYING A HOME Buying a home may be the biggest single investment of your lifetime. An entire life's savings

More information

State of New Hampshire Banking Department ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Case No.: 09-060 NOTICE OF ORDER

State of New Hampshire Banking Department ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Case No.: 09-060 NOTICE OF ORDER 1 In re the Matter of: State of New Hampshire Banking Department, and Petitioner, State of New Hampshire Banking Department First American Mortgage Trust (d/b/a NxtLoan.com, Shifra Nachama Polack, and

More information

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION ) UNITED STATES OF AMERICA ) Department of Justice, Antitrust Division, ) 325 7th Street, N.W., Suite 300 ) Washington,

More information

Be it enacted hy the Senate and House of Refveseiitathes United Sttttes of America in Congress asse-mbled^

Be it enacted hy the Senate and House of Refveseiitathes United Sttttes of America in Congress asse-mbled^ 1724 PUBLIC LAW 93-533-DEC. 22, 1974 [88 STAT. Public Law 93-533 D e c e m b e r 2 2, 1974 semelnfnt'^procedures Act of ^^^'*- 12 use 2601 note. AN A C T To further the national housing goal of encouraging

More information

How To Write A Disclosure Form

How To Write A Disclosure Form Office of Consumer Protection Truth-In-Lending Real Estate Settlement Procedures Act Integrated Disclosures Webinar February 11, 2015 The information contained in this presentation is for informational

More information

When do I have to start following the TILA-RESPA rule and using the new Integrated Disclosures?

When do I have to start following the TILA-RESPA rule and using the new Integrated Disclosures? ............................................................................................. Overview of the TILA-RESPA Rule.............................................................................................

More information

RESPA Training Good Faith Estimate (GFE) & Settlement Statement HUD-1

RESPA Training Good Faith Estimate (GFE) & Settlement Statement HUD-1 RESPA Training Good Faith Estimate (GFE) & Settlement Statement HUD-1 2013 Rushmore Loan Management Services LLC. All Rights Reserved. 1 REAL ESTATE SETTLEMENT PROCEDURES ACT RESPA NEW RULE TIMELINE NOVEMBER

More information

CLAIMS FOR REIMBURSEMENT INVOLVING LIENS OR INTERESTS OF THIRD PARTIES

CLAIMS FOR REIMBURSEMENT INVOLVING LIENS OR INTERESTS OF THIRD PARTIES CLAIMS FOR REIMBURSEMENT INVOLVING LIENS OR INTERESTS OF THIRD PARTIES Assuming only law clients can be claimants, what can or should a Fund do when third-parties claim a lien or other interest in misappropriated

More information

WEBLINKING: IDENTIFYING RISKS AND RISK MANAGEMENT TECHNIQUES

WEBLINKING: IDENTIFYING RISKS AND RISK MANAGEMENT TECHNIQUES Federal Deposit Insurance Corporation National Credit Union Administration Office of Thrift Supervision Office of the Comptroller of the Currency April 23, 2003 WEBLINKING: IDENTIFYING RISKS AND RISK MANAGEMENT

More information

LANDLORD-TENANT AND OTHER REAL ESTATE ISSUES FOR MILITARY MEMBERS

LANDLORD-TENANT AND OTHER REAL ESTATE ISSUES FOR MILITARY MEMBERS I. Landlord Tenant LANDLORD-TENANT AND OTHER REAL ESTATE ISSUES FOR MILITARY MEMBERS A. Generally. As a member of the military, there are special laws that can have a substantial influence on your rights

More information

Short Sales -- An Overview and Warning to Real Estate Licensees Re: Fraud, and Legal and Ethical Minefields 1

Short Sales -- An Overview and Warning to Real Estate Licensees Re: Fraud, and Legal and Ethical Minefields 1 Short Sales -- An Overview and Warning to Real Estate Licensees Re: Fraud, and Legal and Ethical Minefields 1 By Wayne Bell, Chief Counsel Mark Tutera, Senior Deputy Commissioner I. Introduction. In the

More information

GENERAL TIPS FOR BUYING/SELLING A HOME Office of the Staff Judge Advocate, MacDill Air Force Base, Florida (813) 828-4422

GENERAL TIPS FOR BUYING/SELLING A HOME Office of the Staff Judge Advocate, MacDill Air Force Base, Florida (813) 828-4422 GENERAL TIPS FOR BUYING/SELLING A HOME Office of the Staff Judge Advocate, MacDill Air Force Base, Florida (813) 828-4422 TYPES OF HOMES Buying a house will be one of the biggest investments one will ever

More information

ROGER K. SHERRILL, R.E. TUTOR, ALL TRUE NEVADA LAW

ROGER K. SHERRILL, R.E. TUTOR, ALL TRUE NEVADA LAW ROGER K. SHERRILL, R.E. TUTOR, ALL TRUE NEVADA LAW The Division CANNOT step in and take control of a broker s trust account without a court order. They must pursue an injunction by court action. Salespersons

More information

8 Hour MA SAFE Comprehensive: Key Topics for MLO s. Syllabus. Course Provider

8 Hour MA SAFE Comprehensive: Key Topics for MLO s. Syllabus. Course Provider 8 Hour MA SAFE Comprehensive: Key for MLO s Course Provider Host Group Real Estate Academy 236 Huntington Avenue Suite #312 Boston, MA 02115 800-918-5240 www.hostgroup.us / www.hostgroupboston.com info@hostgroup.us

More information

Answer: ppddocs.com we don t endorse this site or this product, it is just a site we used to input examples for the webinar

Answer: ppddocs.com we don t endorse this site or this product, it is just a site we used to input examples for the webinar BAI Learning & Development Webinar Q&A TILA-RESPA Integration Part 1 A New Way to Disclose 1. How should we handle Lender Paid Fees? Since we have to send the Loan Estimate 3 days after application, we

More information

Case 1:14-cv-01414-RBW Document 21 Filed 01/29/15 Page 1 of 15 UNITED STATES DISTRICT COURT DISTRICT OF COLUMBIA

Case 1:14-cv-01414-RBW Document 21 Filed 01/29/15 Page 1 of 15 UNITED STATES DISTRICT COURT DISTRICT OF COLUMBIA Case 1:14-cv-01414-RBW Document 21 Filed 01/29/15 Page 1 of 15 UNITED STATES DISTRICT COURT DISTRICT OF COLUMBIA FEDERAL TRADE COMMISSION, 600 Pennsylvania Ave NW Washington, DC 20580, Plaintiff, v. Case

More information

ESCROW REQUIREMENTS UNDER TILA

ESCROW REQUIREMENTS UNDER TILA Overview Escrow Requirements Reg. Z High Cost Mortgage and Counseling - Reg. Z & X Ability to Repay & Qualified Mortgages Reg. Z & X Mortgage Servicing Reg. Z & X Loan Originator Compensation Reg. Z Copies

More information

Buying Smart / Selling Smart The 10 Biggest Legal Pitfalls in Lead Generation

Buying Smart / Selling Smart The 10 Biggest Legal Pitfalls in Lead Generation Buying Smart / Selling Smart The 10 Biggest Legal Pitfalls in Lead Generation LeadsCon East July 26, 2010, 10:15 10:45 am ET Marriott Marquis, New York, N.Y. Jonathan L. Pompan, Esq. Venable LLP, Washington,

More information

BRANCH MANAGER AGREEMENT

BRANCH MANAGER AGREEMENT BRANCH MANAGER AGREEMENT THIS AGREEMENT is made and entered into this day of 2001, by 1 st 2 nd Mortgage Co. of N.J., Inc., ( Employer ), and ( Branch Manager ) to be located at SECTION I TERMS OF EMPLOYMENT

More information

How To Understand The Law Of The Landline Phone

How To Understand The Law Of The Landline Phone Mortgage Lending P&P 100-Question Final Exam Answer Key 1. C 2. B 3. A 4. B 5. A 6. C 7. C 8. C 9. D 10. C 11. D 12. B 13. D 14. A 15. D 16. D 17. B 18. D 19. A 20. C 21. D 22. D 23. B 24. D 25. A 26.

More information

Policy Guidance on Supervisory and Enforcement Considerations Relevant to Mortgage

Policy Guidance on Supervisory and Enforcement Considerations Relevant to Mortgage BILLING CODE: 4810-AM-P BUREAU OF CONSUMER FINANCIAL PROTECTION Policy Guidance on Supervisory and Enforcement Considerations Relevant to Mortgage Brokers Transitioning to Mini-Correspondent Lenders AGENCY:

More information

Overview The Regulation The Loan Estimate (LE) The Closing Disclosure (CD) Loan Estimate (LE) Application Date LE Responsibility

Overview The Regulation The Loan Estimate (LE) The Closing Disclosure (CD) Loan Estimate (LE) Application Date LE Responsibility To support your preparation efforts when implementing the TILA-RESPA Integrated Disclosure (TRID) rule effective for applications dated on or after October 3, 2015, we have created this Helpful Tips for

More information

CFPB Consumer Laws and Regulations

CFPB Consumer Laws and Regulations Real Estate Settlement Procedures Act 1 The Real Estate Settlement Procedures Act of 1974 () (12 U.S.C. 2601 et seq.) (the Act) became effective on June 20, 1975. The Act requires lenders, mortgage brokers,

More information

A consumer guide to. insurance INSURANCE ADMINISTRATION

A consumer guide to. insurance INSURANCE ADMINISTRATION A consumer guide to Title insurance INSURANCE ADMINISTRATION Table of Contents Introduction 1 What Is Title Insurance? 1 Who Is Protected By Title Insurance? 1 How Is A Title Insurance Policy Different

More information

The Smart Consumer s Guide to the New Good Faith Estimate

The Smart Consumer s Guide to the New Good Faith Estimate The Smart Consumer s Guide to the New Good Faith Estimate Practical insights on how to use the new GFE and HUD-1 to save money on closing costs for a purchase or refinance. Copyright 2010 ENTITLE DIRECT

More information