On April 19, 2018 the Federal Reserve Board published a Consumer Affairs Letter (CA 18-3) regarding Revised Interagency Examination Procedures for Regulation X and Regulation Z. The Task Force on Consumer Compliance of the Federal Financial Institutions Examination Council recently developed the interagency examination procedures for the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA). The revised examination procedures supersede the examination procedures transmitted with CA Letter 15-6. The procedures […]
Category: Regulation X
CFPB LOSSES FIGHT WITH SMALL FAMILY-OWNED LAW FIRM
No question about it – the CFPB will bully you when they can. This time David fought back and defeated Goliath. In 2013 the Consumer Financial Protection Bureau (CFPB) sued Borders and Borders PLC, a small family-owned law firm located in Louisville, KY. The CFPB alleged that the firm and principals Harry Borders, John Borders, Jr. and J. David Borders accepted kickbacks in exchange for referrals of real-estate closing services. Most companies cannot afford to […]
2016 MORTGAGE SERVICING RULE – CORRECTIONS AND GUIDANCE ON EARLY COMPLIANCE
On June 27, 2017, the Consumer Financial Protection Bureau (CFPB) issued two pieces of information related to the 2016 Mortgage Servicing Final Rule: 1) an amendment making non-substantive corrections, and 2) policy guidance related to early compliance with the rule. Final Rule Issuing Corrections The 2016 Mortgage Servicing Final Rule was issued by the CFPB on August 4, 2016, to amend certain provisions of the 2013 Mortgage Servicing Rules. The CFPB is now making corrections […]
JUST A LITTLE OVER THE LIMIT
From time-to-time I have identified a practice as “a violation, but a low-risk violation.” That’s kind of like driving 58 miles per hour in a 55 miles per hour zone. It is “a violation of law, but a low-risk violation.” Recently I was asked if it was OK to take a realtor to lunch to build a better relationship that should lead to more referrals of loan applications. I responded that the practice is… You […]
CFPB SERVICING RULE FIASCO
On May 4th the Consumer Financial Protection Bureau (CFPB) announced plans to assess the effectiveness of the Real Estate Settlement Procedures Act (RESPA) mortgage servicing rule. The announcement accurately reports that the CFPB issued the 2013 RESPA Servicing Final Rule in January 2013. That rule was amended a few times before it took effect on January 10, 2014. The Dodd-Frank Act requires the CFPB to conduct assessments of certain rules within five years after they […]