Recently a member of our Compliance Masters Group inquired, “It looks like the CFPB has dropped their case with Zillow according to a statement by Zillow. We had a lot of our lenders wanting to co-market with realtors on Zillow. Now what?” Good question. What we do know – Zillow Group received a letter from the CFPB on June 22 stating that the CFPB “had completed its investigation, that it did not intend to take […]
Tag: RESPA
UPDATED RESPA AND TILA EXAMINATION PROCEDURES
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 […]
HOUSE PASSES BILLS TO ELIMINATE THE “MADDEN ISSUE”
In 2016 the Second Circuit Court of Appeals’(NY, Connecticut, and Vermont) recent decision in Madden v. Midland Funding, LLC held that a nonbank entity taking assignment of debts originated by a national bank is not entitled to protection under the National Bank Act (“NBA”) from state-law usury claims. Apparently, the Court did not considered the “Valid-When-Made Doctrine”—a longstanding principle of usury law that if a loan is not usurious when made, then it does not […]
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 […]
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 […]