RESPA Sec. 8 Enforcement: CFPB Scrutiny of Settlement Fees, AfBAs and Marketing Service Agreements

Best Practices for Mortgage Lenders, Insurers, Title Companies and Law Firms to Minimize Exposure

Recording of a 90-minute CLE webinar with Q&A


Conducted on Wednesday, March 4, 2015

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will discuss recent enforcement actions by the CFPB under Section 8 of RESPA, consent orders reached with mortgage settlement service providers, and lessons learned from the CFPB’s actions. The panel will discuss the specific settlement practices targeted by the agency and best practices for settlement service providers to minimize exposure to enforcement activity by the CFPB.

Description

Since taking over RESPA regulatory and enforcement responsibility from HUD in 2011, the CFPB has aggressively enforced Section 8 of RESPA. Actions in 2013 and 2014 have challenged alleged fee-splitting arrangements, referral fees, and unearned fees with respect to residential mortgage settlement services. Targets have included non-bank lenders, mortgage insurers, title companies and law firms.

The CFPB also has closely scrutinized affiliated business arrangements (AfBAs), challenging both the structure of the AfBAs and AfBA disclosures. It is incumbent on AfBAs to closely review disclosures to ensure RESPA compliance, as well as ensuring that consumers are not required to use AfBAs.

Moreover, the CFPB has focused on marketing service agreements (MSAs) and reached a consent order with Lighthouse Title in September 2014 regarding the company's MSAs with real estate brokers. As a result of this consent order, there is renewed emphasis on structuring MSAs to comply with RESPA.

Listen as our authoritative panel of financial services practitioners analyzes CFPB scrutiny of RESPA Section 8 compliance and the lessons learned from CFPB enforcement actions as well as the consent agreements reached to date with mortgage settlement service providers. The panel will provide best practices for service providers to minimize exposure to enforcement activity by the CFPB.

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Outline

  1. Enforcement actions challenging fee-splitting arrangements, referral fees, unearned fees and kick-backs
  2. Enforcement actions challenging AfBAs
  3. Enforcement actions challenging MSAs
  4. Best practices for settlement service providers to minimize exposure to Section 8 enforcement activity

Benefits

The panel will review these and other key issues:

  • What mortgage settlement services and practices have been the focus of CFPB RESPA enforcement?
  • What steps can AfBAs and their owners take to ensure RESPA compliance in light of the recent CFPB scrutiny of these arrangements?
  • What lessons can be learned from the consent order with Lighthouse Title Company regarding MSAs?
  • What RESPA Section 8 enforcement trends can we expect to see in 2015?

Faculty

Holly Spencer Bunting
Holly Spencer Bunting

Partner
K&L Gates

Ms. Bunting practices in the areas of mortgage banking and consumer finance.  She represents companies in the...  |  Read More

Heather C. Hutchings
Heather C. Hutchings

Member
Dykema Gossett

Ms. Hutchings is a Member in the firm's Financial Services Regulatory and Compliance practice. She focuses her...  |  Read More

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