News By Edition

We are going through reform of mortgage disclosures again, with yet another round of discussions about tolerances. Once again, discussion is taking place about whether the Consumer Financial Protection Bureau will govern settlement service providers, due to comments made in a bulletin last week. And now, attempts to modify regulation allowing for average charges for settlement services could gain some traction. This begs the question, is everything old new again?

After months of anticipation and concern on the part of consumer advocates and members of all aspects of the mortgage industry, the Massachusetts Supreme Judicial Court (SJC) handed down a decision in Henrietta Eaton v. Federal National Mortgage Association (No. SJC-11041), and the answer they gave provided something for both sides to cheer about.

Months after the case was heard before the Massachusetts Supreme Judicial Court, the court handed down a decision in the highly-watched case, Eaton v. Fannie Mae. Much was riding on the court’s decision, which determined whether a mortgagee who did not hold the promissory note would be permitted to foreclose on the property. Read on for the court’s decision.

The Consumer Financial Protection Bureau and members from several trade organizations went before the U.S. House Financial Services Subcommittee on Insurance, Housing and Community Opportunity to discuss efforts being made to combined the RESPA and Truth-In-Lending Act disclosures, as well as voice their concerns regarding aspects of the proposal that is set to be released in July. Read on to find out more.

Ohio’s auditor of state sent a letter to the 88 county recorders informing them that his office has discovered some county recorders have charged an Internet access fee for accessing records online, something they have no authority to do. Read on for the details.

The purchaser of property to be used to build condominium units sued its title insurer for breach of contract after discovering that the use of the property was restricted by agreements the seller made to condominium unit purchasers before the sale. The purchaser alleged it had no knowledge of the defect and that the insurer broke the agreement by not providing title in fee simple. The U.S. District Court for the Middle District of Tennessee had to determine whether the buyer had, or should have had, knowle

The Consumer Financial Protection Bureau announced several changes to senior leadership positions within the agency. Read on to find out more about the changes and new faces to the bureau.

A title company owner from Parkland, Fla., was sentenced to five years in prison for her role in two mortgage fraud schemes. She was also ordered to pay more than $6 million in restitution to the victims. Read on for more details.

Years after cases accusing title insurers of price fixing were filed in 12 jurisdictions across the country, the 3rd U.S. Circuit Court of Appeals closed two of those cases, affirming district court decisions and finding in favor of the appellee title insurers. Read on for more details.

Could the Consumer Financial Protection Bureau’s ability-to-repay rule be coming before the January deadline imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act deadline in January? The deputy director of the CFPB said the bureau is working to get the rule out ahead of schedule. Read on for details.

Iowa Gov. Terry Branstad has named a new insurance commissioner, who will take over for current commissioner Susan Voss at the end of the year. Find out more about the new hire.

A closing company president from Pittsburgh, Pa., was sentenced to time in prison and ordered to pay approximately $1.5 million in restitution in connection with a mortgage fraud scheme he conducted to sustain his gambling habit. Read on for more details.

A month after informing its approved attorneys in North Carolina that it would be curtailing mechanic’s lien coverage and materialmen’s lien coverage in the state unless changes were made to the statutes governing these liens, the Fidelity family of title insurers sent a letter saying that because significant progress has been made toward a legislative solution, it will maintain its current policy on mechanic’s lien coverage. Read on for more details.

During the last few years, the title industry, its customers and regulators have been attempting to find a way to curb the increasingly visible problem of defalcation. One of the solutions that has been presented is the proliferations of closing protection letters. States have latched onto this solution, putting forth legislation to oversee and extend the use of this protection. But are closing protection letters the silver bullet to the defalcation problem? During the National Settlement Services and Compl

The Consumer Financial Protection Bureau is implementing policies that promise to impact the relationship between lenders and title companies. Jeff Arouh, a partner with McLaughlin & Stern LLP, and Mitch Kider, managing partner with Weiner, Brodsky, Sidman and Kider PC, discussed the CFPB’s latest mandates regarding third-party service providers during the National Settlement Services and Compliance Summit in Cleveland. Read on to learn why one attorney believes the CFPB’s policies may also signal a pot

Mortgage servicers have been highly scrutinized over the past few years, since the foreclosure crisis illuminated problems with procedures and record keeping, among other things. With a consent order from their prudential regulators and a settlement agreement with 49 states dictating new protocols they must follow, mortgage servicers are looking to the vendors that work for them to help maintain compliance. During the National Settlement Services and Compliance Summit, attendees heard about the top 10 ways

Four New York attorneys pled guilty to conspiring to commit wire and bank fraud in connection with a $66 mortgage fraud scheme which involved more than 100 mortgages for properties in the New York City area. Read on for more details.

The New Jersey legislature is considering a residential mortgage satisfaction act, placing certain requirements on mortgage holders to issue pay-off letters to facilitate the payment of residential property mortgages, clarifying who may request a pay-off letter, and providing an additional process to discharge mortgages of record. Read on for more details.

The title industry is awaiting the next wave of change that will significantly change the way industry members do business — the combined Truth in Lending Act/RESPA disclosures. With just a few weeks before the Consumer Financial Protection Bureau releases its proposed final rule establishing and regulating those new forms, RamQuest held a webinar to help attendees understand the proposed changes, but also explain ways industry members can engage with the CFPB as they finalize this process. Read on to find

The American Land Title Association took advantage of the extended comment period to respond to the Consumer Financial Protection’s request for comments regarding how to streamline its inherited regulations by providing the CFPB with recommendations to RESPA’s average charge regulation. Read on to find out more.

An Illinois attorney and her three alleged co-conspirators were indicted for allegedly participating in a scheme to fraudulently obtain 35 mortgages worth more than $16.2 million. Read on for more details.

There will be no turf wars between the Consumer Financial Protection Bureau and the prudential regulators of the financial system. They released a memorandum of understanding that clarifies how the agencies will coordinate their supervisory activities, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. Read on for more details.

The South Carolina General Assembly ratified legislation that allows title insurers in the state to issue closing or settlement insurance and establish procedures for getting the premium charged for this new protection approved by the governor. Read on for more details.