Sixth Circuit declares AfBA test unconstitutional
The 6th U.S. Circuit Court of Appeals issued a long-awaited decision in the case of Carter v. Welles-Bowen, in which plaintiff homeowners allege they received title insurance services from sham affiliated businesses who provided few substantive services during the transaction, in violation of RESPA. The homeowners’ argument hinged on the U.S. Department of Housing and Urban Development’s 10-factor sham affiliated business test, which was previously held unconstitutionally vague by the U.S. District Court for the Northern District of Ohio.
Assuring accuracy through technology
Bulletins by the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency have made lenders responsible for the actions of their third-party providers. Lenders, in turn, will start to place more requirements on the shoulders of their title providers. Technology can assist title companies in assuring accuracy and transparency in their work product while also helping them grow.
Mortgage disclosure forms released - Updated
The wait is finally over. The Consumer Financial Protection Bureau released the new mortgage disclosure forms and their implementing rule. The final rule provides answers to many of the industry’s long-standing questions about the RESPA/Truth in Lending Act proposal released last year.
CFPB provides semi-annual update
The Consumer Financial Protection Bureau issued its semi-annual report to Congress on Nov. 5. In it, the CFPB shared an update on regulations and guidance it provided during the year and what rules and guidance it expected to continue working on.
Couple sues title co., bank after foreclosure
An Ohio couple sued a bank, title insurer and title agent after the bank foreclosed on their property. The couple had received the house by warranty deed from another couple. The title insurer had defended their insureds in the foreclosure action, but withdrew following an investigation into the transfer. The case eventually went before the Court of Appeals of Ohio, Eighth District.
New scrutiny coming after OCC releases bulletin?
The Office of the Comptroller of the Currency released an in-depth bulletin on its expectations for lender oversight of their third-party relationships. While not directly impacting the title industry, lenders could be expecting a lot more from the settlement service providers they work with. Industry experts shared how title agents can prepare for the increased scrutiny.