News By Edition

The D.C. Circuit Court of Appeals issued its much anticipated en banc decision in the Consumer Financial Protection Bureau’s case against PHH Corp. on Jan. 31, disagreeing with former Director Richard Cordray’s interpretation of RESPA Section 8, but finding the structure of the bureau to be constitutional. Now that the decision has been handed down, what does it mean for the industry going forward?

The D.C. Circuit Court of Appeals has issued its much anticipated en banc decision in the Consumer Financial Protection Bureau’s case against PHH Corp. Although the court disagreed with former Director Richard Cordray’s interpretation of RESPA Section 8, it did agree that the structure of the bureau is constitutional. Read on for more from the decision.

After a title company won its dismissal from a case involving a prematurely filed release of a deed of trust, the current deed holder appealed the ruling. A California appellate court, whose ruling in Heritage Pacific Financial, LLC v. Monroy (2013) was used by the trial court to rule in the title company’s favor, reversed the decision, saying the trial court misinterpreted its prior ruling. Read on to see why the appellate court found differences in its previous ruling and the case at hand.

Massachusetts Attorney General Maura Healey has secured millions of dollars in relief for hundreds of state residents in a settlement with a national mortgage servicer over its failure to help homeowners avoid foreclosure. Read on for more details.

The Colorado legislature is considering a bill that would require title insurance companies, title insurance agents, and their agents and affiliates to hold funds belonging to others in a fiduciary capacity. Read on for more details.

A bill being considered in New York would make certain provisions applicable to foreclosure upon reverse mortgages effective immediately and on a continuing basis. Read on for more details.

The manager of a title company in Laurel, Md., was sentenced to time in prison and ordered to pay almost $1 million in restitution after pleading to wire fraud charges. Read on for more details.

The Consumer Financial Protection Bureau is issuing a call for evidence to ensure the bureau is fulfilling its proper and appropriate functions to best protect consumers. In coming weeks, the bureau will be publishing in the Federal Register a series of Requests for Information (RFIs) seeking comment on enforcement, supervision, rulemaking, market monitoring, and education activities. These RFIs will provide an opportunity for the public to submit feedback and suggest ways to improve outcomes for both consumers and covered entities.

New York Department of Financial Services Superintendent Maria Vullo voiced her concerns after Consumer Financial Protection Bureau acting director Mick Mulvaney issued a memo to staff about a change in the mission of the CFPB, as well as the CFPB’s recent announcement that it seeks input on civil investigative demands. Read on for more details.

In a case involving the departure of an executive vice president to his former company, USA National Title Co. appealed a trial court jury rulings in favor of the defendant. The jury rejected its claims of breach of contract, breach of fiduciary duty, and misappropriation of confidential information and trade secrets. In an unpublished opinion, the California Fourth District, Division 3, Court of Appeals upheld the jury’s rulings against USA National Title, at one point taking counsel to take for making repeated arguments. “Inadequate claims are not enhanced by repetition,” the court wrote.

The Mississippi Legislature is considering a bill that would require the loan amount and maturity date to be included on mortgages and deeds of trust that are to be recorded. Read on for more details.

A Granite Bay, Calif., man pleaded guilty to wire fraud, bank fraud and making false statements to a federally insured financial institution. Read on for more details.

In a Brooklyn federal court, a man was sentenced to 41 months imprisonment, to be followed by five years of supervised release, after having pleaded guilty to conspiracy to commit bank fraud and wire fraud in connection with a multi-million dollar mortgage fraud scheme. Read on for more details.

The Illinois Department of Financial and Professional Regulation (IDFPR) has extended the deadline for comment on its proposed guidance on the process by which title insurance underwriters compensate their agents. Read on for more details.

After a series of assignments of the deed of trust, it was shown that the property owners were more than $60,000 in arrears. When the current assignee began nonjudicial foreclosure proceedings, the property owner filed suit, alleging that the assignments of the deed of trust were not properly recorded before the foreclosure proceedings were initiated. Read on for more details.

Leandra English, deputy director of the Consumer Financial Protection Bureau, was granted her expedited appeal of a D.C. district court decision to deny her preliminary injunction against acting director Mick Mulvaney. Read on for more details.

New York Department of Financial Services (DFS) Superintendent Maria T. Vullo reminded all regulated entities and licensed persons covered by the department’s landmark cybersecurity regulation that the first certification of compliance requiring a statement covering the prior calendar year must be filed electronically on or prior to Feb.15, 2018. Read on for more details.

A Methuen, Mass., real estate broker pleaded guilty in connection with a sweeping conspiracy to defraud banks and mortgage companies by engaging in sham “short” sales of residential properties in Merrimack Valley. Read on for more details.

On Jan. 23, Mick Mulvaney, acting director of the Consumer Financial Protection Bureau, issued a memo to the entire CFPB staff explaining what he believes will be a different direction and philosophy moving forward. Read on for more details.

After New York Department of Financial Services Superintendent Maria Vullo was done testifying about new title insurance regulations in the state, representatives from three national underwriters spoke before the New York Assembly Standing Committee on Insurance, seeking to explain industry practices and provide insight into potential harm from the regulations. Read on for more details.

The case for who is in charge of the Consumer Financial Protection Bureau became active in the D.C. Circuit Court of Appeals. Deputy Director Leandra English filed an emergency motion to expedite and President Donald Trump and Mick Mulvaney, acting director of the CFPB, were quick to respond. Read on for more details.

The New Jersey Legislature is considering a bill that would state settlement agents are not responsible for transmitting estimated gross income tax payment and forms for certain nonresident real estate transactions unless so responsible pursuant to contract. Read on for more details.

The Oklahoma State Legislature is considering a bill that would remove the requirement that certain title insurance policies be provided by certain insured persons. Read on for more details.

The Maryland General Assembly is considering a bill that would establish that, in the case of foreclosure on a condominium unit, a certain portion of the condominium’s liens on the unit has priority over the claim of a holder of a first mortgage. The portion of the lien that has priority would consist of unpaid water and sewer charges. Read on for more details.

The Federal Trade Commission has charged a mortgage loan modification operation with deceiving financially distressed homeowners by falsely promising to prevent foreclosure and make their mortgages more affordable. Read on for more details.