Washington Report

Advocacy Updates from Washington D.C.

On Thursday, June 4, 2015 the Consumer Financial Protection Bureau (CFPB) issued a decision against PHH Corporation and a number of other defendants for among other things, violating the Real Estate Settlement Procedures Act (RESPA) by paying for referrals where there is federally related mortgage.  CFPB Director Cordray disagreed with interpretations by an administrative law judge relying on a 1997 HUD interpretive letter and expanded the monetary value of the disgorgement from $6.4 million to $109.2 million. The decision is extensive and calls into question a number of practices relating to reinsurance arrangements as well as seemingly expanding the statute of limitations.  PHH is expected by those in the legal community to appeal the decision.

On February 19, 2015, NAR hosted a webinar on agreements under RESPA.  A link to the recording is below as well as link to Director Cordray's decision.  

CFPB Decision

Recording of February 19, 2015 Webinar

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