Faulty Software Lands Mortgage Servicer in Regulatory Nightmare

computercrashYesterday, the Florida Attorney General and the Consumer Financial Protection Bureau hit Ocwen Financial Corporation with twin lawsuits for the company’s allegedly improper mortgage-servicing practices. Regulators from nearly two dozen states are either issuing cease-and-desist orders against Ocwen or yanking its licensing. View Full Post
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In a Fight Between the CFPB and the United States, Who Wins?

facepunchIn the on-going legal battle over PHH Corporation’s reinsurance practices, the federal government is at loggerheads with itself. The Consumer Financial Protection Bureau defends the constitutionality of its structure; the United States (meaning, the Trump administration) opposes it. Although that scenario may seem odd, the Dodd-Frank Act envisioned it—and protected the nascent the bureau from having to surrender its independence. View Full Post
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CFPB Doubles Down On Regulation by Enforcement

regulationSoon after its inception in 2011, the Consumer Financial Protection Bureau decided to regulate through enforcement actions. Last week, CFPB officials made clear that the bureau intends to continue that strategy indefinitely, which represents government overreach at its worst. The occasion for learning the CFPB’s views was the 22nd Annual Consumer Financial Services Institute, which the Practicing Law Institute puts on. View Full Post
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Nationstar Mortgage Hit with Largest HDMA Penalty Ever

One area of real-estate compliance that receives little attention is the Home Mortgage Disclosure Act. That law requires lenders to report certain mortgage data to the federal government. Nationstar Mortgage, LLC, had shoddy procedures for collecting HMDA data, and, as a result, the Consumer Financial Protection Bureau recently fined the company $1.75 million. View Full Post
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PHH Corporation to Appellate Court: Blow Up the CFPB

explosionThe much-anticipated rematch between PHH Corporation and the Consumer Financial Protection Bureau has begun. Last week, PHH filed its opening legal brief, in which it seeks invalidation of the entire CFPB. Boldness aside, that outcome is unlikely. For those who do not follow the activities of the CFPB, the case is a rehearing of an earlier decision by the United States Court of Appeals for the District of Columbia Circuit. View Full Post
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Mortgage Servicers Face Additional RESPA Hurdles

hurdleMost headlines about the Real Estate Settlement Procedures Act discuss unlawful kickbacks. But that law also imposes requirements on mortgage servicers. A recent class-action settlement against Ocwen Loan Servicing shows the dangers of non-compliance. In the case, Messineo v. Ocwen Loan Servicing, a borrower alleged that he routinely paid extra on his home mortgage and that Ocwen botched the processing of his payments. View Full Post
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