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. At the heart of the company’s problems lies a vexing issue: its software platform, which it developed itself, is supposedly junk. Continue Reading Faulty Software Lands Mortgage Servicer in Regulatory Nightmare

payingmoneyOne of the popular buzzwords these days is disruption. For example, Zillow came along and, through the aggressive marketing of leads, disrupted the ways in which many mortgages were originated. According to some reports, the Consumer Financial Protection Bureau is now disrupting Zillow’s tactics. Lead purchasers can protect themselves in several ways. Continue Reading Federal Regulators Reported to Have Started Crackdown on Zillow Leads

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. Continue Reading In a Fight Between the CFPB and the United States, Who Wins?

CFPB LogoOne 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. Continue Reading Nationstar Mortgage Hit with Largest HDMA Penalty Ever

PCNimage One of the important limitations in the Real Estate Settlement Procedures Act is the short time in which consumers can sue for violations of its protections: one year. But a new decision from a Pennsylvania federal court threatens to extend that period much longer—perhaps indefinitely. Continue Reading Federal Court Breathes Life Into Nearly Dead RESPA Case