Since last November, when Mick Mulvaney became acting director of the agency formerly known as the Consumer Financial Protection Bureau, he’s steered it away from many of the practices his predecessor had embraced. Questions have arisen about how long Mulvaney can serve in that capacity, which is supposed to be temporary. The answer: until 2025, at the latest.
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CFPB
Judicial Debate Over Mortgage-Servicing Lawsuits Continues
By Hahn Loeser on
Courts disagree about whether the Real Estate Settlement Procedures Act (RESPA) allows consumers to sue mortgage servicers for violating required error-resolution procedures. If a recent legal decision is any indication, that debate won’t end any time soon.…
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Borders Law Firm Ruling Takes Unexpected Turn
By Hahn Loeser on
For the past five years, the Consumer Financial Protection Bureau has accused a Kentucky law firm, Borders & Borders, of paying illegal kickbacks. Last week, the judge presiding over the lawsuit threw out the CFPB’s case—for a second time—on grounds different than before. The ruling could be a boon for affiliated business arrangements.…
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Jubilation Over PHH Ruling May Be Short-Lived
By Hahn Loeser on
Members of the real estate industry have been celebrating the most recent federal-court ruling involving PHH Corporation. That decision seems to expand a RESPA safe harbor for services actually performed. But that ruling, while appearing to favor the industry, could cause as many problems as it solves.…
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PHH Saga Will Not Reach U.S. Supreme Court
By Hahn Loeser on
This past week, the real estate industry was rocked again by the latest development in the epic court battle between PHH Corporation and the Consumer Financial Protection Bureau. Many observers predict that the U.S. Supreme Court will weigh in on the matter. When I consulted my Magic Eight Ball about that, it responded, “Very Doubtful.”…
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CFPB Director Charts Kinder, Gentler Path
By Hahn Loeser on
Last week, Mick Mulvaney, the acting director of Consumer Financial Protection Bureau, emailed his staff and explained his vision for the agency. His plan amounts to this: we’ll vigorously penalize those who cross a bright red line of legality—but leave everyone else alone. …
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Zillow Plays Long Game Against CFPB
By Hahn Loeser on
Internet giant Zillow.com revealed in an earnings call last week that the company has yet to resolve its on-going dispute with the Consumer Financial Protection Bureau about its co-marketing program. The slow pace of negotiations suggests that Zillow believes the CFPB lacks the means to credibly threaten the company.…
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Fallout from Genuine Title Mars Ohio Credit Union
By Hahn Loeser on
The damage caused by Genuine Title, LLC, a now-defunct title company from Maryland, continues unabated. A federal court in Ohio recently certified a class action against the Ohio-based Emery Federal Credit Union for that company’s alleged participation in a kickback scheme with Genuine Title. The class-certification decision is so broad in its reasoning that all real estate business should be concerned.…
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Mortgage-Payment Company Escapes Doom in Trial Against CFPB
By Hahn Loeser on
Posted in CFPB
To date, the Consumer Financial Protection Bureau has had only two contested trials. The outcome of its most recent courtroom match-up left the bureau with a meager victory that fell far short of the decisive one it had hoped for.…
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Zillow Eyes Possible Settlement with CFPB
By Hahn Loeser on
The Consumer Financial Protection Bureau’s prolonged scrutiny of internet giant Zillow might soon end. Zillow, in its recent quarterly earnings report, revealed that the CPFB has completed its investigation and is talking possible settlement. That outcome would be a boon for both sides.…
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