Penalties for violating the Real Estate Settlement Procedures Act (RESPA) can be steep: triple the amount of the settlement charge at issue, plus attorney’s fees. Businesses often assume their corporate insurance protects them from RESPA liability and similar professional missteps. That sort of coverage might be illegal. Continue Reading Your Business Insurance Might Not Cover RESPA Lawsuits

One of the more surprising developments in the law of the Real Estate Settlement Procedures Act is the fledgling success of the continuing-violations doctrine, which allows claims to be brought long after the initial statute of limitations has expired. A new decision from a Pennsylvania federal court suggests that the doctrine isn’t going away any time soon. Continue Reading Continuing-Violations Doctrine Survives Though Underlying RESPA Case Dismissed

 

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. Continue Reading Borders Law Firm Ruling Takes Unexpected Turn

For years, ambitious class-action lawyers have tried to criminalize the business of captive reinsurance, with varying degrees of success. Recent decisions from federal courts in Pennsylvania and the District of Columbia suggest that these lawsuits’ heyday might finally be over. Continue Reading Captive-Reinsurance Lawsuits Face Bleak Future

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.” Continue Reading PHH Saga Will Not Reach U.S. Supreme Court

Mortgage servicers and lenders have spent years fending off class-action lawsuits involving lender-placed insurance. A recent lawsuit introduced a novel twist to those cases: going after the force-placed insurer itself. Moving to dismiss, the insurer succeeded only in partially defeating the claims. Continue Reading Lender-Placed Insurer Dodges RESPA Allegations