Complying with the mortgage-servicing requirements in the Real Estate Settlement Procedures Act is hard enough. Complicating the matter is the ease with which mortgage-servicing lawsuits can thrive in court. A recent decision from an Ohio federal court significantly shifts the balance of authority in favor of suing borrowers. Continue Reading Federal Court Lowers Bar on Mortgage-Servicing Lawsuits

Many real estate businesses accused of violating the Real Estate Settlement Procedures Act have invoked the statute’s exemptions for “services actually performed.” But the Consumer Financial Protection Bureau has long rejected those efforts, reading the exemptions as narrowly as possible. The bureau’s hardballing continued last week, when it penalized an Indiana title company for its shared ownership interests with an affiliated title insurer. Continue Reading CFPB Continues Its War Against RESPA Safe-Harbors

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. Continue Reading Fallout from Genuine Title Mars Ohio Credit Union

For over 40 years, putative class members have escaped some of the curbs against late-filed lawsuits that apply to normal cases. Last week, the United States Supreme Court brought back some of those curbs, threatening to reduce the number of spin-off cases that often result from class actions. Lawsuits under the Truth in Lending Act are directly affected. Continue Reading SCOTUS Resolves Dispute Over Class-Action Timing, TILA Cases Affected