The long awaited en banc oral argument in the PHH v. CFPB appeal was heard this morning. Based upon the questions asked by the judges, and with the caveat that such questioning is not always an indicator of how a court will rule, it seems likely that the D.C. Circuit will not find the CFPB
HUD/FHA to Launch New Automated Loan Review System, Incorporating Defect Taxonomy
On January 11, 2017, the U.S. Department of Housing and Urban Development (HUD) published Mortgagee Letter (ML) 2017-03, “Federal Housing Administration (FHA) Loan Review System – Implementation and Process Changes.” The ML indicates that HUD is developing a new Loan Review System (LRS) that will provide an electronic platform for FHA loan-level file reviews and other functions for single family insured mortgages. The new requirements will apply to all FHA Title II Single Family programs, including reverse mortgages.
Continue Reading HUD/FHA to Launch New Automated Loan Review System, Incorporating Defect Taxonomy
CFPB Petitions D.C. Circuit for Review of PHH Ruling by Full Court
With just a week to spare before its 45-day deadline for appeal expired, last week the Consumer Financial Protection Bureau (CFPB) petitioned the U.S. Court of Appeals for the D.C. Circuit for en banc review of the October three-judge panel decision in PHH Corp. v. CFPB. Penned by Judge Brett Kavanaugh, that ruling declared the CFPB’s single-director structure unconstitutional and rejected the CFPB’s interpretation of Section 8 of the Real Estate Settlement Procedures Act (RESPA). The CFPB’s petition does not come as a surprise. If the D.C. Circuit agrees to rehear the constitutional and/or RESPA arguments, the three-judge panel ruling will be stayed pending the full court’s decision and the CFPB will return to business as usual, at least for now.
Continue Reading CFPB Petitions D.C. Circuit for Review of PHH Ruling by Full Court
Court Rejects CFPB’s RESPA Interpretation, Declares Single-Director Structure Unconstitutional
Today, a three-judge panel of the United States Court of Appeals for the District of Columbia Circuit issued a ruling overturning a $109 million monetary penalty imposed by the Consumer Financial Protection Bureau (“CFPB” or “Bureau”). The decision in PHH Corporation v. CFPB, written by Circuit Judge Brett Kavanaugh, addressed the unconstitutionality of the Bureau’s structure and its retroactive application of a new RESPA interpretation, and imposed RESPA’s three-year statute of limitations on the Bureau.
Continue Reading Court Rejects CFPB’s RESPA Interpretation, Declares Single-Director Structure Unconstitutional
CFPB Dives Back Into TRID
With only a few days to spare in order to meet its July 2016 target release date, the Consumer Financial Protection Bureau (“CFPB”) finally issued a Notice of Proposed Rulemaking (NPRM) today, proposing a number of amendments to its TILA-RESPA Integrated Disclosure rule (“TRID” or the “Know Before You Owe” rule).
On April 28, 2016,
U.S. Court of Appeals for the D.C. Circuit Sharply Questions CFPB At Oral Argument In PHH Corp. v. CFPB
The hearing before the U.S. Court of Appeals for the D.C. Circuit in PHH Corp. v. Consumer Financial Protection Bureau on April 12 was a tale of two arguments.
The presentation on behalf of PHH was relatively uneventful: its counsel (Ted Olson) was asked a limited number of questions in roughly 25 minutes at the podium, with at least five minutes passing before the first question was posed. In contrast, counsel for the CFPB (Larry Demille-Wagman) was kept at the podium for a solid 40 minutes and subjected to a steady stream of tough questions.
While it is hard to predict based on the oral argument how the Court of Appeals will rule, including whether the Court will reach the constitutional questions it previously raised, today’s argument suggests that the CFPB may well be on track for its first major litigation defeat.
Continue Reading U.S. Court of Appeals for the D.C. Circuit Sharply Questions CFPB At Oral Argument In PHH Corp. v. CFPB
Phil Schulman to Present at Annual RESPRO Conference
On April 18 and 19, 2016, Phil Schulman will be making two presentations to the Real Estate Settlement Service Providers Council (RESPRO) Annual Conference in New Orleans. The first presentation involves RESPA requirements pertaining to real estate agents, and the second concerns advertising and co-advertising opportunities to settlement service providers, including builders, real estate brokers,