RESPA 2012: Preparing for Upcoming Changes

An Inside Mortgage Finance Webinar
Recorded May 17, 2012

The Real Estate Settlement Procedures Act always has been the law everyone loves to hate. Regulators have toiled to enforce it and develop new rules, and courts have struggled to square the law with actual practices. Despite these past challenges, 2012 is shaping up to be a big year for RESPA.

In this recording, hear directly from the CFPB and industry experts about the big changes coming and the bureau’s proposed rule due in July 2012.

On one front, the Consumer Financial Protection Bureau is winding up its Dodd-Frank mandated efforts to develop rules and forms to integrate mortgage disclosure requirements for the Truth in Lending Act and RESPA. In addition to the GFE and HUD-1 forms, there are other issues, such as a redefinition of the APR, the right of rescission, tolerances and escrow accounts, which likely will be included in the merger proposal.

Separate from its rulemaking activities, the CFPB has taken over RESPA enforcement from HUD and is investigating PHH to determine whether its captive mortgage reinsurance program complied with RESPA and other laws. Learn how the agency is enforcing existing RESPA rules and what might change going forward.

Finally, the Supreme Court has two separate RESPA cases on which it will soon issue rulings. One involves whether a private purchaser of settlement services has standing under the U.S. Constitution to maintain an action in federal court in the absence of any claim that the alleged violation affected the price, quality or other characteristics of the services provided. The other centers on whether RESPA is a law barring kickbacks or a price-control statute. Understand what the decisions may mean for the mortgage industry and business practices.

These industry experts share their insights and answer questions:

  • Holly Spencer Bunting, Partner, K&L Gates LLP
  • Ben Olson, Managing Counsel, Office of Regulations, Consumer Financial Protection Bureau
  • Susan E. Johnson, Esq., Executive Director, RESPRO®
  • Guy Cecala, CEO & Publisher, Inside Mortgage Finance (moderator)

Topics covered include:

  • Legal and compliance challenges you’ll face.
  • How new mortgage disclosures will be impacted by the QM and QRM regulations being developed;
  • What the panel on small business regulatory fairness has to say about new TILA/RESPA disclosures;
  • The new importance of building a working complaint resolution system;
  • How your business model may change due to the potential for a zero-percent tolerance rule on lender-affiliated and lender-selected service providers.
  • The proposal to prevent fees for settlement services from exceeding the GFE estimate if the service is provided by a lender’s affiliated firm,
  • Is it realistic to require complete disclosure three business days before settlement?
  • Should disclosure responsibility be split between a lender for TILA and a settlement agent for RESPA?
  • The bureau’s views and enforcement authority,
  • Is the CFPB going to pursue presumed wrong-doing on practices no longer in common use?
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After the November elections, how long will it take for a new Congress and White House to pass GSE reform legislation?

I’m confident a bill will be passed the first year.


2 to 3 years. GSE reform is complicated.


Sadly it won’t happen in a Clinton or Trump first term.


Not in my lifetime.


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