RESPA Those Pesky Section 8 Violations Webinar Recording

$275.00

Section 8 of the Real Estate Settlement Procedures Act (RESPA) prohibits unearned fees and kickbacks. Over the years the Department of Housing and Urban Development (HUD) issued hundreds of enforcement actions involving Section 8.

In 2011 authority for enforcing RESPA transferred from HUD to the Consumer Financial Protection Bureau (CFPB). During CFPB’s reign the volume of Section 8 actions has dropped. While enforcement actions under the CFPB have been fewer in number, the dollar amounts have been jaw dropping.

Every financial institution has violations of Section 8. How serious are your violations? How did examiners and auditors miss these violations? You need to be aware of your violations and take steps to eliminate them. Participants will also receive a detailed manual that serves as a handbook and PowerPoint slides.

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Description

* Please note that the recording will not be immediately delivered to you. Upon purchasing please allow 24-48 hours for delivery. The recording will come in the form of a web link via e-mail from [email protected] The training manual that corresponds with the recording will be automatically delivered upon purchasing via email from the website.

 

WHAT

Section 8 of the Real Estate Settlement Procedures Act (RESPA) prohibits unearned fees and kickbacks. Prior to July 2011, the Department of Housing and Urban Development (HUD) had primary responsibility for enforcement of RESPA. HUD was a very active enforcer of Section 8 violations.

The Consumer Financial Protection Bureau (CFPB) assumed control of RESPA, including Section 8, in July 2011. Until recently, CFPB had not been active in Section 8 enforcement. Starting in 2013, however, the CFPB shifted gears, and has become a very active but unpredictable enforcer. In recent years, nearly 35% of all reported CFPB mortgage-related enforcement actions were focused on Section 8, and the total penalties imposed has reached huge totals.

The enforcement actions under the CFPB, while fewer in number over the years, have been jaw dropping in dollar amounts. The settlements of these actions range from a few thousand dollars to many millions of dollars. Failure to comply with Section 8 can lead to jail terms, in addition to the penalties.

The CFPB has provided minimal guidance on Section 8, and that guidance is less than enlightening. Most of the CFPB guidance has been in the form of consent decrees. CFPB consent decrees typically include significant penalties, well past $20 million in one case. The approach, high-dollar enforcement activities, personal liability for management, and a lack of regulatory guidance, has created an atmosphere of intimidation and fear in the industry.

WHY

Every financial institution has violations of Section 8. How serious are your violations? How did examiners and auditors miss these violations? You need to be aware of your violations and take steps to eliminate them.

This recording reviews the RESPA/Regulation X rules that prohibit unearned fees and kickbacks and many of the recent consent decrees brokered by the CFPB. You’ll receive a detailed manual that serves as a handbook long after the program is completed.

TOPICS

After viewing the recording you’ll understand:

  • What transactions are covered by RESPA’s prohibition against unearned fees and kickbacks;
  • What actions are prohibited;
  • What constitutes a referral fee, or an unearned fee or kickback;
  • What compensation is permissible;
  • What constitutes an affiliated business arrangement and the rules that apply to such arrangements;
  • How to properly handle broker arrangements; and
  • Recent CFPB consent decrees related to Section 8, including a case where the CFPB didn’t come out the winner in the end.

 WHO

The recording is designed for loan officers, compliance officers, loan processors and clerks, auditors, and anyone else with responsibilities related to federally related mortgage loans.

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