Marx Sterbcow, Managing Attorney of the Sterbcow Law Group, is speaking at RESPRO‘s 30th Annual Conference at the Ritz Carlton Resort in Lake Tahoe on May 23, 2023. The topic “The Evolving AfBA Model–Compliantly Transforming Fixed Costs Into Variable Expenses In An Uncertain Market” will discuss how this challenging real estate market is driving title insurance agents and business owners to adapt, and transforming fixed costs into variable costs, especially in a volatile environment, is at the top of almost every operator’s “to-do” list. This session will examine the evolution of the traditional JV and ABA business model in the face of the existing down cycle. Panelists will discuss how successful JV operators are not only transitioning their expenses into variable costs, but doing so compliantly. The panel will consider such things as offering back office support for JVs while staying on the right side of the “core services” consideration. Attendees will hear not only about compliance strategies for the evolving JV models, but practical, operational considerations as well. Mr. Sterbcow will be joined with Mike Larosa (Chief Operating Officer for the Florida Agency Network), Aaron Davis (CEO of ClosingSuite.com), and moderated by Chuck Cain (SVP of National Agency Division at FNF).
Articles Posted in RESPA VIOLATIONS
Marx Sterbcow Speaking at the Southeast Land Title Association’s 55th Annual Mid-Year Conference
Marx Sterbcow, Managing Attorney of the Sterbcow Law Group, is speaking at the Southeast Land Title Association‘s Mid-Year Conference in Birmingham, Alabama on Monday, April 24th at the Ross Bridge Resort & Spa. Mr. Sterbcow will speak on CFPB and RESPA compliance matters including an in-depth discussion on how to properly set up and operate Affiliated Business Arrangements so you comply with federal and state RESPA regulations.
Marx Sterbcow to keynote DOMA Holdings’ 2023 Mid-South Agent Conference in Nashville
Marx Sterbcow, the managing attorney, for the Sterbcow Law Group, LLC will be the keynote speaker at Doma Title Insurance’s 2023 Mid-South Agent Conference on March 7, 2023 at the Sonesta Nashville, Airport in Nashville, Tennessee. Mr. Sterbcow’s presentation: “RESPA: A Primer for Title Agents” will focus on RESPA Compliance for affiliated business arrangements, marketing services agreements, and give an outlook on the Consumer Financial Protection Bureau.
The Federal Housing Administration Revises Dual Employment Requirements and Clarifies Conflict of Interest Policies
The Federal Housing Administration “FHA” published Mortgage Letter (ML) 2022-22 on December 15, 2022, which provides new clarifications on its Conflicts of Interest Policy and Dual Employment Policy for most Title II Single Family FHA-Insured Mortgage Transactions.
The new Mortgage Letter revisions have taken a dramatic change in that FHA Policy now permits individuals who do not have a “direct impact on the mortgage approval decision” to have various compensated positions for services performed and allowed by the Department of Housing and Urban Development “HUD”, provided that the transaction complies with all applicable federal, state, and local laws, rules, and requirements.
The 2022-22 Mortgage Letter now consolidates various conflicts of interest and dual employment subsections in the Single-Family Housing Policy Handbook 4000.1 into one subsection and provides clarification on FHA policy regarding prohibited conflicts of interest by individuals that directly impact the mortgage approval decision and permitted dual employment for other individuals who perform services in a single FHA-insured transaction. FHA believes the policy consolidation and clarification will help facilitate an easier understanding of existing FHA requirements given feedback from the real estate industry and from confusion internally at FHA with how to apply the past Policy.
Marx David Sterbcow speaking at the Michigan Land Title Association’ 2022 Annual Conference
Marx Sterbcow is speaking at the Michigan Land Title Association (“MLTA”) Annual Convention on July 11, 2022 at the Crystal Mountain Resort in Thompsonville, Michigan. The presentation “Regulatory Update — Joint Ventures & the CFPB” will provide an overview of how to properly set up an affiliated business arrangement, discuss the expectations regulators look for in Marketing Services Agreements, and give insight on where CFPB enforcement is and where it is headed in the future.
Marx David Sterbcow speaking on RESPA and the CFPB at the Minnesota Land Title Association on April 4, 2022
The Managing Attorney for the Sterbcow Law Group, Marx Sterbcow, is presenting at the Minnesota Land Title Association‘s 2022 Spring Seminar at the Minneapolis Marriot Northwest. The presentation will discuss Affiliated Business Arrangement compliance, Marketing Service Agreement & Advertising Services Agreements, and provide an update on where enforcement at the Consumer Financial Protection Bureau is headed. The session will take place from 10:15 to 11:15.
Marx Sterbcow speaking at the Minnesota Land Title Association Spring Seminar
Marx Sterbcow will provide a “RESPA Compliance and CFPB Update“ at the Minnesota Land Title Association “MLTA” 2020 Spring Conference at the Marriott Minneapolis Northwest hotel on Monday, April 6, 2020 from 10:15 to 11:15 AM. The session will first focus on the “Do’s and Don’ts of the Real Estate Settlement Procedures Act (RESPA)” covering such topics as marketing services agreements, affiliated business arrangements, real estate lead generation program compliance, referrals and gifts. The second part of the presentation will discuss the latest in Consumer Financial Protection Bureau “CFPB” enforcement trends and outlook for the coming year.
Sterbcow Law Group’s Marx Sterbcow to speak at Real Estate Services Providers Council (RESPRO) Annual Conference
Sterbcow Law Group’s Managing Attorney, Marx David Sterbcow, will speak at the 2020 27th Annual Real Estate Services Providers Council, Inc. “RESPRO” Conference in Phoenix, Arizona on April 24, 2020. The RESPRO27 will be held at the Tempe Marriott at the Buttes. The presentation “Top Down Affiliated Business Arrangement “AfBA” Compliance Demands: The Impact of Principal and Client Compliance Demands on AfBAs and Other Recent Developments” will focus on the rapidly changing terrain of AfBA compliance demands originating from sources other than the government and the practical ramifications for adopting some of these demands into your affiliated business.
The seminar will discuss the benefits of having third parties Audit your affiliated business for Real Estate Settlement Procedure Act “RESPA” compliance based on new and evolving compliance expectations from banks, non-bank lenders, title insurance underwriters, and government regulators. Joining Marx will be Trip Riley with Saul Weing, Arnstein & Lehr and Charles Cain with WFG National Title.
For more information on RESPRO27
FDIC RESPA Enforcement Action: HomeStreet Bank accused of violating Section 8
The Federal Deposit Insurance Corporation “FDIC” on November 30, 2019 entered into a Consent Order FDIC-18-0142k which ordered HomeStreet Bank, a Seattle, Washington based bank to pay a civil money penalty of $1.35 million dollars. The FDIC alleged that HomeStreet Bank’s now discontinued Home Loan Center-based mortgage banking business line violated Real Estate Settlement Procedures Act, 12 U.S.C. § 2607, and its implementing regulation, Regulation X, 12 C.F.R. Part 1024, by entering into certain co-marketing agreements using online platforms and desk rental agreements which resulted in the payment of fees to real estate brokers and home builders for their referrals of mortgage loan business. The FDIC also stated that all of HomeStreet Bank’s agreements with those real estate brokers and home builders have been terminated.
The FDIC’s Consent Order stated that HomeStreet Bank entered into the settlement without admitting or denying any charges of unsafe or unsound banking practices or violations of law or regulation.
Unfortunately though, the FDIC’s Consent Order did not provide any industry guidance on what it found objectionable in the co-marketing agreements using online platforms or the desk rental agreements. The Sterbcow Law Group hopes the FDIC will in the future provide more detail in its enforcement actions in order to help provide more clarity to the real estate and mortgage industry.
RESPA Seminar: Marx Sterbcow to discuss “Whither the Bureau: State UDAAP, Regulatory and Private Sector Compliance Issues, Activities and Requirements” at the 26th Annual RESPRO Conference in New Orleans on March 27, 2019
Marx Sterbcow with the Sterbcow Law Group’s RESPA Law Resource Center has been invited to speak at the Real Estate Settlement Providers Organization’s “RESPRO” 26th Annual Conference in New Orleans, Louisiana on March 27, 2019 at 8:45 AM at the Ritz Carlton Hotel’s Carrollton Ballroom. The presentation “Whither the CFPB: State Unfair Deceptive Abusive Acts Practices, Regulatory and Private Sector Compliance Issues, Activities and Requirements” will review the most recent federal and state mortgage, title insurance, and real estate brokerage regulatory actions.” The session will discuss how the Consumer Financial Protection Bureau and various state mortgage and title insurance regulatory agencies are interpreting UDAAP/RESPA. The session will also discuss what compliance expectations the CFPB’s Enforcement division will have when a company is under investigation and the general outlook of what is going on or not going on at the CFPB. The presentation will hit on issues involving private sector mortgage lending compliance involving Affiliated Business Arrangements and those how those expectations extend to class action mitigation risks.
Charles “Chuck” Cain from Cincinnati, Ohio (Executive Vice President Agency at WFG and Of Counsel to the Sterbcow Law Group) and Francis “Trip” Riley from Princeton, New Jersey (Partner with Saul Ewing Arnstein & Lehr, LLP) will co-present with Mr. Sterbcow in this session.