Marx Sterbcow, Managing Attorney of the Sterbcow Law Group, will be discussing “Lender Affiliated Business Arrangements as Easy Targets for Fair Housing and Fair Lending Regulators” at the RESPRO Conference on March 31, 2022 in the Four Seasons Hotel, in Las Vegas. The session will discuss racial equity under the Biden Administration and discuss how this focus has accelerated Fair Lending Act and Fair Housing Act enforcement by the Consumer Financial Protection Bureau, Federal Trade Commission, and the Department of Justice. Joining Marx will be Charles Cain who is the SVP of National Agency for the FNF Family of Companies and Trip Riley, Partner at Saul Ewing.
Marx Sterbcow of the Sterbcow Law Group has been invited to speak at the American Land Title Association’s “ALTA Large Agent Conference at the Boca Raton Resort & Club in Boca Raton, Florida on Tuesday, January 15, 2019. ALTA’s Large Agent Conference is January 13-15, 2019.
The presentation “RESPA UPDATES” will discuss a variety of topics from the latest on RESPA Enforcement by the Consumer Financial Protection Bureau “CFPB” to how the new political landscape in Washington, D.C. may put the CFPB’s current enforcement ideology in the spotlight. The presentation will also provide the latest RESPA Best Practices tips involving: advertising services agreements & marketing agreements, co-branded website advertising, advertising & marketing practices, title agency affiliated business arrangements, title joint ventures, office leases, and the challenges involved with many lead generation programs. Craig Haskins, the Chief Operating Officer, of Knight Barry Title, Inc. headquartered in Wisconsin will moderate the RESPA UPDATES session.
One question that we are routinely asked about is the timing of the Affiliated Business Arrangement disclosure form under the Real Estate Settlement Procedures Act “RESPA.” The RESPA Affiliated Business Arrangement (AfBA) disclosure form is required to be given to a consumer whenever a settlement service provider refers that consumer to a another settlement service provider with whom the referring party has an ownership interest or other beneficial interest in.
The RESPA AfBA ownership threshold is any person or corporate entity who holds more than a one percent (1%) ownership in both companies. HUD says the referring party must give the affiliated business arrangement disclosure form to the consumer at or prior to the time of referral. If the AfBA disclosure form is only signed at the closing then HUD deems the disclosure to be out of compliance with the RESPA regulations. The Affiliated Business Disclosure form must describe the business arrangement that exists between the two settlement service providers and the AfBA disclosure must give the borrower an estimate of the referred settlement service providers fees.
The United State Department of Housing and Urban Development (HUD) released their 341 page final RESPA rule today.
I will provide more analysis on this rule later but I wouldn’t get too excited or upset about it yet as this rule appears to have more legal and congressional authority issues than you can imagine.