The question of regulation and enforcement of RESPA Sections 8 (a) and (b)have been hot-button issues for the Consumer Financial Protection Bureau (CFPB) and the federal courts. Recently, two matters have arrived on the regulatory scene that helps to define and, perhaps, alter what was previously known about compliance and we want to make NAILTA members aware of them.
The first is a decision reached in a class action case currently pending in California known as Henson v. Fidelity National Financial. That case involves the question of whether delivery services — such as from UPS or FedEx are covered under RESPA.
[Editor’s note: The answer is “yes”.]
To help you understand the importance of the Henson case, we have authored the enclosed memo which is available by clicking here.
The second is a CFPB enforcement action against a New Jersey title insurance agency known as Stonebridge Title Agency. The question in that case is whether “independent salespeople” can receive compensation solely from title insurance premiums based upon the referral of title insurance business if they are not also acting as an “employee” of the title agency.
[Editor’s note: The answer is “no”.]
Again, to help you understand the importance of the CFPB’s actions against Stonebridge Title, we have authored the enclosed memo which is available by clicking here.
If you have any questions about the memos or the cases, please contact NAILTA by reaching out to our volunteers and experts at email@example.com.