Thursday, June 18, 2015

FYI: CFPB to Issue Proposed Amendment Delaying TRID Effective Date to Oct. 1, 2015

The federal Consumer Financial Protection Bureau (CFPB) issued a short press release yesterday, confirming reports that it would be issuing a proposed amendment to delay the effective date for the “Know Before You Owe” TILA-RESPA Integrated Disclosure rule until October 1, 2015.

 

A copy of the press release is available at:  Press Release

 

The press release simply states:

 

The CFPB will be issuing a proposed amendment to delay the effective date of the Know Before You Owe rule until October 1, 2015. We made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule by two weeks. We further believe that the additional time included in the proposed effective date would better accommodate the interests of the many consumers and providers whose families will be busy with the transition to the new school year at that time.

 

The public will have an opportunity to comment on this proposal and a final decision is expected shortly thereafter.

 

Prior to the proposed amendment, the effective date for the “Know Before You Owe” TILA-RESPA Integrated Disclosure rule was August 1, 2015, and would apply to transactions for which the mortgage lender or broker receives an application on or after that date.

 

 

Ralph T. Wutscher
Maurice Wutscher LLP
The Loop Center Building
105 W. Madison Street, 18th Floor
Chicago, Illinois 60602
Direct: (312) 493-0874
Fax: (312) 284-4751
Email: rwutscher@MauriceWutscher.com

 

Admitted to practice law in Illinois

 

 

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Sunday, June 14, 2015

FYI: IL AG Reaches $1MM Settlement with Property Services Company Requiring 40 New Operating Standards

A prominent property services company recently reached a $1 Million settlement with the Illinois Attorney General, resolving allegations that the property services company supposedly wrongfully “locked Illinois residents out of their homes before a foreclosure was finalized,” and requiring the company to submit to 40 new operating standards with monitoring as to compliance.

 

A copy of the Illinois Attorney General’s press release is available at:

 

http://www.illinoisattorneygeneral.gov/pressroom/2015_06/20150603.html

 

The Illinois Attorney General stated that the company was “hired by mortgage lenders to determine whether homeowners in default or facing foreclosure are living in their homes. If a property is deemed vacant, [the company] is responsible for securing and maintaining the property to ensure it does not lose value after it is foreclosed.” 

 

The Attorney General alleged that the company “wrongly deemed homes vacant, instructing its contractors to shut off utilities, change the properties’ locks and illegally remove residents’ personal belongings even though they actively remained in their homes.”

 

In addition to the $1 Million payment, the company “must also follow 40 operating standards in conducting inspections and other services relating to Illinois properties” set by the Illinois Attorney General’s office, and submit to monitoring by the Illinois Attorney General as to its compliance with these standards. 

 

According to the Illinois Attorney General, these operating standards include:

 

 

-  “Inspectors must support their inspections with photographs and an affidavit;”

 

-  The company “must post notice to the occupant that it has determined the property to be vacant before it enters the property;”

 

-  The company “is prohibited from misrepresenting the rights of occupants that are allowed to remain in their home even though they might be behind on their mortgage and in foreclosure;”

 

-  “The company must increase its oversight and quality control of its subcontractors;”

 

-  The company “must maintain a 24-hour hotline for fielding consumer complaints;” and

 

-  “The company is prohibited from removing non-perishable and non-hazardous personal property prior to foreclosure unless it has a court order, and if [the company] makes a mistake, it must restore a consumer’s possession of the home, restore utility service, and return or reimburse any personal property that has been removed.”

 

 

According to the Illinois Attorney General, the $1 million in settlement funds will be distributed by the Illinois Attorney General’s office to consumers who filed complaints regarding the company’s practice.

 

 

 

Ralph T. Wutscher
Maurice Wutscher LLP
The Loop Center Building
105 W. Madison Street, 18th Floor
Chicago, Illinois 60602
Direct: (312) 493-0874
Fax: (312) 284-4751
Email: rwutscher@MauriceWutscher.com

 

Admitted to practice law in Illinois

 

 

NOTICE: We do not send unsolicited emails. If you received this email in error, or if you wish to be removed from our update distribution list, please simply reply to this email and state your intention. Thank you.


Our updates are available on the internet, in searchable format, at:


Financial Services Legal Developments

 

and

 

California Finance Law Developments

 

and

 

Insurance Recovery