Investigations of "sham" business arrangements in Tulsa, Okla., by the Department of Housing and Urban Development have resulted in two settlements totaling $450,000 for alleged violations of the Real Estate Settlement Procedures Act.HUD alleged that a Tulsa real estate company, McGraw Davisson Steward, encouraged its agents to form an affiliated business arrangement, or ABA, with a title company as a way to collect referral fees, which are illegal under RESPA. MDS and the title company, Closings of Tulsa, agreed to pay a $325,00 settlement. The other settlement involves 40 homebuilders who agreed to pay $125,000 for allegedly operating a sham ABA that also received referral fees from Closings of Tulsa. Some of the builders are affiliated with MDS. HUD allows ABAs under RESPA, provided that the profits are distributed among the partners based on their ownership interests. It is illegal, however, to distribute profits based on the value or amount of referrals. "RESPA is clear -- while affiliated business arrangements are allowed, using complex arrangements to mask referral fees amounts to a kickback," HUD Assistant Secretary John Weicher said.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
7h ago -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
July 11 -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
July 11 -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
July 11 -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
July 11