Section 8 Violations - They're Back

With Jack Holzknecht and Kelly Owsley

Section 8 Violations - They're Back

With Jack Holzknecht and Kelly Owsley
  • 1 Video
  • 3 PDFs
  • 2.0 hrs
Course description

ICB Credit: 2.5 CRCM

What
Section 8 of the Real Estate Settlement Procedures Act prohibits unearned fees and kickbacks. The Consumer Financial Protection Bureau assumed control of RESPA in July 2011. In 2013, the CFPB has become a very active but unpredictable enforcer. In recent years, nearly 35% of all reported CFPB mortgage-related enforcement actions were focused on Section 8, and the penalties imposed have reached huge totals.

The CFPB has provided minimal guidance on Section 8, and that guidance is less that enlightening. Most of the CFPB guidance has been in the form of consent decrees. CFPB consent decrees typically include significant penalties -- well past $20 million in one case. The CFPB's approach of high-dollar enforcement activities, personal liability for management, and a lack of regulatory guidance, has created an atmosphere of intimidation and fear in the industry.

Why
Every financial institution has violations of Section 8. How serious are yours? You need to be aware of your infractions and take steps to eliminate them.

This program reviews the RESPA/Reg X rules that prohibit unearned fees and kickbacks and many of the recent consent decrees brokered by the CFPB. Participants receive a detailed manual that serves as a handbook long after the program is completed.

Upon completion of the program participants understand:

  • What transactions are covered by RESPA's prohibition against unearned fees and kickbacks;
  • What actions are prohibited;
  • What constitutes a referral fee, or an unearned fee or kickback;
  • What compensation is permissible;
  • What constitutes an affiliated business arrangement and the rules that apply to such arrangements;
  • How to properly handle broker arrangements;
  • Recent CFPB consent decrees related to Section 8; and
  • The recent PHH circuit court decision.

Who Should Attend:
The program is designed for loan officers, compliance officers, loan processors and clerks, auditors, and anyone else with responsibilities related to federally related mortgage loans.

Course Curriculum

Video
123:28
Section 8 Violations - They're Back
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Materials
Materials
Slides
Questions and Answers
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Instructor

Jack Holzknecht and Kelly  Owsley
Jack Holzknecht and Kelly Owsley
Compliance Gurus

Jack Holzknecht is the CEO of Compliance Resource, LLC. He has been delivering the word on lending compliance for 39 years. In Jack's 34 years as a trainer over 125,000 bankers (and many examiners) have participated in his live seminars and webinars. Jack's career began in 1976 as a federal bank examiner. He later headed the product and education divisions of a regional consulting company. There he developed loan and deposit form systems and software. He also developed and presented training programs to bankers in 43 states. Jack has been an instructor at compliance schools presented by several state bankers associations. He developed and delivered compliance training for the FDIC and OTS for ten years. He is a Certified Regulatory Compliance Manager and a member of the National Speakers Association. He is also a "BOL Guru."

Kelly M. Owsley, CRCM is Director of Training Services for Compliance Resource, LLC. Kelly's career in banking began in 2000. Since then she has worked for financial institutions ranging in asset size from $250 million to $3 billion. Kelly has worked in numerous areas of the financial services industry including retail branch management, lending, product development and training. In addition, Kelly spent three years in a training and development role with CUNA Mutual Group servicing the largest credit union in the United States. Most recently, she served as the Vice President of Compliance, BSA Officer, and CRA Officer for a community bank in Kentucky where she was responsible for implementing and training all compliance related topics. Kelly holds a Bachelor of Science degree in Accounting from the University of Kentucky and is a Certified Regulatory Compliance Manager.