RESPA for once.

Quote:

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...by providing inaccurate HUD-1 Settlement Statements to federally insured depository institution lenders and borrowers that failed to accurately reflect all the actual charges and adjustments in connection with settlement of federally related mortgage transactions.

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Significant in my eyes. Compliance types need to mention this the next time you're auditing RE loans and there is an argument about breaking out and itemizing fees.

See this OTS Press Release In addition to the concurrent $5 million civil money penalty assessed by OTS, OCC, and HUD, the Texas Department of Insurance has assessed a CMP of $1.2 million.

I edited the link so it should take you to the correct press release.

OK. I'll change my title. Thx.

That release had to do with not releasing CAMEL ratings?!?

Andy, do we know what types of charges were not properly disclosed?

I read the agreement - so Chicago was what - lumping charges on the HUD? Or were they simply leaving them off of the HUD all together? Not that it really matters, I was just wondering.

There are bank charges involved as well. Apparently there was some fraud.

See OCC press release.

It doesn't say what was wrong by Chicago Title, Southwest Bank of Texas or Frost, except that the HUD-1s were wrong. Yes, two folks have suffered, apparently due to fraud. And while related, it would appear that all the blame isn't going to any one source.

Perhaps more info will shake out as to specifics.

Oops. That was me.

Sorry. I edited my post to contain the correct link.

Good. About time the title co's got hit with some liability. Banks have been talking till they're blue in the face to title co's and getting blown off. Now maybe there will be more attention paid.

Looks like a couple of Texas good ol' boys got whacked $250,000 and $130,000 individually for the same type of the shenanigans with Chicago Title also (not to mention a few other things). Notice it's the same two guys from the Whitney SAR safe harbor decision????

Some people just never learn.

This tells me there was some flipping here. That may be part of what got the two good'ol boys in trouble. Plus some kickbacks. Those would have been hidden in the HUD-1 itemizations.

Chicago Title-Houston allegedly engaged in transactions where homes were bought and later sold, often in the same day, based on inflated property values, according to an order announced Monday by the Texas Department of Insurance.

In the transactions, discovered in the company's Katy office, banks would lend more than the property was worth.

Another investigation into the company's Clear Lake office found instances where portions of the proceeds from property sales were allegedly diverted to bank loan officers in the form of kickbacks.

Thanks, Andy. I also saw an article from the Rocky Mountain News posted elsewhere that relayed the same info.

Fortunately for us, we did not deal with Chicago Title.