Some RESPA investigations opened by the Department of Housing and Urban Development may have been reassigned to the Consumer Financial Protection Bureau when its authority transferred to the new agency on July 21. For companies that previously had open investigations with HUD, it could mean those inquiries are still active, but the companies might not be aware of it.
“Some companies may not be out of the woods just yet,” says a brief from international law firm K&L Gates’ Phillip Schulman.
Approximately 10 former HUD RESPA Enforcement Division staffers and counsel transferred to the CFPB this summer, with about five of those employees being reassigned to the bureau’s enforcement division.
“If you weren’t contacted by HUD last spring, how do you know if you’re out of the woods? You don’t,” Schulman writes. The government has three years from the date of an alleged infraction to bring a case against a company. Depending on the circumstances, matters may still be under consideration at the CFPB, unbeknownst to those companies.
The firm advises keeping up to date and ensuring compliance with RESPA in the meantime.
“Right now the Bureau is busy organizing itself and focusing its consumer outreach on distressed homeowners and credit card transactions,” Schulman writes. “RESPA enforcement has not yet made it to the front burners. But it will.”
Read the notification from K&L Gates.
Written by Elizabeth Ecker