The Closing Disclosure Replaces the HUD-1 in Real Estate Transactions in 2015

According to the Consumer Financial Protection Bureau, the new form, "The Closing Disclosure form replaces the current form used to close a loan, the HUD-1, which was designed by HUD under RESPA. It also replaces the revised Truth in Lending disclosure designed by the Board under TILA."

Consumers must receive this form "at least three business days before the consumer closes on the loan." Strikingly, if many possible loan components are changed following the provision of The Closing Disclosure form, such as changing the product or adding a prepayment penalty, a "consumer must be provided a new form and an additional three-business-day waiting period after receipt".

Look forward to this final rule, which is effective on August 1, 2015.

Ringing in the New Year With Real Estate Brokerage Advertising Regulations

If you've been following our blog, you've known for months about the Real Estate Brokerage Advertising Regulations which became effective on January 2, 2014. Hopefully you have been preparing to ensure compliance, but if you haven't, here's one last reminder that you most likely need to overhaul the way you advertise.

The Department of State has overhauled the Advertising Regulations found in 22 NYCRR 175.25. If you've visited their page before, make sure you refresh your browser to see the updated January 2014 regulations. What used to be two paragraphs has exploded into twenty-eight paragraphs over two pages covering everything from for-sale signs to e-mail correspondences. Even the simplest things fall under the new regulations. For example, salespersons and brokers must display their full licensed names on their advertisements, no nicknames, and phone numbers must be clearly labeled based upon their type (cell, desk, home, etc). By defining advertising as "promotion and solicitation related to licensed real estate activity" the Department of State has thrown a broad net in order to capture as much activity as possible under the new regulations.

It is imperative that brokers become familiar with the new regulations so they understand what they need to change, and it is even more important that brokers conduct trainings with their agents who most likely are unknowingly violating the new regulations on a regular basis. Determining what information is required on each type of advertisement requires a careful reading of the regulations. Consult your trusted attorney for guidance so you can avoid potential penalties and continuing running your brokerage without a hiccup.

Ocwen is Finally Accountable for its Actions

The Consumer Financial Protection Bureau (CFPB) and 49 states have signed a proposed court order requiring Ocwen to spend $2.1 billion on loan modification programs and relief to victims of foreclosure. 

Ocwen is the largest non-bank mortgage servicer in the United States. It was alleged by CFPB that for years, Ocwen has illegally delayed loan modifications, charged improper fees, provided incorrect updates to consumers who were applying for loan modifications, erroneously reviewed foreclosure documents, and inaccurately applied and tracked monthly mortgage payments. 

Like GMAC, Bank of America, Citi, JPMorgan Chase, and Wells Fargo, Ocwen is alleged to have deceived and abused the system for too long and must be punished for its illegal practices.

Under the Order, Ocwen is required to comply with the provisions of the 2012 National Mortgage Settlement and must comply with the new mortgage servicing rules that are taking effect January 2014. A knowledgeable, responsive single point of contact must be established for borrowers applying for relief, so that the loan modification process will be clearer and quicker than ever before. Instead of being sacrificed, borrowers will now be protected and given a fair shot at saving their homes.

Borrowers should be overjoyed that there will be more communication between servicer and borrower, and that borrowers who were improperly foreclosed on between 2009 and 2012 may receive compensation. It is a great step forward in the mortgage servicing world. 

Thank you to Lieb at Law's Assistant Case Manager, Jessica Vogele, for sharing this valuable information. 

Andrew M. Lieb reappointed as Special Section Editor for Real Property to The Suffolk Lawyer

We would like to congratulate our Managing Attorney, Andrew M. Lieb, on having been re-appointed as the Special Section Editor for Real Property to The Suffolk Lawyer, law journal.

Andrew M. Lieb reappointed as Co-Chair of the Real Property Committee to the Suffolk County Bar Association

We would like to congratulate our Managing Attorney, Andrew M. Lieb, on having been re-appointed as the Co-Chair of the Real Property Committee to the Suffolk County Bar Association for the 2013 - 2014 term.

Welcome to the World - Spencer Nate Lieb

Lauren and Andrew Lieb are thrilled to introduce their son, Spencer Nate Lieb.

Born December 7th, 2013

Weighing 6 Pounds 14 Ounces

Measuring 20 Inches