Thursday, March 8, 2007

National Compliance Summit

It was, to be succinct, excellent. About 200 individuals representing lenders, title companies, title agencies, and law offices were in attendance. Yours truly was the only one from Illinois, and no one from Iowa! Honestly, I was not that surprised by this revelation. Seems most people are reactive rather than proactive with regard to compliance. Since Illinois and Iowa have not seen the wrath of HUD for the most part, it seems avoiding RESPA and loan fraud are not high on the list. Yet.

It would seem that 2007 may be the year of compliance. HUD has hired an outside company to assist in investigating the hundreds of complaints they receive every year. WATCH OUT if you have an affiliated business arrangement (AfBA). While some are legitimate, and may even benefit consumers through economies of scale, many are sham arrangements established for the sole purpose of illegally funnelling money to referring individuals or entities. There is a ten point analysis used to determine whether an AfBA is a sham or not. Get some advice if you are not sure. More later...

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