By Sara Tussey, Esq,

Rosenberg &Associates, LLC

USFN Member (DC, MD, VA)

and ShellieWallace, Esq.

Wilson &Associates, PLLC

USFN Member (AR, MS, TN)

USFN gathered at the beautiful Drake Hotel in Chicago on July 14 and 15, to discuss the legal issues affecting our industry at its annual Legal Issues Seminar. The event started with a networking dinner at The Signature Room at the 95^th, located in one of Chicago’s charming historic buildings. It was wonderful to see old faces and meet new ones as we were treated to stunning views of Chicago.

Getting down to business, USFN offered four great sessions of CLE-worthy content, discussing both issues from the past year and emerging items of interest.

            The first session centered on recent case law and legislative updates. One major focus of the session was the New York legislation in response to Freedom Mortgage Corporation v. Engel, and the efforts to limit the time in which a foreclosure case must be completed. There is no clear answer right now as to how servicers should proceed, other than to continue conversations with their New York counsel. This session also touched on the CFPB’s intention to start using their UDAAP authority to scrutinize and target discriminatory practices.

            The second session continued the discussion on the CFPB and their recent aggressive focus on supervision and enforcement actions. It is more critical than ever to remain mindful of the CFPB’s requirements and regulations. Another important takeaway from this session was regarding the HAF programs and their administrative variances from state to state. Servicers should be cognizant of each state’s unique portal and requirements and reach out to counsel as needed. There was also a conversation surrounding technology and how it can support both servicers and our members. The session wrapped with a lively discussion of hot topics from FNMA.

            In the third session, we heard about regulation and what we can expect over the coming year. Ancillary fees were a major point of interest. The CFPB is strongly opposed to allowing ancillary fees where the fee is significantly higher than the actual cost of the service. This includes a push to prohibit “convenience fees,” which are often charged for making a monthly payment over the telephone or online. It is likely that the CFPB may allow a pass-on fee from a vendor, but the servicer cannot make any profit. There was also some discussion surrounding the persistent challenge of itemization requirements for debt validation letters that fall outside of the special rule for the FDCPA. There are still few answers, but, as an industry, we are continuing to discuss it and seek resolution.

            In the final session of the day, we discussed staying ethical in a remote-work world. Some things to think about:

·       How are you meeting confidentiality and security requirements when people are working from home?

·       How do you account for Siri and Alexa?

·       How do you prevent “Zoom bombing?”

·       How do you supervise your staff?

·       How are you safeguarding personal identifying information?

Many of these questions have been addressed by the American Bar Association in Formal Opinion 498.

Finally, if you are living in a jurisdiction where you are not licensed, be aware of the rules about the unauthorized practice of law in both the state where you are living and the state where you are practicing.

            Overall, it was a great day and a half together, where we enjoyed the sights and sounds of Chicago, as well as stimulating conversations about the issues affecting our industry. We hope you can join us next year in Chicago. Stay tuned to USFN’s events website for dates and details.

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USFN August e-Update