ARE CONTROLLED BUSINESS ARRANGEMENTS (CBAs) COVERED BY a reliable safe haven under the Real Estate Settlement Procedures Act (RESPA)?
According to the CIC, "[T]hese phony reinsurance deals are just the latest, and among the most egregious, examples of the controlled business arrangements that infect the title-insurance business and drive up the cost of home-purchasing and refinancing.
This provision was seen as giving a real competitive advantage to controlled business arrangements
(CBAs) involving affiliations between builders or real estate brokers and other settlement service providers such as mortgage and title companies.
Realtors are consumed with creating computerized loan origination systems (CLOs), controlled business arrangements
(CBAs), joint ventures or strategic partnerships, and large corporations like American Express and American Airlines are offering mortgages to their members as a value-added perk.
The department concluded that adherence to these principles mandated the following: substantially curtailing the employer-employee exception in the existing rule; limiting borrower payments to CLO services; retaining the present case-by-case federal determination on preemption of state laws; and modifying the controlled business arrangement disclosure statement.
Since 1983, the mortgage industry has been waiting for HUD to lay down fair and workable rules on controlled business arrangements and CLOs.
Reversing its prior position, in its final rule HUD is very supportive of flexible controlled business arrangements
Regarding controlled business arrangements
, HUD's stated position is that ".
NAR said HUD should create a "level playing field" for those involved in providing settlement services--whether they be the traditional paper-based approach or the newly emerging diversified real estate services industry, otherwise known as companies with controlled business arrangements
, or CBAs.
WMC) has acquired all branches and Controlled Business Arrangements
(CBAs) of Southwest Colonial Mortgage Co.
The HUD announcement stated this new ruling "enhances the development of new diversified real estate services and provides clear guidance with respect to controlled business arrangements
Controlled business arrangements
--HUD is engaged in several investigations of controlled business arrangements
that involve the relationship and business activities among affiliated service providers.