Southern Points

Safely guiding you through today's changing mortgage environment

Spring, 2015 

In This Issue
CFPB Reform Bills
Legislative Updates
GA Recording Deadline Penalty
Objections to Claim Trends
De-Titling Mobile Homes
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Positive Words from Clients and Borrowers!

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Greetings! I trust your summer is off to a great start. This quarter's newsletter is jam packed with useful and timely information for you. With our legislatures wrapping up their 2015 sessions, we have our legendary and comprehensive legislative update to share with you along with a separate feature article about changes in Georgia law you need to be aware of.  On the bankruptcy front, we survey some new trends involving Objections to mortgage proof of claims. With the CFPB being at the forefront, we've also included an interesting piece on the future of the CFPB as Congress seems poised to reshape that newly formed entity. Finally we attempt to demystify issues surrounding mobile homes titles.


Many of you may already know that our marketing director Lauren Fierman Iddins will be leaving our firm and the industry in July. Lauren has accomplished so much in her 6 years with our firm and Peter and I want to thank her publicly for all her hard work. She has made many lasting relationships at our office and made her mark throughout our industry. I think it goes without saying that her contributions will be missed.  Best of luck Lauren in your new endeavors!        


 Best Regards,


Glen D. Rubin

Managing Partner 

Rubin Lublin, LLC     


Giving Back

CFPB Reform Bills Introduced
Written By: Victor Kang, Foreclosure Partner


CFPB Several bills have been introduced in Congress to reform how the
CFPB functions and operates. Many of the bills are intended to create more oversight and bring the CFPB into uniformity with other agencies. Here is a brief summary of the bills:

H.R. 1266 - Financial Product Safety Commission Act of 2015 - Introduced by Congressman Randy Neugebauer (R-CA) - The CFPB would be renamed as the Financial Product Safety Commission and replace the CFPB director with a five-member bi-partisan commission. The members would be appointed by the President and subject to Senate confirmation.

H.R. 1261 - The Bureau of Consumer Financial Protection Accountability Act of 2015 - Introduced by Congressman Sean Duffy (R-WI) - This bill would make the CFPB subject to regular congressional appropriations process.

H.R. 1262 - The Consumer Right to Financial Privacy Act of 2015 - Introduced by Congressman Sean Duffy (R-WI) - This bill requires the CFPB to notify and obtain permission from a consumer before collecting nonpublic personal information about such consumer. 

H.R. 1263 - The Consumer Financial Protection Safety and Soundness Improvement Act of 2015 - Introduced by Congressman Sean Duffy (R-WI) - This reduces the number of Financial Stability Oversight Council members needed to set aside a CFPB regulation from a two-thirds vote to a majority vote.

H.R. 1264 - The CFPB Pay Fairness Act of 2015 - Introduced by Congressman Sean Duffy (R-WI) - This bill which would require the salaries of CFPB employees to be set in accordance with the regular government pay scale instead of the currently higher schedule used by the Federal Reserve.  


CFPB: Blotter Report
The following are true stories; the names have been changed to protect the innocent.

As we enter into the second half of the year, the CFPB continues to dole out penalties despite increasing calls for reform and oversight.  They continue to mete out heavy fines that are often custom-fit to penalize the offender.  With the above-referenced reforms being introduced, we could potentially see the CFPB attempt to dish out more penalties while they still can.  Below is quick rundown of some of the CFPB's enforcement actions in the past year or so. 

To continue reading, click here



End of Session Legislative Update
Written By: Victor Kang, Foreclosure Partner

Please see below for our summary of the final bills pertaining to the mortgage default industry that passed or failed during the 2015 session.


For Alabama, click here.

For Georgia, click here.

For Tennessee, click here.

For Mississippi, click here.




Legislative Branch  


Georgia Recording Deadline Penalty & 

Execution Requirement Changes

Written By: Michael Baringer,  Senior Associate


Georgia has long had a statutory requirement that a deed under power of sale be recorded within 90 days of a foreclosure sale. However, left unsaid was what would happen if this deadline was not met. With the passing of House Bill 322, Code Section 44-14-160 the statutory requirement has been revised to expressly provide a penalty for non-compliance.  The bill requires the holder of a deed to secure debt or a mortgage to file the deed under power (the foreclosure deed) with the appropriate clerk of the superior court within 90 days of the foreclosure sale. If the deed under power has not been filed within 30 days after the 90 days (in other words, by 120 days) then the holder of the deed to secure debt or mortgage shall be required to pay a late filing penalty of $500.00, in addition to the normal filing fee. 


With that in mind, we should note that many counties in Georgia now offer E-filing, allowing one to instantly submit a deed and often receive the recorded copy within a day or two.  There is a small fee charged by the service provider of approximately $4.50 per document, but the shortened turnaround time makes it well worth it.  Also, almost all of the Tennessee counties offer e-recording, and Mississippi and Alabama counties are being added.


If you are not already involved in e-recording and wish to start, please send an email with your approval to allow us to charge the $4.50 cost per document for the e-recording. For LPS Invoice Management clients, please provide us with the LPS code under which to submit the e-recording costs (to differentiate between normal and e-recording) or advise via email if the same LPS recording cost for standard recording costs is to be used. 


To continue reading, click here.


Trends in Objections to Claim

Written By: Lisa Caplan, Bankruptcy Partner; Anjali Khosla, Associate   


A trend among debtor attorneys has emerged that could significantly affect the rights of mortgage lenders and servicers of home mortgages.  Recently, attorneys have begun objecting to Proof of Claims filed by lenders and servicers when the claim is not amended immediately after a loan modification. Instead of Responding to said Objection, some creditors mistakenly believe that having the proof of claim amended is enough to quash the Objection.  However, a Response must be filed, prior to any set Response Deadline or, if no Response Deadline has been set, the hearing must be attended.  What is the risk? A failure to respond to these Objections could result in an order being entered Disallowing the Proof of Claim. Should this occur, the creditor will likely have to disgorge any amounts that had been disbursed by the Trustee and applied to the loan prior to the modification.


We have also come across many cases where the debtor attorney has objected to a Notice of Payment Change ("NPC") or a Notice of Fees, Expenses, and Charges ("PPFN") under rule 3002.1. The NPC objections stem from debtor attorneys looking very closely at the escrow analysis. More and more attorneys are dissecting these analyses to determine if the projected escrow is correct and digging into why there are shortage amounts.  Even a simple shortage of less than $50 per month has been raising Objections. Often times, the shortage has accrued over more than just the last twelve months due to either a lack of analysis run in prior years or a failure by the servicer to have calculated an earlier shortage into an earlier payment change amount. The next type of Objection relates to the 21 day NPC time frame as we are now seeing Chapter 13 Trustees object to late filed NPCs in some states and districts. We have concerns that this trend may catch on.


To continue reading, click here.


Taking the "Mobile" Out of Mobile Homes 

Written By: Josh Hopkins, Associate   


"Manufactured" or "Mobile" homes continue to be a thorn in the side of the real estate industry. While there is certainly not enough room in this space for me to navigate you through all of the perils of curing titles to mobile homes affixed to real estate, I hope that I can at least steer you in the right direction.


When a mobile home is fabricated at an "off-site" facility and transported to a mobile home dealership, the home is delivered with a Manufacturer's Statement of Origin ("MSO"). This is the first "title" to the home, and the home is deemed to be personal property. When the home is sold, the dealer endorses the MSO over to the purchaser who can either surrender the MSO to the State, or have the State register the home and issue a Certificate of Title ("COT"). The home is then transported to a piece of real estate and permanently affixed thereto. However, the mere act of permanently affixing the home to the land (including the recording of an Affidavit in the land records memorializing same), does not, in and of itself, void the MSO or COT and convert the home to real estate. Instead, the MSO or COT must be surrendered to the State DMV for "cancellation"/"De-Titling". Thus, whether a mobile home is permanently affixed to real estate is just one part of the analysis. The ultimate goal is to ensure that the mobile home title records are purged. So how do we get there?


When our firm receives a mobile home curative referral, we must perform a search of the "DMV" records to determine if the home was ever titled with the State. The results of this search determine the appropriate course of curative. For example, often, the DMV search shows that the mobile home is still titled in the name of a prior owner in the chain of title to the land. When faced with these facts, one curative option is to attempt to locate the prior owner, and have the owner execute applicable State specific mobile home documents. If successful, our client can then apply for a new mobile home title in its name, and then surrender same to the State. But what happens if the prior owner is deceased or is currently in Bankruptcy?


To continue reading, click here


Best Wishes, 
Lauren Iddins
Marketing Director
Rubin Lublin, LLC
3740 Davinci Court
Suite 150
Peachtree Corners, GA 30092