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ARTICLE · 27 MARCH 2018

CFPB Loses Motion For Reconsideration In Borders Case: Its Next Steps May Provide Insight Into The Mulvaney Enforcement Strategy

Foley & Lardner LLP
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Following Borders & Borders PLC's (Borders) successful summary judgment motion last summer, the Consumer Financial Protection Bureau (CFPB or Bureau) filed a motion for reconsideration...

United StatesConsumer Protection
Jay Varon
Jay Varon
Jennifer Keas
Jennifer Keas
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Following Borders & Borders PLC's (Borders) successful summary judgment motion last summer, the Consumer Financial Protection Bureau (CFPB or Bureau) filed a motion for reconsideration with the federal district court in Kentucky, arguing that the court had misconstrued the affiliated business arrangements (ABAs) exemption under RESPA section 8(c)(4). Late last week, the court not only rejected the Bureau's motion,1 but also surprisingly departed from its previous analysis with respect to the ABAs in question. The decision touches on several important RESPA issues and may help reveal the contours of the Bureau's new RESPA enforcement strategy going forward.

How We Got Here:

The Bureau filed its case against Borders in October 2013, challenging the legality of a series of joint ventures, formed by various local real estate and mortgage companies (Joint Venture Partners or JVPs) and Borders. Specifically, the Bureau alleged that the profit distributions made by the

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