National Association of Realtors (NAR)
SUMMARY: The Tax Cuts and Jobs Act – What it Means for
Homeowners and Real Estate Professionals

To access and download the NAR Summary of the Tax Cuts and Jobs Act, click on:

The Tax Cuts and Jobs Act – What it Means for Homeowners and Real Estate Professionals

For more information, call 312.600.7720, or email to info@irela.org or vokada@irela.org.

IRELA Update:

CFPB Director Richard Cordray Resigns
Who Will Lead the CFPB? — Cordray Designates Deputy Director
Leandra English As Successor

Cordray’s November 24th resignation letter was cordial, but clear.

Richard Cordray’s resignation letter to President Donald Trump touted the agency’s successes as a consumer watchdog and ended with a reference to his post-bureau path.

“I am grateful to have been able to serve my country in this capacity, and in departing I now look forward to finding further ways to continue to advocate for those who are facing economic anxiety and uncertainty in their lives.” pic.twitter.com/x4YNqsgJLN

— Rich Cordray (@RichCordrayOH) November 24, 2017

On Friday, November 24th, Cordray (CFPB) officially appointed Leandra English, the bureau’s chief of staff, to the agency’s number-two position of deputy director to serve as interim director until Congress confirms an appointee. By installing an official deputy, Cordray was making a calculated move.  A provision of the Dodd-Frank Act, the same act that created the CFPB, stipulates that the deputy director shall “serve as acting Director in the absence or unavailability of the Director.” Prior to Cordray’s move on Friday, the agency had only an acting deputy director.

Shortly after Cordray’s announcement on Friday, the White House named Office of Management and Budget Director Mick Mulvaney as the CFPB’s interim director, to serve in the post in addition to serving in his role as director of the White House Office of Management and Budget.

“Director Mulvaney will serve as acting director until a permanent director is nominated and confirmed,” the White House said in a statement Friday.

The two moves set up a clash over who will run the bureau pending Congressional confirmation of Cordray’s successor. The legal tension will likely be between the 1998 Federal Vacancies Act (a statute which generally empowers the president to fill vacancies on an interim basis unless some other mechanism is specifically authorized) and the 2010 Dodd-Frank Act which created the CFPB. The case for Cordray being able to designate his own successor under Dodd-Frank may be strengthened by the fact that the version of Dodd-Frank passed by the House had explicitly applied the Vacancies Act to the CFPB, but the conference committee stripped out that language.

Ultimately, the issue will likely have to be resolved in a court of law.

UPDATE: November 26, 2017 10:00 pm: CFPB Deputy Director Leandra English has filed suit in the United States District Court for the District of Columbia claiming that the 2010 Dodd-Frank specific succession provision controls over the provisions of the 1998 Vacancies Act.  The suit seeks injunctive relief allowing her to act as interim director until the case can be heard by a federal judge.

Richard Cordray, Director of the Consumer Financial Protection Bureau, testifies about Wells Fargo at a Senate Committee hearing in September, 2016.

House Republicans issued an Interim Majority Staff Report June 6, 2017 alleging that Richard Cordray, Director of the CFPB, failed to comply with a legal obligation to turn over all documents related to the Wells Fargo unauthorized accounts scandal.  The CFPB has responded that it has produced over 57,000 pages of materials already in response to the committee’s document requests, and stands ready to continue to cooperate with the committee staff to satisfy its oversight process.

The House Republicans staff report, entitled Was The “Cop on the Beat”?, was issued shortly before the recent passage by the House of Representatives of Jeb Hensarling’s Financial Choice Act, which, if passed by the Senate, would make major changes to the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Currently, CFPB Director Cordray can only be terminated for “inefficiency, neglect of duty or malfeasance in office”.  In alleging that the CFPB has failed to cooperate and that its Director should be held in Contempt of Congress, is the House setting the stage following Senate approval for termination of Cordray by the president at will?

To download and read the entire House Republican Staff Report, click on:

Was The “Cop On The Beat”? Report_2017-6-6_interim_cfpb_wells_fargo_report_final

The report concludes that, in light of the CFPB’s actions to date:

“Director Cordray is in default of the Committee’s Subpoena.  Without receipt of all records requested by the Committee from the CFPB, the Committee cannot complete its investigation into the Wells Fargo matter.  Accordingly, Committee Majority Staff recommend that the Chairman: (1) issue deposition subpoenas to CFPB  employees to investigate Director Cordray’s default; and (2) prepare to, if necessary, initiate contempt proceedings against Director Cordray unless the CFPB produces all responsive records.”

By now, you have probably heard about the latest Ransomware attack that has affected over 200,000 devices in over 150 countries.

If you have a Windows computer and are running Windows 10, there is no evidence that this operating system has been targeted.  If you are running an older operating system (e.g., Windows 7, Windows Server 2003, 2008, Windows Vista) and have not updated the system regularly, you may be at risk.  If you are still running Windows XP, you probably are at risk, as that operating system is no longer generally supported by Microsoft (although a special Custom security update was recently provided by Microsoft to inoculate the XP and Server 2003 operating systems against the WannaCry Ransomware). This, however, was a special case!  If you are still using XP or 2003 you are still at risk from other unpatched vulnerabilities.  You should seriously consider replacing all XP and Server 2003 systems as soon as possible.

The Ransomware exploits a known vulnerability.  Microsoft issued a system update in March to block it, but not all users have taken advantage of the update.  Your Windows-based systems may be at risk.

You may want to:

• Update Windows systems with the Microsoft patch MS17-010
• Notify your employees and staff to be extra cautious right now – even clicking on a suspicious attachment could allow a ransomware attack
• Enable automatic updates from Microsoft
• Implement “Defense in Depth” (multiple layers of security) and air-gap mission-critical devices
• Review and evaluate your backup systems — remember that an attached external hard drive used for backup purposes can be compromised by a sophisticated Ransomware attack and encrypted

WARNING! Don’t click on the Google Docs e-mail you may have received this week!  Don’t go for the bait!! 
And tell your colleagues and friends not to click on it!
A very sophisticated and very convincing Google Docs phishing scheme is making its way around the internet.  You should avoid clicking on any weird Google Docs that have been emailed to you recently — even if it’s from someone you know!  The scam appears innocuous enough — it does not ask for your password. If you succumb to the temptation to click on the link, it asks for some access permissions to your Gmail account (which actual Google Docs links would not need), and then spams everyone in your contacts with a link to a Google Docs file. They, in turn, email everyone in their contacts, and so on. All of them seem to include the email address “hhhhhhhhhhhhhhhh@mailinator.com.”!  Be careful!

IRELA was proud to sponsor “The Objections” band in the annual Lawyers Rock “Battle of the Bands” fundraising event held at Lincoln Hall in Chicago, and significant funds were raised to support the Illinois Bar Foundation and juvenile justice causes.

Pictured above are, from left to right, Don Dopka, Charlie Esquibel, Ken Naylor, Kristi Alsip, Ralph Schumann, Joe Bisceglia (MC for the evening), and IRELA’s own John O’Brien. Thanks to all who came out to support the event.

Thanks to Angela Garbot Photography (www.angelagarbot.com) for use of the photos.

IRELA has launched its new web site. Easier navigation, better readability, more resources.

Let us know what you think.

The D.C. Circuit federal appeals court vacated the prior three judge panel October 11, 2016, ruling on claims of PHH Corp. raised in a case challenging a CFPB enforcement action which had imposed a $109 million fine.  The D.C. Circuit had ruled that “unchecked power” given to the director of the Consumer Financial Protection Bureau is unconstitutional, and fashioned a remedy giving the president the power to supervise and remove the agency’s director.

On February 16, 2017, the U.S. Court of Appeals for the D.C. Circuit entered an order granting the Consumer Financial Protection Bureau’s (CFPB) petition for rehearing en bancin the PHH Corporation, et al., v. Consumer Financial Protection Bureau case. The court based its decision on amici curiae briefs supporting the petition, the United States’ response to the petition, the petitioners’ response to the petition, the petitioners’ supplemental response, and a majority of eligible judges’ vote in favor of the petition. The order vacates the panel’s October 2016 judgment, sets a briefing schedule, and sets May 24, 2017 as the date for oral argument.

UPDATE:  The United States Justice Department has requested 10 minutes of oral argument time.

The case is PHH Corporation v. Consumer Financial Protection Bureau.

IRELA was happy to help sponsor this important program last November. Watch for information regarding the 2017 Harold I. Levine Real Estate Institute which will take place this coming November.

13th Annual Harold I. Levine Real Estate Institute

A Program for ATG, ATG Trust, and IRELA Members.

This popular program sells out every year!

Established in 2004, the Harold I. Levine Real Estate Institute brings together authorities in the real estate, trust, and estate planning arenas to discuss critical issues facing attorneys with the goal of enlightening them for the benefit of their clients, their practices, society, and the bar.

Plan to attend.