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NYS Appellate Division Decision on Reg 208

Tuesday, January 15, 2019   (0 Comments)
Posted by: Brittany Sawyer
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NYSDFS Appellate Division Decision on Reg 208

 

CLICK HERE for the appellate division decision in the Reg 208 case.  The decision reverses the decision to annul the entire reg.  It ratifies the New York State Department of Financial Services (NYSDFS) position broadly banning inducements, rebates, kickbacks, etc.  However, the court agrees with the lower court on annulling the provisions dealing with in-house title closers and the rule to cap ancillary charges at 200% of out of pocket expenses. The court rejected arguments that DFS violated separation of powers and rejected arguments that State Senate passed reforms indicate legislative intent with similar action in the Assembly.  The court thus ruled that the parts of the rule it agreed with and those that were not contested, could stand despite some elements of the rule being invalidated.  It remanded the case to the trial court. The decision could be appealed to the NY State Court of Appeals, the highest court in the state. 

 



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