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M&A compliance considerations for title companies
Posted Date: Thursday, April 22, 2021
Title companies of all sizes are looking to sell. And there are plenty of potential buyers seeking additional cash flow.
Saul Ewing Arnstein & Lehr Partner Francis X. “Trip” Riley III and Howard Turk, founder and managing director of Howard Turk & Co., an M&A firm focused on the title industry, were among the speakers at a recent RESPRO session detailing the ins and outs of M&As. Read on for more from Riley and Turk.
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Settlement possible in Maryland alleged kickback scheme
Posted Date: Thursday, April 22, 2021
A group of Maryland homeowners who accused their mortgage company’s branch managers, loan officers and agents of accepting illegal kickbacks in exchange for referrals to a specific title company have agreed to start settlement discussions with the lender.
A judge dismissed the case last year after the mortgage company argued its payments to the title company fall within RESPA Section 8(a)’s safe harbor provision. However, the plaintiffs were later granted a motion for reconsideration. Read on for the latest in the case.
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FHA revises servicing policies
Posted Date: Thursday, April 22, 2021
The Federal Housing Administration (FHA) has updated the Servicing and Loss Mitigation section of the FHA Single Family Housing Policy Handbook 4000.1.
The update streamlines many standard operational requirements for mortgage servicers, including revising FHA’s loss mitigation home retention “waterfall” so that servicers can more quickly offer effective loss mitigation home retention options to borrowers in danger of losing their homes to foreclosure.
Read on for details from FHA.
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NAR report: Buyers want ‘green’ properties
Posted Date: Thursday, April 22, 2021
Thirty-two percent of Realtors said they had been directly involved with buying or selling a property that had green or eco-friendly features in the past 12 months, according to a new report from the National Association of Realtors (NAR).
NAR’s 2021 Realtors and Sustainability Report surveyed real estate agents about sustainability issues facing the real estate industry.
Read on for details from Jessica Lautz, NAR’s vice president of demographics and behavioral insights.
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Waters asks House to increase FinCEN appropriations
Posted Date: Thursday, April 22, 2021
House Financial Services Committee Chairwoman Maxine Waters is asking fellow legislators to support supplemental funding to the Financial Crimes Enforcement Network (FinCEN).
Waters recently sent a letter to fellow House members requesting at least $74.3 million in new funding for FinCEN. The money would help fund the initial stages of the reforms codified in the bipartisan Anti-Money Laundering Act of 2020 and the Corporate Transparency Act. Read on for details.
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HUD speeds up access to Puerto Rico disaster relief
Posted Date: Thursday, April 22, 2021
The Department of Housing and Urban Development (HUD) has set aside $8.2 billion in Community Development Block Grant Mitigation (CDBG-MIT) funds for Puerto Rico.
HUD also announced it will remove the “onerous restrictions unique to Puerto Rico” that limited the island’s access to CDBG-Disaster Recovery (DR) funds that were allocated following Hurricane Maria in September 2017. Read on for more from HUD.
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HUD suspends NY operator’s affordable housing funding
Posted Date: Monday, April 19, 2021
The Department of Housing and Urban Development (HUD) announced it will suspend federal affordable housing funds to a Brooklyn, N.Y. multi-housing operator accused of discriminating against people with disabilities and excluding non-white tenants.
HUD said the action is the first step toward undoing historic patterns of segregation and other types of discrimination that have long denied equitable access to housing opportunity.
Read on for details of the action.
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ABA: Home-related credit delinquencies up
Posted Date: Monday, April 19, 2021
After two consecutive quarters of declines, consumer credit delinquencies rose in the fourth quarter of 2020 as the toll of the pandemic-induced recession weighed on the economy, according to results from the American Bankers Association’s (ABA) Consumer Credit Delinquency Bulletin.
Overall, late payments of 30 or more days rose in each of the 11 loan categories tracked by ABA - including all three home-related categories. Read on for details.
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CFPB sues online debt-settlement company
Posted Date: Monday, April 19, 2021
The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against an online debt-settlement company for allegedly failing to disclose its relationship to certain creditors, and steering consumers into high-cost loans offered by affiliated lenders.
The CFPB filed a complaint in U.S. District Court Central District of California alleging the company engaged in abusive acts or practices under the Consumer Financial Protection Act and violated the Telemarketing Sales Rule.
Read on for details.
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HUD allocates ‘historic’ increase for vulnerable populations
Posted Date: Monday, April 19, 2021
The Department of Housing and Urban Development (HUD) has allocated nearly $700 million through the nation’s Housing Trust Fund (HTF) for affordable housing.
The HFT was launched in 2008 as an affordable housing production program that complements existing federal, state and local efforts to increase and preserve the supply of decent, safe, and sanitary affordable housing for low- and extremely low-income households, including families experiencing homelessness.
Read on for details from HUD.
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FFIEC appoints Marshall to SLC
Posted Date: Monday, April 19, 2021
Arkansas Bank Department Commissioner Susannah Marshall has been appointed to the Federal Financial Institutions Examination Council’s (FFIEC) State Liaison Committee (SLC).
Marshall was designated by the Conference of State Bank Supervisors (CSBS) to serve on the SLC for a two-year term through March 31, 2023.
Read on for details from the FFIEC.
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Biden proposal calls for more HUD funding
Posted Date: Thursday, April 15, 2021
The proposed budget for the Department of Housing and Urban Development (HUD) in Fiscal Year (FY) 2022 is more than $9 billion over the 2021 enacted level.
The proposal by President Joe Biden calls for 68.7 billion in total spending – including funding for preventing and redressing housing-related discrimination and increasing the supply of affordable housing.
Read on for details of the funding request and reaction from HUD Secretary Marcia Fudge.
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DOJ files 21st sexual harassment in housing suit
Posted Date: Thursday, April 15, 2021
The Department of Justice (DOJ) has filed a sexual harassment lawsuit against a pair of Pennsylvania landlords.
The lawsuit alleged a male sexually harassed a female tenant in April 2019 after he entered her home to perform maintenance, and the former tenant was evicted after she reported the harassment. The lawsuit arose from a complaint the woman filed with the Department of Housing and Urban Development (HUD).
Read on for details from the DOJ and HUD.
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NAR event promotes alternative data in mortgage lending
Posted Date: Thursday, April 15, 2021
The use of new data to determine prospective buyers’ creditworthiness would increase opportunities for homeownership among Black and Latino Americans, according to new research outlined at a virtual event hosted by the National Association of Realtors (NAR).
“Minorities are far more likely to be ‘unscoreable’ or have relatively weak credit scores using traditional credit bureau data,” former Freddie Mac Senior Vice President Ann Schnare said. Read on for details from the NAR event.
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CFPB seeks delay of debt collection rules
Posted Date: Thursday, April 15, 2021
The Consumer Financial Protection Bureau (CFPB) is considering postponing the effective date of two recent debt collection rules to give affected parties more time to comply due to the ongoing COVID-19 pandemic.
The CFPB issued a notice of proposed rulemaking to delay by 60 days the effective date of the rules, issued under the Fair Debt Collection Practices Act.
Read on for details from the bureau.
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HUD settles with California housing provider
Posted Date: Thursday, April 15, 2021
The Department of Housing and Urban Development (HUD) has approved a conciliation agreement with a Monterey, Calif.-based company resolving claims the providers denied a resident’s reasonable accommodation request to keep an assistance animal.
The resident claimed the owners allegedly cancelled the lease, changed the locks on the unit, and threatened to call the police if he attempted to move in after denying his request. Read on for details from HUD’s agreement.
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FinCEN announces new acting, deputy directors
Posted Date: Thursday, April 15, 2021
The Financial Crimes Enforcement Network (FinCEN) has named two new leaders. Kenneth Blanco left the agency April 9 after serving as director since 2017.
“I am proud to have led an incredible organization with an important national security mission that has a profound effect on the lives of so many people, especially the most vulnerable in our society,” Blanco said.
Read on to learn about FinCEN’s new acting and deputy directors.
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Texas woman accuses servicer of violating foreclosure moratorium
Posted Date: Monday, April 12, 2021
A Texas woman has filed a lawsuit claiming the servicer’s planned foreclosure of her property violates the foreclosure moratorium of the CARES Act.
The plaintiff alleged she sent the servicer a hardship letter requesting a COVID-19 forbearance. She alleged the servicer failed to respond to the forbearance request and refused to cancel the scheduled foreclosure sale.
The servicer sought attorneys’ fees and costs against the plaintiff. Read on to see a magistrate’s recommendations.
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Webinar details how to comply with Section 9
Posted Date: Monday, April 12, 2021
October Research, LLC’s complimentary webinar, “Protecting the Consumer: RESPA Section 9,” showcased the importance of complying with the other “required use” under RESPA.
“RESPA Section 8 gets so much play and people often forget about Section 9,” Franzen & Salzano President Loretta Salzano said.
Mayer Brown Partner Holly Spencer Bunting joined Salzano on the webinar. Read on for details.
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CFPB seeks public comment on foreclosure ban
Posted Date: Monday, April 12, 2021
The Consumer Financial Protection Bureau (CFPB) has proposed a set of rule changes intended to help prevent avoidable foreclosures as the emergency federal foreclosure protections expire.
The proposed amendments would establish a temporary COVID-19 emergency pre-foreclosure review period until Dec. 31, 2021, for principal residences and temporarily permit mortgage servicers to offer certain loan modifications made available to borrowers based on the evaluation of an incomplete application.
Read on for details from the CFPB.
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CFPB: Debt collector threatened thousands of consumers
Posted Date: Monday, April 12, 2021
The Consumer Financial Protection Bureau (CFPB) has issued a consent order against a debt collector and its owner who allegedly harassed thousands of consumers by falsely threatening them with legal action.
The CFPB found the California-based company and its former owner, Daniel Portilla, Jr., violated the Consumer Financial Protection Act and the Fair Debt Collection Practices Act.
Read on for details from the consent order.
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Pending home sales continue downward slide
Posted Date: Monday, April 12, 2021
Pending home sales decreased for a second straight month in February, according to the National Association of Realtors (NAR).
Each of the four major U.S. regions witnessed month-over-month declines in February, while results were mixed in the four regions year-over-year. The Pending Home Sales Index dropped 10.6 percent to 110.3 in February. Year-over-year, contract signings fell 0.5 percent. Read on for reaction from NAR Chief Economist Lawrence Yun.
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CFPB to mortgage servicers: Prepare for ‘tidal wave’
Posted Date: Monday, April 5, 2021
The Consumer Financial Protection Bureau (CFPB) has issued a warning to mortgage servicers that being unprepared is unacceptable.
In a new compliance bulletin, the bureau asked servicers to take all necessary steps now to prevent a wave of avoidable foreclosures this fall. “There is no time to waste, and no excuse for inaction,” acting CFPB Director Dave Uejio said.
Read on for details on how the bureau will determine a servicer’s overall effectiveness.
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CFPB rescinds 'flexible' temporary policies
Posted Date: Monday, April 5, 2021
Last April, then-Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger announced the agency would be “flexible” during the public health crisis.
Those days are over.
Acting CFPB Director Dave Uejio announced the bureau is rescinding seven policy statements issued last year that provided temporary flexibilities to financial institutions in consumer financial markets including mortgages, credit reporting, credit cards and prepaid cards. Read on for an in-depth look at the changes.
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Fudge: FHA Fund ‘resilient’ through pandemic
Posted Date: Monday, April 5, 2021
The Federal Housing Administration’s (FHA’s) Mutual Mortgage Insurance (MMI) Fund has struggled during the coronavirus pandemic but is holding strong.
The Department of Housing and Urban Development (HUD) recently released its quarterly report to Congress detailing the economic condition of the MMI Fund as of Dec. 31. The news was mixed as COVID-related hardships continued into the first quarter of Fiscal Year 2021.
Read on for details from HUD and FHA.
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DOJ settles lawsuit against real estate agency
Posted Date: Monday, April 5, 2021
The Department of Justice (DOJ) has reached a settlement with a New York real estate agency accused of violating the Fair Housing Act by discriminating against African Americans.
“Today’s settlement reflects the department’s continued commitment to uncover and eliminate discrimination in all forms and to ensure equal access to housing regardless of race,” Principal Deputy Assistant Attorney General Pamela Karlan of the Civil Rights Division said in a release.
Read on for details.
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New flood insurance rate structure coming
Posted Date: Monday, April 5, 2021
Leaders from the National Association of Realtors (NAR) recently met with National Flood Insurance Program (NFIP) Chief Executive David Maurstad to discuss the release of a new federal flood insurance rate structure.
The Risk Rating 2.0 initiative was designed by the Federal Emergency Management Association to modernize NFIP’s insurance pricing methodology and more accurately tie its rates to the flood risks of individual properties. Read on for details from NAR.
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HUD celebrates Fair Housing Month with call to action
Posted Date: Monday, April 5, 2021
The Department of Housing and Urban Development (HUD) has kicked off its annual Fair Housing Month celebrations with a new message: “Fair Housing: More Than Just Words.”
This year’s theme reflects the Biden-Harris administration’s commitment to advancing equity in housing. A central focus of this year’s commemoration is to provide redress to those who have experienced housing discrimination.
Read on for details from HUD, which celebrates Fair Housing Month each April.
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Indiana judge issues ruling in TRID lawsuit over false default status
Posted Date: Monday, March 29, 2021
An Indiana borrower claimed her servicer initiated foreclosure action against her after failing to respond to notice of errors regarding a false default status on her home loan.
She also alleged the servicer violated TILA by breaching its duty to send interest rate and payment change notices, failing to promptly credit payments, failing to send periodic mortgage statements and breaching its duty to provide a timely payoff statement.
Read on to see how a judge ruled in the case.
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Biden nominates Todman as HUD’s second-in-command
Posted Date: Monday, March 29, 2021
President Joe Biden announced he will nominate an affordable housing advocate as deputy secretary for the Department of Housing and Urban Development (HUD).
Born and raised in the U.S. Virgin Islands, Adrianne Todman is CEO of the National Association of Housing and Redevelopment Officials (NAHRO) and previously served in several career positions at HUD. Read on for reaction from NAHRO President Sunny Shaw and Senate Banking Committee Chairman Sherrod Brown (D-Ohio).
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OCC: Pandemic leads to decline in mortgage performance
Posted Date: Monday, March 29, 2021
The performance of first-lien mortgages in the federal banking system declined during the fourth quarter of 2020, according to the Office of the Comptroller of the Currency (OCC).
More than 93 percent of mortgages included in the report were current and performing at the end of the quarter, compared with 96.5 percent a year earlier. The decline is a result of the COVID-19 pandemic and actions taken by banks to comply with the CARES Act, the OCC said.
Read on for more from the OCC.
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FHFA releases foreclosure-prevention report
Posted Date: Monday, March 29, 2021
The Federal Housing Finance Agency (FHFA) has released its fourth quarter 2020 Foreclosure Prevention and Refinance Report.
The report shows the number of foreclosure-prevention actions Fannie Mae and Freddie Mac completed in the fourth quarter of last year, and a lower serious delinquency rate compared to Federal Housing Administration, Veterans Affairs and all other loans.
Read on for details from the FHFA report.
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FTC creates new rulemaking group
Posted Date: Monday, March 29, 2021
Acting Federal Trade Commission (FTC) Chairwoman Rebecca Kelly Slaughter announced the creation of a new rulemaking group within the FTC’s Office of the General Counsel.
The FTC said the new structure will allow it to take a strategic and harmonized approach to rulemaking across its different authorities and mission areas. Rulemaking is a critical part of the FTC’s toolbox to stop widespread consumer harm and to promote robust competition. Read on for details.
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