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RESPA in practice: Bunting discusses lessons from CFPB enforcement
Posted Date: Monday, December 11, 2023
After reviewing what can be learned from the Consumer Financial Protection Bureau’s RESPA-related consent orders this year, Mayer Brown Partner Holly Bunting provided some real-life RESPA examples to the audience at RESPRO’s fall seminar, showing how regulators are approaching enforcement.
Promotional activities, marketing services agreements, and co-advertising are all on the bureau’s radar, she said.
Read on for more details.
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The other Chevron case – Relentless Enterprises challenges interpretive rule
Posted Date: Friday, December 29, 2023
The Supreme Court of the United States agreed to hear two cases related to Chevron deference. Interested parties filed amicus briefs in the Relentless Enterprises case arguing both for and against replacing Chevron.
Should Chevron be overturned, agencies will no longer be able to rely on court deference, which could cause changes in how they enforce compliance regulations.
Read on for more details.
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Class action discrimination suit filed against credit union
Posted Date: Friday, December 22, 2023
After an investigative report showed Navy Federal Credit Union rejected more than half of its Black applicants for mortgage loans, a class action complaint was filed against the country’s largest credit union.
The complaint, filed by Ben Crump of Ben Crump Law PLLC, stated white applicants had a 75 percent approval rate, showing a stark disparity in lending between the two groups.
Read on for more details.
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Lender accused of being ‘one-stop shop’ for discrimination
Posted Date: Friday, December 22, 2023
The Consumer Financial Protection Bureau and the Department of Justice filed a lawsuit against a Texas-based developer and lender alleging the company violated the Fair Housing Act and the Equal Credit Opportunities Act, calling it a “one-stop shop” for discriminatory lending.
The lender’s CEO called the lawsuit “baseless and both outrageous and inflammatory.”
Read on for more details.
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Advocacy groups cite concerns with veterans assistance program
Posted Date: Friday, December 22, 2023
In a letter to the U.S. Department of Veterans Affairs, the National Consumer Law Center and other trade advocacy groups requested Secretary Denis McDonough make changes to its proposed Veterans Assistance Servicing Purchase program.
The program is designed to help veterans who are struggling to make their housing payments after certain pandemic programs expired over the last year.
Read on for more details.
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Existing home sales improve in November
Posted Date: Friday, December 22, 2023
A five month slide in existing home sales ended in November, with sales increasing slightly month-over-month.
National Association of Realtors Chief Economist Lawrence Yun said this upward trend should continue as mortgage interest rates continue to decrease.
Read on for more details.
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HUD proposes update to rule on in-person housing counseling
Posted Date: Friday, December 22, 2023
The U.S. Department of Housing and Urban Development (HUD) proposed a rule updating the agency’s regulations related to in-person counseling. HUD stated the updates consider advances in technology, align with client engagement preferences, and preserve consumer protections.
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Enterprises’ LIHTC cap increased
Posted Date: Friday, December 22, 2023
The Federal Housing Finance Agency (FHFA) increased the amount the Enterprises (Fannie Mae and Freddie Mac) can invest in the low-income housing tax credit (LIHTC) market. Beginning in 2024, the Enterprises can each invest up to $1 billion annually as equity investments. Along with this increase was a stipulation that the Enterprises must adjust their LIHTC investment policies to ensure the investments support projects that will remain affordable for the entire 30-year period intended by the program.
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CFPB: FCRA requires investigation of legal disputes
Posted Date: Thursday, December 21, 2023
In an amicus brief filed with the U.S. Court of Appeals for the Fourth Circuit, the Consumer Financial Protection Bureau argued the Fair Credit Reporting Act requires furnishers to investigate when a consumer disputes the accuracy of the information furnished, regardless of whether the dispute is factual or legal in nature.
The case before the court stems from a situation where a furnisher continued to certify a debt the consumer claimed was not reasonably investigated.
Read on for more details.
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Bank receives consent order related to fintech joint venture
Posted Date: Thursday, December 21, 2023
The Federal Deposit Insurance Corp. issued a consent order against a bank related to a joint venture involving a banking-as-a-service product. The action is the latest indicating increased scrutiny of banks’ relationships with fintech partners.
“First Fed’s leadership is committed to strengthening compliance controls and has invested significant resources into resolving the matter, including implementing substantial internal control improvements to prevent any similar future occurrences,” the bank stated.
Read on for more details.
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Consumers harmed by MV Realty granted more time to submit claims
Posted Date: Thursday, December 21, 2023
MV Realty, a Florida real estate company, is being sued by multiple attorneys general based on allegations it engaged in predatory 40-year listing agreements.
Recently, the Department of Justice’s U.S. Trustee Program made a motion in the bankruptcy court handling MV’s Chapter 11 bankruptcy to provide harmed consumers more opportunity to raise their claims.
Read on for more details.
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Home sales, mortgage originations begin slow recovery
Posted Date: Thursday, December 21, 2023
Fannie Mae’s Economic & Strategic Research Group’s last outlook for 2023 indicated the housing market will begin its slow recovery in 2024. The group also noted the economy’s growth was better than what was expected at that start of the year.
While the market looks to improve, the research also showed it will continue to battle the same issues that kept sales low over the last several months.
Read on for more details.
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NAR welcomes new chief marketing, communications officer
Posted Date: Wednesday, December 20, 2023
Suzanne Bouhia has been appointed chief marketing and communications officer of the National Association of Realtors (NAR) effective Dec. 11.
She will be leading the Marketing and Communications Group to set the vision, strategy, and long-term management approach for communications, branding, and marketing at the association.
Read on for more details.
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Bipartisan bill addressing trigger leads introduced
Posted Date: Monday, December 18, 2023
Sens. Jack Reed (D-R.I.) and Bill Hagerty (R-Tenn.) introduced a bill to the Senate that would restrict credit reporting agencies’ ability to sell consumers’ contact information when they apply for a residential mortgage, known as trigger leads.
After introduction to the Senate, the bill was referred to the Committee on Banking, Housing, and Urban Affairs.
Read on for industry reaction to the legislation.
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Impact of title, settlement fees on affordability revisited
Posted Date: Monday, December 18, 2023
In previous Fannie Mae research, title and settlement fees were characterized as “high burden and regressive,” meaning they cost proportionally more for low- and moderate- income borrowers and create a barrier to homeownership for these households. However, an update on the subject came to a different conclusion.
First American Chief Economist Mark Fleming discussed what this update means for the discussion around title and settlement fees and their role in addressing housing affordability.
Read on for more details.
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Man pleads guilty to mortgage fraud conspiracy
Posted Date: Monday, December 18, 2023
Boruch “Barry” Drillman, 36, of New York, pleaded guilty to conspiracy to commit wire fraud affecting a financial institution.
Drillman faces up to five years in prison after attempting to fraudulently obtain $165 million from mortgage loans when purchasing multifamily properties in Cincinnati, Ohio, and Troy, Mich.
Read on for more details.
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Expiration of pandemic protections leads to increase in homelessness
Posted Date: Monday, December 18, 2023
The U.S. Department of Housing and Urban Development’s point-in-time estimates for January 2023 – a measurement of the number of individuals in shelters, temporary housing, and in unsheltered settings – show how the expiration of pandemic protections may have led to an increase in homelessness year-over-year.
According to the report, the rise in homelessness is a continuation of a pre-pandemic trend from 2016 to 2020.
Read on for more details.
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New mortgage marketplace geared toward first-time homebuyers
Posted Date: Monday, December 18, 2023
Zigg Capital, along with participation from Y Combinator and initial investors Antler and Exceptional Capital, launched a new mortgage marketplace meant to assist first-time homebuyers enter the market.
With a $3.5 million funding round, Stairs Financial will help young Americans “defy economic headwinds like interest rates and high prices” to own their first homes.
Read on for more details.
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Bill introduced to end hedge funds from owning single-family properties
Posted Date: Monday, December 18, 2023
Sen. Jeff Merkley (D-Ore.) and Rep. Adam Smith (D-Wash.) introduced a bill to prohibit hedge funds from buying and owning single-family homes in an effort to provide more families with the opportunity for homeownership.
“The purchasing of single-family homes by hedge funds, especially in the current housing market, serves only to make profits for the investors and provides no value to the communities where these homes are located,” the members of Congress stated.
Read on for more details.
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Oral arguments heard in Townstone appeal
Posted Date: Thursday, December 14, 2023
The Seventh Circuit Court of Appeals heard the oral arguments in the case brought by the Consumer Financial Protection Bureau (CFPB) against Townstone Financial.
The CFPB appealed a district court’s decision earlier this year, finding that “prospective applicants” were outside of the bureau’s statutory authority under the Equal Credit Opportunity Act.
Read on for more details.
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Court revises class definition in RESPA kickback case
Posted Date: Thursday, December 14, 2023
The court addressing kickback allegations related to agreements between First Mariner Bank (now First National Bank of Pennsylvania) and Genuine Title elected to revise the definition of the plaintiff class.
This decision is the latest action after class certification was granted in October 2020. At that time, the class was defined as all individuals in the U.S. who were borrowers on a federally related mortgage loan (as defined under RESPA) originated or brokered by First Mariner Bank for which Genuine Title provided a settlement service during a certain timeframe.
Read on for more details.
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CFPB lists mortgage servicing rule updates in rulemaking agenda
Posted Date: Thursday, December 14, 2023
The Consumer Financial Protection Bureau published its fall rulemaking agenda outlining the regulatory matters under consideration from November 2023 to October 2024.
Of note, the bureau anticipates issuing a notice of proposed rulemaking addressing ways to simplify and streamline mortgage servicing rules, based on input solicited from the industry in 2022.
Read on for more details.
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NAR forecasts increase in home sales, inventory in 2024
Posted Date: Thursday, December 14, 2023
Existing home sales are predicted to go up in the coming year, according to the National Association of Realtors, while the median home price should stay about the same.
Another survey expects the opposite for home prices, forecasting increases in 2024 and 2025.
Read on for more details.
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HUD, FHA leaders review ‘unprecedented’ record
Posted Date: Thursday, December 14, 2023
The U.S. Department of Housing and Urban Development Secretary Marcia Fudge and Federal Housing Commissioner Julia Gordon praised the agency for its accomplishments over the last three years, including a reduction in mortgage insurance premiums that saved millions of dollars for 425,000 borrowers.
“Under Secretary Fudge’s leadership, the Federal Housing Administration has exhibited an unprecedented commitment to furthering homeownership for more of the nation’s families,” Gordon said.
Read on for more details.
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Incenter makes executive changes
Posted Date: Thursday, December 14, 2023
Incenter Mortgage Advisors (IMA) has announced a rebranding to Incenter Capital Advisors, as it expands its offerings to include a broader set of capital markets services.
Read on for more details.
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Forced-placed insurance prompts RESPA complaint
Posted Date: Monday, December 11, 2023
A homeowner in New Jersey charged PHH Mortgage Corp. with a RESPA violation for instating forced-placed hazard insurance on his property, as well as claims under the Fair Debt Collection Practices Act and a breach of contract claim.
PHH moved for summary judgment in the U.S. District Court for the District of New Jersey.
Read on for more details.
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Report shows need for mortgage solutions on tribal lands
Posted Date: Monday, December 11, 2023
A report released by the National Community Reinvestment Coalition and the Native Community Capital found traditional financial services are struggling to serve communities on and near tribal lands.
The report was conducted after Community Reinvestment Act (CRA) regulations were changed this year to specifically include native land areas for the first time. Its authors suggest solutions to improving home financing options for this long-underserved community.
Read on for more details.
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Ginnie Mae’s annual report shows portfolio growth, strong business performance
Posted Date: Monday, December 11, 2023
Ginnie Mae’s annual report showed how the corporation supported financing for over 1.2 million households over the last year and revealed its portfolio grew by 8.25 percent year-over-year.
In her statement accompanying the report, Ginnie Mae President Alanna McCargo addressed the seizure of Reverse Mortgage Funding’s portfolio after it filed for bankruptcy during the first fiscal quarter.
Read on for more details.
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GSE’s enhancements improve lender certainty
Posted Date: Monday, December 11, 2023
Freddie Mac made enhancements to its Condo Project Advisor product to provide lenders with more certainty as to whether a specific loan meets Freddie Mac’s purchasing guidelines.
“We are committed to continuing to find ways to help streamline condo loan originations, while helping lenders ensure that condo homebuyers are put on a path of sustainable and successful homeownership in condo communities,” Freddie Mac Single-Family Vice President of Collateral Risk Management Tanya DeLia said.
Read on for more details.
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Committee on Financial Services chair to retire
Posted Date: Monday, December 11, 2023
Rep. Patrick McHenry (R-N.C.), chair of the House Committee on Financial Services, announced he will be retiring at the end of his term.
“Through good and bad, during the highest of days and the lowest, and from proud to infamous times, the House is the venue for our nation’s disagreements bound up in our hopes for a better tomorrow,” he said in his retirement statement. “It is a truly special place and – as an American – my service here is undoubtedly my proudest.”
Read on for more details.
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Subcommittee hears testimony on affordable housing solutions
Posted Date: Thursday, December 7, 2023
The House Subcommittee on Housing and Insurance heard testimony from industry experts, including U.S. Mortgage Insurer’s Seth Appleton, about how private industry and government programs can work to address the affordable housing crisis.
Representatives followed witness statements with questions about policy solutions, regulatory barriers, and manufactured homes.
Read on for more details.
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Supreme Court decides fate of fair housing ‘testers’ case
Posted Date: Thursday, December 7, 2023
A case challenging discrimination testers’ ability to bring lawsuits received its determination was disposed of by U.S. Supreme Court, meaning the case has been closed and removed from the docket.
National Fair Housing Alliance President and CEO Lisa Rice said the decision to do so showed “sound judicial prudence.”
Read on for more details.
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Pennymac found to misuse Black Knight info in software development
Posted Date: Thursday, December 7, 2023
An arbitrator found in favor of Intercontinental Exchange, Inc. (ICE) in a dispute where Pennymac was accused of misusing confidential information owned by Black Knight.
ICE, who purchased Black Knight in September 2023, was awarded more than $155 million as well as interest and attorneys’ fees.
Read on for more details.
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Consumers expect home prices to rise in 2024
Posted Date: Thursday, December 7, 2023
Consumers’ perception of homebuying conditions continues to follow the pessimistic trend established earlier this year, with Fannie Mae’s Home Purchase Sentiment Index reaching a new record low in respondents stating it’s a good time to buy a home.
Those who responded to the survey also expect home prices to continue rising in 2024.
Read on for more details.
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GAO release report on CFPB financial statements
Posted Date: Thursday, December 7, 2023
The Government Accountability Office (GAO) released its audit of the Consumer Financial Protection Bureau’s financial statements for 2022 and 2023.
According to the GAO, the agency spent $2.75 billion this year to enhance citizens’ financial education and ensure banks, lenders, and other financial companies under its supervision comply with consumer protection laws.
Read on for more details.
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Chopra addresses zombie mortgages, trigger leads in semiannual report to Congress
Posted Date: Monday, December 4, 2023
Over the course of two days, Consumer Financial Protection Bureau Director Rohit Chopra testified before the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs.
During his testimony, Chopra discussed the residential mortgage market and how the bureau is working to promote refinancing activities to help borrowers and lenders alike, as well as answered questions on “zombie” mortgages, a challenge borrowers are currently facing with little recourse.
Read on for more details.
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CFPB approves waiver application template for TRID disclosures
Posted Date: Monday, December 4, 2023
The Consumer Financial Protection Bureau has approved a trial disclosure program waiver template, which will allow lenders to make certain modifications to the required disclosures under Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure (TRID) for construction-to-permanent loans.
The template to apply for a waiver, submitted for consideration by the Independent Community Bankers of America, is a step toward increasing the availability of these types of loans in rural communities.
Read on for more details.
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Fannie Mae highlights moves to more equitable mortgage standards
Posted Date: Monday, December 4, 2023
Fannie Mae’s Senior Vice President of Single-Family Analytics Steve Holden shared how Fannie Mae is balancing credit risk management with increasing access to homeownership.
“Thanks in large part to advances in our ability to access, use, and analyze data, empowered by massive increases in computing power and an occasional dose of machine learning, Fannie Mae has been able to reimagine borrower eligibility in important ways that can increase access to credit in a manner that we believe is safe and sound both for Fannie Mae and the borrowers it ultimately serves,” Holden stated.
Read on for more details.
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Pending home sales impacted by year-high interest rates
Posted Date: Monday, December 4, 2023
October’s pending home sales dipped, compared with the number of contracts being signed in September. National Association of Realtors Chief Economist Lawrence Yun attributed this to year-high interest rates.
While one of the regions did see an increase in transactions, the national average was brought down by losses recorded in the other three regions.
Read on for more details.
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New American Funding, Snapdocs partner on digital closings
Posted Date: Monday, December 4, 2023
New American Funding (NAF) chose Snapdocs as its digital closings provider to offer a streamlined experience for borrowers and loan officers.
This is one of NAF’s moves to “fully embrace” digitization of its mortgage process.
Read on for more details.
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HUD: Public private partnership needed to solve home affordability problem
Posted Date: Monday, December 4, 2023
U.S. Housing Department of Housing and Urban Development Secretary Marcia Fudge emphasized the importance of addressing the issues with housing inventory that are contributing to the affordability crisis while speaking with bankers at the JP Morgan Chase Housing Finance Summit.
“To lower housing costs we must build more affordable housing and preserve the housing we have. Public private partnerships like the ones I saw in Brooklyn are promising steps forward,” Fudge said.
Read on for more details.
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Flagstar challenges plaintiffs’ standing in RESPA case
Posted Date: Thursday, November 30, 2023
Owners of a Boca Raton, Fla., property filed a RESPA complaint against Flagstar Bank related to a partial claim loss modification agreement.
Flagstar moved to dismiss the case, arguing the borrowers lacked standing and the case was not yet ripe for adjudication.
Read on for more details.
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‘Zombie’ mortgage gives rise to TILA complaint
Posted Date: Thursday, November 30, 2023
A borrower brought a Truth in Lending Act claim against the holder of a second mortgage on their home that had been charged off decades before.
This case is exemplary of an issue the Consumer Financial Protection Bureau highlighted this year when it noted the increased number of servicers and lenders attempting to recoup payments on “zombie” mortgages leftover from the Great Recession.
Read on for more details.
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October sees decline in existing home sales
Posted Date: Thursday, November 30, 2023
October’s existing-home sales report by the National Association of Realtors showed a decrease in sales in three of the four major regions and flat sales in the fourth.
The median existing-home price rose again year-over-year, marking the fourth consecutive month of year-over-year price increases.
Read on for more details.
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FHA proposes updates to home rehab program
Posted Date: Thursday, November 30, 2023
The Federal Housing Administration (FHA) has requested industry feedback on proposed changes to its 203(k) Rehabilitation Mortgage Insurance Program, which offers homebuyers a mortgage covering the purchase or refinance of a home and the cost of repairs or rehabilitation.
The proposal includes five changes and reflects input FHA received from a request for information issued back in February.
Read on for more details.
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