News By Edition

Hoping to find some guidance on a “clear as mud” ruling, a packed room eagerly listened to a trio of experts discuss the recent Sixth Circuit Court of Appeals decision in Consumer Financial Protection Bureau (CFPB) v. Borders & Borders.

Phil Schulman, Loretta Salzano and Brian Levy were the featured panelists at the RESPRO/25 session, “Simple Geometry: The Intersection of Sections 8(c)(4) and 8(c)(2).”

Read on for more from the session, which discussed recent developments in case law, enforcement actions and the regulatory environment impact affiliated business arrangements and their payments for goods, facilities and services.

WealthCounsel, LLC, has promoted four staff members: Heather Satin, LL.B, is now vice president, Katelyn Griffin will lead member experience, Kristine Hynes is now the vice president of technology, and Stewart Shelline is now the platform director.

A federal judge has dismissed a Consumer Financial Protection Bureau (CFPB) lawsuit against a New Jersey-based settlement advance firm.

The CFPB and the New York Attorney General filed a complaint in 2017 against RD Legal Funding and two related entities. The CFPB alleged the defendants had scammed first responders in the Sept. 11, 2001 attacks and NFL retirees with high-cost loans.

Read on to learn why the case was dismissed.

Future Income Payments LLP and other companies owned by Scott Kohn are accused of giving consumers the erroneous impression that their pension-advance products were not loans.

Read on for highlights of the suit, which also claims the products resulted in higher debt than consumers would have incurred using a credit card.

About 10,000 people attended the Congressional Black Caucus Foundation’s 48th Annual Legislative Conference in Washington, D.C.

The Sept. 13 event highlighted declining African-American homeownership, gentrification and creative solutions for those issues, according to the National Association of Realtors.

Read on for details about the conference, which was co-hosted by the National Association of Real Estate Brokers.

The Consumer Financial Protection Bureau (CFPB) has released its 17th edition of Supervisory Highlights, which shares observations in the bureau’s supervision activities in multiple areas.

The report praised the bureau’s supervision work in small business lending, but identified multiple ways  mortgage servicers commit unfair acts and practices.

Read on for highlights from the new report, which also showcased auto loan servicing, credit card account management, debt collection and payday lending.

The Consumer Financial Protection Bureau (CFPB) has lost another civil investigative demand (CID) challenge.

This time, the Fifth Circuit Court of Appeals determined that a bureau CID was not specific enough to satisfy statutory requirements in a ruling overturning a lower court’s decision.

Read on for details in the CFPB’s case against The Source for Public Data, which was accused of violating the Fair Credit Reporting Act (FCRA) and other laws.

New Jersey recently amended multiple provisions of its Residential Mortgage Lending Act (RMLA), including those relating to mortgage loan originator licensing and sponsorship.

The changes also affect fees licensed lenders and brokers may charge, branch office supervision, secondary mortgage loans and continuing education requirements.

The amendments take effect Nov. 22. The bill passed the state assembly 76-0 and the state senate 38-0 before being signed by the governor.

A California couple who alleged their servicer failed to provide a payment history of the loan within 30 days of their qualified written request (QWR) sued to prevent their San Francisco property from going into foreclosure.

The defendant argued the plaintiffs are not entitled to a temporary restraining order (TRO) preventing a foreclosure sale merely by alleging they sent a QWR to the servicer.

Read on to see what the judge decided.

The U.S. Department of Housing and Urban Development (HUD) has been busy cracking down on fair housing violations.

On Sept. 11, HUD charged a Florida law firm and its owners with targeting Hispanic families in a predatory mortgage scheme. Advocate Law Groups of Florida’s commercials promised Hispanic homeowners to cut their mortgage payments in half.

Read on to hear details about other recent violations, including settlements for sexual harassment and lead-based paint infractions.

Nearly a third of Realtors have experienced a situation that made them fear for their personal safety or the safety of their personal information, and 43 percent of Realtors choose to carry self-defense weapons on the job.

That’s according to the National Association of Realtors’ 2018 Member Safety Report.

Read on for details of the report, which surveyed more than 3,000 Realtors about their safety experiences.

What’s the difference between supervisory guidance and regulation?

That’s the question the Consumer Financial Protection Bureau (CFPB) and federal financial regulators are attempting to answer. The CFPB, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corp., National Credit Union Administration (NCUA) and Office of the Comptroller of the Currency (OCC) issued a joint statement explaining the role of supervisory guidance for regulatory institutions.

Read on for details of their statement.

A lawsuit challenging the constitutionality of the Consumer Financial Protection Bureau (CFPB) may be headed to the U.S. Supreme Court.

A Texas-based community bank, a senior advocacy group and a non-profit public policy think tank have petitioned the high court to rule on a 2012 lawsuit making a case for the abolishment of the bureau and every regulation enacted by it.

Read on for the latest details from the petition.

The Financial Crimes Enforcement Network (FinCEN) has announced permanent relief from beneficial ownership requirements for certificate of deposit (CD) rollovers and loans that renew automatically.

FinCEN previously had issued a 90-day temporary and limited exceptive relief to covered financial institutions from the obligations of the Beneficial Ownership Rule.

Read on to learn why stakeholders requested the permanent relief.

The Consumer Financial Protection Bureau (CFPB) has issued an interpretive and procedural rule to implement and clarify the requirements of section 104(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act which amended the Home Mortgage Disclosure Act (HMDA).

The bureau also released updates to the Filing Instructions Guide (FIG) for HMDA data collected in 2018 to incorporate the Act as implemented and clarified by the rule issued Aug. 31.

Read on for further details of the rule.

An Ohio couple who alleged that their first notification from Countrywide Home Loans that they were in default on their mortgage was the foreclosure action sued their servicer for RESPA violations after the property was auctioned off at a sheriff’s sale.

The defendants argued that failing to respond to inquiries concerning appraisals and property inspections cannot create RESPA liability because such information does not relate to servicing.

Read on for highlights of the judge’s opinion.

A California federal judge has granted final approval to a $17 million settlement to resolve a nationwide class action lawsuit alleging that PHH Corp. and several of its affiliates violated RESPA Section 8(a).

The suit, filed in November 2015, alleged the company engaged in a kickback scheme for referrals of title insurance and other settlement services to TRG Services Escrow, Inc. and its affiliates.

Read on for more details from the final approval order.

The National Credit Union Administration (NCUA) has issued new examination procedures to field staff regarding customer due diligence and beneficial ownership provisions that are part of the Bank Secrecy Act/Anti Money Laundering Rules (BSA/AML).

NCUA will consider a credit union’s good-faith effort to comply with the new rules as it conducts examinations, the regulator stated.

Read on to see the new exam expectations, which include new procedures that will be incorporated into the Federal Financial Institutions Examination Council (FFIEC) Bank Secrecy Act/Anti-Money Laundering Examination Manual.

More than two months after relieving all 25 Consumer Advisory Board (CAB) members and two additional advisory councils of their positions, Consumer Financial Protection Bureau (CFPB) acting director Mick Mulvaney has made good on his promise to fill some of the positions – albeit on a much smaller scale.

Mulvaney said he was bringing “a fresh perspective” to the bureau’s work with the moves.

Read on to see details about the new CAB, Community Bank Advisory Council (CBAC) and Credit Union Advisory Council (CUAC).

A California family seeking a loan modification filed suit against their servicer, alleging the company repeatedly requested information that they had already provided, a violation of section 1024(b)(1) of RESPA.

The servicer filed for summary judgment on a motion to dismiss, saying it properly processed the family’s application and advised family members of the required documentation.

Read on for highlights of the magistrate judge’s opinion, which also dismissed the plaintiffs’ four state law claims.

Two long-term Federal Deposit Insurance Corporation (FDIC) veterans have been appointed to key leadership positions.

Arleas Upton Kea will serve as the deputy to the chairman and chief operating officer (COO), and Arthur Murton was named deputy to the chairman for policy.

Read on to see what other changes are in store for the FDIC, which also announced several other senior personnel moves, including a new deputy to the Chairman for External Affairs.

Renters are three times more likely to need financial assistance to evacuate during a major disaster than those who own their own homes.

That’s according to the new 2017 American Housing Survey released by the U.S. Department of Housing and Urban Development (HUD), the U.S. Census Bureau, and the Federal Emergency Management Agency (FEMA).

Read on for more details from the survey, released in time for National Preparedness Month.

The U.S. Supreme Court’s ruling in the Lucia v. SEC case likely will require the Consumer Financial Protection Bureau (CFPB) to rehear an administrative case it brought against a defunct online lender.

The bureau filed a notice of charges against Integrity Advance and CEO James Carnes in November 2015, alleging TILA, Electronic Fund Transfer Act (EFTA) and Consumer Financial Protection Act (CFPA) claims.

Read on for details from the joint court statement.

The Washington State Department of Financial Institutions (DFI) has adopted its proposed Rule Amendments to the Consumer Loan Act (CLA) concerning mortgage servicing.

The amendments include: new rules on borrower requests for information, loss mitigation, foreclosure and escrow. Other new rules deal with limiting offshore collection, and defining investor and note holder so they can be specifically exempted from oversight.

Read on for details on the new rules, which took effect Sept. 1.

Ten years ago, the Federal Housing Finance Agency (FHFA) placed Fannie Mae and Freddie Mac into conservatorship once the housing crisis hit.

The FHFA called it a necessary move to help restore confidence in government-sponsored enterprises (GSEs) and reduce market risk.

Read on to learn what National Association of Realtors (NAR) President Elizabeth Mendenhall has to say about the anniversary, and why NAR supports sustainable, long-term GSE reform.

A Texas couple who sent five qualified written requests (QWRs) within 30 days to their servicer to reflect that the consumers were not in default on their loan payments sued for RESPA violations when the alleged errors were not corrected.

In addition, the couple alleged they suffered emotional distress and costs associated with disputing the servicer’s actions.

Read on to see highlights of the opinion as to why the allegations survived a motion to dismiss.

The Section 184 Indian Home Loan Guarantee Program continues to operate without adequate oversight three years after a prior audit, according to a new review by the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG).

OIG previously had determined that the Office of Loan Guarantee (OLG) did not provide adequate oversight of the program. 

Read on to learn why the program was at risk.

The Consumer Financial Protection Bureau (CFPB) received 55,049 public comments on its request for information about the bureau’s supervision processes.

Many of the commenters complained that the CFPB’s supervisory authority is inefficient for banks and non-banks alike.

Read on for highlights of comments from the Financial Services Roundtable (FSR), Consumer Bankers Association (CBA), Consumer Mortgage Coalition, and others who addressed problems with supervision issues.

A Virginia couple accused their servicer of obtaining force-placed hazard insurance on their home even though they already had insurance on the property.

Because the servicer assessed charges against the loan for force-placed insurance on at least three separate occasions, a RESPA violation may have occurred, a federal judge has ruled.

Read on for more details about the case, which also alleges conversion against the servicer.

A mortgage lender’s Information Technology team is instrumental to driving a company’s business objectives.

But all too often, the IT team is left in the dark about a company’s goals until it’s too late.

Read on to hear why Stratmor Group CEO Lisa Springer says everyone wins when business and IT are in sync with one focus, and how Business Level Agreements (BLAs) can drive IT performance.

The U.S. Department of Housing and Urban Development (HUD) is awarding $5 million in grants to 22 public housing authorities.

HUD’s Capital Fund Emergency Safety and Security Program supports public housing authorities as they address the safety of public housing residents.

Read on to see which public housing authorities will win grants, which may be used to install, repair or replace capital needs items.

The Consumer Financial Protection Bureau (CFPB) recently issued a final rule amending threshold levels under TILA based on changes in the Consumer Price Index.

The thresholds apply to the Home Ownership and Equity Protection Act, qualified mortgage loans and the Credit Card Accountability Responsibility and Disclosure Act.

Read on to learn more details about the new thresholds, which take effect Jan. 1.

The summer homebuying season may be winding down, but kickbacks and escrows are perennial issues for the National Association of Federally-Insured Credit Unions (NAFCU).

RESPA News spoke with Elizabeth LaBerge, senior regulatory compliance counsel for the NAFCU, on why this year has seen an uptick in credit unions seeking advice on RESPA issues vs. 2017.

Read on to learn more about inquiries made to NAFCU.

RESPA News will be in Nashville, Tenn., this week to bring you coverage from the 2018 Real Estate Services Providers Council RESPRO25 Gala. We’ll be doing live updates throughout Wednesday and Thursday.

For live updates of the conference and sessions, please follow our Twitter feed here. Feel free to interact with us on Twitter, and let us know what you’re most interested in hearing about! Also feel free to email us at [email protected] and let us know how we’re doing.

The Federal Reserve Bank of Kansas City recently hosted an Economic Policy Symposium at Jackson Hole, Wyo.

Among the highlights of the three-day event was a general discussion about “Competition, Stability and Efficiency in Financial Markets,” based on a paper co-written by University of Wisconsin Professor Dean Corbae and University of California-Berkeley Professor Ross Levine.

Read on for highlights of the paper, which found that legal and regulatory reforms for the banking industry can produce “enormous welfare benefits” to the financial system.

A Louisiana woman whose long-standing flood insurance policy was canceled without her consent after a loan modification agreement filed suit against her servicer, citing claims of TILA violations.

A federal judge ruled the servicer did not violate TILA and also dismissed claims alleging the servicer purchased two separate wind policies on the woman’s property without her knowledge or consent and paid both policies out of the escrow account without disclosing it to her.

Read on for highlights of the judge’s opinion.

The U.S. Department of Housing and Urban Development (HUD) has approved a conciliation agreement between a Pensacola, Fla., public housing authority and a female resident resolving allegations that one of its maintenance workers sexually harassed the woman.

The agreement also settles allegations that the Area Housing Commission retaliated against the woman when she reported the alleged sexual harassment. 

Read on to find out other details of the agreement.

The Fair Housing Act standard on disparate impact is dated and should be amended, according to the Mortgage Bankers Association (MBA) and eight other trade groups.

Meanwhile, 17 state attorneys general support keeping the Disparate Impact Rule that protects people against lending practices that do not mention race, color, religion, national origin, sex, disability or familial status, but produce a discriminatory effect.

Read on to learn the stance which both sides take.