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CFPB assesses mortgage servicing rules
Posted Date: Thursday, January 17, 2019
Five years after the Consumer Financial Protection Bureau passed its first mortgage servicing rules, the agency looked back on the effect of its rules on the industry in a report mandated by the Dodd-Frank Act.
It found the rule prevented thousands of additional foreclosures annually and kept thousands more from falling into delinquency, but came at a cost to servicers large and small through the industry.
Read on for a first look at the CFPB’s findings from the impact of its mortgage servicing rules.
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Constitutionality of CFPB in limbo
Posted Date: Thursday, January 17, 2019
Industry experts weren’t surprised when the U.S. Supreme Court recently declined to hear a lawsuit to decide the constitutionality of the Consumer Financial Protection Bureau (CFPB).
So will the high court decide the issue with one of three other cases pending in various appellate courts?
Read on for reaction from Richard Horn, a partner with Garris Horn PLLC; Marx Sterbcow, managing attorney at Sterbcow Law Group and former CFPB Deputy Assistant Director Kathleen “Kitty” Ryan.
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Compliance still critical after PHH
Posted Date: Monday, January 7, 2019
Brian Levy has a message for settlement service providers who remain under the impression that the PHH decision means the Consumer Financial Protection Bureau (CFPB) is less interested in RESPA enforcement when it comes to payments to referral sources.
“If your partners are not interested in RESPA compliance, you should probably find new partners,” Levy warned.
Levy, of counsel at Katten Temple, was speaking in Nashville at the RESPRO/25 session titled, “So after the PHH decision on RESPA does anything go? Not so fast!” Read on for more from the session.
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Maryland court dismisses ‘sham’ marketing suit
Posted Date: Thursday, January 24, 2019
A Maryland couple accused their broker of receiving unearned fees by referring customers to a title company for settlement in a “sham” marketing agreement.
The defendants argued the claim is barred by RESPA’s one-year statute of limitations and that equitable tolling does not apply. They also alleged the plaintiffs did not have standing to bring the claim.
Read on for a federal judge’s findings in the case.
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Lender not liable for RESPA violations by servicer
Posted Date: Monday, January 14, 2019
A Texas woman sued her lender after receiving a notice of foreclosure, alleging the bank is vicariously liable for the failure of its loan servicer to consider a timely and complete loss mitigation application.
However, the U.S. Court of Appeals for the Fifth Circuit recently found the RESPA statute only holds the servicer responsible.
Read on for highlights of the landmark opinion.
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FAA proposes new drone rules
Posted Date: Monday, January 21, 2019
Real estate agents soon may have more options to get high-quality aerial photos for marketing purposes.
The Federal Aviation Administration (FAA) is proposing to allow drones to fly at night and over people without waivers. U.S. Secretary of Transportation Elaine Chao recently addressed the Transportation Research Board about drones at its annual meeting in Washington, D.C.
Read on for details about the proposed rules, and reaction from National Association of Realtors (NAR) President John Smaby.
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CFPB stepping up fair mortgage lending efforts
Posted Date: Thursday, January 3, 2019
The Consumer Financial Protection Bureau (CFPB) has made good on its promise to increase its focus on promoting fair and nondiscriminatory access to credit in mortgage lending, according to the agency’s sixth annual fair lending report.
In 2017, the most recent year reported on, the bureau focused on redlining and whether some borrowers were impacted negatively with their mortgage or student loan servicing because of their race, ethnicity, sex or age.
Read on for more from the report.
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Highlights of appellate arguments in case challenging CFPB's constitutionality
Posted Date: Thursday, January 10, 2019
Oral arguments were held Tuesday in the case of a law firm appealing a civil investigative demand (CID) request. The firm also is challenging the Consumer Financial Protection Bureau’s (CFPB) constitutionality.
The CFPB sought a CID from a California firm concerning, among other things, information on the fees the company charges to consumers for debt relief, marketing methods for debt relief or other services.
Read on for highlights of arguments from both sides.
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Butler Snow hires 7 attorneys
Posted Date: Friday, January 25, 2019
Butler Snow is pleased to announce seven attorneys have joined the firm’s growing Austin, Texas and Nashville, Tenn. offices.
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CFPB: Servicing rule costs industry up to $572 million a year
Posted Date: Thursday, January 24, 2019
The RESPA Mortgage Servicing Rule changed the way mortgage servicers interact with borrowers who become delinquent.
Although foreclosures are down, costs are up. A new CFPB report found that the overall cost for servicers to comply with the rule, which became effective in January 2014, could be as high as more than $572 million annually.
Read on for more highlights from the second part of a five-part series of the rule’s impact.
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NAR reports existing home sales down nationwide
Posted Date: Thursday, January 24, 2019
After two consecutive months of increases, existing-home sales declined in the month of December, with none of the four major U.S. regions seeing a gain in sales activity.
Total existing home sales decreased 6.4 percent from November and are down 10.3 percent from a year ago, the National Association of Realtors (NAR) reported.
Read on to see what NAR’s chief economist and president had to say about the declines.
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CFPB employees report low job satisfaction
Posted Date: Thursday, January 24, 2019
The Consumer Financial Protection Bureau (CFPB) asked its employees about working conditions in its latest annual survey, including what they thought about working for upper management in the midst of ongoing uncertainty over who would be replacing acting director Mick Mulvaney.
The reaction wasn’t positive.
Read on for details from the survey of more than 72 percent of the bureau’s 1,540 full-time equivalent employees, plus reaction from CFPB spokesman John Czwartacki.
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Waters: Shutdown harming FinCEN's work
Posted Date: Thursday, January 24, 2019
The government shutdown is negatively impacting the Treasury Department’s ability to combat domestic and international money laundering, terrorist financing and other financial crimes, according to Rep. Maxine Waters (D-Calif.).
Waters, chairwoman of the House Financial Services Committee, recently issued a statement on the impact of the shutdown – the longest in the country’s history – on the Treasury’s critical role in the U.S. economy.
Read on for more from Waters’ statement.
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Kraninger responds to TRID fix request
Posted Date: Monday, January 21, 2019
New Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger said she is reviewing the TRID rule to determine whether to give consumers more accurate information about title insurance at closing.
In December, RESPRO, the National Association of Realtors (NAR) and 10 other agencies asked senators to urge Kraninger to fix the inaccurate disclosures under TRID.
Read on to see what Kraninger told Sen. John Hoeven (R-N.D.) in a recent letter.
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FHFA won't defend constitutionality in shareholder case
Posted Date: Monday, January 21, 2019
New Federal Housing Finance Agency (FHFA) acting director Joseph Otting will not defend the constitutionality of the agency in a case brought by three Fannie Mae and Freddie Mac shareholders and being heard in an appellate court where the Consumer Financial Protection Bureau’s constitutionality also is being challenged.
The plaintiffs sued over a 2012 agreement between the FHFA and the Treasury Department requiring the government-sponsored enterprises (GSEs) to pay quarterly dividends equal to their entire net worth to the Treasury.
Read on for details from the FHFA’s recent court brief.
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CFPB settles with jewelry wholesaler
Posted Date: Monday, January 21, 2019
The Consumer Financial Protection Bureau (CFPB) has entered into a settlement agreement with a jewelry wholesaler accused of using deceptive sales tactics when promoting in-store credit financing options.
The bureau and the New York Attorney General’s office also alleged that the Ohio-based company’s salespeople routinely signed up customers for third-party insurance on store-issued credit without their knowledge or consent.
Read on for details from the consent order.
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CFPB wants clear authority on Military Lending Act
Posted Date: Monday, January 21, 2019
Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger has asked Congress to grant the agency clear authority to supervise for compliance with the Military Lending Act (MLA).
The CFPB recently transmitted a legislative proposal to the speaker of the U.S. House of Representatives and the vice president in his capacity as president of the U.S. Senate.
Read on for Kraninger’s statement on the issue.
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NAR takes GSE reform fight to House
Posted Date: Monday, January 21, 2019
National Association of Realtors (NAR) President Elect Vince Malta recently testified before the House Financial Services Committee on the need for government-sponsored enterprises (GSE) reform.
Malta outlined for House members NAR’s priorities for a legislative restructuring of Fannie Mae and Freddie Mac.
Read on to learn more from Malta’s testimony, which focused on the Bipartisan Financing Reform Act of 2018.
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Bradley promotes 16 attorneys
Posted Date: Friday, January 18, 2019
Sixteen Bradley Arant Boult Cummings LLP attorneys have been elevated to partner or counsel.
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Report: Servicing delays caused HUD millions in interest
Posted Date: Thursday, January 17, 2019
The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General’s Semiannual Report to Congress is out.
An audit showed that lenders who failed to complete servicing actions for defaulted loans on time caused HUD to pay $413 million extra in interest.
Read on to see what the report uncovered regarding disaster funding, lead-based paint reporting and the Indian Home Loan Guarantee Program.
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Multiple RESPA claims may proceed against servicer
Posted Date: Thursday, January 17, 2019
A Maryland borrower sued her servicer for allegedly initiating foreclosure proceedings without properly responding to multiple qualified written requests (QWRs).
The servicer argued that Cooke’s letters did not trigger RESPA’s requirements because they did not relate to loan servicing. A federal judge ruled the plaintiff sufficiently alleged multiple violations of RESPA, and that the servicer provided no specific arguments to dismiss any particular claim.
Read on for details from the judge’s opinion.
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CBA thanks regulators for bank shutdown guidance
Posted Date: Thursday, January 17, 2019
Consumer Bankers Association President and CEO Richard Hunt recently wrote financial regulators outlining the assistance programs banks proactively are offering customers impacted by the partial government shutdown.
The letter also thanked regulators for offering guidance similar to that issued during previous shutdowns.
Read on for more details from Hunt’s letter, which supports banks working with federal employees on a one-to-one basis as they begin missing paychecks.
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Supreme Court declines to hear challenge to CFPB constitutionality
Posted Date: Monday, January 14, 2019
The U.S. Supreme Court has declined to hear a lawsuit to decide the constitutionality of the Consumer Financial Protection Bureau (CFPB).
State National Bank of Big Spring, Texas, the Competitive Enterprise Institute (CEI) and the 60 Plus Association had petitioned the Supreme Court to rule on a lawsuit that makes a case for abolishing the bureau and every regulation enacted by it.
Read on for reaction from the petitioners.
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FHA asks lenders to help borrowers affected by shutdown
Posted Date: Monday, January 14, 2019
The Federal Housing Administration (FHA) has asked all approved mortgagees and lenders to be sensitive to the financial hardships experienced by borrowers as a result of the partial government shutdown, including those borrowers subject to furlough, layoff, or a reduction in income.
The FHA reminded FHA-approved lenders of their ongoing obligation to offer special forbearance to borrowers experiencing loss of income.
Read on for details from a letter sent by FHA Commissioner Brian Montgomery.
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Waters asks Republicans to end shutdown for HUD's sake
Posted Date: Monday, January 14, 2019
Rep. Maxine Waters (D-Calif.) recently issued a statement on the negative impact the longest government shutdown in U.S. history is having on those who rely on U.S. Department of Housing and Urban Development (HUD) rental assistance programs.
Waters, chairwoman of the House Financial Services Committee, accused Republicans of caring more about a “senseless border wall” than safe and affordable housing for millions of U.S. families.
Read on for more from Waters’ statement.
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Judiciary nearly out of funds
Posted Date: Monday, January 14, 2019
In the midst of the partial government shutdown, the federal judiciary is working to continue paid operations for an extra week.
The judiciary originally announced it could sustain paid operations by using court fee balances and other funds not dependent on a new appropriation through Jan. 11. The Administrative Office of the U.S. Courts now has revised its original estimate to Jan. 18.
Read on for more details.
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NAR: DIY surpassing professional home remodeling
Posted Date: Monday, January 14, 2019
Homeowners are more likely to undertake a do-it-yourself remodel than hire a professional, according to the National Association of Realtors’ (NAR) “2019 Remodeling Impact Report: DIY.”
The report also shows that cash-strapped millennials are the most likely of any generation to take on a DIY project.
Read on for details from the report, which examines the differences between remodeling when hiring a professional compared to homeowners who pursue DIY projects.
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Former CFPB Deputy Assistant Director Kathleen Ryan joins Morrison & Foerster
Posted Date: Thursday, January 10, 2019
Kathleen “Kitty” Ryan has joined Morrison & Foerster's Financial Services Group as of counsel in the Los Angeles office. Ryan is the former deputy assistant director for the Office of Regulations at the Consumer Financial Protection Bureau (CFPB), where she was instrumental in the planning and oversight of mortgage-related rulemakings, including mortgage servicing regulations, Truth in Lending Act-Real Estate Settlement Procedures Act (TILA-RESPA) Integrated Disclosures rules, and the Home Mortgage Disclosure Act.
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HUD to landlords: Don't evict tenants due to shutdown
Posted Date: Thursday, January 10, 2019
The U.S. Department of Housing and Urban Development (HUD) is asking landlords affected by the partial government shutdown to use reverse funds to pay for units rather than kick tenants out.
The agency recently sent letters to 1,500 landlords to prevent thousands of tenants from being evicted.
Read on for details from the letters, which affect tenants who live in units covered by a HUD program that expired Jan. 1.
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Treasury: Bad actors, poor compliance programs aid money launderers
Posted Date: Thursday, January 10, 2019
A new report from The Treasury Department identifies the latest risks in money laundering.
Among the risks are unscrupulous real estate professionals – such as attorneys, title/escrow agents and mortgage brokers – who are well-placed to facilitate criminal schemes.
Read on for highlights from the National Money Laundering Risk Assessment 2018, which also cites anonymity in transactions and poor Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance programs as factors.
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Report: Navient leads CFPB student loan complaints
Posted Date: Thursday, January 10, 2019
Navient Solutions, the largest student loan servicer, was the most complained about student loan company in 46 states in 2018 for both federal and private loans, according to a new study by an online student lending marketplace.
LendEDU compiled student loan grievances from the Consumer Financial Protection Bureau’s (CFPB) complaint database and found there were 8,340 student loan-specific complaints submitted to the bureau from Jan. 1, 2018 to Dec. 19, 2018.
Read on for more details from the student loan report.
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AHP regulations to help Realtors now in effect
Posted Date: Thursday, January 10, 2019
The National Association of Realtors (NAR) has signed an amicus brief supporting the U.S. Department of Labor’s authority to issue its final association health plan (AHP) regulations.
The regulations, which became effective Jan. 1, will enable member-based organizations to offer comprehensive health coverage to millions of employees and self-employed individuals at an affordable price.
Read on to see what NAR President John Smaby had to say about the news.
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Wolters Kluwer, CRMNEXT form partnership
Posted Date: Tuesday, January 8, 2019
Wolters Kluwer’s Compliance Solutions business has formed a strategic partnership with CRMNEXT in the United States to enhance deposit product innovation and functionality using Wolters Kluwer’s Expere Deposit solution.
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Kavanaugh eligible to hear CFPB case, bank argues
Posted Date: Monday, January 7, 2019
Is U.S. Supreme Court Justice Brett Kavanaugh eligible to decide a case on the constitutionality of the Consumer Financial Protection Bureau’s (CFPB) structure?
Yes, according to State National Bank of Big Spring, Texas, which has petitioned the Supreme Court to rule on a lawsuit that makes a case for abolishing the bureau and every regulation enacted by it.
Read on for details from the bank’s recent court filing arguing that all nine justices are eligible to hear the case.
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Kraninger signs first enforcement
Posted Date: Monday, January 7, 2019
The Consumer Financial Protection Bureau (CFPB) has settled with a federal savings association accused of failing to properly honor customers’ stop payment requests on preauthorized electronic transfers.
San Antonio, Texas-based USAA Federal Savings Bank has agreed to pay $12 million in restitution to customers who were denied a reasonable error resolution investigation and pay a $3.5 million civil money penalty.
Read on for details from the consent order, the first enforcement signed by new CFPB Director Kathy Kraninger.
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End-to-end servicing gaining in popularity
Posted Date: Monday, January 7, 2019
Nine out of 10 mortgage servicing professionals are “very or somewhat” likely to consider a single-vendor approach for multiple services, according to a new report.
Altisource Portfolio Solutions S.A. has released the results of its third annual Default Servicing Survey, which examined recent economic indicators suggesting the housing market is experiencing a significant change.
Read on for highlights of Altisource’s survey, which also predicted increases in respondents’ Federal Housing Authority loan portfolios.
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CFPB issues final HMDA privacy guidance
Posted Date: Monday, January 7, 2019
The Consumer Financial Protection Bureau (CFPB) has issued final policy guidance describing modifications for disclosing loan-level Home Mortgage Disclosure Act (HMDA) data.
The policy guidance applies to HMDA data compiled by financial institutions in or after 2018 that will be made available to the public this year.
Read on to discover what would be excluded from the public and what changes will be made for loan amount, debt-to-income ratio, property value and other information.
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Supreme Court may be near decision on CFPB case
Posted Date: Thursday, January 3, 2019
One month after the Department of Justice argued that the Consumer Financial Protection Bureau is unconstitutional in a brief before the Supreme Court, the justices could be discussing a decision to hear the case.
The case could be discussed in a January conference, leading to a decision over whether the Supreme Court will grant a writ of certiorari to determine the constitutionality of the bureau.
Read on for details of the latest news.
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OPM suggests furloughed workers petition servicers
Posted Date: Thursday, January 3, 2019
The Office of Personnel Management (OPM) reached out to federal employees affected by the government shutdown, providing sample letters in which the employees could ask their mortgage servicers for the ability to pay less than their traditional mortgage payment during the shutdown.
The letters suggest that borrowers contact their servicers before writing their request.
Read on for more details about how OPM hopes to help furloughed employees.
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FEMA allows flood insurance policies during shutdown
Posted Date: Thursday, January 3, 2019
In an unexpected reversal during the partial shutdown of the federal government, the Federal Emergency Management Agency (FEMA) said it would issue and renew flood insurance policies after all.
The National Association of Realtors (NAR) called the decision a critical win for home sales.
Read on for more from NAR, one of the agencies that helped urge FEMA to re-evaluate its decision not to allow insurers to issue and renew federal policies during the shutdown.
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Lenders continue to downsize in response to lower volume
Posted Date: Thursday, January 3, 2019
The second quarter of 2018 saw continued defects typically resulting from lender downsizing and understaffing, according to a new report from ACES Risk Management (ARMCO).
In its Q2 Trends Report, ARMCO found a significant quarter-over-quarter increase (23.8 percent over the previous quarter) in defects related to loan package documentation, a trend that began in the first quarter.
Read on for details from the report, which also found a slight decrease in the critical defect rate.
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HUD awards $139 million to reduce lead hazards
Posted Date: Thursday, January 3, 2019
The U.S. Department of Housing and Urban Development recently awarded more than $139 million to 48 state and local government agencies to protect children and families from lead-based paint and home health hazards.
The money was awarded during an event to unveil the Federal Action Plan to Reduce Childhood Lead Exposure.
Read on for details about the plan, designed to reduce children’s exposure to lead sources and identify lead-exposed children.
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