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Senate passes TRID changes; bill goes to House
Posted Date: Thursday, March 15, 2018
As the Senate secured final passage of its regulatory reform bill Wednesday night, one of the areas in which it amends TILA directly affects mortgage disclosure forms.
Although it is not the fix to the accurate disclosure of simultaneously issued title insurance that settlement agents hoped for, the change could bring clarity to the closing transaction.
Read on for more about that change, as well as change to escrow requirements, the treatment of loans held in portfolio, and much more.
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Appellate court revives class action against Bank of America
Posted Date: Thursday, March 15, 2018
A class action suit against Bank of America over an escrow dispute in California has been revived by the Ninth Circuit Court of Appeals.
In reversing the district court decision which dismissed the case, the appellate court held that the National Banking Act did not pre-empt California’s state escrow interest law.
Read on for details of the Ninth Circuit’s ruling on pre-emption in the case.
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CFPB looks for input on finalized rules
Posted Date: Thursday, March 15, 2018
The Consumer Financial Protection Bureau’s (CFPB) latest Request for Information (RFI) looks for public feedback on its adopted regulations and new rulemaking authorities.
As the bureau plans to issue an upcoming RFI on inherited regulations, this RFI centers on finalized rules that the CFPB has promulgated since it opened for business in 2011. However, it does not include rulemaking on the Home Mortgage Disclosure Act or the small-dollar lending rule because of previously stated intentions to review those rules.
Read on for more details of what the CFPB wants to hear from you.
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Mulvaney amici take different tactics in support
Posted Date: Thursday, March 15, 2018
In support of President Donald Trump’s appointment of Mick Mulvaney as the acting director of the Consumer Financial Protection Bureau, three groups of amici filed briefs in the English v. Trump appeal scheduled to be heard in April by the D.C. Circuit Court of Appeals.
One brief represented 113 current members of Congress, another came from the U.S. Chamber of Commerce representing 300,000 direct and more than 3 million indirect companies and professional organizations, and a third from 13 states.
Each brief had different main areas in which expressing support for the president’s appointment. Read on for more details of their arguments.
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UniRush harmed consumers getting redress
Posted Date: Thursday, March 15, 2018
In a new blog posting by the Consumer Financial Protection Bureau (CFPB), the agency announced that consumers harmed by a 2015 outage of RushCards issued by prepaid card retailer UniRush would have redress checks mailed to them.
Although it is an announcement of redress directed by the company and not a distribution of civil money penalty funds by the CFPB, it is the first public pronouncement of redress since acting director Mick Mulvaney announced a freeze on distributions of civil money penalty funds in November.
Read on for more details of the bureau’s announcement, and how to avoid being scammed in the redress process.
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Inside the CFPB mind of Mick Mulvaney
Posted Date: Monday, March 12, 2018
In the span of a week at the end of February, Consumer Financial Protection Bureau (CFPB) acting director Mick Mulvaney gave public remarks at three events, one in front of credit unions, another in front of state attorneys general and the third before the U.S. Chamber of Commerce.
Speaking almost entirely without prepared remarks, Mulvaney shed insight into his vision for the CFPB under his leadership – which could last until at least the end of June, and possibly much longer. He announced a previously undisclosed settlement with one company, his beliefs on the extent of the agency’s reach and coordination efforts, and his true feelings about staff at the CFPB.
Read on for an examination of Mulvaney’s vision, through his own words.
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Settlement talks scheduled in Freedom Debt case
Posted Date: Monday, March 12, 2018
A federal district court in California has scheduled a settlement conference between the Consumer Financial Protection Bureau and Freedom Debt Relief, some four months after the bureau filed a complaint over allegations of deceitful practices in the company’s debt-settlement business.
In a March 5 order, Magistrate Judge Elizabeth D. Laporte referred the case to Magistrate Judge Nathanael M. Cousins.
Read on for details leading up to the settlement conference scheduling, and when the sides are set to meet again.
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Government brief treads familiar ground
Posted Date: Monday, March 12, 2018
In language similar to previous briefs filed in the case, the reply brief from the federal government in the English v. Trump appeal seeks to distinguish the extraordinary step being asked for the courts to take.
In Consumer Financial Protection Bureau (CFPB) Deputy Director Leandra English’s request to prevent President Donald Trump from appointing Mick Mulvaney as acting director of the CFPB, the government argues that English is requesting the court to alter the status quo and the authority of the president.
Read on for details of the government’s arguments leading into the appeal of the case.
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CFPB asks for rulemaking feedback
Posted Date: Monday, March 12, 2018
The latest Request for Information (RFI) issued by the Consumer Financial Protection Bureau (CFPB) gets to the heart of its rulemaking processes.
The RFI was published in the Federal Register on March 9 and comments will be accepted through June 7. It noted areas for commenters to address pertaining to initial outreach and information gathering practices, notices of proposed rulemakings and final rules.
Read on for more about the latest CFPB request.
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ACUS working to solve de facto regulation tension
Posted Date: Monday, March 12, 2018
A recently authored piece focused on recommendations from the Administrative Conference of the United States (ACUS) discussed understanding controversies around guidance from federal agencies and how to address them.
The authors state that regulatory guidance might be ubiquitous, but it also can be controversial. It can be produced and altered much faster, and in higher volume, than regulations and is not binding – which can allow regulators to potentially create de facto regulations by calling them “guidance.”
Read on for details of the ACUS recommendations for addressing the issue.
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HUD works with Houston on fair housing after hurricane
Posted Date: Monday, March 12, 2018
The U.S. Department of Housing and Urban Development (HUD) and the city of Houston have announced a joint agreement designed to expand housing choice and mobility for lower income residents, including those experiencing homelessness and victims of Hurricane Harvey.
The agreement requires Houston to adopt multifamily priorities and a policy for objectively evaluating federally supported affordable housing developments in all areas of Houston.
Read on for details of the agreement and reaction from HUD and the city.
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CFPB memo affected landscape in TRO ruling, transcripts show
Posted Date: Thursday, March 8, 2018
In final arguments before D.C. District Court Judge Timothy Kelly issued his initial ruling in the English v. Trump case over leadership at the Consumer Financial Protection Bureau, the issue of the status quo appeared to weigh heavily in the balance.
That brings to light two areas of focus which might have determined the course of CFPB activity since Thanksgiving: the memo written by CFPB General Counsel Mary McLeod and the employment status of Deputy Director Leandra English.
Read on for more about the initial hearing, and why McLeod’s memo might have created a higher standard for English to reach in her case.
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TRID bill introduced in Senate by familiar ally
Posted Date: Thursday, March 8, 2018
A familiar ally in the Senate might be making the TRID Improvement Act’s chance of passage a firm reality.
Sen. Tim Scott (R-S.C.), along with Sen. Doug Jones (D-Ala.) have introduced the TRID Improvement Act in the Senate as S. 2490, a companion bill to the House-sponsored act which recently passed by voice vote.
The American Land Title Association (ALTA) announced the news as it thanked the senators for their work. Read on for more details about the bill’s next steps.
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CFPB finalizes servicing amendments
Posted Date: Thursday, March 8, 2018
For only the second time since Mick Mulvaney was appointed interim director of the Consumer Financial Protection Bureau (CFPB), the agency has finalized a proposed rule.
The CFPB finalized amendments to its mortgage servicing rule, originally proposed Oct. 4, 2017, to help servicers communicate with certain borrowers who are facing bankruptcy.
Read on for details of the finalized amendments and how this process differs from the first finalized rule issued since Mulvaney began work at the CFPB.
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PHH cites CFPB case as drag prior to sale to Ocwen
Posted Date: Thursday, March 8, 2018
Ocwen Financial Corp. announced that it would buy PHH Corp. in an all-cash deal worth $360 million or $11 a share. The price is a 35 percent discount to PHH’s equity as of Dec. 31, 2017, the companies said.
The move comes as PHH Corp. has been exploring strategic alternatives, including potential liquidation of the company after it embarked on a restructuring. Its CEO said the continuing case against the Consumer Financial Protection Bureau was one of the headwinds to progress for the firm.
Read on for more details and reaction from each company’s CEO.
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Ex-HUD official confirmed as trade rep
Posted Date: Thursday, March 8, 2018
A former official with the Department of Housing and Urban Development (HUD) has been confirmed by the Senate as a deputy U.S. trade representative.
Dennis Shea served as the assistant secretary for policy development and research at HUD. Before his nomination to be deputy U.S. trade representative at the Geneva office, with the rank of ambassador, Shea had been the vice chairman of the United States-China Economic and Security Review Commission.
Read on for more details about Shea’s background.
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Loeb & Loeb expands national real estate practice with Barksdale
Posted Date: Wednesday, March 7, 2018
Loeb & Loeb LLP announced that David A. Barksdale has joined the firm’s Real Estate Department as a partner in the Los Angeles office. Barksdale brings more than 30 years of experience in real estate finance and development, with an emphasis on loan originations, strategic investments and joint venture transactions.
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Quest Advisors picks TRK’s QC audit platform
Posted Date: Tuesday, March 6, 2018
TRK Connection, a leading provider of mortgage quality control and origination management solutions, announced that outsourced mortgage quality assurance firm Quest Advisors has selected Insight Risk & Defect Management to power its third-party mortgage QC reviews.
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Florida veterans group hosts free housing summit
Posted Date: Monday, March 5, 2018
March 10, the nonprofit organization Veterans Association of Real Estate Professionals (VAREP) will be hosting a free housing summit that will educate veterans, reservists and military families on the different financial VA programs available throughout Broward County.
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Court transcripts detail chaos of CFPB transition
Posted Date: Monday, March 5, 2018
Newly released transcripts of the initial hearing in the D.C. District Court over Leandra English’s request for an emergency restraining order against President Donald Trump’s appointment of Mick Mulvaney as acting director of the Consumer Financial Protection Bureau show the chaos and uncertainty surrounding the first work day after the resignation of Director Richard Cordray.
District Judge Timothy Kelly inquired about English’s employment status – whether she had been fired or was expected to be fired – and arguments from Mulvaney’s counsel appear to show that by Mulvaney not facing resistance from taking control of the bureau that first day, the burden of proof placed on English’s counsel might have shifted.
Read on for more of the initial highlights from the hearing.
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Vullo: Gift cards aren’t marketing
Posted Date: Monday, March 5, 2018
The D.C. Circuit Court of Appeals’ en banc ruling in PHH Corp. v. CFPB might have restored previous federal interpretation of RESPA. But states’ interpretation of lawful and unlawful inducements might not be in line with the federal view.
In a speech Tuesday before the New York City Bar Association, New York Department of Financial Services Superintendent Maria Vullo sought to clarify her agency’s position on inducements.
Among her views: Gift cards are not marketing. Read on for more details.
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TRID bill back, passed again in House
Posted Date: Monday, March 5, 2018
It’s baaaaaack.
The TRID Improvement Act of 2018, H.R. 3978, which passed the full house on Valentine’s Day by a 271-145 vote, has returned for another vote.
H.R. 5078 features the TRID Improvement Act along with a bill sponsored by Rep. Keith Ellison (D-Minn.) which amends the Fair Credit Reporting Act and passed out of committee by a 60-0 vote. Read more about the vote, with American Land Title Association Vice President of Government and Regulatory Affairs Justin Ailes providing insight on why the bill returned to the House floor.
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Mulvaney takes CFPB, Warren to task in speech
Posted Date: Monday, March 5, 2018
Speaking extemporaneously before a Credit Union National Association conference in Washington D.C., Consumer Financial Protection Bureau (CFPB) acting director Mick Mulvaney reiterated the new path for the bureau which he outlined in a recent memo to staff.
He also continued his recent barbs with Sen. Elizabeth Warren (D-Mass.) over his role at the CFPB and implied that the CFPB under former Director Richard Cordray’s tenure put companies out of business that did not deserve it.
Read on for details from Mulvaney’s speech.
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CFPB seeks guidance on complaint gathering, visibility
Posted Date: Monday, March 5, 2018
The latest in the continuing sequences of Requests for Information (RFI) from the Consumer Financial Protection Bureau (CFPB) was released last week, seeking details on the public reporting of consumer complaints.
In earlier versions of RFIs, the CFPB has asked for public input on areas that are statutorily mandated – and thus out of the control of CFPB leadership to address changes suggested in public input. This time, however, the bureau phrased its information requests with language that ties comment to what is statutorily mandated in the Dodd-Frank Act.
Read on for details of the latest request.
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Butler Snow attorneys win Burton Foundation Award
Posted Date: Wednesday, February 28, 2018
Butler Snow announced that attorneys Chad R. Hutchinson and Joshua A. Hill have been selected as winners of a “2018 Law360 Distinguished Legal Writing Award” by the Burton Awards.
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Florida court rules on extent of RESPA private right of action
Posted Date: Monday, February 26, 2018
In a case involving a reverse mortgage which fell into foreclosure proceedings, a lender purchased forced-placed insurance on the property. After the borrower brought her account current and the foreclosure complaint was dismissed, she sued the lender and the insurance intermediary for RESPA violations.
The borrower alleged to a Florida district court that the force-placed rates charged were not bona fide and reasonable under RESPA because the procedure for obtaining the rates violated state regulations.
Read on for the ruling and reaction from one of the attorneys involved in the case.
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HUD funding grows, FHA lender fee proposed
Posted Date: Monday, February 26, 2018
In a departure from a year earlier, the proposed budget for the Department of Housing and Urban Development (HUD) in 2019 has grown more than $6 billion.
The proposal by President Donald Trump calls for $41.24 billion in spending for HUD, which it said continues or expands support for vulnerable populations including those experiencing homelessness, the elderly and persons living with disabilities.
The proposal also includes a new fee on Federal Housing Administration lenders to support renovations in IT at the administration. Read on for more.
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Mulvaney fires back over payday charges
Posted Date: Monday, February 26, 2018
In a short response to inquiries from Sen. Elizabeth Warren (D-Mass.) concerning Consumer Financial Protection Bureau acting director Mick Mulvaney’s decisions related to payday lenders, the bureau leader flashed some of the biting wit which he displayed during his time at the House of Representatives.
Responding to Warren’s Jan. 31 letter, Mulvaney said the senator requested information on “three unrelated actions” taken involving payday lenders.
Read on for more of the acting director’s letter as he told Warren he “await(s) your response.”
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Quarles encourages more reg review
Posted Date: Monday, February 26, 2018
In a speech last week in front of the 26th International Financial Symposium in Tokyo, Federal Reserve Vice Chairman for Supervision Randal Quarles discussed how the world economy has changed in the decade since the global financial crisis began.
He also took time to discuss financial regulation in the U.S., one of his primary functions since being appointed after the resignation of Daniel Tarullo.
Read on for details of what the Fed VP had to say on regulatory action.
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OCC finalizes stress test changes
Posted Date: Monday, February 26, 2018
The Office of the Comptroller of the Currency (OCC) announced that it published a final rule in the Federal Register to implement several technical and conforming changes to the OCC’s Annual Stress Test regulation.
The final rule changes the range of possible “as-of” dates used in the global market shock component to conform to changes recently made by the Federal Reserve to its stress testing regulations.
Read on for more details of the changes, including when the final rule takes effect.
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Bureau encourages buyer education with weekly newsletter
Posted Date: Monday, February 26, 2018
A change in leadership at the Consumer Financial Protection Bureau (CFPB) may have affected supervision and enforcement areas of the bureau, but it apparently has not changed consumer education functions.
A blog post released by the CFPB encourages potential homebuyers to sign up for a weekly CFPB newsletter called Buying a House.
Read on for more about the post and the information the CFPB wants to share.
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OIG audit: CFPB privacy program in compliance
Posted Date: Friday, February 23, 2018
An independent audit of the Consumer Financial Protection Bureau’s privacy program that was conducted from October through December – overlapping the tenures of former Director Richard Cordray and acting director Mick Mulvaney – found a privacy program that addresses federal requirements.
This despite Mulvaney writing to Sen. Elizabeth Warren in January that the CFPB confirmed hundreds of breaches that led to a freeze on examiner information collection.
The report found two areas where the CFPB could strengthen its program. Read on for details of the report.
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Supreme Court sticks to Dodd-Frank plain language of whistleblower
Posted Date: Friday, February 23, 2018
In a unanimous decision the Supreme Court ruled that the whistleblower protections provided under the Dodd-Frank Act cover individuals who have reported a violation of securities laws to the Securities and Exchange Commission – but not to those who have not reported.
In Digital Realty Trust Inc. v. Somers, the court ruled that Paul Somers, who reported suspected securities-law violations to his company but not the SEC before the company terminated him, was not subject to the Dodd-Frank protections.
The decision said the plain text of the statute narrowed the scope of coverage, even as the SEC argued that the protections should apply on a broader basis. Read on for more, including a concurring opinion which could impact other cases involving plain language interpretations of Dodd-Frank text.
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Stratmor report mulls reverse mortgage opportunities
Posted Date: Friday, February 23, 2018
The latest issue of Stratmor’s Insights report examines the potential market opportunity for reverse mortgages in an article titled “Going Forward in Reverse.”
Stratmor Group Senior Partner Jim Cameron suggests in it that forward lenders should consider offering reverse mortgages to those senior-age borrowers for whom a reverse mortgage is a better product than a forward mortgage.
Read on for details of Stratmor’s latest survey on the market and why Cameron believes there is an opportunity for growth in the space.
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Association works to end trigger lead sale
Posted Date: Thursday, February 22, 2018
The National Association of Mortgage Brokers (NAMB) announced it is seeking to ban the sale of trigger leads by urging Congress to add appropriate legislative language to H.R. 4028 and S. 1982.
Those bills are congressional legislative action relating to the recent Equifax credit bureau data leak of more than 143 million Americans.
Read on for details of why the NAMB believes trigger leads should be classified as unfair and deceptive practices.
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CFPB looks outside with latest RFI
Posted Date: Thursday, February 22, 2018
The latest request for information (RFI) released by the Consumer Financial Protection Bureau (CFPB) goes deeper into the background of external engagements before discussing target areas for comment.
The RFI stated that the CFPB hears regularly from a diverse group of external stakeholders, and conducts public and non-public meetings which include field hearings, town halls, roundtables and meetings of its advisory boards and councils.
Read on for details of what the bureau hopes to find out from public comment about its engagements.
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