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Behind the scenes of PHH with Mitch Kider
Posted Date: Thursday, September 26, 2019
By now, everyone knows about the PHH Corp.’s lawsuit filed by the Consumer Financial Protection Bureau that eventually went in the company’s favor after a six-year battle.
But Weiner Brodsky Kider PC’s Mitch Kider now tells us the story behind the story.
Read on for details on what it was really like to lead litigation on the landmark RESPA case from Kider’s remarks at the fall RESPRO conference.
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Butler Snow attorney named chair of ABA committee
Posted Date: Monday, September 23, 2019
Butler Snow attorney Randall D. McClanahan has been appointed chair of the American Bar Association (ABA) Business Law Section’s Audit Responses Committee. McClanahan will serve a three-year term.
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An in-depth look at HUD's housing reform plan
Posted Date: Thursday, September 19, 2019
The Department of Housing and Urban Development recently released a major housing finance reform plan in conjunction with a Treasury Department report on future plans for Fannie Mae and Freddie Mac.
HUD’s reform plan states four main objectives – including refocusing the Federal Housing Administration to its core mission and providing FHA and Ginnie Mae the tools to appropriately manage risk.
Read on for a deep dive into the plan.
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Borrowers allege servicer ignored NOE, RFI
Posted Date: Thursday, September 19, 2019
A Pennsylvania couple accused their servicer of failing to adequately respond to their notice of error and a request for information on behalf of a larger class.
The servicer argued the claims did not involve loan servicing and thus fell outside the scope of the RESPA.
Read on to see why a federal judge ruled the borrowers not only pled plausible allegations, but also were able to show actual damages stemming from the alleged violations which survived the servicer’s motion to dismiss.
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Washington state amendments to align with SAFE Act
Posted Date: Thursday, September 19, 2019
The state of Washington is proposing amending rules to align with the federal SAFE Mortgage Licensing Act.
The proposed changes to the Consumer Loan Act would mean loan originators could make up to five residential mortgage loans without being licensed at the company level during a calendar year.
Read on for details on disclosure obligations to consumers, prohibited business practices and allowable loan fees.
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HUD charges Georgia landlords with discrimination
Posted Date: Thursday, September 19, 2019
The Department of Housing and Urban Development (HUD) has accused a Georgia couple of discriminating against families with children.
Savannah-Chatham County Fair Housing Council and the mother of two minor children filed complaints alleging the landlords had a policy limiting the number of children that could live in their two- and three-bedroom Richmond Hill apartments.
Read on for details from HUD’s charge that stemmed from a 2014 complaint.
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ICBA latest group to fight for lower leverage ratio
Posted Date: Thursday, September 19, 2019
Independent Community Bankers of America President and CEO Rebeca Romero Rainey is asking federal banking regulators to finalize their rules regarding a key provision of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).
Section 201 of EGRRCPA directs the agencies to set a community bank leverage ratio (CBLR) between 8 percent and 10 percent.
Read on for details from Rainey’s letter to the Federal Reserve, Federal Deposit Insurance Corp. and Comptroller of the Currency regarding her concerns about the proposed 9 percent community bank leverage ratio.
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Fifth Circuit tees up split on CFPB constitutionality
Posted Date: Monday, September 16, 2019
A new ruling from the Fifth Circuit Court of Appeals could be setting up the first circuit split on the constitutionality of the structure of the Consumer Financial Protection Bureau (CFPB).
In an en banc decision in Collins v. Mnuchin, the Fifth Circuit determined the structure of the Federal Housing Finance Agency was unconstitutionally structured.
How did the court come to its decision, and why could it create a problem for the CFPB? Read on for the details.
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CFPB issues RESPA no-action letter under new policy
Posted Date: Monday, September 16, 2019
The Consumer Financial Protection Bureau (CFPB) has announced three new ways to promote innovation and facilitate compliance, including a new no-action letter policy.
The CFPB issued its first no-action letter under the policy in response to RESPA concerns brought by the Department of Housing and Urban Development (HUD). The agency also announced a new trial disclosure program policy and compliance assistance sandbox policy.
Read on for reaction from CFPB Director Kathy Kraninger.
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Report: Closing and title defects climb
Posted Date: Monday, September 16, 2019
ACES Risk Management (ARMCO) has released its latest quarterly trends report showing that the defects related to loan package documentation that persisted all of last year continue to be an issue.
Defects related to closing and title documents were found to be the greatest contributors in the loan package documentation category.
Read on to see what ARMCO’s report found for the first quarter of 2019 regarding closing and title defects.
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Alabama borrower's wrongful foreclosure case moves forward
Posted Date: Monday, September 16, 2019
An Alabama man who alleged his servicer falsely reported he was in default on a mortgage loan sued for wrongful initiation of foreclosure proceedings.
The borrower claimed the servicer violated RESPA by failing to send a written acknowledgement of his qualified written request (QWR) within five days and a written response to the QWR within 30 days.
Read on for more details about why the court denied the servicer’s motion to dismiss.
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HUD expands preservation program to include senior housing
Posted Date: Monday, September 16, 2019
The Department of Housing and Urban Development (HUD) has plans to preserve and improve critically needed affordable housing for low-income seniors.
HUD will significantly expand its Rental Assistance Demonstration (RAD) to facilitate capital investment in senior housing developments assisted through HUD's Section 202 Supportive Housing for the Elderly Project Rental Assistance Contracts (PRAC).
Read on for more details from HUD Secretary Ben Carson and Federal Housing Commissioner Brian Montgomery.
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CFPB, state regulators team up
Posted Date: Monday, September 16, 2019
The Consumer Financial Protection Bureau has launched the American Consumer Financial Innovation Network (ACFIN) to enhance coordination among federal and state regulators to facilitate financial innovation.
ACFIN proposes to improve competition, consumer access and financial inclusion while promoting regulatory certainty for innovators.
Read on to find out which states are on board so far.
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Mayer Brown named ‘Illinois Powerhouse’
Posted Date: Friday, September 13, 2019
Mayer Brown has been recognized as an “Illinois Powerhouse” in Law360’s 2019 Regional Powerhouse list, a ranking of law firms “handling some of the biggest deals and most high-profile courtroom battles across eight states, offering clients regional expertise and making a lasting impact on the law at the state and local level.”
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Phillips joins mortgage banking group at Ballard Spahr
Posted Date: Friday, September 13, 2019
Amanda Phillips, an attorney with significant experience in the regulatory compliance aspects of mortgage lending, has joined Ballard Spahr's Mortgage Banking Group, the firm announced. Ms. Phillips will be Of Counsel in the firm’s Denver office.
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Butler Snow attorney Berdy named IADC committee chair
Posted Date: Friday, September 13, 2019
Butler Snow attorney Christopher S. Berdy has been named chair of the International Association of Defense Counsel’s Continuing Legal Education Committee for the 2019-2020 year.
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Judge: CFPB suit is shotgun pleading
Posted Date: Thursday, September 12, 2019
The Consumer Financial Protection Bureau stated a viable claim for relief against a mortgage servicer on three out of four alleged RESPA violations, according to a federal judge.
However, the judge dismissed the entire 14-count suit without prejudice after finding the complaint is an impermissible “shotgun” pleading that fails to distinguish among the defendants.
Read on for highlights of the Florida court’s opinion, including its decision to uphold the constitutionality of the bureau.
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Trends in the MSA marketplace
Posted Date: Thursday, September 12, 2019
Marketing and advertising activities have been on the rise since the final ruling last year in PHH Corp. v. CFPB came down.
What are the latest trends for growing business through these agreements?
Take a look inside our new Today’s MSA special report to see what experts are saying.
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CFPB sues foreclosure relief services company
Posted Date: Thursday, September 12, 2019
The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against a foreclosure relief services company accused of charging unlawful advance fees for the marketing and sale of financial advisory and mortgage assistance services.
The CFPB filed a complaint against Houston-based Certified Forensic Loan Auditors, LLC, company founder Andrew Lehman and Michael Carrigan, its vice president of auditing, alleging deceptive and abusive acts and practices against consumers.
Read on for details from the complaint.
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HUD settles sex, disabilities complaint against L.A. housing authority
Posted Date: Thursday, September 12, 2019
The Department of Housing and Urban Development has entered into a voluntary compliance agreement with the Housing Authority of Los Angeles (HACLA), settling claims that HACLA discriminated against a resident because of her sex and disabilities. The woman also claimed she was denied an emergency transfer via the Violence Against Women Act, even though she was a tenant in a covered program under that act.
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CFPB to host behavioral law symposium
Posted Date: Thursday, September 12, 2019
The Consumer Financial Protection Bureau will hold a symposium on behavioral law and economics.
The “Behavioral Economics and Consumer Financial Services Policy” symposium, will be held Sept. 19 at 9 a.m. The event will be webcast on the bureau’s website. The series is designed to help the bureau in its policy development process, including possible future rulemakings.
Read on to learn who the panel of experts will be.
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HUD submits housing reform plan to White House
Posted Date: Monday, September 9, 2019
The Department of Housing and Urban Development released a major housing finance reform plan Sept. 5 in response to a March presidential memorandum designed to expand mortgage financing options with a more diverse population of lending institutions.
The report was released in conjunction with a Treasury Department report on future plans for Fannie Mae and Freddie Mac.
Read on for reaction from HUD Secretary Ben Carson and Federal Housing Administration Commissioner Brian Montgomery, as well as comments from the National Association of Realtors and American Land Title Association on a the Treasury Department report.
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Hurricane won't dampen RESPRO's fall conference
Posted Date: Monday, September 9, 2019
RESPRO’s 2019 fall conference will proceed as planned Wednesday and Thursday in Charleston, S.C., in the aftermath of Hurricane Dorian.
“Dorian has passed, and Charleston is recovering nicely from a glancing blow,” RESPRO Meetings Director Rae Brevard told RESPA News.
Read on for more details about the conference.
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Second nonbank charter case against OCC dismissed
Posted Date: Monday, September 9, 2019
The latest lawsuit filed by the Conference of State Bank Supervisors (CSBS) alleging the Office of the Comptroller of the Currency’s (OCC) nonbank charter program is unconstitutional has been dismissed.
CSBS filed its second suit in two years against the OCC in October. The most recent complaint sought to prevent the agency from granting national bank charters to entities operating as nonbanks.
Read on for highlights of the judge’s opinion.
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HUD: Colorado landlords discriminated against families with kids
Posted Date: Monday, September 9, 2019
The Department of Housing and Urban Development (HUD) has charged the owners and manager of a Gunnison, Colo., condominium complex with discrimination for allegedly refusing to rent to persons under 35 years of age.
The charge further alleges that the condominium management team refused to rent a unit to a fair housing tester who claimed to have a 4-year-old child.
Read on for details from the consent order.
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RESPRO asks CFPB to expand QM definition
Posted Date: Monday, September 9, 2019
RESPRO recently submitted a comment letter to the Consumer Financial Protection Bureau (CFPB) supporting modifications to the Ability-To-Repay/Qualified Mortgage (ATR/QM) rule to expand access and choice in credit providers.
The CFPB previously announced it will let the QM patch – which grants QM status for certain loans with high debt-to-income (DTI) ratios – expire Jan. 10, 2021, as scheduled.
Read on to see RESPRO President and Executive Director Ken Trepeta’s recommendations.
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Comptroller visits New Mexico to talk CRA
Posted Date: Monday, September 9, 2019
Comptroller of the Currency Joseph Otting recently visited Native American pueblos in New Mexico as part of a nationwide effort to discuss modernizing Community Reinvestment Act (CRA) regulations and opportunities to bring more investment, lending and services to underserved areas.
Following the tour, the comptroller facilitated a roundtable discussion on how to update CRA regulations and promote more banking activity where it is needed most.
Read on for more details from Otting.
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Horack Talley joins Offit Kurman
Posted Date: Thursday, September 5, 2019
Offit Kurman, one of the fastest-growing law firms in the U.S., is now strategically expanding into the Southeast by affiliating with one of Charlotte’s oldest and most respected law firms.
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Texas buyer fighting foreclosure alleges dual tracking
Posted Date: Friday, August 30, 2019
A borrower sought an injunction to prevent foreclosure on his Texas property, claiming his servicer failed to timely evaluate his completed loss mitigation request.
The servicer argued the claim should be dismissed because the plaintiff’s loss mitigation application was missing additional information and nothing in RESPA requires a servicer to evaluate an incomplete application.
Read on to see why a federal magistrate is allowing the case to continue.
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FHA expands foreclosure options in disaster areas
Posted Date: Friday, August 30, 2019
Last year, the Federal Housing Administration (FHA) began offering struggling homeowners impacted by 2017 natural disasters new ways to prevent foreclosure without increasing their interest rates or monthly payments.
FHA now is expanding its foreclosure prevention options to delinquent borrowers in all Presidentially Declared Major Disaster Areas (PDMDAs).
Read on for details from FHA Commissioner Brian Montgomery, who recently provided new guidance on FHA’s loss mitigation options for borrowers in PDMDAs in a letter to mortgagees.
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CFPB settles with debt collection, money transfer companies
Posted Date: Friday, August 30, 2019
The Consumer Financial Protection Bureau has announced a settlement with an Illinois-based debt-collection company accused of threatening to sue or arrest consumers, even though it did not intend to take such action.
The bureau also found the company falsely represented to consumers that company employees were attorneys, among other things.
Read on for more highlights from the CFPB’s consent order, plus another recent settlement with a money transfer business.
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FinCEN starts new money laundering division
Posted Date: Friday, August 30, 2019
The Financial Crimes Enforcement Network (FinCEN) has launched a Global Investigations Division to implement targeted investigation strategies to combat illicit finance threats and related crimes, both domestically and internationally.
The new division will leverage FinCEN’s Bank Secrecy Act authorities, including Section 311 of the USA PATRIOT Act, to investigate and target terrorist finance and money laundering threats.
Read on for more details on the new division, including who FinCEN tapped as director.
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CSBS, AARMR announce new policy summit
Posted Date: Friday, August 30, 2019
Worried about the mortgage loan market’s market share shift, increased borrower risk profile and credit quality concerns?
The Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators have joined together to host a fall summit to bring together policymakers, regulators and the industry to elevate the discussion around mortgage policy.
Read on for more information on the upcoming summit.
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Jury trial date set in Zillow case
Posted Date: Thursday, August 29, 2019
A tentative jury trial date has been scheduled in a Washington state securities case, alleging that Zillow Group’s co-marketing program violated RESPA.
In court filings, District Judge John C. Coughenour estimated 10 days would be needed for trial.
Read on to learn more about the date for the case, filed after the Consumer Financial Protection Bureau suddenly ended its investigation into Zillow’s co-marketing program.
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New Jersey buyer claims servicer ignored NOEs
Posted Date: Thursday, August 29, 2019
A New Jersey borrower claimed she is entitled to actual and statutory damages because her servicer failed to respond to two notices of errors (NOE) related to loan modification applications.
The servicer filed a motion to dismiss for failure to state a claim, alleging the borrower submitted insufficient information for the applications.
What did a judge say? Read on to find out.
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Stratmor: Online testimonials don't always lead to referrals
Posted Date: Thursday, August 29, 2019
As the competition for the mortgage borrower’s business continues, a growing number of lenders are looking to online testimonials to help bring in sales.
But testimonials don't always lead to the coveted borrower referral, according to mortgage advisory firm Stratmor Group.
Read on to see what Stratmor’s Mortgage SAT Director Mike Seminari said in the firm’s latest Insights report, which analyzed data from more than 150,000 borrowers.
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NAR: More agents using drones, blogs
Posted Date: Thursday, August 29, 2019
The National Association of Realtors (NAR) Research Group has unveiled a new study detailing how buyers and agents use technology.
For instance, in 1981, 22 percent of homebuyers used newspaper ads to buy a home and 8 percent used friends as an information source. Last year, 44 percent looked for properties online first, according to the “Real Estate in a Digital Age” report.
Read on for more highlights from the report.
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CSBS launches new fintech tools
Posted Date: Thursday, August 29, 2019
The Conference of State Bank Supervisors (CSBS) has deployed three new online tools to allow industry members to more easily navigate the state regulatory system and protect against cyberrisks.
The tools include a portal of state agency guidance for nonbank financial services companies.
Read on for reaction from CSBS President and CEO John Ryan.
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FinCEN issues advisory on opioid trafficking schemes
Posted Date: Monday, August 26, 2019
The Financial Crimes Enforcement Network (FinCEN) has issued an advisory to financial institutions on illicit financial schemes related to the trafficking of fentanyl and other synthetic opioids.
The advisory is intended to help banks detect and report illicit activity that is perpetuating the ongoing opioid crisis.
Read on for more details from FinCEN, which listed red flags that justify filing a Suspicious Activity Report (SAR) for possible opioid trafficking.
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Judge denies servicers' motions to dismiss QWR claims
Posted Date: Monday, August 26, 2019
A Maryland couple sued two mortgage servicers for allegedly imposing and collecting invalid loan charges, then failing to respond to or conduct reasonable investigations related to their written inquiries.
Their alleged losses included lost time from work and emotional damages that exacerbated medical conditions, including headaches and high blood pressure.
A federal judge recently denied both servicers’ motions to dismiss the plaintiffs’ RESPA claims. Read on for highlights of the opinion.
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HUD settles racial discrimination claims with real estate trust
Posted Date: Monday, August 26, 2019
The Department of Housing and Urban Development has approved a conciliation agreement resolving allegations that a real estate investment trust employed rental practices that discriminated against applicants based on their race.
The company was accused of repeatedly providing more information about available units in the Los Angeles area to white HRC fair housing testers who posed as prospective tenants than to black HRC testers.
Read on for details from HUD’s agreement.
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Waters opposes CFPB's education loan ombudsman choice
Posted Date: Monday, August 26, 2019
House Financial Services Committee Chairwoman Maxine Waters (D-Calif.) recently issued a statement expressing concerns about the Consumer Financial Protection Bureau’s choice naming Robert Cameron as the new private education loan ombudsman. Read on for more details from Waters’ statement.
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HUD awards millions to clean up lead hazards in public housing
Posted Date: Monday, August 26, 2019
The Department of Housing and Urban Development announced it has awarded $27.8 million to 38 public housing agencies in 25 states to identify and reduce lead-based paint hazards in thousands of older public housing units. Read on to learn more.
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