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News By Edition
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RESPA News Monthly Edition
RESPA News Monthly December 2023
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‘Tis the season – for compliance! How to give RESPA-compliant gifts this holiday
Posted Date: Monday, November 20, 2023
After the dishes are cleared and the sports winners claim their titles, we get to the most wonderful time of the year, where we show our appreciation for friends and family through gifts and holiday parties.
Another group we often acknowledge during the holidays is our business partners. While such practices are permitted in the settlement services industry, considerations like whether the gift is RESPA compliant need to be made. RESPA News spoke with Holly Bunting of Mayer Brown and Loretta Salzano of Franzén and Salzano about what to keep in mind this holiday gift season.
Read on for more details.
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NAR announces 2024 leadership team
Posted Date: Wednesday, November 29, 2023
Tracy Kasper was installed as 2024 president of the National Association of Realtors (NAR) during the 2023 NAR NXT, The Realtor Experience in Anaheim, Calif.
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New Freddie Mac chairman elected
Posted Date: Thursday, November 23, 2023
Lance Drummond will become chair of Freddie Mac’s Board of Directors, the company announced today.
A member of the board since 2015, Drummond will succeed Sara Mathew, who will retire as board chair and as a director in February 2024, as required by the company’s bylaws.
Read on for more details.
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Freedom Mortgage moves to dismiss RESPA claim
Posted Date: Monday, November 20, 2023
A borrower alleged Freedom Mortgage violated RESPA when it failed to answer his qualified written requests for information about his refinanced mortgage loan and when it failed to suppress credit reporting after he submitted a written dispute.
He also proposed a class certification.
Freedom moved to dismiss the case on the grounds the borrower could not show actual damages from the alleged failures.
Read on for more details.
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Fannie Mae experiences leadership change
Posted Date: Monday, November 20, 2023
Two Fannie Mae executives with decades of experience with the company will be retiring soon. Fannie Mae announced who will be taking on their responsibilities.
Federal Housing Finance Agency Director Sandra Thompson commended those leaving for the leadership and technical expertise they brought to the company.
Read on for more details.
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FHA requests feedback on proposed loss mitigation option
Posted Date: Monday, November 20, 2023
The Federal Housing Administration published a mortgagee letter on its Single-Family Housing Drafting Table related to a new loss mitigation option. This updated draft incorporated comments made on a proposal published earlier this year.
Interested stakeholders have until Dec. 7 to review the letter and provide feedback.
Read on for more details.
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PHH Mortgage enters into subservicing agreement with Zillow Home Loans
Posted Date: Monday, November 20, 2023
PHH Mortgage Corp. and Zillow Home Loans are expanding their existing correspondent relationship to a strategic servicing partnership.
It began earlier this year when Zillow Home Loans selected PHH Mortgage as a subservicer for its residential mortgage portfolio. PHH has purchased loans on a correspondent and co-issue basis since 2019 and 2021, respectively.
Read on for more details.
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Rep. Waters calls for re-authorization, reform of National Flood Insurance Program
Posted Date: Monday, November 20, 2023
Rep. Maxine Waters (D-Calif.) urged both Republican and Democrat legislators to bring stability to the National Flood Insurance Program.
Her request comes after the Congressional Budget Office released a report on how climate change is impacting the housing and financial markets.
Read on for more details.
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Another case filed targeting real estate commissions
Posted Date: Thursday, November 16, 2023
COMPASS, Douglas Elliman, eXp World Holdings, Howard Hanna Real Estate, Redfin, United Real Estate Group, and Weichart Realtors are the latest defendants in a case claiming they conspired to artificially inflate real estate agent commissions.
Though NAR is not a named defendant in these proceedings, its cooperative compensation rule and other policies are at the heart of the matter.
Read on for details from the complaint.
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FHA report: MMI fund well-capitalized, 765,000 homebuyers assisted
Posted Date: Thursday, November 16, 2023
The Federal Housing Administration (FHA) described a strong, well-capitalized Mutual Mortgage Insurance Fund in its annual report to Congress. It also highlighted the efforts it took to facilitate mortgage credit access for more than 765,000 homebuyers and homeowners.
“Fiscal year 2023 was a difficult year for homebuyers and the professionals who serve them, and FHA’s exceptional team worked hard to support underserved borrowers and communities as well as our business partners in the mortgage and real estate sector,” Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon said.
Read on for more details.
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DOJ shares fair lending lessons, priorities
Posted Date: Thursday, November 16, 2023
Department of Justice (DOJ) Assistant Attorney General Kristen Clarke provided insight into the agency’s fair lending and fair housing priorities at the Community Reinvestment Act and Fair Lending Colloquium in Austin, Texas.
During her remarks, she provided some recommendations to lenders who are looking to mitigate their fair lending risk, as well as gave updates on the DOJ’s actions regarding appraisal discrimination and algorithm bias.
Read on for more details.
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A brighter year ahead, according to NAR forecast
Posted Date: Thursday, November 16, 2023
Home sales will likely decline by 18 percent compared with the year before – but the news isn’t all bad. The National Association of Realtors chief economist forecasted existing home sales to increase and mortgage rates to decrease in 2024.
The outlook for next year also referenced a couple of indicators the industry should keep an eye on as we say goodbye to 2023.
Read on for more details.
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Reg Z thresholds updated for 2024
Posted Date: Thursday, November 16, 2023
The Consumer Financial Protection Bureau and the Federal Reserve have announced the 2024 dollar thresholds for consumer credit and lease transactions to determine whether they are exempt from Regulation Z and Regulation M.
These thresholds generally apply to consumer credit transactions and consumer leases at or less than the designated amount.
Read on for more details.
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Cenlar welcomes new president
Posted Date: Wednesday, November 15, 2023
Ewing, New Jersey-based mortgage loan subservicer Cenlar FSB has appointed David Schneider president, leaving his most recent role as Cenlar’s chief financial officer (CFO).
John Mezzasalma – previously Cenlar’s senior vice president of finance – has been named acting CFO, and D. James “Jim” Daras will continue to serve as Cenlar’s CEO.
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Oregon court considers dismissal of RESPA QWR case
Posted Date: Monday, November 13, 2023
The U.S. District Court for the District of Oregon considered plaintiffs’ arguments in a RESPA case arising out of the servicing of their mortgage loan.
They sought to hold Fay Servicing liable for the alleged servicing errors committed by previous servicers. Fay moved to dismiss the case, stating it could not be held liable for the actions of prior servicers.
Read on for more details.
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NAREB makes recommendations to improve housing affordability, promote Black homeownership
Posted Date: Monday, November 13, 2023
The National Association of Real Estate Brokers celebrated the 10th year publishing its annual “State of Black Housing in America” report. This year’s findings showed how the impact of regulatory modifications improved lending to Black families. However, they also indicated more is needed to fully address the discrepancy between Black and white homeownership.
In addition to discussing the current state of Black homeownership, the organization also outlined its priorities over the next year.
Read on for more details.
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Majority of mortgage borrowers report plans to move unaffected by mortgage rates
Posted Date: Monday, November 13, 2023
When Fannie Mae asked mortgage borrowers about whether they plan to stay in their home for longer than intended because of “lock-in” effect, the research team did not get the answer they expected.
“Going into the study, our hypothesis was that a large majority of mortgage borrowers would say they planned to stay in their homes longer than originally intended due to having a significantly lower mortgage rate than current rates,” Fannie Mae Vice President and Deputy Chief Economist Mark Palim and Market Research Advisor, National Housing Survey Lead Rachel Zimmerman wrote. “However, the research findings did not show this.”
Read on to discover what data revealed.
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Increasing profits in a tight mortgage lending market
Posted Date: Monday, November 13, 2023
Today’s mortgage lending market is tight. While sale prices are still up, the number of originations is down, making mortgage servicing strategy “a mission critical priority,” according to STRATMOR Group Senior Partner Michael Grad.
In a recent insight, Grad shared what lenders should be considering when wanting to improve profitability in an environment where the only revenue seems to come from mortgage servicing rights.
Read on for more details.
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Q3 home sales prices increase in 82 percent of MSAs
Posted Date: Monday, November 13, 2023
Over 80 percent of metro areas realized home price gains in the third quarter, the National Association of Realtors (NAR) said in its recent report. Notably, 11 percent of measured areas experienced double-digit annual price appreciation, up from 5 percent in the previous quarter, and existing-home prices climbed 2.2 percent year-over-year to $406,900.
According to NAR, 182 of the 221 measured metro areas (82 percent) saw single-family existing-home sales prices increase, up from 58 percent in the second quarter.
Read on for more details.
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FHA requests feedback on HECM assignment eligibility update
Posted Date: Monday, November 13, 2023
The Federal Housing Administration proposed updates to its home equity conversion mortgage (HECMs) assignment eligibility requirements, available for public comment through Dec. 11.
The changes allow for certain categories of due and payable HECMs previously ineligible for assignment to be assigned to the U.S. Department of Housing and Urban Development and allow servicers to obtain earlier resolution of these loans.
Read on for more details.
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National MI Integrates with Mortgage Cadence LFC Platform
Posted Date: Thursday, November 9, 2023
National Mortgage Insurance Corp. (National MI), a subsidiary of NMI Holdings, Inc., has integrated with the Loan Fulfillment Center (LFC) loan origination system (LOS) platform by Mortgage Cadence, a subsidiary of Accenture.
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What to know about state AGs’ RESPA enforcement
Posted Date: Thursday, November 9, 2023
The Consumer Financial Protection Bureau has long urged state regulators to assist in RESPA enforcement, and the states are stepping up.
Sterbcow Law Group Managing Attorney Marx Sterbcow and RESPRO President and Executive Director Ken Trepeta spoke at RESPRO’s fall seminar in Bachelor’s Gulch, Colo. about the uptick in RESPA enforcement actions instigated by state attorneys general.
Read on for more details.
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CFPB issues report on how states approach CRA efforts
Posted Date: Thursday, November 9, 2023
In the wake of the final rule updating the Community Reinvestment Act (CRA), the Consumer Financial Protection Bureau (CFPB) analyzed state CRA laws, specifically those that provide an affirmative obligation for financial institutions to meet the lending, services, and/or investment needs of their communities.
“The financial market has changed considerably since the passage of the Community Reinvestment Act, and nonbanks are now capturing a large share of the mortgage market,” CFPB Director Rohit Chopra said in a release. “States have responded by creating reinvestment obligations for mortgage companies and have tailored state reinvestment requirements to meet the needs of their local communities.”
Read on for more details.
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Credit insecurity tract maps demonstrate lingering effects of redlining
Posted Date: Thursday, November 9, 2023
New maps published by Zillow revealed how a lack of credit access is impacting peoples’ ability to move from renting to homeownership. Census tracts with a higher amount of Black families and communities of color showed a tendency to overlap with tracts considered credit insecure, the company stated.
As a result, many households are stuck paying monthly rents that are higher than a typical mortgage payment, even with rates at their highest in decades.
Read on for more details.
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Consumer sentiment index inches higher, despite market frustrations
Posted Date: Thursday, November 9, 2023
Decreasing housing affordability and ongoing struggles with inflation resulted in Fannie Mae’s Home Purchase Sentiment Index staying mostly flat in October, though it did see a slight improvement.
While consumers reported greater job security and improved household income, they also expressed frustration with the housing market and the economy’s trajectory.
Read on for more details.
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FHA expands protections for Maui borrowers
Posted Date: Thursday, November 9, 2023
The Federal Housing Administration (FHA) is expanding moratoriums on foreclosures in Maui County, Hawaii, for borrowers with FHA-insured single-family mortgages.
The extension comes as residents are still recovering from the wildfires that ravaged the area.
Read on for more details.
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CFPB announces increase in enforcement workforce
Posted Date: Monday, November 6, 2023
The Consumer Financial Protection Bureau’s enforcement director announced the agency is looking to add 75 people to its enforcement department.
RESPA News spoke to Saul Ewing Partner Francis “Trip” Riley, III and Garris Horn co-Managing Partner Richard Horn about what this could mean for enforcement activity in the settlement services space.
Read on for more details.
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First National Bank of Pennsylvania argues against All Star Title RESPA kickback allegations
Posted Date: Monday, November 6, 2023
First National Bank of Pennsylvania (FNBP), as a successor by merger to First Mariner Bank, made multiple motions in a Maryland case alleging First Mariner was involved in a RESPA kickback scheme involving All Star Title. The plaintiff class also alleged violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act.
Plaintiffs in the case filed a motion for partial summary judgment; FNBP filed motions to exclude two expert witnesses, a cross-motion for summary judgment, and a motion to decertify the class.
Read on for more details.
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October housing outlook shows recession unlikely
Posted Date: Monday, November 6, 2023
In its most recent economic outlook, Freddie Mac’s Economic and Housing Research Group (EHRG) stated high interest rates are likely delaying potential homebuyers from entering the market, as they wait for the rates to come down. And while potential homebuyers are turning to new builds because of supply constraints, homebuilder sentiments are down.
However, in better news, the group said the current forecast indicates the U.S. should avoid a recession.
Read on for more details.
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FHA enhances financing for manufactured homes
Posted Date: Monday, November 6, 2023
The Federal Housing Administration made changes to requirements for the valuation of manufactured homes certified under Fannie Mae’s MH Advantage and Freddie Mac’s CHOICEHome programs, Federal Housing Commissioner Julia Gordon announced at the Manufactured Housing Institute’s National Communities Conference Fall Leadership Forum in Chicago.
These actions, Gordon said, will facilitate the growth and adoption of affordable and energy-efficient housing.
Read on for more details.
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NAR’s cooperative compensation rule costs organization $1.78B
Posted Date: Thursday, November 2, 2023
A U.S. district court in Missouri found for the home sellers in a case alleging the National Association of Realtors, Keller Williams, and HomeServices of America had violated antitrust laws and engaged in a conspiracy to artificially inflate commissions paid to real estate agents.
RESPA News spoke to RESPRO’s Ken Trepeta, former director of real estate services at NAR, about what this could mean for the organizations and the real estate business going forward.
Read on for more details.
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Are you up to date on RESPA essentials? – webinar recording available
Posted Date: Thursday, November 2, 2023
Enforcement actions, bureau-issued guidance, and real estate agent owned affiliated business arrangements (AfBAs) were discussed in a recent October Research webinar featuring Franzén and Salzano President Loretta Salzano and Mayer Brown Partner Holly Bunting, along with SoftPro Director of Regulatory Compliance Leslie Wyatt as moderator.
The session kicked off with what can be learned from the Freedom Mortgage and Realty Connect consent orders issued by the Consumer Financial Protection Bureau (CFPB) – the first in several years directly related to RESPA Section 8(a). Bunting noted the timing of the consent orders was interesting, as they “pretty quickly” followed the bureau’s October 2020 RESPA-related FAQs issuance.
Read on for more details.
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Veteran brings RESPA claim against LoanCare
Posted Date: Thursday, November 2, 2023
LoanCare, LLC moved for summary judgment in a case where, among other claims, a veteran alleged the servicer violated RESPA during the process of his loan modification.
The plaintiff asserted LoanCare’s repeated denial of his modification applications after his wife’s motor vehicle accident caused economic and emotional damages.
Read on for more details.
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Converting commercial to residential – Biden-Harris administration takes new approach to affordable housing
Posted Date: Thursday, November 2, 2023
The U.S. Department of Housing and Urban Development, the Department of Transportation, and other agencies are taking steps to promote the conversion of commercial properties for residential purposes.
With office vacancies at a 30-year high nationwide, the Biden-Harris administration announced this strategy as part of its latest plan to provide relief to the affordable housing crisis.
Read on for more details.
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NAR appoints interim CEO
Posted Date: Thursday, November 2, 2023
The National Association of Realtors (NAR) has appointed an interim CEO. The appointee replaces current CEO Bob Goldberg, who announced his retirement earlier this year.
NAR’s newest C-suite executive brings leadership and strategy advisory experiences to the organization.
Read on for more details.
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