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Before offering that discount: Think of this
Posted Date: Monday, November 28, 2016
If you are planning to offer a discount to your customers as part of a special promotion, there are a lot of factors to consider for hosting a compliant discount program, especially in light of the Consumer Financial Protection Bureau’s enforcement action against David Eghbali, a loan officer formerly employed by Wells Fargo. Brian Levy, of counsel at Katten & Temple LLP, and Loretta Salzano, co-founder of Franzén and Salzano, P.C., provided RESPA News and attendees at RESPRO’s Fall Seminar with all the details.
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What the industry looks like under Trump
Posted Date: Thursday, November 10, 2016
Although Hillary Clinton had the popular vote, it wasn’t enough to stop Republican Donald Trump from claiming the presidency. Was this result really all that surprising? What does this mean for housing finance reform, the Consumer Financial Protection Bureau and the Supreme Court? RESPA News spoke with RESPRO President and Executive Director Ken Trepeta and Treliant Risk Advisors Senior Advisor Steve Bartlett.
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ABA outlines ways Trump can improve administrative process
Posted Date: Thursday, November 17, 2016
The American Bar Association’s Section of Administrative Law and Regulatory Practice has issued a report, titled “Improving the Administrative Process,” to president-elect Donald Trump, calling for extended use of cost-benefit analysis and alternative dispute resolution in agency adjudications, among other items. Read on for more details.
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Here’s what the CFPB had to say about PHH Corp.
Posted Date: Monday, November 21, 2016
The Consumer Financial Protection Bureau has filed a petition for a rehearing en banc of the D.C. Circuit Court of Appeal’s 3-panel decision in PHH Corp. v. CFPB, where the court found the bureau’s single-director, removable only for cause structure to be unconstitutional and disagreed with the bureau’s interpretation of RESPA Section 8. What cases and arguments did the bureau offer in its support? Read on to find out.
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Agency interpretation question reaches the Supreme Court
Posted Date: Monday, November 14, 2016
It all began when a transgender student tried to use the men’s restroom at his high school. The U.S. Supreme Court granted the petition for a writ of certiorari in Grimm v. Gloucester County School Board, and although the case likely will have strong implications for the Consumer Financial Protection Bureau’s fair lending activities, the case will be addressing another important question: What deference should be given to an unpublished agency letter? Read on for more details.
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Was the request for information really a QWR?
Posted Date: Monday, October 24, 2016
The U.S. District Court for the District of Columbia was recently tasked with determining whether a plaintiff’s requests for information from Select Portfolio Servicing actually qualified as a qualified written request. Read on to learn more.
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Mistaken QWR address the center of RESPA claim
Posted Date: Monday, October 24, 2016
The Tenth Circuit Court of Appeals recently heard a dispute revolving around different interpretations of where qualified written requests were supposed to be sent. A loan servicer’s “welcome letter” invited “questions and inquiries” to one address while designating RESPA QWRs to another within other correspondence. Read on to find out how the court ruled.
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Does ‘inability to understand’ constitute ‘actual damages’?
Posted Date: Thursday, October 27, 2016
The U.S. District Court for the Southern District of West Virginia recently was tasked with determining whether Wells Fargo’s alleged refusal to respond to a qualified written request constituted actual damages under RESPA because the plaintiff were unable to understand their mortgage documents as a result. Do plaintiffs’ “inability to understand” their mortgage documents constitute “actual damages” under RESPA? Read on to find out.
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Judge: Counsel should tread more carefully
Posted Date: Monday, October 31, 2016
The U.S. District Court for the Western District of Michigan, Southern Division, recently was tasked with determining whether a plaintiff sufficiently asserted that the foreclosure on her property was unlawful and whether RESPA violations took place regarding defendant CitiMortgage’s handling of her loan modification application under HAMP. In the process, the court found possible evidence counsel merely recycled pleadings from other cases. Read on to learn more.
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Class certified against alleged kickback scheme
Posted Date: Thursday, November 10, 2016
The U.S. District Court for the District of Maryland recently was tasked with determining whether to certify a class alleging that Genuine Title, Wells Fargo; JPMorgan Chase Bank; PNC Mortgage and PNC Bank, West Town Bank & Trust and others were involved in an illegal kickback scheme. The court first had to determine whether equitable tolling of RESPA’s one-year statute of limitations applied. Read on to hear the court’s reasoning for applying equitable tolling.
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Damages for failure to respond a matter of timing
Posted Date: Thursday, November 10, 2016
The U.S. District Court for the Southern District of Florida recently was tasked with determining whether a plaintiff facing foreclosure adequately pleaded actual and statutory damages regarding the costs incurred while sending out requests for information (RFIs) and subsequent notices of error (NOEs). The court also considered the adequacy of the plaintiff’s TILA and injunctive relief claims. Find out which damages were upheld and which were struck down.
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Industry wary about CFPB proposal on CSI sharing
Posted Date: Monday, November 7, 2016
The Consumer Financial Protection Bureau issued a proposed rule to expand its discretion to share confidential supervisory information (CSI). The proposal came over a year after the bureau released a guidance bulletin warning companies against sharing CSI with third parties. The comment period on the proposal recently ended, with industry members wary about the idea. Read on for details of what they had to say.
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Service provider bulletin: ‘Entities have flexibility’
Posted Date: Thursday, October 27, 2016
The CFPB has reissued its compliance bulletin for service providers to “clarify that the depth and formality of the risk management program for service providers may vary depending upon the service being performed.” Goodwin Proctor LLP’s Mike Flynn spoke with RESPA News. Find out what you need to know.
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Hensarling says voters expect change from Congress
Posted Date: Monday, November 21, 2016
In a recent address to the Exchequer Club in Washington, D.C., House Financial Services Committee Chairman Jeb Hensarling (R-Texas) discussed some of progress he hopes Republicans can make next year under a Trump administration. Read on for more details of his priorities.
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FHA’s MMI funds continues to grow capital reserves
Posted Date: Thursday, November 17, 2016
The Department of Housing and Urban Development has released its annual report to Congress, detailing the Federal Housing Administration’s Mutual Mortgage Insurance Fund. Read on to find out where the fund stands in terms of its capital ratio and reserves and what the National Association of Realtors believes this should mean for regulators’ next steps.
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D.C. Circuit orders PHH: Respond to CFPB’s petition for rehearing
Posted Date: Monday, November 28, 2016
On the eve of Thanksgiving, the D.C. Circuit Court of Appeals issued an order to PHH Corp. to respond to the Consumer Financial Protection Bureau’s petition for rehearing en banc. The court has also invited the Solicitor General to weigh in on the constitutional and RESPA questions, signaling a highly likelihood that the petition will be granted. Read on to find out what Phillip Schulman of Mayer Brown, Benjamin Olson of BuckleySandler and Ken Trepeta of RESPRO had to say about the case.
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CFPB alleges UDAAP with structured-settlement purchases
Posted Date: Monday, November 28, 2016
The Consumer Financial Protection Bureau filed a complaint in the U.S. District Court for the District of Maryland alleging that Access Funding, LLC, its affiliates and an attorney have committed unfair, deceptive and abusive acts and practices in “steering” consumers from lead-paint-poisoning settlements to seek “independent professional advice” from an attorney who did not meet the state’s structured settlement protection requirements. Read on for more details.
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FCC denies MBA’s petition for TCPA robo-calling exemptions
Posted Date: Monday, November 28, 2016
The Federal Communications Commission has denied the Mortgage Bankers Association’s petition seeking an exemption from the prior-express-consent requirement under the Telephone Consumer Protection Act. The association had argued that an exemption was necessary to allow mortgage servicers to make the necessary communications with borrowers under federal and state laws. Read on to find out why the commission denied the request.
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HUD issues final rule on equal access programs
Posted Date: Monday, November 28, 2016
HUD is revising its Native American and Native Hawaiian program regulations to ensure all eligible individuals and families, regardless of sexual orientation, gender identity or marital status, have access to HUD-assisted or HUD-insured housing. Read on for more details.
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Dems call on IG to eye Trump conflicts of interest
Posted Date: Monday, November 28, 2016
In a letter spearheaded by House Financial Services Committee Ranking Member Rep. Maxine Waters (D-Calif.), several Democratic representatives called on the inspectors general of the federal financial services agencies, HUD and the Department of Justice to hold president-elect Donald Trump accountable for potential conflicts of interest regarding his businesses and his ongoing relationship with Deutsche Bank. Read on for more details.
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CFPB to gather digital financial record information
Posted Date: Monday, November 21, 2016
At a field hearing in Salt Lake City, Consumer Financial Protection Bureau Director Richard Cordray announced a request for information from the bureau about consumers’ digital financial records. He said that fintech companies are providing new opportunities and solutions for consumers with their financial records, but that the process has unanswered questions that the bureau wants to examine. Read on for more details.
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Attorney petitions for Supreme Court review of CFPB case
Posted Date: Monday, November 21, 2016
An attorney that allegedly misled consumers by falsely promising loan modifications in exchange for advance fees, a violation of the Consumer Financial Protection Act and Regulation O (the Mortgage Assistance Relief Services Rule), has filed a petition for writ of certiorari to the U.S. Supreme Court. Read on for more details.
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Malpractice lawsuit filed against firm for ‘unlawful’ loan documents
Posted Date: Monday, November 21, 2016
In September 2014, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit against a group of interrelated companies for allegedly unlawful online payday activities. Now, the court-appointed receiver for that group has filed a malpractice lawsuit against the law firm that assisted those companies with drafting the loan documents used. Read on for more details.
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GAO calls for GSE plan to exit conservatorship
Posted Date: Monday, November 21, 2016
The Government Accountability Office (GAO) has recommended Congress consider legislation, clear objectives and a transition plan that will enable the government-sponsored enterprises (GSEs) to exit conservatorship. Read on for more details.
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NAR announces new president, officers
Posted Date: Thursday, November 17, 2016
The National Association of Realtors announced its 2017 president as well as other officers at its board of directors meeting during the association’s annual conference and expo. Get the details about the new president and officers.
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Eleventh Circuit weighs Reg X requirements
Posted Date: Thursday, November 17, 2016
The Eleventh Circuit Court of Appeals recently was tasked with determining whether the U.S. District Court for the Northern District of Georgia erred in dismissing a plaintiff’s wrongful disclosure and RESPA claims against HSBC Bank USA, N.A. and Nationstar Mortgage, LLC. Read on for more details.
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Alabama district court examines TILA SOL question
Posted Date: Thursday, November 17, 2016
The U.S. District Court for the Northern District of Alabama recently was tasked with determining whether plaintiffs sufficiently pleaded their claims against Wells Fargo for wrongful disclosure, negligent servicing, failure to notify under TILA and failure to respond under RESPA. Read on for more details.
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FFIEC releases revised compliance rating system
Posted Date: Monday, November 14, 2016
Want to help your financial institution clients achieve the highest consumer compliance rating? The Federal Financial Institutions Examination Council, which includes the Consumer Financial Protection Bureau as a member, has issued a finalized revision of the uniform interagency consumer compliance rating system. Read on for more details.
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Multiple exams detailed in NYDFS consent order with PHH
Posted Date: Monday, November 14, 2016
After a series of multistate and departmental examinations, the New York Department of Financial Services and PHH Mortgage Corp. and its affiliate, PHH Home Loans LLC, have entered into a consent order, under which PHH will pay a $28 million fine because of “persistent shortcomings in their mortgage origination and servicing practices, including discrepancies in how mortgage foreclosures were documented and processed.” Read on for more details.
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Facebook addresses potential discrimination in housing ads
Posted Date: Monday, November 14, 2016
Mortgage lenders, title agents and settlement agents constantly are warned about what they post on social media websites such as Facebook. Now, the company has announced that it will be changing its “ethnic affinity” marketing solution to prevent discriminatory uses of Facebook ads. Read on for more details.
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NAMB eyes improving housing finance
Posted Date: Monday, November 14, 2016
As soon as the 2016 election was over, the National Association of Mortgage Professionals (NAMB) announced its goals for improve housing finance for next year. NAMB President Fred Kreger discussed the 3 percent cap in the qualified mortgage rule, GSE reform, and gaining regulatory relief for mortgage brokers.
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Financial agencies: Who’s leading Trump’s transition team
Posted Date: Monday, November 14, 2016
President-elect Donald Trump has named Paul Atkins, a former U.S. Securities and Exchange Commissioner under President George W. Bush, to lead the transition team’s review of financial agencies. Trump has maintained his stance on dismantling and replacing the Dodd-Frank Act.
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Poor communication leads to VA refinance complaints
Posted Date: Thursday, November 10, 2016
The Consumer Financial Protection Bureau released a special snapshot report on complaints regarding VA mortgage refinancing. The bureau has received more than 12,500 mortgage complaints, as of Nov. 1, from servicemembers, veterans and their dependents. Many of the problems existed because of poor communication.
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HUD alleges discrimination against families with children
Posted Date: Thursday, November 10, 2016
“Families with children have the same rights as any other American,” HUD Assistant Secretary for Fair Housing and Equal Opportunity Gustavo Velasquez said. The department announced enforcement actions against housing providers in Georgia, Louisiana and New Hampshire. Read on to learn more.
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Compliance management on CFPB exam radar
Posted Date: Monday, November 7, 2016
The Consumer Financial Protection Bureau (CFPB) recently released its Fall 2016 Supervisory Highlights report, detailing examination findings in a number of areas. One of those areas was the compliance management systems put in place by covered entities. Read on for details from the latest CFPB findings.
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NAR keeps flood insurance at front of mind
Posted Date: Monday, November 7, 2016
Not long after HUD announced its proposal to elevate resiliency standards for all HUD-supported properties, the National Association of Realtors discussed the topic of flood insurance at its annual conference and expo in Orlando, Fla. Read on for more details.
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Florida court ruling addresses actual damages
Posted Date: Monday, November 7, 2016
The U.S. District Court for the Southern District of Florida issued a ruling in a case where defendant Specialized Loan Servicing, LLC’s moved for summary judgment against plaintiff Jaki Baez, who claimed the servicer had not responded to her request for information in a timely manner. Read on for details from the case.
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New Jersey case claims RESPA, Consumer Fraud Act violations
Posted Date: Monday, November 7, 2016
The U.S. District Court for the District of New Jersey examined a case where plaintiff Florence Block submitted a complaint against defendants Seneca Mortgage Servicing, Ocwen Loan Servicing, Fay Servicing and ARLP Securitization Trust, alleging breach of contract, and violations of the New Jersey Consumer Fraud Act, the Fair Debt Collection Practices Act and RESPA. Read on for details of the district court’s decision.
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Freddie Mac survey reveals how often professionals refer business
Posted Date: Monday, November 7, 2016
In a survey commission by Freddie Mac, it was found that 84 percent of real estate professionals have a select group of lenders to which they generally refer their clients. Read on to find out what are the greatest challenges facing real estate professionals.
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Watt gives ‘sneak preview’ of FHFA goals
Posted Date: Monday, October 31, 2016
While appearing at the Mortgage Bankers Association annual conference, FHFA Director Melvin Watt provided attendees with a “sneak preview” of the agency’s 2017 Scorecard, which won’t be officially released until the end of the year. Read on to find out what is in store for Fannie Mae and Freddie Mac.
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HUD proposes ‘resilience standard’ to address flood risks
Posted Date: Monday, October 31, 2016
HUD has proposed elevation standards for all HUD-supported properties because of increased flooding risks and rising sea levels. This is the first time in nearly 40 years that the department has proposed to establish higher elevation requirements. Read on to learn more about the proposal.
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CFPB warns lenders, brokers about compliance
Posted Date: Monday, October 31, 2016
The Consumer Financial Protection Bureau announced that it has found 44 mortgage lenders and mortgage brokers in possible violation of the Home Mortgage Disclosure Act and its implementing regulation, Regulation C. The bureau issued a final rule expanding the reporting requiring under the act, and at the Mortgage Bankers Association annual conference, Director Richard Cordray warned those covered under the act to not wait until the last minute to implement the changes. Read on to learn more.
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Velocify: Compliance no longer top reason for investments
Posted Date: Monday, October 31, 2016
At the Mortgage Bankers Association’s annual convention, Velocify released a report titled, “Growth in a Changing Mortgage Market,” finding that compliance concerns no longer topped the list for reasons to invest in technology. Read on to find out what was at the top of the list and what the company recommends.
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Court addresses RESPA claims for actual, statutory damages
Posted Date: Monday, October 31, 2016
While considering defendant Seterus Inc.’s motion to dismiss a borrower’s RESPA claims, the U.S. District Court for the Western District of Louisiana, Monroe Division, was tasked with determining whether the borrower alleged sufficient facts to support a case for actual and statutory damages. Read on to find out what the court determined.
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Cordray ‘happy’ with initial TRID examinations
Posted Date: Thursday, October 27, 2016
While appearing at the Mortgage Bankers Association’s annual conference in Boston, CFPB Director Richard Cordray reiterated that the PHH Corp. v. CFPB case, which was recently decided by the D.C. Circuit Court of Appeals, “is not final at this point.” Cordray added that the bureau was happy with its initial TRID examinations and discussed other supervision priorities. What should your clients have on their compliance radars?
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FHFA penalty bar does not extend to Fannie, court finds
Posted Date: Thursday, October 27, 2016
Fannie Mae will not be able to shake off a putative class action alleging invasion of privacy and violations of the Fair Credit Reporting Act, the U.S. District Court for the Eastern District of Virginia ruled. Fannie Mae tried to argue that the Federal Housing Finance Agency’s penalty bar should apply to it because it was in conservatorship. Read on to find out why the court didn’t buy this argument.
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HUD releases years-long study on family homelessness intervention
Posted Date: Thursday, October 27, 2016
HUD has released the results of its long-term outcomes report for the Family Options Study, which was launched in 2008 to study the effects of different housing and services interventions for homeless families. The latest segment to the study examines the three-year impacts of housing and services intervention. Read on to find out what intervention programs provided the most help.
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Hensarling seeks to play by Democrats’ rules
Posted Date: Monday, October 24, 2016
Shortly after the D.C. Circuit Court of Appeals’ issued its opinion in PHH Corp. v. CFPB, placing the bureau under direct presidential oversight as an executive agency rather than an independent agency, House Financial Services Committee Chairman Jeb Hensarling (R-Texas) sent CFPB Director Richard Cordray a letter as a reminder that certain rules have changed. He also requested written assurances by Oct. 26. Read on to learn more.
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State audit finds regulator did not examine 58 percent of licensees
Posted Date: Monday, October 24, 2016
The Nevada Legislative Counsel Bureau has released an audit for the state’s Division of Mortgage Lending. More than 50 percent of licensees either were not examined or had untimely examinations. Staffing problems at the division were attributed to the backlog. Read on to learn more.
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Class action submitted for improper loan modifications
Posted Date: Monday, October 24, 2016
Tycko & Zavareei LLP – a law firm located in Washington, D.C. and Oakland, Calif. – has filed a class action against Specialized Loan Servicing, alleging violations of the Consumer Financial Protection Bureau’s mortgage servicing rules. Among the allegations is that the servicer improperly processed loan modification applications for customers in California that led to overpayments and foreclosures. Read on to learn more.
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OIG: HUD paid for unnecessary and unreasonable costs
Posted Date: Monday, October 24, 2016
The Office of the Inspector General has released an audit of the Federal Housing Administration’s monitoring and payment of single-family conveyance claims, finding that HUD paid claims for an estimated 239,000 properties that servicers did not foreclose upon or convey on time. Read on for more details.
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