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Should servicers be worried about RESPA enforcement?
Posted Date: Thursday, December 10, 2020
The Consumer Financial Protection Bureau (CFPB) has had just two public RESPA enforcement actions this year, but the most recent case begs the question of whether more actions against servicers could be coming.
Read on for a deep dive into the CFPB’s Dec. 7 lawsuit against the largest non-bank mortgage servicer in the United States, plus reaction from Mayer Brown Partner Ori Lev, a former senior CFPB official.
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OIG details HUD's pandemic challenges
Posted Date: Thursday, December 17, 2020
The Department of Housing and Urban Development (HUD) is struggling to properly respond to the pandemic and implement CARES Act relief provisions, according to a new HUD Office of Inspector General (OIG) report.
The OIG also found issues with mortgage loan servicers failing to offer complete and accurate information to homeowners with Federal Housing Administration loans.
Read on for details on what the OIG considers the most serious issues facing HUD in fiscal year 2021.
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Trade groups warn against abruptly ending GSE conservatorship
Posted Date: Thursday, December 17, 2020
Four industry trade groups have asked Treasury Secretary Steven Mnuchin to oppose a “rushed” effort to end conservatorship of Fannie Mae and Freddie Mac.
The National Association of Realtors (NAR), Mortgage Bankers Association (MBA), American Bankers Association (ABA) and National Association of Home Builders (NAHB) warned in a letter to Mnuchin a rush to end conservatorship could destabilize the housing market.
Read on for details from NAR, MBA, ABA and NAHB.
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DOJ files race case against Alabama housing authority
Posted Date: Thursday, December 17, 2020
The Department of Justice (DOJ) has filed a lawsuit alleging an Alabama housing authority violated the Fair Housing Act by intentionally discriminating based on race or color against applicants for housing.
The housing authority denied African American the opportunity to live in overwhelmingly white housing complexes, while steering white applicants away from properties whose residents were predominantly African American, according to the DOJ’s lawsuit. Read on for details.
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NAR: More work needed on CFPB’s final QM rule
Posted Date: Monday, December 14, 2020
The Consumer Financial Protection Bureau (CFPB) has issued two new rules Director Kathy Kraninger said will support a smooth and orderly transition away from the government-sponsored enterprise (GSE) patch.
The first final rule replaces the current requirement for General QM loans that the consumer’s debt-to-income ratio (DTI) not exceed 43 percent with a limit based on the loan’s pricing.
Read on for reaction from the National Association of Realtors.
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CFPB sues debt collector
Posted Date: Monday, December 14, 2020
The Consumer Financial Protection Bureau has filed a lawsuit against BounceBack, Inc. for allegedly engaging in deceptive and otherwise unlawful debt collection acts or practices.
The Kansas City, Mo.-based company operates bad-check, pretrial-diversion programs on behalf of more than 90 district attorneys’ offices throughout the United States.
Read on for more details.
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DOJ files 20th suit alleging sexual harassment in housing
Posted Date: Monday, December 14, 2020
The Department of Justice (DOJ) has filed a lawsuit alleging a Massachusetts property manager violated the Fair Housing Act by subjecting female tenants to sexual harassment and unwelcome sexual contact.
The lawsuit is the 20th to be filed since the launch of the DOJ’s Sexual Harassment in Housing Initiative. The initiative is gaining momentum due to the COVID-19 crisis.
Read on for details from the DOJ.
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NAR: 2021 will be an even hotter housing market
Posted Date: Monday, December 14, 2020
Twenty U.S. economic and housing experts predict 2021 will be a happy new year indeed.
According to a survey by the National Association of Realtors (NAR), job conditions will improve next year in the likely event of COVID-19 being brought under control, and stable interest rates will continue in 2021.
Read on for comments from NAR Chief Economist Lawrence Yun and more survey results.
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Waters to Calabria: No ‘midnight rules’ on GSEs
Posted Date: Monday, December 14, 2020
House Financial Services Committee Chairwoman Maxine Waters has asked Federal Housing Finance Agency Director Mark Calabria to halt all efforts to raise the capital requirements for Fannie Mae and Freddie Mac and stop all efforts to release them from conservatorship.
She also requested the agency cease and desist from finalizing any “midnight rules” or other administrative actions until President-elect Joseph Biden is sworn into office.
Read on for more from Waters.
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Biden nominates Fudge as HUD secretary
Posted Date: Thursday, December 10, 2020
President-elect Joe Biden announced Dec. 10 his nominees for key members of his administration, including Congresswoman Marcia Fudge as secretary of the Department of Housing and Urban Development (HUD).
Fudge has represented Ohio’s 11th Congressional District for the last 12 years.She was the first Black and female mayor of Warrensville Heights, Ohio, and past chair of the Congressional Black Caucus.
Read on for details.
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CFPB settles with debt collector
Posted Date: Thursday, December 10, 2020
The Consumer Financial Protection Bureau (CFPB) has issued a consent order against a New Jersey debt collector accused of threatening and suing consumers to collect debts in places where it did not have a legally required license.
The bureau found RAB Performance Recoveries violated the Fair Debt Collection Practices Act and the Consumer Financial Protection Act by illegally demanding payment from consumers in Connecticut, New Jersey and Rhode Island.
Read on for details from the CFPB.
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CFPB sues online lender
Posted Date: Thursday, December 10, 2020
The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against an Oakland, Calif.-based lender for allegedly violating the Military Lending Act (MLA) while extending credit.
The action is part of a broader bureau sweep of investigations of multiple lenders that may be violating the MLA, which puts in place protections in connection with extensions of consumer credit for active duty servicemembers and their dependents.
Read on for more from the CFPB.
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OCC program promotes Minority Depository Institutions
Posted Date: Thursday, December 10, 2020
The Office of the Comptroller of the Currency (OCC) has a new plan to help promote Minority Depository Institutions (MDIs).
Read on for details about Project REACh, which stands for Roundtable for Economic Access and Change and brings together leaders from the banking industry, national civil rights organizations, business, and technology to reduce specific barriers that prevent full, equal, and fair participation in the nation’s economy.
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CFPB files RESPA suit against servicer
Posted Date: Monday, December 7, 2020
The Consumer Financial Protection Bureau (CFPB) has filed a RESPA complaint and proposed stipulated judgment and order against the largest non-bank mortgage servicer in the United States.
The bureau’s action against Nationstar Mortgage, LLC, which does business as Mr. Cooper, is part of a coordinated effort between the CFPB, a multistate group of state attorneys general and state bank regulators.
Read on for details from the CFPB’s suit and reaction from Mr. Cooper.
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CFPB finalizes advisory opinions policy
Posted Date: Monday, December 7, 2020
The Consumer Financial Protection Bureau (CFPB) has issued its final Advisory Opinions policy to provide clear rules to regulated entities.
Under the final policy, entities seeking to comply with regulatory requirements can submit a request to the bureau where uncertainty exists. Meanwhile, the bureau has issued new advisory opinions under the policy on earned wage access products and private education loans.
Read on for details.
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CFPB sues debt relief company
Posted Date: Monday, December 7, 2020
The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against a Massachusetts firm for allegedly violating the Telemarketing Sales Rule and the Consumer Financial Protection Act in connection with its debt-settlement and debt-relief services.
The company’s alleged unlawful activities include requesting and receiving fees before it performed its promised services and before consumers started payments under any debt settlement.
Read on for more details from the CFPB.
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CFPB adds to executive team
Posted Date: Monday, December 7, 2020
The Consumer Financial Protection Bureau (CFPB) has a new senior advisor and counselor to the director. The CFPB also announced four other additions to its executive team.
Read on for more information.
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FinCEN issues BSA guidance for non-profits
Posted Date: Monday, December 7, 2020
In coordination with the federal banking agencies, the Financial Crimes Enforcement Network (FinCEN) has issued a joint fact sheet to provide clarity to banks on how to apply a risk-based approach to charities and other non-profit organizations.
The fact sheet highlights the importance of ensuring that legitimate charities have access to financial services and can transmit funds through legitimate and transparent channels, especially during the COVID-19 pandemic.
Read on for more from FinCEN.
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Pending home sales dip
Posted Date: Monday, December 7, 2020
Pending home sales fell slightly in October, according to the National Association of Realtors (NAR).
Contract activity was mixed among the four major U.S. regions, with the only positive month-over-month growth happening in the South, although each region achieved year-over-year gains in pending home sales transactions. This marked the second straight month of decline for the Pending Home Sales Index.
Read on for reaction from NAR Chief Economist Lawrence Yun.
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FHA announces new single-family loan limits
Posted Date: Monday, December 7, 2020
The Federal Housing Administration (FHA) has announced the agency’s new schedule of loan limits for calendar year 2021 for its Single-Family Title II forward and Home Equity Conversion Mortgage insurance programs.
Loan limits for most of the country will increase in the coming year resulting from robust house price appreciation. The new loan limits are effective for FHA case numbers assigned on or after Jan. 1.
Read on for more from FHA.
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Horn's TRID takeaways
Posted Date: Monday, November 30, 2020
The Consumer Financial Protection Bureau’s (CFPB) recent report detailing the TRID rule’s impact on the industry shows it helped consumers better understand the mortgage transaction.
Five years after TRID went into effect, the CFPB looked back on the impact of the rule on the industry.
Read on to learn what Richard Horn, the former CFPB senior official who led the original TRID rule, said the industry can glean from the report.
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Circuit Court affirms TILA, RESPA case
Posted Date: Monday, November 30, 2020
An Illinois borrower sued her servicer and others over alleged overcharges of private mortgage insurance on her loan and refused to pay the servicer for property taxes and hazard insurance for the rest of the year.
After the U.S. District Court for the Northern District of Illinois previously dismissed the TILA counts and all but one of 18 RESPA counts, the borrower appealed.
Read on for highlights of the Seventh Circuit Court of Appeals’ recent decision.
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NAR president apologizes for past ‘shameful’ racial policies
Posted Date: Monday, November 30, 2020
Newly installed National Association of Realtors (NAR) President Charlie Oppler has issued a formal apology for the association’s past policies that contributed to segregation and racial inequality in America.
During a virtual fair housing summit hosted by The Hill and co-sponsored by NAR, Oppler spoke on behalf of the industry for NAR’s actions.
Read on for highlights of remarks made by Oppler and NAR Director of Fair Housing Bryan Greene.
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HUD launches pilot Recovery Housing Program
Posted Date: Monday, November 30, 2020
The Department of Housing and Urban Development (HUD) will launch a new Recovery Housing Program to help individuals recovering from substance-use disorders.
The program was authorized by the SUPPORT Act, and is funding 25 grantees, 24 states and the District of Columbia, whose age-adjusted rate of drug overdose deaths was above the national overdose mortality rate.
Read on for more details from HUD.
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DOJ files antitrust lawsuit against NAR
Posted Date: Monday, November 23, 2020
One year after intervening in a class action lawsuit accusing the National Association of Realtors (NAR) of violating federal antitrust laws, the Department of Justice (DOJ) has filed its own case against the trade association.
The DOJ’s suit alleges NAR established and enforced illegal restraints on the ways Realtors compete.
Meanwhile, NAR has filed a response to the class action suit filed in March 2019 and other “copycat lawsuits.” Read on for details.
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CFPB sues debt settlement company
Posted Date: Monday, November 23, 2020
The Consumer Financial Protection Bureau has filed a lawsuit against an Illinois debt settlement company and its owners.
The bureau alleges the company violated the Telemarketing Sales Rule by engaging in deceptive and abusive telemarketing acts or practices and the Consumer Financial Protection Act through deceptive acts or practices.
FDATR promised to provide student-loan debt-relief and credit-repair services to consumers nationwide. The company was involuntarily dissolved in September 2020. Read on for details.
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CFPB settles with nonbank
Posted Date: Monday, November 23, 2020
The Consumer Financial Protection Bureau (CFPB) has ordered an Orlando, Fla.-based nonbank to pay $9.3 million for misleading statements in its disclosures and advertisements of its auto loan program.
However, the CFPB suspended some of that amount due to the company’s and owner’s demonstrated inability to pay.
Read on for more from the bureau’s consent order, which contains requirements to prevent future violations.
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TILA threshold unchanged
Posted Date: Monday, November 23, 2020
The threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans during 2021 will remain the same as it was in 2020, the Consumer Financial Protection Bureau, Federal Reserve Board and Office of the Comptroller of the Currency announced.
The threshold amount is based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers.
Read on for more from the CFPB.
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FHFA finalizes capital rule
Posted Date: Monday, November 23, 2020
The Federal Housing Finance Agency (FHFA) has finalized its rule governing the required capital structures for Fannie Mae and Freddie Mac.
FHFA Director Mark Calabria said the rule ensures the safety and soundness of the enterprises.
However, National Association of Realtors (NAR) President Charlie Oppler said the proposal could significantly raise costs for consumers, hamper the GSEs’ ability to support underserved markets and undermine reforms made over the last decade. Read on for more from FHFA and NAR.
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