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CFPB director nominee addresses mortgage market
Posted Date: Monday, March 8, 2021
Rohit Chopra was one of the first Consumer Financial Protection Bureau leaders hired after the agency was created following the 2008 housing collapse.
If confirmed as the bureau’s next director, Chopra vows to make protecting the housing market from harmful effects of the COVID-19 pandemic a priority.
Chopra – an Indian American – said he would pay particular attention to the pandemic’s financial impact on minorities. Read on for highlights from his nomination hearing before the Senate Banking Committee.
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CFPB report details mortgage complaints
Posted Date: Thursday, March 25, 2021
The coronavirus pandemic resulted in a 54 percent increase in complaints to the Consumer Financial Protection Bureau (CFPB) in 2020, according to the agency’s annual consumer response report to Congress.
Conventional home mortgages were the most complained about mortgage type. Those mortgage complaints increased 14 percent from 2019 from the prior two years’ monthly average, and the most common issue consumers reported was trouble during payment process.
Read on for details from the CFPB.
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Texas court: Successor in interest not a borrower under RESPA
Posted Date: Thursday, March 25, 2021
A Texas woman claimed her servicer failed to provide her with information or documentation regarding her mortgage loan after she allegedly provided notice she was the former owners’ successor in interest.
Instead, the servicer accelerated the loan and posted the property for foreclosure, according to the plaintiff’s lawsuit.
Caliber argued the RESPA claim should be dismissed. Read on to see why a federal magistrate agreed with the servicer.
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CFPB submits FDCPA report to Congress
Posted Date: Thursday, March 25, 2021
The Consumer Financial Protection Bureau (CFPB) has released the 2020 annual report to Congress on the administration of the Fair Debt Collection Practices Act (FDCPA).
The report highlights efforts by the CFPB and Federal Trade Commission to protect consumers who have suffered profound financial impacts due to the COVID-19 pandemic. In 2020, the CFPB engaged in four public enforcement actions arising from alleged FDCPA violations.
Read on for more from the bureau.
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Existing-home sales decline
Posted Date: Thursday, March 25, 2021
Existing-home sales declined in February, following two prior months of gains, according to a new report from the National Association of Realtors (NAR).
Month-over-month, only one major region saw an increase in February. However, the market is still outperforming pre-pandemic levels, NAR Chief Economist Lawrence Yun said.
In addition, all four U.S. regions recorded year-over-year gains. Read on for more details from NAR.
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Large fintechs want streamlined supervision
Posted Date: Thursday, March 25, 2021
The Conference of State Bank Supervisors (CSBS) announced 13 nationwide payments firms have undergone or are currently undergoing their single comprehensive exams in the first quarter of 2021.
The goal is to complete single, coordinated exams for each nationally operating money service business in 2021 for a nationwide federated system of licensing and supervision, CSBS President and CEO John Ryan said.
Read on for details about the One Company, One Exam program.
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Perez to chair NAHREP’s Board of Governors
Posted Date: Thursday, March 25, 2021
The National Association of Hispanic Real Estate Professionals (NAHREP) announced Equity Prime Mortgage (EPM) CEO Eddy Perez will chair the organization’s 2021 Corporate Board of Governors (CBOG).
Perez, a Cuban-American entrepreneur, takes the helm at a time when Hispanics have become the leading source of homeownership growth in America.
Read on for details.
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Loan officer tied to Genuine Title RESPA action receives reduced fine
Posted Date: Monday, March 22, 2021
A Maryland loan officer accused of violating a ruling barring him from the mortgage industry for his role in a kickback scheme has been given a reduced fine for defying a consent order.
Gary Klopp – who was banned from the mortgage industry for two years - previously settled allegations that he and his companies violated RESPA by receiving kickbacks totaling more than $500,000 from the now-defunct Genuine Title. Read on for details.
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Critical defect rate hits record high
Posted Date: Monday, March 22, 2021
Regulatory compliance issues increased 25 percent in the third quarter of 2020, according to a new report from ACES Risk Management (ARMCO).
The overall critical defect rate is the highest since ACES began publishing the QC Trends Report in 2016.
“There is no way to sugarcoat it – Q3 was a volatile quarter for loan quality,” ACES Executive Vice President Nick Volpe said. Read on for details from the report.
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Fudge: COVID-19 worsened homelessness crisis
Posted Date: Monday, March 22, 2021
Homelessness has increased significantly among unsheltered populations and people experiencing chronic homelessness, according to a new report from the Department of Housing and Urban Development (HUD).
HUD recently released the first part of its Annual Homeless Assessment Report to Congress, which found 580,466 people experienced homelessness in the United States on a single night in 2020.
“The findings of this report are very troubling,” HUD Secretary Marcia Fudge said.
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NAR releases generational trends report
Posted Date: Monday, March 22, 2021
The popularity of multigenerational homes increased over the last year, as a rising number of homebuyers purchased larger residences compared to prior years, including millennials who continue to make up the largest share of homebuyers at 37 percent.
That’s according to the National Association of Realtors’ (NAR) most recent study on the characteristics of homebuyers, the 2021 Home Buyers and Sellers Generational Trends report. Read on for more from NAR.
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Lender resolves discrimination claims
Posted Date: Monday, March 22, 2021
The Department of Housing and Urban Development (HUD) has approved a conciliation agreement between Wells Fargo Bank and a customer, resolving the customer’s claim that the mortgage lender denied her loan after learning it was for a group home for persons with disabilities.
Read on for details from the agreement.
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CFPB employee job satisfaction up in 2020
Posted Date: Thursday, March 18, 2021
Internal opinions of senior leadership and the organization as a whole improved at the Consumer Financial Protection Bureau (CFPB) during Kathy Kraninger’s second year as director, according to the agency’s 2020 Annual Employee Survey results.
Sixty-five percent of the CFPB’s 1,454 full-time equivalent employees responded to the survey. Respondents were informed responses were voluntary and there would be no penalty if they chose not to respond. Read on for details.
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FinCEN issues guidance for illicit art trading
Posted Date: Thursday, March 18, 2021
The Financial Crimes Enforcement Network (FinCEN) has issued a notice warning financial institutions about Anti-Money Laundering (AML) Act efforts related to trade in antiquities and art.
The AML Act requires the secretary of the Treasury to perform a study of money laundering and the financing of terrorism through the trade in works of art.
Read on for more from FinCEN, which is encouraging financial institutions to continue filing suspicious activity reports on these topics.
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CFPB sues student loan debt relief company
Posted Date: Thursday, March 18, 2021
The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against a student loan debt relief company, its owner, and manager for allegedly charging thousands of consumers more than $3.5 million in illegal upfront fees.
The lawsuit, filed in U.S. District Court for the Central District of California, accuses the company and its owner of violating the Telemarketing Sales Rule (TSR).
Read on for details from the CFPB’s lawsuit.
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HUD charges Pennsylvania landlords with sexual harassment
Posted Date: Thursday, March 18, 2021
The Department of Housing and Urban Development (HUD) has charged the husband-and-wife owners of Pennsylvania apartments with sexual harassment and retaliation against a female resident.
HUD’s charge alleged the husband groped and tried to forcibly kiss the woman when he was in her unit to perform electrical repairs and then evicted her and her infant child after she told the wife about the harassment.
Read on for details from HUD’s charge.
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HUD awards $2.7 billion for public housing
Posted Date: Thursday, March 18, 2021
The Department of Housing and Urban Development (HUD) has awarded more than $2.7 billion to nearly 2,900 public housing authorities in all 50 states, plus Washington, D.C., the Guam, Puerto Rico and the Virgin Islands to make capital investments in their public housing units.
Read on for more from HUD.
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Toomey proposes housing finance reform
Posted Date: Thursday, March 18, 2021
Senate Banking Committee ranking member Pat Toomey has released a set of principles for housing finance reform.
In his proposal, Toomey (R-Pa.) set the framework for legislation to end the government sponsored enterprise (GSE) duopoly and foster a liquid secondary mortgage market while protecting taxpayers and promoting equitable access for all lenders.
Read on for details on Toomey’s proposed housing finance reform legislation.
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Ohio class action RESPA case dismissed
Posted Date: Monday, March 15, 2021
A federal judge has dismissed a class action RESPA lawsuit filed by an Ohio woman who claimed her servicer failed to timely and properly respond to her requests for information (RFI) and notices of error (NOE).
The servicer argued the claims should be dismissed because the purported RFIs and NOEs did not relate to “servicing” of the loan and the plaintiff failed to allege damages.
Read on for highlights of the ruling.
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California DFPI steps up regulatory efforts
Posted Date: Monday, March 15, 2021
The California Department of Financial Protection and Innovation (DFPI) is expanding efforts to protect consumers from financial impacts of COVID-19.
The DFPI is exercising its new authority to regulate a large group of newly covered financial services. The agency’s goals include helping more Californians navigate their foreclosure protection rights, work with licensees to ensure compliance with state and federal laws and track emerging scams.
Read on for details from DFPI Commissioner Manuel Alvarez.
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CFPB: Abusiveness policy harmed consumers
Posted Date: Monday, March 15, 2021
The Consumer Financial Protection Bureau (CFPB) is rescinding its policy statement prohibiting abusive acts or practices.
The 2020 “Statement of Policy Regarding Prohibition on Abusive Acts or Practices” was inconsistent with the bureau’s duty to enforce Congress’s standard and rescinding it will better serve the CFPB’s objective to protect consumers from abusive practices, as well as companies who comply with the law, the agency announced.
Read on for details from the bureau.
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FinCEN revises list of high-risk jurisdictions
Posted Date: Monday, March 15, 2021
The Financial Crimes Enforcement Network (FinCEN) has released a revised list of the jurisdictions with strategic deficiencies to counter money laundering, terrorist financing, and proliferation financing.
The changes may affect U.S. financial institutions’ obligations and risk-based approaches with respect to relevant jurisdictions.
Read on for details from FinCEN.
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HUD settles discrimination claim
Posted Date: Monday, March 15, 2021
The Department of Housing and Urban Development (HUD) has approved a conciliation agreement resolving allegations that 19 apartment complexes in and near Philadelphia refused to grant reasonable accommodations requested by individuals with disabilities.
The agreement is between the Housing Equality Center of Pennsylvania; management companies HumanGood East, dba Presby’s Inspired Life and HumanGood Pennsylvania, dba Presby’s Inspired Life; 27 apartment complex owners and an individual with disabilities.
Read on for details.
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REX files antitrust suit against NAR, Zillow
Posted Date: Thursday, March 11, 2021
An Austin, Texas real estate technology company has filed a federal antitrust complaint against Zillow and the National Association of Realtors (NAR).
REX – incorporated as Real Estate Exchange, Inc. – was launched in 2015 and uses technology to enhance efficiency and reduce brokerage commissions.
Read on for details from the new lawsuit against NAR, which faces multiple other suits alleging illegal restraints on trade.
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Trade groups react to Fudge’s confirmation as HUD secretary
Posted Date: Thursday, March 11, 2021
After being sworn in as the Department of Housing and Urban Development’s (HUD) 18th secretary, Marcia Fudge said she can’t wait to get started addressing the nation’s housing crisis.
The Senate voted 66-34 to confirm Fudge three months after President Joe Biden nominated her.
Read on for reaction from the National Association of Realtors, Mortgage Bankers Association, American Land Title Association and Council of Large Public Housing Authorities.
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CFPB warns lenders against LGBTQ+ discrimination
Posted Date: Thursday, March 11, 2021
The Consumer Financial Protection Bureau (CFPB) has issued an interpretive rule clarifying the prohibition against sex discrimination under the Equal Credit Opportunity Act and Regulation B includes sexual orientation discrimination and gender identity discrimination.
This prohibition also covers discrimination based on actual or perceived nonconformity with traditional sex- or gender-based stereotypes, and discrimination based on an applicant’s social or other associations.
Read on for details from acting CFPB Director Dave Uejio.
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Lenders buying new tech at record levels
Posted Date: Thursday, March 11, 2021
While mortgage lenders have been buying and installing technology at a rapid pace since the COVID-19 pandemic began, many aren’t actually using it as much as they could be, according to a new report from mortgage-advisory firm Stratmor Group.
For instance, eClosings did not advance in the way many expected. Instead, hybrid eClosings experienced the highest gains, increasing by 25 percent, according to the study.
Read on for highlights from Stratmor’s study.
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FDIC releases diversity plan
Posted Date: Thursday, March 11, 2021
The Federal Deposit Insurance Corp. (FDIC) has released its latest strategic plan to incorporate and promote diversity, equity, and inclusion (DEI) in every aspect of its mission and operations.
The plan is personal to the agency’s top leader, Jelena McWilliams, who was born in the former Yugoslavia and was once told she’d never succeed in America if she didn’t “lose her accent.”
Read on for more from the FDIC.
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HUD affords billions in affordable-housing grants
Posted Date: Thursday, March 11, 2021
The Department of Housing and Urban Development (HUD) has announced $5.5 billion in funding to local programs throughout the country that provide affordable housing, community development and economic opportunity, and support to individuals and families experiencing homelessness.
The funding includes $3.4 billion from the Community Development Block Grant Program and $1.3 billion from the HOME Investment Partnerships Program.
Read on for details from then-acting HUD Secretary Matthew Ammon.
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AG secures $500,000 for NY homeowners
Posted Date: Monday, March 8, 2021
New York Attorney General Letitia James has announced a settlement with a reverse mortgage servicing company to resolve allegations the servicer failed to provide homeowners with the clear, accurate information they needed to keep their homes.
As part of the agreement Champion, the servicer, must pay $500,000 to the Attorney General’s Equitable Reverse Mortgage Assistance program. Read on for details from the Office of the Attorney General.
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CFPB sues over alleged tech scams
Posted Date: Monday, March 8, 2021
The Consumer Financial Protection Bureau (CFPB) filed a lawsuit against a third-party payment processor accused of knowingly processing payments for companies engaged in Internet-based technical-support fraud.
The suit was filed in U.S. District Court for the Northern District of Illinois against Chicago-based BrightSpeed Solutions Inc. and its founder and former CEO Kevin Howard. The company wound down business operations in March 2019.
For more from the CFPB’s suit, read on.
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Pending home sales decrease
Posted Date: Monday, March 8, 2021
Pending home sales took a step backward in January as inventory constraints continue to hold back prospective buyers, according to the National Association of Realtors (NAR).
The South was the only region with a modest gain from the previous month, while the other three U.S. regions experienced month-over-month decreases in January. However, all four areas saw contract transactions rise from a year ago.
Read on for reaction from NAR Chief Economist Lawrence Yun.
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FHFA releases fourth quarter house prices report
Posted Date: Monday, March 8, 2021
U.S. house prices rose 10.8 percent from the fourth quarter of 2019 to the fourth quarter of 2020 according to the Federal Housing Finance Agency (FHFA) House Price Index.
House prices were up 3.8 percent compared to the third quarter of 2020. FHFA’s seasonally adjusted monthly index for December was up 1.1 percent from November.
Read on for details from Lynn Fisher, deputy director of FHFA’s Division of Research and Statistics.
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Bill seeks CFPB fair lending testing office
Posted Date: Monday, March 1, 2021
A bill that would establish an Office of Fair Lending Testing within the Consumer Financial Protection Bureau to review mortgage loan applications for compliance with the Equal Credit Opportunity Act (ECOA) is gaining new traction
The Fair Lending for All Act would provide strong criminal penalties for violating ECOA. National Fair Housing Alliance President and CEO Lisa Rice recently spoke in support of the bill before the House Financial Services Committee. Read on for details.
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CFPB to delay QM Rule's mandatory compliance date
Posted Date: Monday, March 1, 2021
The Consumer Financial Protection Bureau (CFPB) announced it expects to propose a rule to delay the General Qualified Mortgage (QM) Final Rule’s July 1, 2021 mandatory compliance date.
On Dec. 10, the CFPB issued two final rules to help support a smooth and orderly transition away from the government-sponsored enterprise patch and maintain access to responsible, affordable mortgage credit.
Read on for details from acting CFPB Director Dave Uejio.
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FHFA's COVID-19 moratoriums now in line with HUD's
Posted Date: Monday, March 1, 2021
The Federal Housing Finance Agency (FHFA) announced extensions of several measures to align COVID-19 mortgage-relief policies across the federal government.
“Borrowers and the housing finance market alike can benefit during the pandemic from the consistent treatment of mortgages regardless of who owns or backs them,” FHFA Director Mark Calabria said.
Read on for details from FHFA.
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Georgia borrower sues servicer after loan modification appeal denied
Posted Date: Monday, March 1, 2021
A Georgia borrower sued her servicer for allegedly foreclosing on her home before considering her timely and complete loss mitigation application and then failing to consider her appeal.
The servicer argued the application was incomplete.
Read on for highlights of the magistrate judge’s recommendation to dismiss in part and grant in part the servicer’s motion to dismiss the RESPA claims.
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HUD charges Pennsylvania housing provider with discrimination
Posted Date: Monday, March 1, 2021
A Pennsylvania housing provider is accused of refusing to allow assistance animals in rental properties.
The Department of Housing and Urban Development’s charge alleged rental agents told fair housing testers posing as prospective tenants with disabilities they could accept service animals but were not permitted to accept “emotional support” animals.
Read on for details from HUD.
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House passes Equality Act
Posted Date: Monday, March 1, 2021
The U.S. House of Representatives has passed legislation to extend fair housing rights based on sexual orientation and gender identity.
H.R. 5, “The Equality Act,” would ensure sexual orientation and gender identity are included as prohibited bases for discrimination under the Fair Housing Act.
National Association of Realtors (NAR) President Charlie Oppler issued a statement after the 224-to-206 vote. Read on for details from NAR and House Financial Services Committee Chairwoman Maxine Waters.
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Title Alliance created affiliated business niche
Posted Date: Thursday, February 25, 2021
Title Alliance, Ltd. has been in the business of creating and administering successful RESPA-compliant, joint-ventured title agencies for more than 37 years.
Today, Pennsylvania-based Title Alliance has about 40 companies representing about 60 branches in 11 different states, including Ohio, Florida, and Arizona.
CEO Jim Campbell spoke to RESPA News to share the RESPA-compliance lessons the company has gained through these affiliations. Read on for details in this open story.
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CFPB nominee to appear before Senate
Posted Date: Thursday, February 25, 2021
The Senate Banking Committee will meet remotely next week to discuss Rohit Chopra’s nomination to be the next director of the Consumer Financial Protection Bureau (CFPB).
Chopra, a member of the Federal Trade Commission since 2018, is best known for his efforts to reform the student loan system.
Read on for details.
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New CFPB administration files first lawsuit
Posted Date: Thursday, February 25, 2021
The Consumer Financial Protection Bureau (CFPB) has filed its first lawsuit under the new administration to send a message that financial scams targeting communities of color will not be tolerated.
The CFPB joined attorneys general in Virginia, Massachusetts and New York in suing Libre by Nexus, Inc., an immigration bond services company accused of a predatory scam that traps victims into paying expensive, long-term fees.
Read on for details.
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Texas storm victims get help from HUD
Posted Date: Thursday, February 25, 2021
The Department of Housing and Urban Development (HUD) has begun implementing federal disaster assistance for Texas to provide support to homeowners and homebuyers in areas affected by the recent severe winter storm.
On Feb. 19, President Joe Biden issued a major disaster declaration for a multitude of counties in Texas. The president’s declaration allows HUD to offer foreclosure relief and other assistance to impacted families living in those counties. Read on for more from HUD.
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FHA extends policy flexibilities
Posted Date: Thursday, February 25, 2021
The Federal Housing Administration (FHA) has extended a set of policy flexibilities for single-family lenders and servicers designed to maintain new mortgage originations for homebuyers and allow 203(k) rehabilitation projects to continue during the COVID-19 pandemic.
The Department of Housing and Urban Development said the temporary policies will allow lenders to continue originating and closing mortgages designated for FHA insurance endorsement during the pandemic and ensure critical home repairs in progress can be completed. Read on for details.
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Arkansas man sues servicer after home demolished
Posted Date: Monday, February 22, 2021
An Arkansas borrower who was current on his mortgage alleged his servicer ordered his home to be demolished while he waited for a full accounting of his loan.
The plaintiff said he sent multiple qualified written requests to Wells Fargo over three years, but the servicer did not respond in a timely fashion as required by RESPA.
Read on to see why a judge granted the servicer’s motion to dismiss the case.
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Existing-home sales continue to climb
Posted Date: Monday, February 22, 2021
Existing-home sales rose in January, marking two consecutive months of growth, according to the National Association of Realtors (NAR).
Total existing-home sales increased 0.6 percent from December to a seasonally adjusted annual rate of 6.69 million in January. Sales in total climbed year-over-year, up 23.7 percent from a year ago (5.41 million in January 2020).
Read on for NAR Chief Economist Lawrence Yun’s take on the statistics.
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FDIC hires first chief innovation officer
Posted Date: Monday, February 22, 2021
The Federal Deposit Insurance Corp. (FDIC) has named its first chief innovation officer to help lead the agency’s efforts to promote the adoption of innovative technologies across the financial services sector.
FDIC Chairwoman Jelena McWilliams said the new hire brings years of technical knowledge and an entrepreneurial spirit to the agency’s FDiTech team.
Read on for details from the FDIC.
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HUD takes action on Puerto Rico recovery plan
Posted Date: Monday, February 22, 2021
The Department of Housing and Urban Development (HUD) and Puerto Rico’s housing department, Departamento de la Vivienda, have announced two partial approvals of Vivienda’s Action Plan, approving the use of $6.2 billion in Community Development Block Grant Mitigation funding for Puerto Rico.
HUD said it is committed to working with Puerto Rico to reset the agency’s relationship on the island’s recovery efforts.
Read on for details from HUD.
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Industry wants bipartisan climate change policy
Posted Date: Monday, February 22, 2021
The American Bankers Association has joined nine other financial trade groups in releasing a set of principles to help finance the transition to a low-carbon economy.
“As the new administration takes shape, the financial services industry seeks to engage with incoming leaders and members of Congress on a bipartisan basis to help establish a shared vision for U.S. climate policy,” the U.S. Climate Finance Working Group said.
Read on for details.
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HUD allocates millions for affordable housing in Washington, D.C.
Posted Date: Monday, February 22, 2021
The Department of Housing and Urban Development (HUD) announced the Department of Housing and Community Development in Washington, D.C. will receive a $38.8 million loan to preserve and increase the number of affordable units in the area.
The funding is guaranteed through HUD’s Section 108 Loan Guarantee Program, which provides local governments with a public investment tool to help renew communities and catalyze development in underserved areas. Read on for details.
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