News By Edition

For years, attorneys have advised their lender clients not to simply approve a marketing agreement and lock it in a drawer.

Now, it’s more important than ever for lenders to continually monitor performance with any type of arrangement that involves a referral source because the Federal Deposit Insurance Corp. is becoming more involved in RESPA enforcement, Franzen & Salzano President Loretta Salzano told RESPA News.

Read on for details from Salzano.

An Alabama couple accused their servicer of wrongfully initiating foreclosure proceedings against them after failing to conduct a reasonable investigation and respond to a qualified written request and notice of error. 

The servicer argued it is entitled to summary judgment because the borrowers could not prove the alleged violation caused their damages.

Read on to see why a judge refused to dismiss the case filed against Nationstar Mortgage.

The Department of Housing and Urban Development announced it will enforce the Fair Housing Act to prohibit discrimination based on sexual orientation and gender identity.

The memorandum was prompted by a recent executive order directing executive branch agencies to examine further steps to combat LGBTQ discrimination, as well as a Supreme Court decision in a landmark civil rights case.

Read on for details and reaction from the National Association of Realtors.

The Consumer Financial Protection Bureau (CFPB) is looking to hire attorneys at all experience levels to help with “vigorous oversight of all applicable federal laws.”

In a recent blog post, acting CFPB Director Dave Uejio said the agency needs a larger workforce to hold accountable companies that break the law and harm American consumers and small businesses during this time of financial stress. Read on for details from Uejio.

Every metro area tracked by the National Association of Realtors (NAR) through the fourth quarter of 2020 had home prices grow from a year ago, according to the industry trade association’s latest quarterly report.

Eighty-eight percent of the metros followed saw double-digit price increases. Only 115 metro areas saw such growth in the third quarter.

Read on for insight from NAR Chief Economist Lawrence Yun.

Consumer Bankers Association (CBA) President and CEO Richard Hunt has written leaders of Congress to discuss ways to “keep customers financially stable and serve as a constant source of breaking information necessary to navigate the ever-changing legislative, regulatory and operational environment brought about by COVID.”

CBA’s main 2021 priorities include driving the industry’s pandemic response and stepping up diversity, equity, and inclusion efforts.

Read on for more details from Hunt.

In an effort to help keep people in their homes and address the health and economic impact of COVID-19, U.S. Senate members have reintroduced the $75 billion Homeowner Assistance Fund bill.

The Reed-Brown-Leahy bill (S. 254) would help protect struggling homeowners and communities by preventing avoidable foreclosures, evictions and utility shut offs. The bill is supported by a diverse coalition of housing advocates, including RESPRO, the National Association of Realtors and the American Bankers Association. Read on for details.

A pair of Texas borrowers alleged their servicers engaged in “dual tracking” by failing to properly process their loss mitigation applications while pursuing foreclosure.

The borrowers claimed they got behind on their payments after Hurricane Harvey damaged their home.

The servicers argued the borrowers failed to submit a timely and complete application as required by RESPA.

Read on to see why a magistrate judge has recommended the case be allowed to proceed to a jury.

Fannie Mae and Freddie Mac are extending the moratoriums on single-family foreclosures and real estate owned (REO) evictions. 

The foreclosure moratorium applies to enterprise-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by an enterprise through foreclosure or deed-in-lieu of foreclosure transactions. The current moratoriums were set to expire on Feb. 28, 2021. Read on for details from the Federal Housing Finance Agency.

The Federal Trade Commission (FTC) has written a letter to the Consumer Financial Protection Bureau’s Office of Fair Lending providing an annual summary of its activities enforcing the Equal Credit Opportunity Act.

Read on for details from the FTC.

A Missouri owner and property manager of duplex apartments is accused of refusing to grant a prospective tenant with a mental health disability a reasonable accommodation to waive the required pet deposit for her assistance animal.

The Department of Housing and Urban Development’s (HUD) charge alleged the property manager told the woman the rules related to assistance animals only applied to individuals who are blind and/or deaf. Read on for more from HUD.

The Financial Crimes Enforcement Network (FinCEN) is seeking industry feedback to plan an upcoming global anti-money laundering (AML) and financial crime symposium.

Section 6211 of the AML Act of 2020 requires the Department of the Treasury to periodically convene a symposium focused on how new technology can be used to combat financial crimes and other illicit activities more effectively. 

Read on for details on the inaugural conference from FinCEN.

The Consumer Financial Protection Bureau (CFPB) has released its new semi-annual report to Congress.

The report covered the period of Oct. 1, 2019 through Sept. 30, 2020 and was released after then-Director Kathy Kraninger resigned.

“Unfortunately, we know that challenging and uncertain times do not dissuade bad actors,” Kraninger said.

The report examined the various challenges consumers face in shopping for or obtaining consumer financial products or services. Read on for details.

Acting Consumer Financial Protection Bureau Director Dave Uejio has directed the Division of Research, Markets, and Regulations to take immediate actions to address housing insecurity and fair lending.

Uejio warned the nation was too late to respond to the warning signs in the mortgage market just over a decade ago, but that there is still time to prevent lasting harm caused by the COVID-19 pandemic.

Read on for more from Uejio.

A Texas borrower sued her servicer for allegedly initiating foreclosure proceedings while her complete loss mitigation application was pending. She also claimed the servicer failed to assign her a single point of contact until foreclosure was already moving forward.

The servicer argued the borrower did not submit a complete application for borrower assistance more than 37 days before foreclosure, as required under Regulation X.

Read on for highlights of the judge’s opinion.

The Department of Housing and Urban Development (HUD) has awarded $2.5 billion to renew support to thousands of local homeless-assistance programs across the nation.

The funding process was dramatically streamlined because communities have been and will continue to be consumed with COVID-19 response and have limited capacity to participate in the traditional Continuum of Care grant competition.

Read on for more details from acting HUD Secretary Matthew Ammon.

Despite dropping slightly in the last month of 2020, the latest pending home sales registered as the highest ever recorded in the month of December, according to a National Association of Realtors (NAR) report.

The latest Pending Homes Sales Index said December marked the fourth consecutive month of month-over-month declines.

Meanwhile, NAR Chief Economist Lawrence Yun said housing prices show no signs of slowing down. Read on for details.

The Federal Housing Administration (FHA) has issued a series of waivers of provisions in its Single-Family Housing Policy Handbook 4000.1 that would normally require in-person contact between mortgage servicers and borrowers, including seniors with FHA-insured Home Equity Conversion reverse mortgages. 

These waivers allow for safe social distancing to help combat the COVID-19 pandemic while allowing important mortgage servicing activities to continue. 

Read on for details from FHA.

The FAQs cover SAR requests by law enforcement, media concerns, grand jury subpoenas, and more.

Read on for details from the Financial Crimes Enforcement Network, the Federal Reserve, the Federal Deposit Insurance Corp., the National Credit Union Administration and the Office of the Comptroller of the Currency.

However, the court determined the claim ultimately fails because it does not allege sufficient facts to show the borrower suffered damages. The plaintiff argued he suffered damages after the servicer incorrectly reported mortgage payments he was making.

Read on for highlights of the judge’s opinion granting the servicer’s motion to dismiss.

The Consumer Financial Protection Bureau (CFPB) has filed a proposed settlement to resolve its lawsuit against an Oakland, Calif.-based lender accused of violating the Military Lending Act (MLA) while extending credit.

The settlement with LendUp Loans, LLC is the first resolution in the bureau’s broader sweep of investigations of multiple lenders that may be violating the MLA.

Read on for details from the CFPB.

Department of Housing and Urban Development (HUD) Secretary-Designate Marcia Fudge has vowed to do everything possible to ensure every American has a roof over their head.

Testifying before the Senate Banking Committee, Fudge said particularly during the pandemic, HUD exists to serve the most vulnerable people in America.

“I believe I am up to the challenge that is before me,” she said.

Read on for more from her testimony.

The Consumer Bankers Association (CBA) has once again asked lawmakers to replace the Consumer Financial Protection Bureau’s (CFPB) single-director structure with a five-person, bipartisan commission. 

In a letter to Senate Banking Committee members, CBA President and CEO Richard Hunt said a CFPB committee is appropriate in light of the Supreme Court’s decision last year in the bureau’s case against Seila Law. The court found the bureau’s structure to be unconstitutional. 

Read on for details.

The Consumer Financial Protection Bureau (CFPB) has published a special edition of Supervisory Highlights detailing the toll the COVID-19 pandemic has had on servicers.

Since March, servicers have faced a number of significant challenges due to having to quickly implement the CARES Act and keep up with evolving guidance. Many servicers reported operational constraints, resource burdens and service interruptions to keep up with forbearance requests.

Read on for details from the CFPB.

An Ohio couple filed a RESPA lawsuit alleging their servicer erroneously reinstated the tradeline related to their mortgage loan, causing their credit rating to plummet.

After foreclosure proceedings were initiated, the defendants agreed to report to the three major credit reporting agencies that the tradeline had been deleted.

The servicer argued the borrower’s correspondence did not constitute either a qualified written request or a notice of error. Read on for details.

President Joe Biden has issued a memorandum and executive order asking the Department of Housing and Urban Development (HUD) to address housing policies that contributed to segregated neighborhoods and a racial gap in homeownership.

Biden is asking HUD to examine the effects of the agency’s recent actions, including its decision to repeal the Obama-era Affirmatively Furthering Fair Housing regulation. Read on for reaction from acting HUD Secretary Matthew Ammon.

Giving federal licenses or charters to non-bank fintech companies could be harmful to consumers, Conference of State Bank Supervisors President and CEO John Ryan warned.

A Consumer Financial Protection Bureau taskforce recently recommended Congress either authorize the bureau to issue federal charters or licenses to non-bank fintech companies engaged in payments, remittances, or lending services, or clarify the authority of the Office of the Comptroller of the Currency.

Read on for more from Ryan.

Federal Trade Commission (FTC) actions led to more than $482 million in refunds to consumers across the country in 2020, according to the agency.

The FTC Act allows the agency to seek refunds from companies whose actions harm consumers.

Read on for details.

The Department of Housing and Urban Development (HUD) has announced new leaders in its major divisions.

Read on to see HUD’s new picks for its Office of the Secretary, Office of General Counsel, Office of Public Affairs, Office of Congressional and Intergovernmental Relations, and more.

Read on for reaction from CBC Mortgage Agency, whose clientele is more than 25 percent Hispanic.

President Joe Biden has announced acting heads of the Consumer Financial Protection Bureau (CFPB) and Department of Housing and Urban Development (HUD).

Read on for details of the new acting leaders, who will serve until nominated leaders are confirmed by the Senate.

At the request of President Joe Biden, the Department of Housing and Urban Development (HUD) has extended eviction and foreclosure moratoriums on federally-backed, single-family mortgages through March 31.

“Immediately safeguarding borrowers with HUD-insured or guaranteed mortgages is an important first step in tackling larger, systemic housing challenges that must be overcome,” acting Federal Housing Commissioner Janet Golrick said.

Read on for more details from HUD’s acting secretary.

Existing-home sales in 2020 reached their highest level in 14 years, according to a new report by the National Association of Realtors (NAR).

Home sales in 2020 performed at their highest levels since 2006 despite the pandemic, NAR Chief Economist Lawrence Yun said. Meanwhile, home prices show no signs of slowing down. December’s national price increase marks 106 straight months of year-over-year gains. Read on for more from Yun.