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News By Edition
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RESPA News Monthly Edition
RESPA News Monthly
March 2024
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Foreclosure scammers to pay $12 million in consumer redress
Posted Date: Monday, February 12, 2024
The Consumer Financial Protection Bureau (CFPB) has resolved an enforcement suit years in the making by securing $12 million in consumer redress and penalties.
The resolution comes after multiple appeals of a judgment initially awarded to the bureau in 2019. The company in question was accused of engaging in a foreclosure relief scam and taking millions of fees in advance of legal services never rendered.
RESPA News spoke with Richard Horn, co-managing partner at Garris Horn LLP and former senior counsel and special advisor in the CFPB’s Office of Regulations, about the takeaways from the recent announcement.
Read on for more details.
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Amended complaint shows Navy Federal’s own data indicated lending disparities
Posted Date: Thursday, February 22, 2024
The plaintiffs in the class action suit filed against Navy Federal Credit Union accusing the lender of discriminating against people of color in its home lending practices submitted an amended complaint to the court. Attorney Ben Crump of Ben Crump Law PLLC and Civil Rights Activist Al Sharpton hosted a press conference about the case in New York on Feb. 22.
The event was held at the National Action Network’s (NAN) House of Justice, to highlight the importance of the case, Sharpton said. He said NAN would stand with Crump and offered “we will do whatever is necessary” to address the harm Navy Federal is accused of causing, including picket lines if requested.
Read on for more details.
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Keller Williams settles Sitzer/Burnett case
Posted Date: Thursday, February 1, 2024
After months of negotiations, plaintiffs in the Sitzer/Burnett case filed an unopposed motion for preliminary approval of a settlement reached with Keller Williams.
This marks the third defendant to settle the antitrust lawsuit related to real estate agent commissions. According to court documents, the settlement is substantially similar to those reached with former defendants Anywhere Real Estate and RE/MAX, LLC.
Read on for more details.
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NAR presses ‘pause’ on presidential initiative
Posted Date: Friday, February 16, 2024
National Association of Realtors (NAR) President Kevin Sears and the Board of Directors voted to halt any sort of presidential initiatives during Sears’ tenure.
RESPA News reached out to NAR for a statement.
Read on for more details.
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California court orders end to mortgage relief scam
Posted Date: Friday, February 16, 2024
The case is Federal Trade Commission, et al., v. Green Equitable Solutions, et al., which was filed in September 2022 in the U.S. District Court for the Central District by the Federal Trade Commission (FTC), working in partnership with the California Department of Financial Protection and Innovation (DFPI).
The complaint accused the individual defendants – Michael Nabati, Armando Solis Barron, Dominic Ahiga (aka Michael Grinnell) and Roger Dyer – of falsely promising to lower homeowners’ mortgage payments to prevent foreclosure. The scam defrauded more than 3,000 distressed homeowners nationwide, according to the FTC, targeting senior citizens and veterans in particular.
Read on for more details.
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Plaintiff brings RESPA, TILA suit against servicer on behalf of her child
Posted Date: Monday, February 12, 2024
Jefferson Financial Federal Credit Union moved to dismiss a RESPA and Truth in Lending Act complaint in the federal court for the Eastern District of Louisiana.
The matter was brought by the plaintiff on behalf of her minor child, claiming the refinance loan taken out by her deceased husband was predatory and fraudulent. The credit union was asserting her child and husband’s sole heir was liable for his father’s debts up to the value of the inherited property.
Read on for more details.
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TILA, other federal claims considered in case against Caliber Home Loans
Posted Date: Thursday, February 15, 2024
A borrower attempted to claim he rescinded the refinanced mortgage loan on his home almost three years before Five Star Asset Management bought it at a foreclosure sale.
The defendants argued the pro se plaintiff failed to state a cause of action upon which relief could be granted.
Read on for more details.
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Sagent appoints new CEO
Posted Date: Thursday, February 29, 2024
Sagent, a Warburg Pincus-backed fintech software company modernizing mortgage servicing for banks and lenders, today appointed Eugene “Geno” Paluso as CEO, effective Feb. 12.
Along with Sagent’s board and executive team of servicing experts, Paluso will operationalize the $14 trillion mortgage servicing industry’s first and only cloud-native software platform in 2024.
Read on for more details.
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Successor-in-interest attempts RESPA complaint against servicers
Posted Date: Monday, February 26, 2024
A homeowner who purchased her childhood home from her parents alleged Rushmore Loan Management Services violated RESPA by failing to comply with loss mitigation procedures after they refused to process her borrower modification application.
Rushmore, the initial servicer on the loan, repeatedly refused to confirm the borrower as the successor-in-interest, resulting in the holder of the mortgage, U.S. Bank Trust, initiating a foreclosure sale.
Read on for more details.
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Manufactured home sparks dispute over property contract
Posted Date: Monday, February 26, 2024
A disagreement between the buyer and seller in residential purchase and sale agreement related to a manufactured home ended up before the Court of Appeals of Washington, Division 1.
The buyer alleged the seller breached the sales contract after he failed to take steps to have the vehicle title eliminated from the unit, as required by Washington law.
Read on for more details.
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Condos could offer avenue to address housing supply challenge
Posted Date: Monday, February 26, 2024
Condominium sales make up almost 10 percent of the mortgage market – Fannie Mae asked senior mortgage executives about ways to better manage condo risk in hopes of increasing affordable housing options during historically low inventory levels.
Respondents to the Mortgage Lender Sentiment Survey indicated that incorporating condo project eligibility into automated underwriting systems as the most helpful idea in improving condo lending practices.
Read on for more details.
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Wealth gap narrowing between Hispanic, non-Hispanic households
Posted Date: Monday, February 26, 2024
The National Association of Hispanic Real Estate Professionals revealed its State of Hispanic Wealth report, showing how Latinx Americans are the only demographic to have tripled their wealth in the last decade, a goal established by the Hispanic Wealth Project in 2014.
Data from the Federal Reserve’s 2022 Survey of Consumer Finances indicated this milestone was achieved two years ahead of schedule.
Read on for more details.
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January sees rise in existing home sales
Posted Date: Monday, February 26, 2024
Existing home sales experienced an uptick in January, with sales increasing in the Midwest, South, and West month-over-month. Year-over-year, sales improved in the West, but decreased in the other three regions.
National Association of Realtors’ chief economist said current trends show a market “full of multiple offers and propelled by record-high housing wealth.”
Read on for more details.
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Agencies award $14M to house homeless veterans
Posted Date: Monday, February 26, 2024
The Department of Housing and Urban Development and the Department of Veterans Affairs have issued $14 million to assist homeless veterans in securing permanent housing.
Over 60 public housing agencies across the U.S. received funding for vouchers.
Read on for more details.
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New loss mitigation home retention solution offered
Posted Date: Thursday, February 22, 2024
The Federal Housing Administration (FHA) is establishing a new loss mitigation home retention solution to help additional borrowers avoid foreclosure and retain their homes.
Mortgage Bankers Association President and CEO Bob Broeksmit said his organization supported this additional tool to help servicers better assist struggling borrowers avoid foreclosure in today’s environment, and he commended FHA for its transparency and engagement.
Read on for more details.
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CFPB revises supervisory appeals process
Posted Date: Thursday, February 22, 2024
The Consumer Financial Protection Bureau (CFPB) has revised its supervisory appeals process to increase options for regulated institutions.
The updates included broadening the rule on which CFPB officials are eligible to evaluate appeals, increasing the number of options for resolving an appeal, expanding what matters are subject to appeal, and other clarifying changes.
Read on for more details.
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Mortgage Cadence sales team welcomes new member
Posted Date: Wednesday, February 21, 2024
Mortgage Cadence, a subsidiary of Accenture (NYSE: ACN), announced George Morales will join the company’s sales team.
Morales has nearly 25 years of mortgage and real estate industry experience. In his new role, he will use not only his industry knowledge but the connections he has built to help the sales team bring Mortgage Cadence technology to new lenders.
Read on for more details.
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Chair of subcommittee chastises VA official in hearing over VASP program
Posted Date: Friday, February 16, 2024
In a hearing titled, “Sink or Swim? A deep dive into the current state of VA’s home loan program in a competitive market,” the chair of the House Committee on Veterans’ Affairs Subcommittee on Economic Opportunity Oversight expressed concern about the Department of Veterans Affairs’ (VA) ability to effectively administer the Veterans Affairs Servicing Purchase program.
“The road to hell is paved with good intentions,” Rep. Derrick Van Orden (R-Wis.) said after VA Executive Director, Loan Guaranty Service John Bell provided his opening statement. “I’m concerned that you do not have the authority statutorily in the governing statutes for the home loan program, and that you are simply making this up.”
Read on for more details.
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Report highlights financial habits, homebuying sentiments of young homebuyers
Posted Date: Friday, February 16, 2024
NextGen Research, an organization focused on homeownership education, inspiration, and resources, partnered with National MI to compile a report detailing the behavior and preferences of the next generation of homebuyers.
“Last year, we found significant variances in psychometric and behavioral approaches to homebuying and financial wellness between Gen Z and millennials, as well as barriers by gender, race and ethnicity, and occasionally by income level,” Kristin Messerli, executive director of FirstHomeIQ, the nonprofit behind NextGen Research, said.
Read on for more details.
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Survey: Homeowners lack important understanding of escrow accounts
Posted Date: Friday, February 16, 2024
LERETA, a national provider of real estate tax and flood services for mortgage servicers, conducted a survey of more than 1,000 homeowners and discovered only around half of respondents had a solid understanding about how escrow accounts work.
The company stated this is cause for concern, as mortgage escrow accounts across the country are likely to experience increases because of rising property taxes and increased insurance rates.
Read on for more details.
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Representative calls for $500B affordable housing investment
Posted Date: Friday, February 16, 2024
Rep. Becca Balint (D-Vt.) called for a $500 billion investment in affordable housing, among other initiatives, to tackle the current challenges facing homeowners and renters.
Read on for more details.
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Pro se RESPA action against US Bank, PHH Corp. survives motion to dismiss
Posted Date: Thursday, February 15, 2024
A plaintiff representing herself brought claims against several defendants, alleging violations of RESPA and the U.S. Constitution in relation to the foreclosure on her South Carolina home.
The judge dismissed some claims and defendants, but the RESPA allegations against U.S. Bank and PHH Corp. survived the motion to dismiss.
Read on for more details.
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Home equity solid, but decreasing
Posted Date: Thursday, February 15, 2024
A report from ATTOM on home equity in the fourth quarter of 2023 showed mortgaged residences in the country have maintained strong equity, even if there was a slight decrease quarter-over-quarter.
The report indicated the highest-levels of equity-rich homeowners were concentrated in the Northeast and West, with nine of the 10 states designated as such located in those regions.
Read on for more details.
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HUD updates Equity Action Plan
Posted Date: Thursday, February 15, 2024
The Department of Housing and Urban Development’s (HUD) Equity Action Plan, part of the department’s efforts to implement President Joe Biden’s Executive Order on Advancing Racial Equity and Support for Underserved Communities Through the Federal Government (EO 14091), detailed the ways it has promoted equitable community and housing development, helped to increase the supply of affordable housing, and advanced housing justice.
“Equity is at the heart of the daily work we do as an agency,” HUD Secretary Marcia Fudge said. “For too long, people – particularly Black, brown, and poor people – have been left out and left behind. This administration is using our resources to reverse the deep-seated harm caused by prior federal policies and prioritize racial equity in all HUD programs.”
Read on for more details.
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Former HUD, DOJ, FHFA officials form fair lending, servicing advisory firm
Posted Date: Thursday, February 15, 2024
Former officials from the Department of Housing and Urban Development, Federal Housing Administration, Department of Justice, and the Federal Housing Finance Agency have joined forces to create a new firm offering financial services and specialists in fair lending, consumer protection law, and regulation.
Read on for more details.
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86 percent of metro areas report home price increases
Posted Date: Monday, February 12, 2024
Of the metro areas measured for the National Association of Realtors’ report for the last quarter of 2023, 15 percent of markets experienced a double-digit annual appreciation in home prices, an increase compared with the year before.
The data also indicated the monthly mortgage payment on a typical existing single-family home with a 20 percent down payment went up 10 percent quarter-over-quarter.
Read on for more details.
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Input requested on how to strengthen housing infrastructure projects
Posted Date: Monday, February 12, 2024
The Department of Housing and Urban Development (HUD) is requesting information related to projects that receive federal financial assistance and are, or will be, subject to requirements under President Joe Biden’s Build America Buy America Act, which was part of the Infrastructure Investment and Jobs Act passed Nov. 15, 2021.
“Today’s request will help us understand how we can best expand the domestic supply chain for these housing infrastructure projects,” HUD Secretary Marcia Fudge said.
Read on for more details.
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Husch Blackwell welcomes CFPB veteran to its ranks
Posted Date: Monday, February 12, 2024
Husch Blackwell, LLP, added a new partner to its Financial Services and Capital Markets industry group in Washington, D.C.
The new partner has over 12 years of experience at the Consumer Financial Protection Bureau as an original member of the Office of Regulations.
Read on for more details.
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Bill to boost housing opportunities passes in House
Posted Date: Monday, February 12, 2024
In a landslide vote of 357-70, the House of Representatives passed a bipartisan bill titled the Tax Relief for American Families and Workers Act of 2024.
The tax framework is expected to improve housing opportunities for Americans by enhancing programs like the low-income housing tax credit and child tax credit.
Read on for more details.
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Nationstar Mortgage argues no private cause of action in RESPA case
Posted Date: Thursday, February 8, 2024
Nationstar Mortgage, LLC argued a plaintiff’s RESPA claims should be dismissed because she attempted to bring a lawsuit under sections of RESPA that do not provide for a private cause of action.
The court considered the servicer’s motion to dismiss, electing to grant in part and deny in part.
Read on for more details.
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First National Bank of Pennsylvania, DOJ settle redlining allegations
Posted Date: Thursday, February 8, 2024
The Department of Justice (DOJ), the state of North Carolina, and the First National Bank of Pennsylvania reached an agreement to resolve allegations of redlining predominantly Black and Hispanic neighborhoods in Charlotte and Winston-Salem, N.C.
“This settlement should send a strong message to banks, mortgage companies and financial institutions across the country that redlining will not be tolerated,” Kristen Clarke, assistant attorney general for the Civil Rights Division of the DOJ, said. “We are prepared to hold institutions accountable when they engage in discriminatory conduct.”
Read on for more details.
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Ranking member of Financial Services Committee calls for Navy Federal hearing
Posted Date: Thursday, February 8, 2024
Rep. Maxine Waters (D-Calif.) wrote to Rep. Patrick McHenry (R-N.C.), chair of the House Financial Services Committee, calling for a hearing to address the issues highlighted in the recent discrimination lawsuit filed against Navy Federal Credit Union.
Waters’ missive comes after senators sent a request to the Department of Housing and Urban Development and the Consumer Financial Protection Bureau to look into Navy Federal’s mortgage lending practices.
Read on for more details.
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Freddie Mac offers new credit to help very low-income borrowers
Posted Date: Thursday, February 8, 2024
Amid the affordability challenges plaguing the housing market, Freddie Mac introduced a new credit to assist low-income families and reduce the amount needed for a down payment and other closing costs.
Beginning on March 1, the credit will be made available for very-low-income borrowers earning 50 percent of their area’s median income.
Read on for more details.
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New SaaS to expand ancillary real estate services
Posted Date: Thursday, February 8, 2024
Sisu, a fintech company that offers software solutions across the real estate operating system, launched a new initiative to assist its clients in establishing their own mortgage, insurance, and title businesses.
The company said the offering marks a significant step in reshaping the real estate landscape with a comprehensive business and technology solution to enhance ancillary revenue streams for real estate teams and brokerages.
Read on for more details.
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RESPA plaintiff makes foreclosure moratorium argument against summary judgment
Posted Date: Monday, February 5, 2024
A plaintiff claimed Nationstar Mortgage violated RESPA when it attempted to foreclose on his home during the foreclosure moratorium put in place during the pandemic.
Nationstar moved for summary judgment, asserting the timing of plaintiff’s application did not trigger requirements under Regulation X.
Read on for more details.
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Senate subcommittee hears testimony on AI impact on housing
Posted Date: Monday, February 5, 2024
The Senate Subcommittee on Housing, Transportation and Community Development heard testimony from three witnesses on the promises and threats artificial intelligence (AI) poses in the housing sector.
National Fair Housing Alliance President and Chief Executive Officer Lisa Rice, Urban Institute Non-Resident Fellow of the Housing Finance Policy Center Vanessa Perry, and SolasAI Partner and Artificial Intelligence Practice Leader Nicholas Schmidt shed light on how AI is being currently being used and what AI legislation should focus on in the coming years.
Read on for more details.
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Pending home sales end on a December high note
Posted Date: Monday, February 5, 2024
December’s pending home sales increased before the end of 2023, with new contract signings growing in the Midwest, South, and West month-over-month as well as year-over-year. Only the Northeast saw a decline in both metrics. The index, which is a forward-looking indication of home sales based on contract signings, experienced an 8.3 percent increase compared with November.
Year-over-year and across all four national regions, there was a 1.3 percent increase in the number of pending contracts. For reference, an index of 100 is equal to the level of contract activity measured in 2001.
Read on for more details.
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Tech company provides loss mitigation support
Posted Date: Monday, February 5, 2024
A loss mitigation technology provider for small- and mid-sized mortgage servicers announced two more companies have taken on its services, bringing the number of servicers to sign on in 2024 to 10.
“This sophisticated yet user friendly tool not only streamlines the intricate landscape of FHA [Federal Housing Administration] loss mitigation options from application through claim but also ensures meticulous compliance,” Essex Mortgage Chief Servicing Officer Nathan Sands said about the service.
Read on for more details.
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eXp Realty, Citrus Closing Group create strategic affiliated title business
Posted Date: Monday, February 5, 2024
eXp Realty and Citrus Closing Group are working together to create a strategic affiliated title business to bring title services to Orlando, Fla., and surrounding areas.
The two companies stated the partnership aims to simplify the homebuying and selling process while providing quality service.
Read on for more details.
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Warren, Brown write to Fed about mortgage interest rates
Posted Date: Monday, February 5, 2024
Sens. Elizabeth Warren (D-Mass.) and Sherrod Brown (D-Ohio), along with other members of Congress, sent letters to Jerome Powell, chair of the Board of Governors of the Federal Reserve System, in advance of the Federal Open Market Committee meeting.
The missives emphasized the importance of lower interest rates for the housing market.
Read on for more details.
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Veteran brings ECOA claim against Navy Federal over identity theft
Posted Date: Thursday, February 1, 2024
A Coast Guard veteran brought suit against Navy Federal Credit Union citing the Equal Credit Opportunity Act and Florida Consumer Collections Practices Act when the institution denied him refinancing on his mortgage after his identity was stolen.
Despite managing the identify theft, Navy Federal claimed the plaintiff was liable for almost $4,000 the credit union had charged off, which was the cited reason for the refi denial.
Read on for more details.
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CFPB proposed ‘junk fee’ prohibition could lead to other fee bans
Posted Date: Thursday, February 1, 2024
The latest proposed rule from the Consumer Financial Protection Bureau would prohibit depository institutions from charging non-sufficient funds fees on transactions declined at the point of sale.
Garris Horn LLC Co-Managing Partner Richard Horn told RESPA News the way the bureau invokes its “abusive” prong as justification for fee prohibition could be cause for concern for how it might approach other fees, such as closing fees, including title insurance.
Read on for more details.
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HUD Secretary Fudge testifies before House committee
Posted Date: Thursday, February 1, 2024
Representatives from both sides of the aisle asked Department of Housing and Urban Development Secretary Marcia Fudge about how the agency is fulfilling its statutory mission, and what Congress can do to help.
“The support of this committee is critical to ensuring that every American has a roof over their head and the ability to live in strong and resilient communities,” Fudge said.
Read on for more details.
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First Financial Bank, NCRC enter into community benefits agreement
Posted Date: Thursday, February 1, 2024
The National Community Reinvestment Coalition has entered into a community benefits agreement with First Financial Bank. The agreement establishes an investment of $2.4 billion over the next five years to facilitate loans and other support for low- and moderate- income clients and census tracts.
“These new commitments will directly improve the material conditions of under-resourced neighborhoods within the bank’s footprint,” NCRC President and CEO Jesse Van Tol said. “Every bank should take notice and embrace the same collaborative approach that First Financial continues to take on these issues.”
Read on for more details.
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