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RESPA for a purchase market
Posted Date: Thursday, May 26, 2022
As the market has shifted from refinances to being primarily purchase-based, the issues RESPA attorneys are seeing also have changed. Instead of lead-generation concerns, clients are asking old school RESPA questions involving marketing services agreements, joint ventures, sponsored events, gifts, entertainment and other more traditional areas. Katten & Temple, LLP Of Counsel Brian Levy, Franzen & Salzano President Loretta Salzano and MLinc Solutions founder and CEO Mark Meyer have more details.
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Texas plaintiff allowed to amend deficient RESPA filing
Posted Date: Thursday, June 23, 2022
A Texas title holder sued his mortgage servicer for allegedly not taking all steps necessary to avoid foreclosure and for not timely responding to a qualified written request for information (QWR).
The servicer contended the plaintiff failed to adequately plead his claims for violations of dual tracking and did not provide enough facts concerning his QWR.
Read on to learn more about the case.
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HUD, Movement Mortgage settle discrimination complaint
Posted Date: Thursday, June 23, 2022
The U.S. Department of Housing and Urban Development (HUD) recently announced a conciliation agreement between the National Community Reinvestment Coalition (NCRC) and Movement Mortgage LLC, resolving allegations the latter engaged in discriminatory lending practices based on race and national origin.
The agreement stemmed a complaint filed with HUD by NCRC alleging it conducted testing in the Seattle-Tacoma area which revealed different treatment of Black and Hispanic testers and white testers seeking housing loans.
Read on for more information.
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CFPB targets alleged debt-relief scammer
Posted Date: Thursday, June 23, 2022
The Consumer Financial Protection Bureau (CFPB) acted against the owner of a student-loan debt relief company who allegedly withdrew money from student borrowers’ bank accounts without authorization.
Under this scheme, the owner of a student-loan debt relief company unlawfully debited more than $240,000 from hundreds of student borrowers’ accounts, the CFPB alleges.
Read on to learn more.
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New podcast examines legal and regulatory developments and trends
Posted Date: Thursday, June 23, 2022
The law firm Greenberg Traurig, LLP recently launched a podcast where attorneys will discuss the latest legal and regulatory developments and trends that may impact businesses.
The podcast is called Big Law Redefined and its first episode is “The New Frontier of Fair Lending: 2022 Enforcement Trends and Emerging Risks,” featuring attorneys Lisa Simonetti and Benjamin Saul.
Read on to learn more.
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HUD settles Maryland disability-discrimination complaint
Posted Date: Thursday, June 23, 2022
The U.S. Department of Housing and Urban Development (HUD) has entered a consent order with a Baltimore, Md., condominium company and its management agent resolving a discrimination charge alleging disability discrimination.
HUD accused Scarlett Place Residential Condominium, Inc. and Brodie Management, Inc. of violating the Fair Housing Act by refusing to waive their rule limiting occupants to two persons per bedroom to allow a family of eight to temporarily rent an apartment.
Read on to learn more.
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Justice Department settles Florida deceptive-advertising case
Posted Date: Monday, June 20, 2022
The U.S. District Court for the Middle District of Florida has entered a consent order resolving the U.S. Department of Justice’s Fair Housing Act claims against a group of individuals and companies accused of targeting Hispanic homeowners with Spanish-language advertising that falsely promised to cut their mortgage payments in half.
Defendants accused in the scheme allegedly targeted Hispanic homeowners for predatory mortgage loan modification services and interfered with those individuals’ ability to keep their homes.
Read on to learn more.
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FFIEC releases 2021 HMDA data
Posted Date: Monday, June 20, 2022
The Federal Financial Institutions Examination Council announced the availability of data on 2021 mortgage lending transactions reported under the Home Mortgage Disclosure Act by 4,338 U.S. financial institutions.
The data are used by industry, consumer groups, regulators and others to assess potential fair lending risks and for other purposes.
Read on to learn more.
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CFPB eyeing customer service at big banks
Posted Date: Monday, June 20, 2022
The Consumer Financial Protection Bureau (CFPB) is seeking public input on how bank customers can assert their rights to better customer service at big banks.
The CFPB said the decline of relationship banking has deprived some consumers of customized advice, responsiveness and care, forcing some to struggle to obtain basic information from banks.
Read on for more information.
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House passes financial services equity bill
Posted Date: Monday, June 20, 2022
By a vote of 215-207, the House recently passed the Financial Services Racial Equity, Inclusion, and Economic Justice Act (HR 2543) which seeks to hold banks, corporations, and financial institutions accountable for denying access to capital to millions.
Maxine Waters (D-Calif.), chairwoman of the House Committee on Financial Services, called the legislation historic.
Read on to learn more.
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Report: Critical defects on the rise
Posted Date: Monday, June 20, 2022
The overall critical defect increased 0.08 percent to 1.95 percent, up 4 percent from the prior quarter, according to the ACES Mortgage QC Industry Trends Report.
The report analyzes post-closing quality control data derived from ACES Quality Management & Control software. Critical defects improved year-over-year.
Read on to learn more.
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HUD awards funds to fight housing discrimination
Posted Date: Monday, June 20, 2022
Snippet: The U.S. Department of Housing and Urban Development (HUD) recently awarded $125,000 to support fair housing organizations working to help end housing discrimination.
Read on to learn more.
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Alabama homeowner claims RESPA violations to overturn foreclosure
Posted Date: Thursday, June 16, 2022
An Alabama resident claimed a finance company, a bank and its servicer failed to comply with RESPA requirements when it foreclosed on his property following his discharge from bankruptcy.
The defendants argued they complied with RESPA’s timing requirements and the defendant sustained no RESPA-related damages.
Read on to learn more.
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NAR, ALTA support FHFA’s equity plans
Posted Date: Thursday, June 16, 2022
Both the National Association of Realtors (NAR) and the American Land Title Association (ALTA) issued statements supporting the finalized equity plans for Fannie Mae and Freddie Mac recently released by the Federal Housing Finance Agency (FHFA).
FHFA said the plans are designed to complement the initiatives outlined in its Strategic Plan: Fiscal Years 2022–2026.
Read on to learn more.
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CFPB examining employer-driven debt
Posted Date: Thursday, June 16, 2022
The Consumer Financial Protection Bureau (CFPB) recently announced it has launched an inquiry into practices and financial products that may leave employees indebted to their employers.
In a request for information, the bureau is soliciting data about emerging practices and financial products referred to as employer-driven debt. The CFPB said it is interested in knowing whether consumers have a meaningful choice in accepting employer-driven debt products.
Read on to learn more.
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HUD announces affordable housing, community development awards
Posted Date: Thursday, June 16, 2022
The U.S. Department of Housing and Urban Development (HUD) recently announced 83 awards totaling $147 million for affordable housing and community development projects that primarily benefit people with low and moderate incomes in American Indian and Alaska Native communities.
A 2017 HUD study found that housing conditions for Tribal households are substantially worse than other U.S. households, with overcrowding in Tribal areas being especially severe.
Read on to learn more.
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CFPB releases HAF flyers
Posted Date: Thursday, June 16, 2022
The Consumer Financial Protection Bureau (CFPB) has provided flyers promoting the Homeowner Assistance Fund programs for borrowers.
The flyers are produced in English and six other languages, Spanish, Chinese, Vietnamese, Korean, Tagalog, and Arabic. CFPB said mortgage services may voluntarily provide the flyers to borrowers.
Read on to learn more.
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CFPB clarifies credit-denial procedures
Posted Date: Monday, June 13, 2022
The Consumer Financial Protection Bureau (CFPB) recently confirmed that federal anti-discrimination law requires companies to explain to applicants the specific reasons for denying an application for credit or taking other adverse actions, even if the creditor is relying on credit models using complex algorithms.
The CFPB published a Consumer Financial Protection Circular to remind the public, including those responsible for enforcing federal consumer financial protection law, of creditors’ adverse action notice requirements under the Equal Credit Opportunity Act.
Read on to learn more.
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Racial discrimination suit against Georgia landlords settled
Posted Date: Monday, June 13, 2022
The U.S. District Court for the Northern District of Georgia recently approved a consent decree resolving the Department of Justice’s Fair Housing Act lawsuit alleging racial discrimination in housing by the owners and manager of two rental properties in Cedartown, Ga.
The lawsuit alleged the property owners steered Black housing applicants who are elderly or have a disability away from a predominantly white housing complex to a predominantly Black one.
Read on to learn more.
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CFPB terminates lender’s no-action status
Posted Date: Monday, June 13, 2022
The Consumer Financial Protection Bureau (CFPB) issued an order to terminate Upstart Network from its list of approved “no-action letters.”
Previously, the CFPB had granted special regulatory treatment to Upstart to protect the lender from being charged with fair lending law violations regarding its underwriting algorithm.
Read on to learn more.
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California seeks input on oversight of crypto products
Posted Date: Monday, June 13, 2022
The California Department of Financial Protection and Innovation is seeking input from stakeholders and the public in developing guidance and, as appropriate, regulatory clarity and supervision of covered persons and service providers involved in the offering and provision of crypto asset-related financial products and services in California.
Specifically, the agency is seeking comments on regulatory priorities, CCFPL regulation and supervision and market-monitoring functions.
Read on to learn more.
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Pending home sales continue to decrease
Posted Date: Monday, June 13, 2022
Pending home sales slipped in April, as contract activity decreased for the sixth consecutive month, according to the National Association of Realtors Read on to learn more.
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HUD, FHA celebrating National Homeownership Month
Posted Date: Monday, June 13, 2022
The U.S. Department of Housing and Urban Development and the Federal Housing Administration will hold a series of events promoting the administration’s efforts to support potential homeowners, increase housing supply and affordability and ensure sustainability for existing homeowners.
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New Jersey TRID complaint won't be reconsidered
Posted Date: Thursday, June 9, 2022
A New Jersey borrower who alleged her servicer violated TRID by failing to send notice requirements of assignment of mortgage, transfer of mortgage loan and foreclosure has lost another legal fight. Earlier this year, a judge dismissed the woman’s amended complaint because the borrower’s claims challenging the validity of the assignment of her mortgage and the foreclosure are issues that should have been raised in the state court proceeding.
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CFPB opens new office to promote financial services
Posted Date: Thursday, June 9, 2022
The Consumer Financial Protection Bureau is opening a new office, the Office of Competition and Innovation, as part of a new approach to help spur innovation in financial services by promoting competition and identifying stumbling blocks for new market entrants. The office will replace the Office of Innovation that focused on an application-based process to confer special regulatory treatment on individual companies.
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CFPB studies older adults living in mobile homes
Posted Date: Thursday, June 9, 2022
Where older adults choose to live is often affected by their unique needs and challenges, including having a fixed income, enduring increased medical costs and needing accommodations that can handle possible physical and cognitive decline.
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NAHREP: White House’s Housing Supply Action Plan will help Latinos
Posted Date: Thursday, June 9, 2022
The National Association of Hispanic Real Estate Professionals (NAHREP) announced it supports President Joe Biden’s Housing Supply Action Plan. The plan addresses the ongoing housing supply shortage and sets a national strategy to close the housing supply gap in five years. “Latinos are central to the long-term strength of the housing market,” NAHREP Co-Founder and CEO Gary Acosta said.
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FDIC publishes final mortgage servicing rule
Posted Date: Thursday, June 9, 2022
The Federal Deposit Insurance Corp. has published a final rule to amend the deposit insurance regulations for trust accounts and mortgage servicing accounts.
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Redfin settles redlining lawsuit
Posted Date: Monday, June 6, 2022
Redfin Corp. has reached a settlement agreement with a group of 10 housing organizations that accused the Seattle-based real estate brokerage of redlining. The National Fair Housing Alliance and nine other agencies filed a federal lawsuit in October 2020 claiming the Seattle-based real estate brokerage offers its services in predominately white neighborhoods at a substantially greater rate than it does in communities of color.
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Industry reacts to Thompson FHFA confirmation
Posted Date: Monday, June 6, 2022
The National Association of Realtors and American Land Title Association praised the Senate’s decision to pave the way for acting Federal Housing Finance Agency (FHFA) Director Sandra Thompson to become the agency’s permanent leader. Thompson, who had been acting director since June 2021, is the first Black woman to lead the FHFA.
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CFPB, FDIC take action on false claims
Posted Date: Monday, June 6, 2022
The Consumer Financial Protection Bureau (CFPB) released an enforcement memorandum that addresses prohibited practices on claims about Federal Deposit Insurance Corp. (FDIC) insurance. Specifically, firms cannot misuse the name or logo of the FDIC or make deceptive representations about deposit insurance.
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NAR, Urban Institute call for more inclusive access to homeownership
Posted Date: Monday, June 6, 2022
The National Association of Realtors and the Urban Institute hosted a policy forum at the National Press Club in Washington, D.C., to discuss reforming mortgage finance and other policies to make homeownership more accessible to underserved communities.
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FHFA addresses climate change
Posted Date: Monday, June 6, 2022
The Federal Housing Finance Agency (FHFA) is the newest member of the Network of Central Banks and Supervisors for Greening the Financial System. FHFA Director Sandra Thompson affirmed the agency’s commitment to making tangible progress toward addressing the impact of climate change, including severe structural damage caused by hurricanes, tornadoes, floods, droughts and wildfires, on the nation’s housing finance system.
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HUD announces $10.3 billion in affordable housing grants
Posted Date: Monday, June 6, 2022
The Department of Housing and Urban Development announced $10.3 billion in Fiscal Year 2022 formula grants to communities across the United States for housing and community development activities ranging from affordable housing development and public housing modernization to economic opportunities for people with low and moderate incomes.
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Zillow co-marketing suit set for trial
Posted Date: Thursday, June 2, 2022
A class action lawsuit alleging Zillow Group’s co-marketing program violated RESPA is set for jury trial. The online real estate company is accused of misrepresenting its compliance with RESPA and allowing investors to acquire Zillow’s securities at inflated prices during the class period. Zillow maintains it did not provide referrals to lenders, but instead displayed advertising from agents and lenders to consumers.
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NS3: OR awards recognize industry trailblazers
Posted Date: Thursday, June 2, 2022
The CEO of a mortgage fulfillment company, a Florida attorney and a data and analytics specialist were recognized by October Research, LLC with its annual awards for leadership, innovation, and philanthropy. Read on to learn more.
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Gordon sworn in as FHA commissioner
Posted Date: Thursday, June 2, 2022
Julia Gordon was sworn in as the Department of Housing and Urban Development’s assistant secretary for housing and the Federal Housing Administration commissioner. Read on for Gordon’s thoughts on her new position.
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Existing-home sales fall
Posted Date: Thursday, June 2, 2022
Existing-home sales recorded a third straight month of declines, slipping slightly in April, according to the National Association of Realtors’ latest report. Month-over-month sales were split amongst the four major U.S. regions, with two areas posting gains and the other two experiencing waning sales in April. Year-over-year sales struggled, as each of the four regions reported dips.
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Indiana borrower claims mortgage servicer unjustly enriched
Posted Date: Friday, May 27, 2022
An Indiana borrower filed a RESPA lawsuit alleging his mortgage servicer was unjustly enriched by collecting unnecessary payments. The servicer argued the district court has no jurisdiction to hear the case because the issues were already resolved in a state foreclosure proceeding. Read on to see how a judge ruled.
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CFPB issues interpretive rule to strengthen states’ enforcement power
Posted Date: Friday, May 27, 2022
The Consumer Financial Protection Bureau has issued an interpretive rule that describes states’ authority to pursue lawbreaking companies and individuals that violate the provisions of federal consumer financial protection law. The interpretive rule affirms states can enforce the Consumer Financial Protection Act, including the provision making it unlawful for covered persons or service providers to violate any provision of federal consumer financial protection law.
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Regulators issue joint CRA proposal
Posted Date: Friday, May 27, 2022
Federal bank regulatory agencies have issued a joint proposal to strengthen and modernize regulations implementing the Community Reinvestment Act to better achieve the purposes of the law--to encourage banks to help meet the credit needs of their local communities, including low- and moderate-income neighborhoods, in a safe-and-sound manner.
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CFPB promotes Spanish-language disclosures
Posted Date: Friday, May 27, 2022
The Consumer Financial Protection Bureau (CFPB) is encouraging financial service providers to better serve people with limited English proficiency.
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Fudge announces plan to lower housing costs
Posted Date: Friday, May 27, 2022
Housing and Urban Development (HUD) Secretary Marcia Fudge recently traveled to Columbus, Ohio, to announce legislative and administrative steps designed to close the housing supply gap within the next five years. She was joined by Sen. Sherrod Brown, Rep. Joyce Beatty and Columbus Mayor Andrew Ginther.
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Webinar gives tips on automating compliance burdens
Posted Date: Thursday, May 26, 2022
October Research, LLC’s “Utilizing Technology for RESPA Compliance” complimentary webinar included two industry experts who shared their expertise on how to best automate compliance burdens. Ross Gloudeman, general counsel and chief compliance officer for Azimuth GRC, and Saul Ewing Arnstein & Lehr Partner Francis X. “Trip” Riley III detailed factors to consider when choosing the right technology.
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Trade groups react to new FHA commissioner
Posted Date: Thursday, May 26, 2022
Julia Gordon’s confirmation as commissioner of the Federal Housing Administration and assistant secretary of housing at the Department of Housing and Urban Development met with positive reaction from several trade groups, including the National Association of Realtors and Mortgage Bankers Association.
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DOJ settles Iowa sexual harassment suit
Posted Date: Thursday, May 26, 2022
The Department of Justice has resolved a lawsuit alleging that an Iowa landlord violated the Fair Housing Act by sexually harassing female tenants.
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FFIEC re-elects Fite as SLC committee chair
Posted Date: Thursday, May 26, 2022
The Federal Financial Institutions Examination Council announced Thomas Fite has been re-elected State Liaison Committee chairman. The one-year term runs from May 1, 2022, until April 30, 2023.
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