|
News By Edition
|
RESPA News Monthly Edition
RESPA News Monthly April 2023
|
|
Class certified in RESPA kickback lawsuit against bank
Posted Date: Thursday, March 16, 2023
The plaintiffs of a lawsuit out of the Federal District Court of Maryland petitioned for class certification in their RESPA and antitrust claims against Eagle National Bank.
The action alleged the bank and All Star Title, Inc. violated RESPA via illegal kickbacks disguised as a marketing agreement and the Sherman Act’s prohibition on price fixing.
Read on for more details.
|
|
|
Mortgage group faces TILA lawsuit, accused of interfering with appraisal
Posted Date: Monday, March 27, 2023
A mortgage group and an appraisal company faced allegations of violating the Truth in Lending Act in the U.S. District Court in the Southern District of West Virginia.
The plaintiff filed a class action suit over how the companies handled the appraisal and subsequent refinancing of her marital home, alleging the mortgage company improperly interfered with a neutral appraisal.
To learn more about the opinion, read on.
|
|
|
CFPB funding structure finds support in Second Circuit
Posted Date: Monday, March 27, 2023
The Consumer Financial Protection Bureau (CFPB) found support in the U.S. Court of Appeals for the Second Circuit for its funding structure, as a three-judge panel ruled in its favor against a debt collector who was challenging a civil investigative demand issued by the bureau.
The decision comes as the issue is being prepared to be heard by the U.S. Supreme Court this fall.
Read on for more details.
|
|
|
HMDA and its role in fair lending
Posted Date: Monday, March 27, 2023
RESPA News spoke with Richard Horn, co-managing partner at Garris Horn LLP, about how exactly Home Mortgage Disclosure Act data is being used in “modern-day redlining” enforcement actions.
Horn also shared some suggestions on how best to prepare for agency scrutiny.
Read on for more details.
|
|
|
HUD reverts to 2013 discriminatory effects rule
Posted Date: Monday, March 27, 2023
The U.S. Department of Housing and Urban Development published a final rule rescinding its 2020 discriminatory effects rule in favor of the interpretation published in 2013.
The agency found the 2020 rule complicated the analysis of whether a policy had an unlawful discriminatory effect and made it more difficult for covered parties to ascertain whether their policies were compliant.
Read on for more details.
|
|
|
CBC Mortgage welcomes new capital markets director
Posted Date: Monday, March 27, 2023
CBC Mortgage Agency welcomed a 22-year mortgage trading veteran as its capital markets director.
In this role he will help support the housing finance agency as it provides down payment assistance for first-time homebuyers and helps low-to-moderate income consumers become homeowners.
Read on for more details.
|
|
|
FHFA seeks input on credit score updates
Posted Date: Monday, March 27, 2023
The Federal Housing Finance Agency has begun seeking public input related to its implementation of updated credit score requirements.
It stated it is looking for stakeholder engagement in the creation of proposed milestones for Fannie Mae and Freddie Mac.
Read on for more details.
|
|
|
Court hears motion related to damages in RESPA kickback case
Posted Date: Thursday, March 23, 2023
After the District Court of Maryland granted in part and denied in part the motions for summary judgment from both parties, federal Judge Stephanie Gallagher heard the plaintiffs’ motions to reconsider the appropriate method for calculating RESPA damages.
Plaintiffs asserted appropriate damages are treble damages based on the cost of all settlement services in a given transaction, while the court had determined treble damages to be based on the amount the consumers were overcharged for said services.
Read on for more details.
|
|
|
Home sales increase in February, breaking yearlong decline
Posted Date: Thursday, March 23, 2023
The National Association of Realtors’ (NAR) monthly report on existing-home sales revealed an uptick during the month of February, breaking a 12-month streak of declines.
“Conscious of changing mortgage rates, homebuyers are taking advantage of any rate declines,” NAR Chief Economist Lawrence Yun said. “Moreover, we’re seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs.”
Read on for more details about the housing market.
|
|
|
Redlining exposé leads to settlement with Coldwell Banker
Posted Date: Thursday, March 23, 2023
The New York Attorney General’s (AG) office and Coldwell Banker reached a settlement in relation to an investigative report alleging the bank’s fair lending practices were subpar.
According to the AG’s findings, Coldwell Banker agents may have subjected buyers of color to different requirements than white homebuyers, directed prospective homebuyers of color to certain neighborhoods, and otherwise engaged in biased behavior.
Read on to learn more about the settlement.
|
|
|
HUD establishes two new offices to improve disaster recovery
Posted Date: Thursday, March 23, 2023
The U.S. Department of Housing and Urban Development will establish new offices in the Office of the Deputy Secretary and the Office of Community Planning and Development to improve its recovery efforts for homeowners facing the direct impacts of weather-related disasters.
The agency stated the new offices will streamline its recovery and resilience work by increasing coordination, reducing bureaucracy, and increasing capacity to get recovery funding to where it needs to go more quickly.
Read on for more details.
|
|
|
BSI Financial Services appoints new president, COO
Posted Date: Thursday, March 23, 2023
In the newly created position of president and chief operations officer, BSI Financial Services’ newest addition will be responsible for scaling the company’s platform and delivering value to customers.
His resume includes many high-ranking positions for other major servicers, including Nationstar Mortgage (dba Mr. Cooper), CitiMortgage, and Fannie Mae.
Read on for more details.
|
|
|
CFPB seeks input on mortgage loan originator rules
Posted Date: Monday, March 20, 2023
The Consumer Financial Protection Bureau is conducting its standard review of the mortgage loan originator rules, part of the Truth in Lending Act’s Regulation Z.
As part of the review, it has requested public comment on the rules’ impact on small entities. These comments may help in determining whether change is warranted.
To learn more about the request, read on.
|
|
|
FHFA director talks affordable housing at NAR forum
Posted Date: Monday, March 20, 2023
Federal Housing Finance Agency Director Sandra Thompson joined National Association of Realtors’ (NAR) Vice President of Policy Bryan Greene for a discussion on affordable housing and the implications for today’s homebuyers at NAR’s policy forum on the current housing market.
“Let’s make sure there is liquidity at all times, all places, not just some places,” Thompson said. “And make sure people have safe, decent, and ever-elusive affordable housing, and do it in a sustainable way.”
Read on for more details from the conversation.
|
|
|
HUD 2024 budget supports underserved communities, housing initiatives
Posted Date: Monday, March 20, 2023
The U.S. Department of Housing and Urban Development’s (HUD) 2024 budget will expand its housing choice voucher program, increase affordable housing supply, advance efforts to end homeless, advance equity, and expand access to homeownership.
In addition to these goals, HUD Secretary Marcia Fudge said the budget would help in making the agency easier to navigate so as to reach the people who need the greatest assistance.
Read on for more details.
|
|
|
Hispanic homeownership continues to rise
Posted Date: Monday, March 20, 2023
The National Association of Hispanic Real Estate Professionals’ 2022 State of Hispanic Homeownership Report showed the homeownership rate among the minority population increased to 48.6 percent, marking eight years of consistent growth.
This study is conducted to better understand the trends in homebuying among this demographic and includes information from all 25 top Latinx real estate practitioners.
To learn more about the report, read on.
|
|
|
NAHB welcomes NRP Group executive as AHG chair
Posted Date: Monday, March 20, 2023
The National Association of Home Builders’ Affordable Housing Group selected the NRP Group’s senior vice president of strategic partnerships and government affairs as its chairwoman.
This new addition brings over 20 years of multifamily, affordable housing development, policy, and advocacy experience to the organization.
Read on for more details.
|
|
|
FHFA: New upfront fee implementation delayed
Posted Date: Monday, March 20, 2023
In a statement from Federal Housing Finance Agency Director Sandra Thompson, the agency announced it would be delaying the implementation of its new upfront fee for certain borrowers with a high debt-to-income ratio.
The announcement came after significant feedback from mortgage industry stakeholders.
Read on for more details.
|
|
|
House subcommittee hears testimony on CFPB reform
Posted Date: Thursday, March 16, 2023
The House Financial Services Committee’s Subcommittee on Financial Institutions and Monetary Policy held a hearing entitled “Consumer Financial Protection Bureau [CFPB]: Ripe for Reform,” where it heard testimony from five witnesses on the leadership structure, funding, budget, and operations of the bureau.
The testimony spoke to the reasons behind proposed bills such as the CFPB Dual Mandate and Economic Analysis Act, CFPB–IG Reform Act, and Consumer Financial Protection Commission Act.
Read on for more details.
|
|
|
Let’s talk Townstone: How a small broker beat the CFPB on redlining
Posted Date: Thursday, March 16, 2023
For years, the Consumer Financial Protection Bureau has been using its authority under the Equal Credit Opportunity Act and Regulation B to address what it calls “modern day redlining.”
RESPA News sat down with key members of the prevailing legal team who defended a small mortgage company in Chicago against such allegations to discuss how the case came to be and how the ruling will impact the bureau’s enforcement strategy.
Read on to hear more on CFPB v. Townstone Financial.
|
|
|
NY AG recovers funds for homeowners denied mortgage relief
Posted Date: Thursday, March 16, 2023
The New York Attorney General’s office conducted an investigation into Servis One, Inc. dba BSI Financial Services, Inc. related to its actions under the mandated mortgage relief programs during the COVID-19 pandemic.
This resulted in the mortgage servicer remitting hundreds of thousands of dollars in penalties and restitution, as it failed to offer entitled relief to homeowners struggling to make payments.
Read on for more details.
|
|
|
|
Mortgage servicers respond to CFPB ‘junk fee’ concerns
Posted Date: Monday, March 13, 2023
The Consumer Financial Protection Bureau has been focused on what it classifies as “junk fees” for some time. The bureau released a special edition of its supervisory highlights on how companies are updating practices and making consumers whole based on previous bureau findings.
This report covered the issues the bureau found during its examinations between July 1, 2022, and Feb. 1.
Read on for more details.
|
|
|
White House 2024 budget lowers housing costs, expands ownership
Posted Date: Monday, March 13, 2023
As part of the 2024 budget for the federal government, the Biden-Harris administration allotted more than $175 billion for mandatory and discretionary housing investments.
These investments, the White House stated, will lower costs for renters and homebuyers, strengthen the economy, and advance equity, economic opportunity, and fair housing principles.
Read on for more details.
|
|
|
OIG finds fault with HUD voucher program
Posted Date: Monday, March 13, 2023
In its audit of the U.S. Department of Housing and Urban Development’s (HUD’s) Section 8 management assessment program (SEMAP), the Office of the Inspector General stated the agency could improve its process for evaluating the performance of public housing agencies’ (PHA’s) housing choice voucher (HCV) programs.
“We recommend that HUD’s deputy assistant secretary for public housing and voucher programs enhance SEMAP or develop a new performance measurement process that would identify PHAs with underperforming HCV programs,” the report stated.
Read on for more details.
|
|
|
Lawsuit settled with Michigan landlord
Posted Date: Monday, March 13, 2023
As part of its Sexual Harassment in Housing Initiative, the Department of Justice (DOJ) reached a settlement with a Michigan landlord over claims of Fair Housing Act violations.
“The Fair Housing Act protects the rights of tenants to live in peace and security without the fear that their housing provider will sexually harass them,” Assistant Attorney General Kristen Clarke of the DOJ’s Civil Rights Division said. “The justice department is committed to holding housing providers accountable for their unlawful behavior and seeking relief for survivors.”
Read on for more details.
|
|
|
Sagent gains new EVP of servicing
Posted Date: Monday, March 13, 2023
Sagent’s new executive vice president (EVP) of servicing has a focus on building, developing, and growing high-performing teams in bank and nonbank mortgage lending and servicing organizations, the company announced.
As EVP, his new responsibilities will include driving granular and nuanced innovations and execution across scaled operations with an emphasis on the customer experience and compliant programming.
Read on for more details.
|
|
|
HUD rule finalizes increase in loan mod term limits
Posted Date: Monday, March 13, 2023
The U.S. Department of Housing and Urban Development finalized a rule amending its regulations to allow for mortgagees to recast a total unpaid loan for a new term limit of 480 months.
This change will go into effect on May 8 and applies to mortgages insured through the Federal Housing Administration.
Read on for more details.
|
|
|
Senators hear testimony on ending homelessness
Posted Date: Thursday, March 9, 2023
The Senate Committee on Banking, Housing, and Urban Affairs’ Subcommittee on Housing, Transportation, and Community Development heard testimony from the U.S. Interagency Council on Homelessness and the U.S. Department of Housing and Urban Development on what can be done to continue addressing homelessness across the country.
Witnesses spoke about the effectiveness of the Housing First approach, how programs introduced during the pandemic can continue to house America, and the importance of interagency collaboration.
Read on for more details.
|
|
|
Government brings suit against Hawaii property developers
Posted Date: Thursday, March 9, 2023
In a federal district court in Hawaii, the U.S. government sued the developers and contractors of several multifamily properties for failing to design and construct facilities in ways that are accessible to persons with disabilities.
The court considered motions for summary judgment where defendants argued they could not be held liable under the Fair Housing Act based on whether the work was considered external or internal.
Read on for more details.
|
|
|
‘Just Action’: Addressing fair lending issues on the ground
Posted Date: Thursday, March 9, 2023
Richard Rothstein’s The Color of Law: A Forgotten History of How Our Government Segregated America provided an in-depth look into the roots of redlining and other fair lending issues the mortgage lending and servicing industry are still battling today.
RESPA News spoke to Leah Rothstein, Richard’s co-author and daughter, about their follow-up Just Action, and what lenders and communities can do to redress the long-lasting effects of discrimination.
Read on for more details.
|
|
|
Brown to Biden: ‘Whole-of-government’ approach needed to address housing crisis
Posted Date: Thursday, March 9, 2023
Sen. Sherrod Brown (D-Ohio), Majority Leader Chuck Schumer (D-NY), and over a dozen Senate committee chairs penned a letter to President Joe Biden requesting the administration take a “whole-of-government” approach in addressing the affordable housing crisis.
While steps have been taken to improve housing and other infrastructure, more is required to meet the needs of Americans.
Read on for more details.
|
|
|
NAR appoints 2023 VP of association affairs
Posted Date: Thursday, March 9, 2023
The National Association of Realtors (NAR) selected a Realtor from Houston as its 2023 vice president (VP) of association affairs.
The new VP is no stranger to NAR leadership, as she previously served as the chair of the Houston Association of Realtors.
Read on for more details.
|
|
|
Reg X reform, GSE adjustments among MBA loss mitigation recommendations
Posted Date: Monday, March 6, 2023
In a white paper on the future of loss mitigation, the Mortgage Bankers Association (MBA) laid out its recommendations on what policy and regulatory changes would help to preserve affordable homeownership for borrowers and prepare the industry for today’s challenges.
“The economy changed significantly throughout 2022,” the MBA stated. “Our industry must consider how to deliver effective payment relief in today’s higher-interest rate environment, in contrast [with] the lower-interest rate environment that characterized the pandemic housing and refinance boom.”
Read on for details from the report.
|
|
|
Grant awarded to study redlining impacts on health
Posted Date: Monday, March 6, 2023
The National Community Reinvestment Coalition (NCRC), the University of Richmond, and the University of Michigan’s Institute for Social Research received a grant to study the impact of redlining on health in the U.S.
The five-year, $3 million research grant is meant to expand upon NCRC’s work on a new methodology to track redlining’s impact.
Read on for more details.
|
|
|
Racial ownership gap biggest in a decade, report finds
Posted Date: Monday, March 6, 2023
The National Association of Realtors’ 2023 “Snapshot of Race and Home Buying in America” showed while the rate of homeownership has continually increased over the last 10 years, this growth has not been consistent amongst all racial groups.
While Asian and Hispanic Americans experienced the biggest homeownership rate gains, Black Americans lagged significantly, resulting in the largest Black-white homeownership rate gap in a decade.
For more details from the report, read on.
|
|
|
HUD awards over 2,400 grants to address housing issues
Posted Date: Monday, March 6, 2023
The U.S. Department of Housing and Urban Development awarded more than 2,400 grants to over 1,200 communities through programs such as the Community Development Block Grant program and the Emergency Solutions Grant program.
These grants provide funding to urban counties, insular areas, and local organizations across the country to build stronger communities, address the housing affordability crisis, and combat homelessness.
Read on for more details.
|
|
|
Redwood Trust to integrate LoanLogics’ IDEA to ensure loan quality
Posted Date: Monday, March 6, 2023
Redwood Trust, Inc., a specialty finance company focused on access to housing, will integrate LoanLogics’ Intelligent Data Extraction and Automation platform to ensure the quality of its mortgage loans.
Redwood’s chief operating officer of its residential division said the product will provide Redwood data-driven digital workflows that will support the production of high-quality, innovative residential products.
Read on for more details.
|
|
|
New CFPB advisory committee members announced
Posted Date: Monday, March 6, 2023
The Consumer Financial Protection Bureau appointed new members to its advisory committees.
Twenty-three individuals will serve on four boards/councils and advise the bureau on matters related to consumer finance and financial issues affecting community banks and credit unions.
Read on for more details.
|
|
|
Ohio court opines on motion to dismiss in RESPA case
Posted Date: Thursday, March 2, 2023
In the Northern District of Ohio, Eastern division, a federal judge considered a mortgage servicer’s motion to dismiss RESPA claims against it.
The case involved a loan modification from 2009, a disputed balloon payment, and an official request for information under the act.
Read on for more details.
|
|
|
Widespread refusal of housing choice vouchers sparks lawsuit
Posted Date: Thursday, March 2, 2023
The Housing Rights Initiative (HRI), a national housing watchdog group, filed a lawsuit against 77 landlords and brokers of housing accommodations in New York City, alleging the widespread refusal to accept housing choice vouchers unlawfully discriminated against potential tenants on the basis of race and disability.
The court’s opinion addressed several motions to dismiss and for summary judgment from the defendants, alleging HRI lacked standing and failed to state a claim upon which relief can be granted.
Read on for more details.
|
|
|
Agencies issue joint RFI on tenant background screening
Posted Date: Thursday, March 2, 2023
The Federal Trade Commission and the Consumer Financial Protection Bureau issued a request for information on background screening issues affecting those applying for rental housing.
The agencies shared myriad related topics it asks interested parties to comment on no later than May 30.
Read on for more details.
|
|
|
CFPB updates administrative enforcement proceedings
Posted Date: Thursday, March 2, 2023
The Consumer Financial Protection Bureau updated its administrative enforcement proceedings to better carry out its statutory responsibilities.
Administrative adjudication is conducted in accordance with the Administrative Procedure Act and is subject to review by a federal court of appeals, the bureau stated. It said these updates to the procedures will make them as fair and effective for all parties as possible.
Read on for more details.
|
|
|
Native American communities awarded $794M for housing
Posted Date: Thursday, March 2, 2023
The U.S. Department of Housing and Urban Development awarded more than $794 million for affordable housing activities in Native American communities.
Almost 600 grantees will receive funds as part of the Indian Housing Block Grant program.
Read on for more details.
|
|
|
Monthly Newsletter |
Cover Story:
|
|