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News By Edition
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RESPA News Monthly Edition
RESPA News Monthly
March 2023
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‘That is the end of it’: Court dismisses CFPB redlining complaint against Townstone
Posted Date: Thursday, February 9, 2023
What started as a run-of-the-mill redlining complaint brought by the Consumer Financial Protection Bureau ended as a David-versus-Goliath-type battle between the agency and a small mortgage company in Chicago called Townstone Financial.
RESPA News spoke with Sean Burke, partner at Mattingly Burke Cohen & Biederman, LLP, and one of the lead attorneys on the case.
Read on for the court’s opinion and Burke’s thoughts.
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CFPB issues advisory opinion on digital mortgage search services
Posted Date: Thursday, February 9, 2023
The Consumer Financial Protection Bureau advised mortgage lenders and other real estate settlement services on how certain digital mortgage comparison-shopping platforms may be violating RESPA with their “pay-to-play” format.
RESPA News spoke to Loretta Salzano, partner at Franzén and Salzano, P.C., and Holly Bunting, partner at Mayer Brown, LLP, to get their reactions.
Read on for more details.
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CFPB responds to CFSA brief opposing cert in funding structure case
Posted Date: Thursday, February 2, 2023
The Consumer Financial Protection Bureau responded to the brief filed by the Community Financial Services Association of America (CFSA) that opposed the bureau’s previous petition to the Supreme Court to consider whether its funding structure is unconstitutional.
In it, the bureau disagreed with CFSA’s assertion the court is required to avoid the constitutional question if it can find merit in CFSA’s non-constitutional arguments, which the lower court had already determined unsuccessful.
Read on for more details.
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Senators listen to testimony on solving housing crisis
Posted Date: Thursday, February 16, 2023
Sens. Sherrod Brown (D-Ohio) and Tim Scott (R-S.C), chair and ranking member of the Senate Committee on Banking, Housing, and Urban Affairs, welcomed a new session of Congress by having a hearing titled, “The State of Housing 2023.”
The committee heard testimony from Christopher Herbert, the managing director at the Harvard Joint Center for Housing Studies; Robert Dietz, chief economist and senior vice president for economics and housing policy for the National Association of Home Builders; and Lance George, director of research and information for the Housing Assistance Council.
To learn what was discussed, read on.
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Standing under RESPA challenged because of quitclaim deed
Posted Date: Thursday, February 9, 2023
A mortgage servicer challenged a plaintiff’s standing to bring a RESPA complaint against it, arguing the quitclaim deeds transferring portions of an inherited property to her negated her successor-in-interest status.
The court also was asked to abstain from ruling on this case under the Colorado River doctrine.
Read on for more details.
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Bankruptcy court asks mortgage servicer to defend alleged collection attempts
Posted Date: Monday, February 6, 2023
In a bankruptcy court out of the middle division of Florida, Tampa division, a mortgage loan servicer was asked to defend alleged collection attempts in violation of the automatic stay put in place for a Chapter 13 debtor.
A judge in the bankruptcy court held the servicer violated the stay and imposed sanctions. The present opinion was issued on appeal.
Read on for more details.
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Asian, Hispanic homeownership at all-time high, NAR reports
Posted Date: Thursday, February 22, 2024
While disparities in homeownership among racial and ethnic groups persist, the National Association of Realtors’ (NAR) Snapshot of Race and Homebuying in America indicated homeownership rates for persons of color increased in 2022, with Asian and Hispanic Americans achieving “historic peaks.”
“While the gains should be celebrated, the pathway into homeownership remains arduous for minority buyers,” NAR Deputy Chief Economist and Vice President of Research Jessica Lautz said.
Read on for more details.
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SCOTUS grants cert to hear CFPB funding structure case
Posted Date: Monday, February 27, 2023
The Supreme Court of the United States granted the Consumer Financial Protection Bureau’s (CFPB) petition for writ of certiorari to hear its appeal against the Fifth Circuit Court ruling the bureau’s funding structure is unconstitutional. The date for oral arguments is to be determined.
The court hearing the appeal this term means a potentially speedy determination on the Fifth Circuit’s reasonings why the CFPB’s funding structure is an impermissible delegation of Congress’ appropriations authority, while waiting until next term may put the bureau in operational limbo in the meantime, as the CFPB asserted in its brief.
Read on for more details.
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Citigroup motion to dismiss RESPA case denied
Posted Date: Monday, February 27, 2023
The U.S. District Court of New Hampshire heard Citigroup’s motion to dismiss in a case where the plaintiff alleges the servicer of her mortgage loan, a Citigroup’s agent in this matter, violated RESPA when processing her loss mitigation application.
The plaintiff, representing herself pro se, alleged the servicer failed to process her loss mitigation, refused to communicate the status of her application, and caused undue delay.
Read on for more details.
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Blue Sage makes POS available as standalone offering
Posted Date: Monday, February 27, 2023
Blue Sage made its point of sale component called LION available to mortgage lenders as a standalone product.
It is meant to enable banks, lenders, and credit unions to provide borrowers with a seamless digital experience.
Read on for more details.
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Home sales decrease for 12th consecutive month
Posted Date: Monday, February 27, 2023
The four major U.S. regions experienced a mix of increases and decreases in existing home sales for January, the National Association of Realtors stated.
While month-over-month numbers saw some variation, all regions recorded a year-over-year decline.
Read on for more details about the housing market.
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Riley, Sterbcow explore CFPB funding structure case in webinar
Posted Date: Monday, February 27, 2023
Francis “Trip” Riley, partner at Saul Ewing, LLP, and Marx Sterbcow, managing attorney at The Sterbcow Law Group, LLC, joined October Research, LLC for a webinar titled, “CFPB unconstitutionally funded? What does that mean?”
The two experts shared their thoughts on the case as the Supreme Court considered the Consumer Financial Protection Bureau’s petition for writ of certiorari.
Read on for more details.
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Biden-Harris administration works to make homes more affordable
Posted Date: Monday, February 27, 2023
The U.S. Department of Housing and Urban Development, through the Federal Housing Administration, reduced the annual mortgage insurance premiums charged to homebuyers for mortgage insurance.
The reduction, which will save around $800 for homeowners,is part of the Biden-Harris administration’s efforts to address the affordable housing crisis.
Read on for more details.
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HAMP modification error leads to complaint against Wells Fargo
Posted Date: Friday, February 17, 2023
When Eduardo and Julia Garcia suffered financial difficulties during the Great Recession, they attempted to apply for a modification under then-President Barack Obama’s Home Affordable Mortgage Program through their servicer Wells Fargo.
Wells Fargo erroneously denied the modification, resulting in the Garcias losing their home. While part of a class action suit related to the denial, the Garcias also brought suit under the Illinois Consumer Fraud and Deceptive Business Practices Act.
To learn the judge’s ruling on Wells Fargo’s motion for summary judgment, read on.
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Philly condo files JNOV motion in FHA case
Posted Date: Friday, February 17, 2023
The Department of Justice (DOJ) brought suit on behalf of a person with disabilities who has need of an emotional support animal (ESA) against the management association of the Dorchester Apartments in Philadelphia.
The DOJ alleged the condo’s owners association adopted regulations and/or engaged in a pattern or practice to prevent or delay approval for residents’ ESA accommodation requests. After a split verdict at trial, the condo moved for judgment notwithstanding verdict (JNOV).
Read on for more details.
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Road Home Program repayment obligations released for Louisiana
Posted Date: Friday, February 17, 2023
The U.S. Department of Housing and Urban Development reached an agreement with the state of Louisiana to release homeowners from repayment obligations under the Road Home Program.
The Road Home Program was put in place to help residents rebuild and improve homes affected by Hurricanes Katrina and Rita.
Read on for more details.
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PHH Mortgage, NewRez among Freddie Mac’s top servicers
Posted Date: Friday, February 17, 2023
Freddie Mac distinguished nine mortgage loan servicers for quality servicing, risk management, and sustainable homeownership.
The recognition is through the Enterprise’s SHARP program and based on the client’s servicer success scorecard ranking.
Read on for more details.
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LauraMac welcomes new chief strategy officer
Posted Date: Friday, February 17, 2023
LauraMac named the former CEO of LenderLive as its new chief strategy officer.
The addition brings almost 30 years of industry experience to the mortgage loan review tech company, and he is charged with developing the company’s vision and overseeing its strategic planning.
Read on to learn more.
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FHA issues RFI on rehabilitation mortgage insurance program
Posted Date: Friday, February 17, 2023
The Federal Housing Administration requested information on how it can enhance its Single Family 203(k) rehabilitation mortgage insurance program.
All interested parties have until April 17 to submit their comments.
Read on for more details.
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Summary judgment denied in FHA case; landlord didn’t listen to property manager
Posted Date: Thursday, February 16, 2023
A dispute over a service animal resulted in a lawsuit from both the tenant and the U.S. government against a Mississippi landlord who did not listen to his property management company when attempting to evict said tenant who had been granted a reasonable accommodation.
The U.S. District Court of the Northern District of Mississippi heard both parties’ motions for summary judgment, denying the landlord’s but partially granting the tenant’s.
For more details about the case, read on.
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$315M in grants issued to help house Americans
Posted Date: Thursday, February 16, 2023
The U.S. Department of Housing and Urban Development awarded $315 million in grants to help house individuals and families and combat homelessness in rural areas.
The agency also will be awarding housing vouchers which, combined with the grants, is a “first-of-its-kind package of resources to help communities provide housing and supportive services” for those in unsheltered settings and experiencing homelessness.
Read on for more details.
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Fannie Mae 2022 net income almost $13B
Posted Date: Thursday, February 16, 2023
Fannie Mae’s 2022 financial results showed the Enterprise had a net income of $12.9 billion for 2022, with its fourth quarter seeing $1.4 billion.
“Our 2022 results reflect a housing market in transition,” Fannie Mae CEO Priscilla Almovodar said. “We’re proud that Fannie Mae helped approximately 2.6 million households buy, refinance, or rent a home last year, while generating solid earnings and continuing to build our net worth.”
For more details about Fannie Mae’s finances, read on.
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Changes made to Ginnie Mae’s reverse mortgage securitization program
Posted Date: Thursday, February 16, 2023
In response to rising interest rates and the current economic climate, Ginnie Mae informed its participants it would be making changes to its reverse mortgage securitization program.
The changes are meant to ease some liquidity pressure and decrease the amount of time issuers must carry balances between a home equity conversion mortgage loan’s origination disbursement and the home equity conversion mortgage-backed securities’ securitization.
Read on for more details.
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Pro se plaintiff survives dismissal over RESPA QWR complaint
Posted Date: Monday, February 13, 2023
In the U.S. District Court, District of New Hampshire, a pro se plaintiff brought allegations against U.S. Bank over an alleged violation of RESPA’s restrictions on negative credit reporting pending the receipt of a qualified written request.
She also alleged the bank was negligent in handling assessments from her condo association and violated the Truth in Lending Act as it pertains to periodic payment processing.
Read on for more details.
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Housing subcommittee members assigned, Brown comments on housing
Posted Date: Monday, February 13, 2023
Sen. Sherrod Brown (D-Ohio), chairman of the Senate Committee on Banking, Housing, and Urban Affairs, along with Tim Scott (R-S.C.), announced subcommittee member assignments.
Early comments show the affordable housing crisis will be on the forefront of the committee’s mind during the 118th Congress.
Read on for more details.
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Rising housing costs cause homeowners anxiety
Posted Date: Monday, February 13, 2023
Fannie Mae used its National Housing Survey to get an inside look into the challenges homeowners are facing during a period of high inflation and how they impact their ability to save money, afford necessities, and handle household debt.
Top concerns for most survey respondents were gas, food, and medical care, with over a third stating their ability to pay for one of these needs would be impacted in the next 12 months.
Read on for more details.
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Q4 2022 shows home price gains in 90 percent of metro markets
Posted Date: Monday, February 13, 2023
In its fourth quarter report for 2022, the National Association of Realtors found nine out of 10 metro markets saw home price gains, despite rising mortgage rates.
When looking at the major regions of the U.S., the South saw the largest share of existing home sales, the West the least.
For more details from the report, read on.
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Fair housing charge against village sees $800K settlement
Posted Date: Monday, February 13, 2023
The Department of Justice and the village of Hinsdale, Ill., have reached an $800,000 settlement related to allegations the village violated the Fair Housing Act.
The issue involved the operation of a sober living home for persons recovering from addiction issues in a residential neighborhood.
Read on for more details.
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Guidance updated for support service programs for low-income seniors
Posted Date: Monday, February 13, 2023
The U.S. Department of Housing and Urban Development updated guidance for supportive services programs at properties for low-income seniors.
“Supportive services that facilitate independent senior living, increase safe socialization opportunities, and provide health and wellness benefits are a key component of our efforts to provide and expand deeply affordable rental housing for the nation’s low-income senior population,” Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon said.
Read on for more details.
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NFHA calls for recommitment to fair housing
Posted Date: Thursday, February 9, 2023
The National Fair Housing Alliance recognized Black History Month by calling for a recommitment to fair housing and equitable opportunities.
The organization has made several statements recently about the Biden-Harris administration’s actions to address fair lending issues, as well as those by private actors.
Read on for more details.
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Home retention efforts help almost 2 million households
Posted Date: Thursday, February 9, 2023
Federal Housing Administration programs and efforts have assisted almost 2 million homeowners stay in their homes since the beginning of the COVID-19 pandemic.
These efforts continue, not just for those affected by the pandemic, but for others experiencing unrelated financial hardships.
Read on for more details.
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PHH Mortgage denies RESPA violation over QWR
Posted Date: Monday, February 6, 2023
A West Virginia man filed a complaint against PHH Mortgage Corp. alleging a RESPA violation related to the refinancing of his home.
Specifically, his allegations involve a qualified written request providing the servicer a notice of error about his escrow account. PHH denied all claims that its actions violated RESPA and other consumer protection laws.
Read on for more details.
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Financial Services full membership, oversight agenda announced
Posted Date: Monday, February 6, 2023
With new leadership under Rep. Patrick McHenry (R-NC), the House Committee on Financial Services affirmed its subcommittee chairs and membership.
The committee held its first meeting Feb. 1, where it discussed the priorities and agenda for the 118th Congress.
Read on for more information.
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Modest recession anticipated
Posted Date: Monday, February 6, 2023
Fannie Mae’s Economic and Strategic Research Group forecast a modest recession in the first half of 2023.
It also said the Federal Reserve likely is near its eventual terminal rate, though noted there was a risk for “tighter-for-longer” monetary policy.
Read on for more details.
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FDIC’s HMDA supervisory approach to match CFPB’s
Posted Date: Monday, February 6, 2023
In a financial institution letter, the Federal Deposit Insurance Corp. announced to its supervised institutions the changes to its supervisory approach in light of the alterations to the reporting threshold for data under the Home Mortgage Disclosure Act.
Read on for more details.
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FinCEN issues an alert on potential commercial real estate investments
Posted Date: Monday, February 6, 2023
The Financial Crimes Enforcement Network issued an alert for the commercial real estate sector, stating potential investments may be used to evade sanctions.
The agency wanted to remind financial institutions of their Bank Secrecy Act reporting obligations.
Read on for more details.
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Penalty imposed for lead generation arrangement as RESPA §8 violation
Posted Date: Thursday, February 2, 2023
The Federal Deposit Insurance Corp. imposed a monetary penalty on Willamette Valley Bank of Salem, Ore., an insured state nonmember bank. The consent order stated the bank allegedly used mortgage lead generation arrangements to disguise referral payments for mortgage business in violation of RESPA’s Section 8 prohibition of referral payments.
This is the second RESPA action this bank has been subjected to in the last five years.
To learn more about the order, read on.
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Assistance options expanding for mortgage payments
Posted Date: Thursday, February 2, 2023
Loss mitigation options will be expanded and enhanced for borrowers struggling to pay on their Federal Housing Administration-insured (FHA) mortgages.
Starting April 30, mortgage servicers will be required to offer these new options, though the FHA stated they have the option to begin immediately.
To learn about the expansions, read on.
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‘Mrs. Murphy’ defense fails for owner who is legal entity
Posted Date: Thursday, February 2, 2023
The U.S. Department of Housing and Urban Development (HUD) sanctioned an owner of rental housing in St. Charles, Mo., and its property manager for violating the Fair Housing Act.
The respondents attempted to raise the “Mrs. Murphy” exemption.
The respondents will pay damages and a civil penalty after a finding that they discriminated against a single father and his family.
Read on for more details.
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Cenlar appoints president, CEO
Posted Date: Thursday, February 2, 2023
Cenlar FSB, a New Jersey mortgage loan subservicer, designated a new CEO and president.
The appointee has more than 40 years of experience in the banking and mortgage industry with a focus on risk management, banking and corporate finance functions, restructuring, company start-ups, and venture capital investing.
Read on for more details.
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