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A legal analysis of HUD's proposed disparate impact rule
Posted Date: Monday, August 26, 2019
The Department of Housing and Urban Development (HUD) proposed rule to amend its interpretation of the Fair Housing Act’s (FHA) disparate impact standard makes it clear that, standing alone, disparities are not actionable and that fair housing does not enforce “quotas.”
That’s according to Brian Levy, of counsel at Katten & Temple, LLP in Chicago.
Read on to see what else Levy told RESPA News about the proposal.
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Brown, Warren to HUD: Fire Blankenstein
Posted Date: Thursday, August 22, 2019
Senators Sherrod Brown and Elizabeth Warren are demanding action from the Department of Housing and Urban Development (HUD) after “damning” findings from an investigation into the conduct of former CFPB fair lending policy director Eric Blankenstein.
Blankenstein resigned from the bureau in May after months of controversy over his past racially charged language in blog posts. A month later, Blankenstein joined HUD’s Office of General Counsel as senior counsel.
Read on for more details.
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New Jersey court finds CFPB complaint does not trigger RESPA
Posted Date: Thursday, August 22, 2019
A New Jersey couple submitted complaints to the Consumer Financial Protection Bureau (CFPB) and Comptroller of the Currency (OCC) raising issues about their loan modification.
The couple later filed a federal suit, alleging RESPA was triggered by their correspondence to the CFPB and OCC. Their servicer asked that the complaint be dismissed on several counts.
Read on for highlights of why the judge ruled in the servicer’s favor.
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NAR: Existing home sales on the rise
Posted Date: Thursday, August 22, 2019
Existing-home sales increased in July, a positive reversal after total sales were down slightly in the previous month, according to the National Association of Realtors (NAR).
NAR said total existing-home sales rose 2.5 percent from June to a seasonally adjusted annual rate of 5.42 million in July. Overall sales were up 0.6 percent from a year ago (5.39 million in July 2018).
Read on for reaction from NAR Chief Economist Lawrence Yun.
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ABA study: Social media helping banks become more approachable
Posted Date: Thursday, August 22, 2019
Social media tweets and feeds are helping to transform bank personas from anonymous institutions into friendly and approachable members of the community.
The American Bankers Association recently asked 430 banks about their current social media habits and what the future holds.
Read on for details from the 2019 State of Social Media in Banking report.
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MBA reports mortgage applications decreasing
Posted Date: Thursday, August 22, 2019
Mortgage applications decreased 0.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Aug. 16.
Read on for reaction from Joel Kan, MBA’s associate vice president of economic and industry forecasting.
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HUD proposes amended disparate impact rule
Posted Date: Monday, August 19, 2019
The Department of Housing and Urban Development (HUD) has published a proposed rule to amend its interpretation of the Fair Housing Act’s (FHA) disparate impact standard.
HUD officials said the proposed rule would provide more guidance on what constitutes unlawful disparate impact. But critics argue the proposed rule will make it more difficult for victims of housing discrimination to file lawsuits.
Read on to for more details on the proposal.
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CFPB wants judge to dismiss 1071 rulemaking lawsuit
Posted Date: Monday, August 19, 2019
The Consumer Financial Protection Bureau (CFPB) is asking that a lawsuit accusing the agency of violating Section 1071 of the Dodd-Frank Act by failing to collect and disclose data on lending to women-owned, minority-owned and small businesses be dismissed.
The California Reinvestment Coalition (CRC) and three other plaintiffs contend that without the lending data, consumer groups cannot help to obtain lending for those denied equal access to capital.
Read on for more details from recent court filings.
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CFPB, Arkansas AG settle with broker
Posted Date: Monday, August 19, 2019
The Consumer Financial Protection Bureau (CFPB) and the Arkansas Attorney General have filed a proposed settlement with a broker accused of illegal practices in offering high-interest credit to disabled veterans and other consumers.
Under the proposed settlement, the business owner will be banned from the industry.
Read on for more details from the proposed settlement, which states the CFPB may be willing to pay some or all of the proposed $2.7 million joint settlement.
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MBA: Applications climbing ahead of 2018 pace
Posted Date: Monday, August 19, 2019
The Mortgage Bankers Association (MBA) Builder Application Survey data for July 2019 shows mortgage applications for new home purchases increased 31.2 percent compared from a year ago.
Compared to June 2019, applications increased by 11 percent. Meanwhile, the average loan size of new homes decreased.
Read on for more details from MBA’s survey, which tracks application volume from mortgage subsidiaries of home builders across the country.
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CFPB appoints private education loan ombudsman
Posted Date: Monday, August 19, 2019
The Consumer Financial Protection Bureau (CFPB) has appointed a new head student loan watchdog – nearly one year after the agency’s last student loan ombudsman abruptly resigned.
Robert G. Cameron, a colonel and staff judge advocate for the Pennsylvania Army National Guard, was recently named private education loan ombudsman.
Read on for more details about Cameron, a former high-ranking litigation, compliance and risk mitigation official.
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FHA to insure mortgages on mixed-use development
Posted Date: Monday, August 19, 2019
To stimulate greater multifamily residential and commercial development in Opportunity Zones, the Federal Housing Administration (FHA) will insure mortgages on mixed-use development under the agency’s Section 220 Program in thousands of lower income communities across the country.
Housing and Urban Development (HUD) Secretary Ben Carson made the recent announcement during a speech before an Opportunity Zone Expo in Brooklyn, N.Y.
Read on for more details from Carson’s speech.
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FHA expands access with new condo rules
Posted Date: Thursday, August 15, 2019
The Federal Housing Administration (FHA) has published new policy implementation guidance that will establish a new condominium approval process.
During an Aug. 14 telephone conference, Housing and Urban Development (HUD) Secretary Ben Carson and FHA Commissioner Brian Montgomery briefed reporters on the agency’s plan to expand homeownership opportunities in the condominium market.
Read on for news conference highlights, plus reaction from National Association of Realtors (NAR) President John Smaby.
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NAR will 'aggressively defend' antitrust lawsuits
Posted Date: Thursday, August 15, 2019
The National Association of Realtors (NAR) has filed a motion to dismiss a lawsuit claiming the trade association and the four largest national real estate broker franchisors violated federal antitrust laws by conspiring to require home sellers to pay inflated buyer broker commissions.
NAR also vowed to fight two “copycat” lawsuits.
Read on for details from NAR’s motion to dismiss, plus reaction from President John Smaby and General Counsel Katie Johnson.
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FHFA issues final alternative credit scoring rule
Posted Date: Thursday, August 15, 2019
The Federal Housing Finance Agency (FHFA) has started the process to allow lenders to expand their lending base to more people who might not have fit within the typical credit profile.
The FHFA is issuing a final rule to determine whether alternative credit scoring models, such as utility bill payment histories, can be used for loans guaranteed by government-sponsored enterprises (GSEs).
Read on for more details of the rule’s four-phase process for approval, plus reaction from National Association of Realtors (NAR) President John Smaby.
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CFPB settles with technical college
Posted Date: Thursday, August 15, 2019
The Consumer Financial Protection Bureau (CFPB) has agreed to a proposed settlement with ITT Educational Services, Inc. to resolve allegations of unfair and abusive practices related to student loans.
The bureau filed a complaint in the U.S. District Court for the Southern District of Indiana in 2014 claiming ITT violated the Consumer Financial Protection Act regarding its private loan program.
Read on for details of the proposed settlement.
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MBA: Delinquency rates up as economy slows
Posted Date: Thursday, August 15, 2019
The delinquency rate for mortgage loans on one-to-four-unit residential properties continues to climb, a new report found.
The delinquency rate increased to a seasonably adjusted rate of 4.53 percent of all loans outstanding at the end of the second quarter of 2019, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.
Read on for more details from the MBA’s survey, which also showed the lowest foreclosure inventory rate since the fourth quarter of 1995.
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Third Circuit: Each payment resets statute of limitations
Posted Date: Monday, August 12, 2019
The Third Circuit Court of Appeals recently affirmed the dismissal of a RESPA class action against JPMorgan Chase Bank, despite rejecting the bank’s arguments that the act’s statute of limitations runs only from the mortgage closing – not from each subsequent premium payment.
In holding that the suit was untimely, the Third Circuit split with other courts which had calculated the statute of limitations for RESPA claims from the date of the loan’s closing.
Read on to see what Weiner Brodsky Kider PC’s Mitch Kider told RESPA News about the ruling’s possible impact on the industry.
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GAO: HUD's distressed mortgage program needs help
Posted Date: Monday, August 12, 2019
A program created to allow the Federal Housing Administration (FHA) to sell thousands of mortgage notes via auction after the 2008 financial crisis could be harming borrowers, according to a new report by the U.S. Government Accountability Office.
The report “confirms that our longstanding concerns are warranted,” House Financial Services Chairwoman Maxine Waters stated.
Read on for details from the GAO’s study, designed to determine whether the Distressed Asset Stabilization Program (DASP) is serving its dual purpose of helping struggling FHA borrowers and minimizing losses to the FHA.
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NAR: Home prices up in most metro areas
Posted Date: Monday, August 12, 2019
Most metro areas saw price gains under marginal inventory growth in the second quarter of 2019, according to the latest quarterly report by the National Association of Realtors (NAR).
Single-family median home prices increased year-over-year in 91 percent of measured markets in the second quarter.
Read on for more highlights from the study, as well as housing price and other predictions from Lawrence Yun, NAR’s chief economist.
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HUD, L.A. reach 'landmark' discrimination settlement
Posted Date: Monday, August 12, 2019
Resolving longstanding findings of noncompliance with Section 504 of the Rehabilitation Act and Americans with Disabilities Act, the Department of Housing and Urban Development (HUD) has committed to developing 10,000 units of new affordable housing in Los Angeles over the next 10 years.
That amount – which includes 1,500 accessible units for people with disabilities – exceeds current state and federal requirements.
Read on for details from the settlement.
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MBA: Trade war, rate drop cause rise in mortgage applications
Posted Date: Monday, August 12, 2019
Mortgage applications increased 5.3 percent from one week earlier, a new report stated.
And the Veterans Administration (VA) share of total applications is also on the rise, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending Aug. 2.
Read on for more details from the report and predictions by MBA Senior Vice President and Chief Economist Mike Fratantoni of what refinance volume is likely to be in the near future.
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HUD awards $25 million for HIV/AIDS housing programs
Posted Date: Monday, August 12, 2019
The Department of Housing and Urban Development (HUD) will provide nearly $25 million to help more than 2,054 low-income persons living with HIV/AIDS and their families.
The three-year grants will be offered through HUD’s Housing Opportunities for Persons with AIDS Program (HOPWA), which helps persons living with HIV/AIDS enter into housing, access medical care and adhere to complex treatment regimens.
Read on for comments from HUD Secretary Ben Carson.
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FHFA will remove preferred language question from URLA
Posted Date: Thursday, August 8, 2019
After directing Fannie Mae and Freddie Mac to remove the preferred language question and make other changes, the Federal Housing Finance Agency (FHFA) has delayed mandatory use of the redesigned Uniform Residential Loan Application (URLA) form.
To allow industry participants time to make the necessary changes, the deadline for the mandatory use of the redesigned form and data will be extended.
Read on for more details about the upcoming modifications to the URLA form and how long the delay will be.
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CFPB issues guidance on Loan Estimates
Posted Date: Thursday, August 8, 2019
The Consumer Financial Protection Bureau (CFPB) has issued guidance on providing Loan Estimates to consumers via its TRID FAQ, a new frequently asked questions tool.
Five new questions and answers were published July 31.
Read on to discover what is and isn’t advisable when it comes to Loan Estimates best practices, as well as possible supervisory or enforcement red flags for unfair, deceptive, or abusive acts or practices (UDAAP).
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Stratmor: Older borrowers embracing new technology
Posted Date: Thursday, August 8, 2019
Many lenders tend to focus their marketing on millennial buyers.
But a new study from mortgage advisory firm Stratmor Group shows that philosophy could by costing your company serious revenue, as borrowers over age 55 – who comprised 27 percent of all mortgage loan transactions last year – are not as tech-resistant as once was thought.
Read on for highlights of the study, showcased in the firm’s most recent Insights report.
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California mortgage servicers settle redlining complaints
Posted Date: Thursday, August 8, 2019
The Department of Justice (DOJ) has approved a series of settlements resolving redlining allegations that several California-based mortgage loan modification service providers targeted Hispanic homeowners for predatory mortgage loan modification services and interfered with their ability to keep their homes.
The lawsuit arose from complaints filed with the Department of Housing and Urban Development (HUD) by two of the companies’ former clients.
Read on for highlights of the agreements.
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Banking committee members urging regulators to follow CRA
Posted Date: Thursday, August 8, 2019
Republican members of the Senate Banking Committee are urging bank regulators to follow the rule of law when supervising banking agencies.
The senators recently wrote a letter to the Federal Reserve Board of Governors, Comptroller of the Currency and Federal Deposit Insurance Corp. (FDIC) to implement the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) and consider other ways to support economic expansion.
Read on for details from the letter, signed by all 13 Republican committee members.
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CFPB extends comment period for debt collection rules
Posted Date: Thursday, August 8, 2019
The Consumer Financial Protection Bureau (CFPB) is extending the comment period on its notice of proposed rulemaking (NPRM) to implement the Fair Debt Collection Practices Act (FDCPA).
To facilitate the ability of commenters to consider the issues raised in the NPRM, gather data and prepare their responses, the comment period will be extended by 30 days to Sept. 18.
Read on for more details from the CFPB.
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Bank formerly run by Trump officials settles redlining complaint
Posted Date: Monday, August 5, 2019
The Department of Housing and Urban Development (HUD) has approved a settlement that resolves redlining allegations that a bank formerly overseen by Trump administration officials discriminated against African-American and Latino borrowers.
HUD recently finalized a conciliation agreement between the California Reinvestment Coalition OneWest Bank. The bank was founded by Treasury Secretary Steve Mnuchin. Comptroller of the Currency Joseph Otting served as the bank’s president and CEO.
Read on for details from the agreement.<
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Attorneys ask judge to dismiss CID, declare CFPB unconstitutional
Posted Date: Monday, August 5, 2019
Two South Carolina attorneys accused of engaging in unfair, deceptive, or abusive acts or practices (UDAAP) related to military pensions and lump-sums are asking a federal judge to quash civil investigative demands (CIDs) made on them and declare the Consumer Financial Protection Bureau (CFPB) unconstitutional.
Read on to see the latest on the saga between the CFPB and Upstate Law Group, LLC attorneys Candy Kern-Fuller and Howard E. Sutter III.
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FHA, Ginnie Mae reduce cash-out refi risk
Posted Date: Monday, August 5, 2019
Two new policy actions will reduce risk associated with cash-out refinance lending, according to the Department of Housing and Urban Development.
The Federal Housing Administration (FHA) will lower its maximum loan-to-value requirements for cash-out refinance transactions. Meanwhile, Ginnie Mae is taking action to manage risks associated with “loan churning” among mortgages insured by the Department of Veterans Affairs.
Read on for reaction from FHA Commissioner Brian Montgomery.
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CFPB, New York AG settle with debt collectors
Posted Date: Monday, August 5, 2019
The Consumer Financial Protection Bureau and the New York Attorney General have filed proposed settlements permanently banning a group of Buffalo, N.Y., debt collectors from the industry.
According to the proposed settlements, the companies together purchased millions of dollars’ worth of consumer debt, inflated those consumer debts and relied on illegal tactics to extract as much money as possible from consumers for their debts.
Read on for details from the agreements.
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NAR: QM patch expiration threatens housing market
Posted Date: Monday, August 5, 2019
The National Association of Realtors (NAR) is advocating for a permanent solution to the expiring “patch” created for the Consumer Financial Protection Bureau’s (CFPB) Ability-To-Repay/Qualified Mortgage (ATR/QM) Rule.
The CFPB recently announced it will let the “QM patch” rule – which grants QM status for certain loans with high debt-to-income (DTI) ratios – expire Jan. 10, 2021.
Read on for NAR President John Smaby’s statement on the QM patch issue.
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Waters introduces FHA Foreclosure Prevention Act
Posted Date: Monday, August 5, 2019
House Financial Services Committee Chairwoman Maxine Waters (D-Calif.) has introduced legislation that would increase oversight of Federal Housing Administration (FHA) mortgage servicers.
The FHA Foreclosure Prevention Act of 2019 would require the Department of Housing and Urban Development (HUD) to more closely oversee mortgage lenders to strengthen compliance with the FHA’s loss mitigation requirements.
Read on for more details about the bill, as well as a companion measure in the Senate.
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HUD releasing disaster mitigation funds
Posted Date: Monday, August 5, 2019
The Department of Housing and Urban Development (HUD) will release disaster mitigation funds in two tranches to areas impacted by recent storms.
One tranche will include funds for Texas, Louisiana, Florida, North Carolina, South Carolina, West Virginia, California, Missouri and Georgia; and the second tranche will include funds for Puerto Rico and the U.S. Virgin Islands.
Read on for reaction from HUD Secretary Ben Carson and Sen. Richard Burr (R-N.C.).
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Schulman talks MSAs and RESPA violations
Posted Date: Monday, July 29, 2019
Interest in affiliated business arrangements, marketing services agreements, desk rentals, Internet co-advertising and lead generation agreements has skyrocketed.
Mayer Brown Partner Phil Schulman recently gave title agents a crash course on practical considerations in creating strategic alliances while speaking at the National Settlement Services Summit in Phoenix.
Read on to see how a hypothetical scenario involving business owners hoping to start a marketing services agreement could help you navigate any RESPA concerns.
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Pennsylvania AG settles with online payday lender
Posted Date: Monday, July 29, 2019
An online payday lender that argued the structure of the Consumer Financial Protection Bureau (CFPB) is unconstitutional while fighting unfair and abusive practices claims has settled unrelated allegations brought by the Pennsylvania Attorney General.
The state of Pennsylvania sued Think Finance in 2014 and its affiliates for allegedly operating a $133 million online loan scheme.
Read on for details of the settlement and an update on the CFPB’s case against Think Finance.
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California real estate agents settle HUD claims
Posted Date: Monday, July 29, 2019
A recent conciliation agreement approved by the Department of Housing and Urban Development found that a group of California real estate agents treated fair housing testers posing as African-American home seekers less favorably than testers posing as white home seekers.
The real estate group and their agents deny having engaged in any discriminatory behavior.
Read on for details from the settlement, which alleged that black testers were falsely told there were no homes available.
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Regulatory agencies, FinCEN issue BSA/AML statement
Posted Date: Monday, July 29, 2019
The federal bank regulatory agencies and the Financial Crimes Enforcement Network (FinCEN) have issued a joint statement to improve transparency to Bank Secrecy Act/Anti-Money Laundering (BSA/AML) supervision.
The risk-focused approach enables federal agencies to better tailor examination plans and procedures based on the unique risk profile of each bank.
Read on for highlights of the statement from the Federal Deposit Insurance Corp., Federal Reserve Board and others.
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MBA, Fannie Mae partner to promote diversity
Posted Date: Monday, July 29, 2019
The Mortgage Bankers Association (MBA) and Fannie Mae’s Future Housing Leaders program have joined forces to promote diversity in the housing finance industry.
The organizations will work to increase awareness of industry career opportunities among college students and entry-level talent with diverse backgrounds.
Read on for details on the new partnership, which will connect Future Housing Leaders program participants with MBA member firms that are hiring for interns and entry-level positions.
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Judge: Servicers may have pattern or practice of violating RESPA
Posted Date: Thursday, July 25, 2019
A North Carolina woman accused her original loan provider and subsequent servicer of failing to timely respond to qualified written requests (QWRs).
Defendants HSBC Bank and PHH Mortgage Corp. argued the plaintiff failed to claim sufficient facts to support damages for the alleged RESPA violation.
Read on to see why a district judge held the borrower may be able to prove a causal link between the alleged RESPA violation and her injuries.
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NAR: Existing home sales declining again
Posted Date: Thursday, July 25, 2019
After a previous month of gains, existing-home sales weakened in June, with the South and the West regions seeing the greatest declines, according to National Association of Realtor (NAR) statistics.
Lawrence Yun, NAR’s chief economist, has some theories on why sales once again are weakening after a promising May.
Read on for other key June findings from NAR, including median existing home prices for all housing types.
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HUD settles discrimination claims against Las Vegas landlord
Posted Date: Thursday, July 25, 2019
The Department of Housing and Urban Development (HUD) has approved a conciliation agreement settling claims that a Las Vegas landlord discriminated against families with children.
The owner and manager of Meadow Ridge Apartments was accused of denying unsupervised children’s access to the property’s common areas because of an unwritten policy that children could not use common spaces without adult supervision.
Read on for details from the conciliation agreement.
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Consumer group argues FVRA appointment illegal
Posted Date: Thursday, July 25, 2019
Following on the heels of similar arguments in leadership battles at the Consumer Financial Protection Bureau (CFPB) and the Attorney General’s Office, a consumer group is the latest to challenge the legality of a presidential appointment under the Federal Vacancies Reform Act (FVRA).
The Democracy Forward Foundation wrote a recent letter to Attorney General William Barr seeking a writ of quo warranto against Kenneth T. Cuccinelli, arguing his appointments violate the FVRA.
Read on to see why the Democracy Forward Foundation believes he should be removed as acting director of the Citizenship and Immigration Services.
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FDIC audit uncovers RESPA Section 8 violations
Posted Date: Tuesday, July 23, 2019
The Federal Deposit Insurance Corp. (FDIC) has released a new compliance report identifying blatant RESPA Section 8 violations at financial institutions.
The violations referenced in Consumer Compliance Supervisory Highlights involved apparent payment of illegal kickbacks disguised as above-market payments for lead generation, marketing services and office space or desk rentals.
Read on to learn what the FDIC and RESPRO President and Executive Director Ken Trepeta told RESPA News about the findings.
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GAO wants CFPB to define expectations for CRAs
Posted Date: Monday, July 22, 2019
The Consumer Financial Protection Bureau (CFPB) should define its supervisory expectations for how consumer reporting agencies (CRAs) can comply with key statutory requirements.
That’s according to the Government Accountability Office’s (GAO) July report to congressional committees.
Read on to see what two things the GAO said the CFPB – which described actions it has taken to provide information to CRAs – can improve on, and bureau Director Kathy Kraninger’s reaction.
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CFPB seeking comments on RESPA related collection
Posted Date: Monday, July 22, 2019
The Consumer Financial Protection Bureau (CFPB) wants industry feedback on a RESPA related collection of information from mortgage disclosure forms.
Written comments, which must be received on or before Aug. 21, are solicited on topics including whether the collection of information is necessary for the bureau to perform optimally.
Read on for details of the CFPB’s request before the Office of Management and Budget (OMB).
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CFPB issues new report from fair lending symposium
Posted Date: Monday, July 22, 2019
The Consumer Financial Protection Bureau (CFPB) has released its first report off of one of its public forums.
The bureau convened its first fair lending symposium, “Building a Bridge to Credit Visibility,” last fall at CFPB headquarters to address the issue of access to credit.
Read on for more details from the report, which found that one in 10 adults in the United States are “credit invisible.”
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HUD, VA launch housing rehab program for disabled vets
Posted Date: Monday, July 22, 2019
The Department of Housing and Urban Development (HUD) and the Department of Veterans Affairs (VA) announced that the agencies will provide $4.8 million to help disabled veterans modify or rehabilitate their homes to make them more accessible.
Read on for more information on the Veterans Housing Rehabilitation and Modification Pilot Program, which will assist grant recipients with adaptive housing needs such as wheelchair ramps, widening doors, reconfiguring rooms and adding rooms for caregivers.
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