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News By Edition
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RESPA News Monthly Edition
RESPA News Monthly
November 2022
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Circuit court rules CFPB structure unconstitutional
Posted Date: Thursday, October 20, 2022
In a case challenging the Consumer Financial Protection Bureau’s (CFPB) 2017 payday lending rule, the U.S. Fifth Circuit Court of Appeals has ruled the agency’s funding structure is unconstitutional.
Since its inception, the CFPB has received its funding directly from the Federal Reserve, which is funded through bank assessments.
This removes some of the Congressional influence on the bureau, as its funds are not determined by periodic congressional appropriations. The court stated Congress’s decision to abdicate its appropriations power violates the Constitution’s separation of powers provision.
Read on to see the response.
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Oregon court uses second, seventh circuit test in FHA claim dismissal
Posted Date: Monday, October 24, 2022
In a case asserting Fair Housing Act violations, a U.S. district judge referred to the second and seventh circuits’ test for landlord liability when dealing with tenant-on-tenant harassment, as its home circuit has not yet considered the issue.
The plaintiff alleged the owners and property management company of the apartment building she lived in subjected her to unsuitable living conditions, threats amounting to harassment and discrimination based on sex and sexual orientation.
Read on for more details.
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HUD issues $379M in Choice Neighborhoods funding
Posted Date: Monday, October 24, 2022
The U.S. Department of Housing and Urban Development (HUD) has issued $379 million in Choice Neighborhood Implementation grants, the highest amount of funding since the program’s launch in 2010 and $150 million higher than the fiscal year 2021 budget.
These grants are to help transform severely distressed HUD properties and support outcomes related to the health, education and income of the residents. The Choice Neighborhoods program leads to new businesses, parks and grocery stores by investing in economic development and neighborhood improvement projects.
Read on for more details on the grants and the program.
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FHA insures $46.9M mortgage to rehab affordable housing
Posted Date: Monday, October 24, 2022
The Federal Housing Administration (FHA) closed on a $46.9 million mortgage for an apartment complex in Chicago to promote affordable housing for low-income individuals and families.
The loan, insured under the FHA’s Substantial Rehabilitation Insurance program, along with rental assistance from the U.S. Department of Housing and Urban Development, will rehabilitate 272 units with energy efficient upgrades, access to a new community center and more.
Read on for more details about the project.
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DOJ settles race discrimination suit in Mississippi
Posted Date: Monday, October 24, 2022
The Department of Justice has settled a race discrimination suit dealing with several apartment complexes in Pearl, Miss.
The U.S. District Court for the Southern District of Mississippi had previously determined SSM Properties, LLC, Steven and Shelia Maulding and their former rental agent James Roe violated the Fair Housing Act by discriminating against Black prospective tenants.
Read on for more details about the case.
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FTC settles with Passport over fair lending, discrimination claims
Posted Date: Monday, October 24, 2022
The Federal Trade Commission (FTC) settled a complaint against Passport Automotive Group alleging the automotive group deceived customers with junk fees and discriminated against Black and Latinx consumers.
In addition to an agreed-upon payment to refund harmed consumers, Passport will have to change business practices to prevent future violations of the Equal Credit Opportunity Act and the FTC Act.
Read on for more about the settlement.
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CFPB, Federal Reserve announce Reg Z, Reg M dollar thresholds
Posted Date: Monday, October 24, 2022
The Consumer Financial Protection Bureau and the Federal Reserve have announced the 2023-dollar thresholds for consumer credit and lease transactions to determine whether they are exempt from Regulation Z and Regulation M.
These thresholds are annually adjusted based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers.
Read on for more details.
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RESPA, negligence claim survives motion to dismiss in PA Court
Posted Date: Thursday, October 20, 2022
The U.S. District Court, M.D. Pennsylvania upheld in part and dismissed in part a motion to dismiss in a case where the plaintiff filed pro se, pleading RESPA violations, a state negligence claim, violations of the Fair Credit Reporting Act and breach of contract.
The cause of action is related to the plaintiff notifying his mortgage servicer he had a disabled veterans’ real property tax exemption. The servicer allegedly failed to adjust the escrow amount charged to the plaintiff.
Read on for more details on the outcome of this decision.
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CFPB: Financial institutions, colleges may steer students to higher-fee products
Posted Date: Thursday, October 20, 2022
A Consumer Financial Protection Bureau (CFPB) report revealed high fees charged on student banking products endorsed by colleges, raising questions about whether some marketing deals between colleges and financial institutions comply with Department of Education rules and about the transparency of said agreements.
“Today’s report suggests that there is more work to do to ensure that students are not steered into school-endorsed products with junk fees,” CFPB Director Rohit Chopra said.
Read on for more details.
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HUD acts with Tennessee housing authority to create affordable homes
Posted Date: Thursday, October 20, 2022
The U.S. Department of Housing and Urban Development’s (HUD) Office of Multifamily Housing recently closed a rental assistance demonstration with Highlands Residential Services, the housing authority in Cookeville, Tenn.
This transaction is the first of a four-phase plan to preserve 499 deeply affordable rental homes and includes a new residential development designed for families.
Read on for more details.
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NAR offers new benefit for commercial members
Posted Date: Thursday, October 20, 2022
The National Association of Realtors (NAR) has partnered with CompStak, integrating its CompStak Exchange into the Realtors Property Resource (RPR) platform.
“NAR and RPR continue to build strategic partnerships and enhance our technology resources to advance the goal of being vital business partners to Realtors who practice commercial real estate,” RPR Chief Operating Officer and General Manager Jeff Young said.
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Michigan court considers whether RESPA regs satisfy duty element in negligence claim
Posted Date: Tuesday, October 18, 2022
Matthew Leitman, District Judge for the U.S. District Court for the Eastern District of Michigan, Southern Division, granted a motion for summary judgment in a case where the plaintiff was alleging RESPA violations, wrongful foreclosure in violation of a Michigan statute, negligence and exemplary damages.
The court considered each allegation and relied on a previous decision in the Sixth Circuit to determine whether RESPA regulations could satisfy the duty element of a negligence claim under Michigan law.
Read on to discover the reasoning behind the court’s decision.
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White House AI Bill of Rights could help with tech bias
Posted Date: Monday, October 17, 2022
The White House’s Office of Science and Technology Policy released a blueprint for an Artificial Intelligence Bill of Rights, a set of five principles and associated practices to help guide the design, use and deployment of automated systems.
Groups like the National Fair Housing Alliance welcomed the resource to help find the least discriminatory alternative solutions in areas such as credit scoring, underwriting, pricing, tenant screening and health management.
To learn about the blueprint, read on.
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DOJ, Florida apartment complex resolve familial status discrimination claim
Posted Date: Monday, October 17, 2022
The Department of Justice and the owners and managers of a Florida apartment complex have resolved allegations of discrimination related to familial status.
The charge originally stated Concord Court at Creative Village Partners LTD., Concord Management LTD., related entities and a property manager were discriminating against families with children in violation of the Fair Housing Act.
To learn the details of incident and the agreement, read on.
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HUD awards $5.7M to research housing-related hazards
Posted Date: Monday, October 17, 2022
Seven universities and public health organizations received $5.7 million in research grants from the U.S. Department of Housing and Urban Development.
The endowments will fund studies related to housing-related health hazards and will focus on populations at higher risk of being affected by these issues, such as young children and seniors. Recipients include the University of Illinois, Harvard College and the University of South Dakota.
Read on for more details.
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Dallas-area housing providers charged with disability discrimination
Posted Date: Monday, October 17, 2022
The U.S. Department of Housing and Urban Development has charged Dallas-area housing providers with discriminating against tenants with disabilities. The issue arose from a change in the property management, which refused to modify monthly payment dates or waive late fees for tenants who use Social Security to pay their rent.
The refusal can be seen as a failure to reasonably accommodate in violation of the Fair Housing Act.
For more details about the charge, read on.
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FFIEC begins review of UBFR
Posted Date: Monday, October 17, 2022
The Federal Financial Institutions Examination Council has begun a review of the Uniform Bank Performance Report’s (UBFR) content, which will take place over multiple years.
The purpose of the review is to ensure the UBFR remains current and relevant and is being led by the council’s task force on surveillance systems.
Read on for more about the review.
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Report: FHLBanks’ LIH, community development efforts down from 2020
Posted Date: Thursday, October 13, 2022
The Federal Housing Finance Agency issued its annual report on the low-income housing and community development efforts made by Federal Home Loan Banks (FHLBanks), highlighting 2021 activities and performance through the Affordable Housing Program, the Community Investment Program and the Community Investment Case Advance Program.
According to the report, FHLBanks provided more than $2.7 billion for targeted economic development and housing advances in 2021. The report also showcases Community Development Financial Institution membership in the FHLBank System, the FHLBanks’ housing goals and their purchase of acquired member assets.
For more details, read on.
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DOJ settles New Orleans-based disability discrimination suit
Posted Date: Thursday, October 13, 2022
The Department of Justice reached a settlement with the Housing Authority of New Orleans and seven private developers in a case alleging the entities violated the Fair Housing Act and the American with Disabilities Act.
The defendants allegedly failed to design and construct eight multifamily residential properties and associated places of public accommodation to be accessible to persons with disabilities. In addition to the monetary settlement, the defendants also agreed to remove accessibility barriers at the properties.
For more details about the case, read on.
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California court denies injunction on foreclosure sale
Posted Date: Thursday, October 13, 2022
The United States District Court of Eastern California denied a motion for a preliminary injunction to prevent the foreclosure sale of a single-family home owned by Omar Bermudez.
The cause of action arose from a loan modification where the plaintiff was attempting to negotiate the terms of the mortgage. To prevent the foreclosure, Bermudez made claims alleging breach of contract and accounting, violations under the California Homeowners’ Bill of Rights, the California Unfair Business Practices Act and RESPA.
To learn more about plaintiff’s RESPA argument, read on.
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Discrimination charge filed against NY co-op owners
Posted Date: Thursday, October 13, 2022
The U.S. Department of Housing and Urban Development (HUD) charged the owners of a New York co-op with discrimination, alleging they refused to rent to a person with disabilities because of their use of an assistance animal.
“Reasonable accommodations, such as allowing assistance animals, ensure that people with disabilities have equal access to housing opportunities,” HUD Principal Assistant Deputy Secretary for Fair Housing and Equal Opportunity Demetria McCain said. “Today’s charge demonstrates HUD’s ongoing commitment to take appropriate action when housing providers fail to comply with our nation’s fair housing laws.”
For more details about the charge, read on.
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FHFA welcomes new chief of staff, executive secretary
Posted Date: Thursday, October 13, 2022
The Federal Housing Finance Agency appointed two individuals to new positions. Effective immediately, one will serve as the chief of staff, and the other as the agency’s executive secretary.
The new chief of staff has been with the agency since April 2021, while the new executive secretary joined in 2014. Both have experience working with multiple federal agencies prior to joining the FHFA.
For more information on the new appointments, read on.
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Repeated court filings don’t shield Massachusetts homeowner
Posted Date: Monday, October 10, 2022
A Massachusetts homeowner repeatedly defaulted on her mortgage, filed for bankruptcy, and then defaulted on her repayment plan.
When her bank and servicer filed for foreclosure, the homeowner sued for several RESPA violations. The bank and servicer sought summary judgment on all counts.
Read on for more information.
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DOJ settles discrimination complaint against Memphis bank
Posted Date: Monday, October 10, 2022
The U.S. Department of Justice Department reached an agreement to with Memphis, Tenn.-based Evolve Bank & Trust settling allegations its engaged in lending discrimination based on race, sex and national origin in the pricing of its residential mortgage loans.
Under the department’s settlement, which is subject to the approval of the District Court, Evolve Bank will establish a settlement fund of $1.3 million to compensate affected borrowers. Evolve Bank will also pay a $50,000 civil penalty.
Read on for more information.
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Money transfer company fined $950,000
Posted Date: Monday, October 10, 2022
The Consumer Financial Protection Bureau has penalized Choice Money Transfer for violations of the Remittance Transfer Rule and the Electronic Fund Transfer Act.
According to the bureau, the company did not accurately disclose important prepayment information to remittance senders, such as money transfer fees, current exchange rates and the date the recipient would receive the funds.
Read on for more details.
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Pending home sales continue to decline
Posted Date: Monday, October 10, 2022
Pending home sales in August decreased for the third straight month, including in three out of four major regions, according to the National Association of Realtors.
While the West saw a small, month-over-month gain in pending home sales in August, all four regions had double-digit declines in transactions year-over-year in August.
Read on to learn more.
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FHFA proposed rule change targets colonias residents
Posted Date: Monday, October 10, 2022
The Federal Housing Finance Agency (FHFA) has proposed amending the agency’s Duty to Serve Underserved Markets regulation to facilitate Fannie Mae and Freddie Mac’s activities related to serving colonias.
In this proposed rule, FHFA would revise its Enterprise Duty to Serve Underserved Markets regulation to add a definition of “colonia census tract.”
Read on to learn more.
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FHA seeking input on smaller-balance mortgages
Posted Date: Monday, October 10, 2022
The Federal Housing Administration published a request for information in the Federal Register seeking input on ways it can facilitate increased access to smaller-balance mortgages through its single-family mortgage insurance programs.
Read on to learn more.
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DOJ, New Jersey bank settle redlining complaint
Posted Date: Thursday, October 6, 2022
The U.S. Department of Justice (DOJ) announced an agreement to resolve allegations that Lakeland Bank engaged in a pattern or practice of lending discrimination by “redlining” in the Newark metropolitan area, including neighborhoods in Essex, Somerset and Union counties in New Jersey.
The DOJ said the settlement is the third-largest redlining settlement in department history.
Read on for more details.
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HUD charges California condo operators with disability discrimination
Posted Date: Thursday, October 6, 2022
The U.S. Department of Housing and Urban Development has charged the operators of a 556-unit, high-rise condominium tower located in Long Beach, Calif., with discriminating against a homeowner because of disability by refusing to provide her a permanent parking space to accommodate her wheelchair-accessible van.
Those charged in the complaint include Aqua 388 Community Association, FirstService Residential California, LLC and two of its employees and AQUA Maintenance Corp.
Read on for more details.
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CFPB: Some schools improperly withholding transcripts to force loan repayment
Posted Date: Thursday, October 6, 2022
The Consumer Financial Protection Bureau (CFPB) has released a special edition of Supervisory Highlights on recent examination findings covering the practices of student loan servicers, and schools that lend to students directly.
The bureau said its exams found these schools had improper blanket policies of withholding transcripts to force students to make payments. The findings come after the CFPB announced earlier this year it would examine the operations of colleges that operate lending businesses.
Read on to learn more.
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Architect firm settles fair housing lawsuit
Posted Date: Thursday, October 6, 2022
The U.S. Department of Justice announced that J. Randolph Parry Architects P.C. has agreed to settle a federal lawsuit alleging it violated the Fair Housing Act and the Americans with Disabilities Act by failing to design and construct senior living facilities to be accessible to people with disabilities.
According to the terms of the consent order, Parry will pay $350,000 to fund retrofits at eight Pennsylvania properties, $75,000 into a settlement fund to compensate individuals harmed by the inaccessible housing and $25,000 to the government as a civil penalty to vindicate the public interest.
Read on to learn more.
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FHFA releases foreclosure report
Posted Date: Thursday, October 6, 2022
The Federal Housing Finance Agency (FHFA) recently released its second quarter 2022 Foreclosure Prevention and Refinance Report.
The report found Fannie Mae and Freddie Mac (the Enterprises) completed 96,945 foreclosure prevention actions during the quarter, raising the total number of homeowners who have been helped to 6,591,002 since the start of conservatorships in September 2008.
Read on to learn more.
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Partial adherence to modification plan does not prevent foreclosure action
Posted Date: Monday, October 3, 2022
A New Jersey homeowner twice agreed to trial plan payment agreements with his mortgage servicer.
After making the required payments stipulated in each agreement, the servicer refused to issue a permanent modification. The homeowner sued.
The servicer moved to dismiss the complaint.
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Bank ordered to refund millions in overdraft fees
Posted Date: Monday, October 3, 2022
The Consumer Financial Protection Bureau is ordering Regions Bank to pay $50 million into its victims’ relief fund and to refund at least $141 million to customers harmed by its illegal surprise overdraft fees.
The agency found Regions knew about and could have discontinued its surprise overdraft fee practices years earlier but chose to wait while it pursued changes that would generate new fee revenue to make up for ending the illegal fees.
Read on to learn more.
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Lender allegedly charged servicemembers illegal and excessive fees
Posted Date: Monday, October 3, 2022
The Consumer Financial Protection Bureau sued MoneyLion Technologies, an online lender, and 38 of its subsidiaries, for allegedly imposing illegal and excessive charges on servicemembers and their dependents.
Based in New York, MoneyLion is a financial technology company that offers online installment loans and other products. The company requires customers to join a MoneyLion membership program and pay monthly membership fees.
Read on to learn more.
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Housing advocates urge whole-of-government housing strategy
Posted Date: Monday, October 3, 2022
Principals of the National Housing Conference and other national housing and lending organizations recently met at the White House to discuss the legislative, administrative, private sector and state and local actions to address housing supply, fair housing and affordability challenges throughout the country.
Biden administration officials present included National Economic Council Director Brian Deese, Housing and Urban Development Secretary Marcia Fudge, Federal Housing Finance Agency Director Sandra Thompson and American Rescue Plan Coordinator and Senior Advisor to the President Gene Sperling.
Read on for more details.
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Home prices dipped in July
Posted Date: Monday, October 3, 2022
House prices fell nationwide in July, down 0.6 percent from the previous month, according to the latest Federal Housing Finance Agency (FHFA) House Price Index.
A FHFA economist said the 12-month change in house prices remains at historically high rates, but the rate of growth continues to moderate across all census divisions.
Read on to learn more.
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HUD details component of MTW program
Posted Date: Monday, October 3, 2022
The U.S. Department of Housing and Urban Development (HUD) announced the asset-building cohort of the expansion of its Moving to Work Demonstration Program.
Through this cohort, HUD said it will evaluate asset-building activities that encourage the creation and growth of savings accounts and/or aim to build credit, through rent reporting, for assisted households.
Read on for more details.
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Homeowners’ hurricane-related RESPA claim dismissed
Posted Date: Friday, September 30, 2022
After a Virgin Islands property owner failed to secure property insurance as required by her mortgage agreement, the holder of her mortgage obtained a policy to protect its interests.
The policy did not fully protect the homeowner for damage her property sustained during Hurricane Maria in 2017.
The homeowner sued the mortgage holder for various breach of contract and RESPA violations. The bank filed a motion to dismiss.
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HUD settles California sex discrimination complaint
Posted Date: Thursday, September 29, 2022
The U.S. Department of Housing and Urban Development (HUD) approved a conciliation agreement with Indio, Calif., property owners Perris Family Apartments, LLC., Perris Family Apartments L.P., and the Coachella Valley Housing Coalition resolving allegations of housing discrimination because of sex.
The agreement also covers property manager Hyder & Company (dba Hyder Property Management Professionals) and maintenance person Kenneth Parker.
Read on to learn more.
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FHA to include rental-payment history in credit assessments
Posted Date: Thursday, September 29, 2022
The Federal Housing Administration (FHA) announced it will begin to permit inclusion of a first-time homebuyer’s positive rental payment history as an additional factor in the credit assessment performed in the Technology Open to Approved Lenders Mortgage Scorecard in determining eligibility for an FHA-insured mortgage.
The agency said by adding a positive rental history indicator to the scorecard, FHA’s credit evaluation will become more comprehensive and equitable.
Read on to learn more.
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Housing choice vouchers awarded to 2,000 housing agencies
Posted Date: Thursday, September 29, 2022
The U.S. Department of Housing and Urban Development (HUD) is awarding more than 19,000 new housing-choice vouchers (HCVs) to almost 2,000 public housing agencies across the country.
HUD Secretary Marcia Fudge said the awards were the most expansive allocation of flexible new rental assistance in 20 years.
Read on to learn more.
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Existing-homes sales decline
Posted Date: Thursday, September 29, 2022
Existing-home sales dropped slightly in August, marking the seventh consecutive month of declines, according to the National Association of Realtors (NAR).
NAR reported month-over-month sales varied across the four major U.S. regions as two regions recorded increases, one was unchanged and the other posted a drop. On a year-over-year basis, sales fell in all regions.
Read on for more information.
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CFPB seeking input on mortgage refinances
Posted Date: Thursday, September 29, 2022
The Consumer Financial Protection Bureau (CFPB) is seeking comment about ways to facilitate mortgage refinances for consumers who would benefit from refinancing, especially consumers with smaller loan balances.
Read on to learn more.
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