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Wrongful termination case against Wells Fargo to proceed
Posted Date: Thursday, August 24, 2017
The U.S. District Court for the District of New Jersey has denied defendants Wells Fargo & Co. and Wells Fargo Bank, N.A.’s motion to dismiss a wrongful termination complaint brought by former Wells Fargo employees. The plaintiffs argued that they were chosen arbitrarily for termination to create the appearance of an internal investigation, as a result of a previous enforcement action by the Consumer Financial Protection Bureau and Maryland Office of the Attorney General.
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Settlement finalized in Prospect FCA case
Posted Date: Thursday, August 24, 2017
The Department of Housing and Urban Development has issued a memo regarding its assistance to the Department of Justice and the U.S. Attorney’s offices of the Northern District of Georgia and Northern District of California in their investigation of Prospect Mortgage, LLC. The investigation regard alleged False Claims Act allegations. Read on for more details.
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CFPB issues warning on reverse mortgages
Posted Date: Thursday, August 24, 2017
The Consumer Financial Protection Bureau has issued a report warning older consumers about the risks involved with taking out a reverse mortgage loan as a means of delaying collecting Social Security. The report also provided a series of scenarios of how this strategy harms older borrowers.
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Watchdog calls for Clayton Homes information
Posted Date: Thursday, August 24, 2017
The Campaign for Accountability has issued a Freedom of Information Act request to the Consumer Financial Protection Bureau seeking any communications between the bureau and Clayton Homes Inc. regarding any consumer complaints and other investigative information about Clayton’s lending practices.
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Online lending platform targeted in shareholder lawsuit
Posted Date: Thursday, August 24, 2017
Shareholders of LendingClub Corp. have filed a derivative lawsuit in Delaware Chancery Court, alleging that the company’s board breached its fiduciary duties by not ensuring LendingClub had sufficient internal financial controls. The shareholders also alleged that the board lied about their controls in regulatory filings with the Securities and Exchange Commission. Read on for more details.
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Minnesota AG takes aim at pension advance companies
Posted Date: Monday, August 21, 2017
Minnesota Attorney General Lori Swanson has filed a lawsuit in Hennepin County District Court against two pension advance companies that required veterans and seniors to sign over significant portions of their monthly pension payments. The lawsuit follows previous enforcement actions taken by other states and the Consumer Financial Protection Bureau. Read on for more details.
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CFPB, AGs enter into settlement with Aequitas
Posted Date: Monday, August 21, 2017
The attorneys general of 13 states and the Consumer Financial Protection Bureau have reached a $192 million settlement with private equity firm Aequitas Management LLC over allegations that it aided Corinthian Colleges’ predatory lending scheme.
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Venue questioned in RESPA RFI complaint
Posted Date: Monday, August 21, 2017
The Eleventh Circuit Court of Appeals recently was tasked with determining whether the U.S. District Court for the Southern District of Florida abused its discretion when it dismissed a plaintiff’s claim that Wells Fargo Bank improperly responded to his request for information. Read on to find out what was the circuit court’s interpretation of “the district in which the property involved is located, or where the violation is alleged to have occurred.”
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CFPB announces new form for regulatory inquiries
Posted Date: Monday, August 21, 2017
The Consumer Financial Protection Bureau Office of Regulations has launched a new online form for the industry and other stakeholders to use when seeking informal guidance. Find out how to access the form, the timeline of when to expect responses and what the bureau recommends you do prior to sending a request.
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HUD grants $500,000 to New York village
Posted Date: Monday, August 21, 2017
The Department of Housing and Urban Development (HUD) has announced that Monticello, N.Y., will receive a $500,000 grant to rehabilitate the Strong Building and build affordable housing units for low-income residents.
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HUD, Census Bureau detail residential construction
Posted Date: Monday, August 21, 2017
The Department of Housing and Urban Development and the U.S. Census Bureau have released results from the July 2017 Monthly New Residential Construction Report, detailing the rates of building permits, housing starts and housing completions. Read on for more details.
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Surplus lender credits at the center of state enforcement
Posted Date: Thursday, August 17, 2017
The New York Department of Financial Services has entered into a consent order with Mortgage Research Center, LLC after discovering that the company did not pursue any means of refunding surplus lender credits to borrowers as according to Department of Housing and Urban Development guidance, RESPA and state laws. Read on for more details.
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Ninth Circuit: Spokeo’s inaccurate profile caused concrete harm
Posted Date: Thursday, August 17, 2017
After receiving unclear guidance from the U.S. Supreme Court in Spokeo, Inc. v. Robins, the Ninth Circuit Court of Appeals has held that Thomas Robins alleged injuries under the Fair Credit Reporting Act that were both sufficiently concrete and particularized to establish standing to sue under Article III. How did the circuit court apply the facts to find injury-in-fact? Read on to find out.
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Illinois AG pushes for student loan bill of rights
Posted Date: Thursday, August 17, 2017
Illinois Attorney General Lisa Madigan has urged Illinois Gov. Bruce Rauner to sign a bill that would create a “Student Loan Bill of Rights” and reform the student loan industry to help borrowers. Madigan is one of the attorneys general that have joined the Consumer Financial Protection Bureau’s lawsuit against Navient. Find out what the bill of rights would require of servicers.
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Eleventh Circuit affirms lower court’s decision
Posted Date: Thursday, August 17, 2017
Under RESPA’s requirements for requests for information, does “other relevant contact information” include phone numbers within the context of 12 C.F.R. § 1024.36(d)? This was the legal question presented before the U.S. District Court for the Southern District of Florida. Read on to find out
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NAR: Home prices increased in Q2 2017
Posted Date: Thursday, August 17, 2017
The national median existing single-family home price increased 6.2 percent in the second quarter of 2017, according to the National Association of Realtors. Read on to find out what NAR Chief Economist Lawrence Yun had to say about these results.
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Zillow enters settlement talks with CFPB
Posted Date: Monday, August 14, 2017
During a call with investors to discuss second quarter developments, Zillow executives discussed the status of a Consumer Financial Protection Bureau investigation into the company’s co-marketing program. Zillow’s chief financial officer said the company expects settlement discussions to “move pretty quickly.” Read on to learn more.
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PHH Corp. agrees to $75 million settlement
Posted Date: Monday, August 14, 2017
PHH Corp. has agreed to pay nearly $75 million to settle claims that the mortgage servicer originated mortgages backed by the Federal Housing Administration, the Department of Veterans Affairs, Fannie Mae and Freddie Mac that did not meet the requirements for those federal guarantees. Find out what facts the mortgage company admitted to, what federal prosecutors had to say regarding the settlement.
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CFPB officially publishes TRID 2.0
Posted Date: Monday, August 14, 2017
The Consumer Financial Protection Bureau officially published its finalized amendments to the TILA-RESPA Integrated Disclosure rule in the Federal Register on Aug. 11. The final rule is effective Oct. 10, 2017. However, the bureau has issued an optional compliance period, which may cause some to have to comply with both versions of TRID simultaneously. Read on to learn more.
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Court missed the mark on Navient, attorney writes
Posted Date: Monday, August 14, 2017
The U.S. District Court for the Middle District of Pennsylvania denied Navient’s motion to dismiss the case brought by the Consumer Financial Protection Bureau. The lawsuit alleged that Navient steered student loan borrowers into loan forbearance rather than income-based repayment plans to cure or avoid defaults on their student loans. Find out what one Ballard Spahr attorney had to say about the dismissal.
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Know your regulator: HUD’s new assistant secretary
Posted Date: Monday, August 14, 2017
The Department of Housing and Urban Development has sworn in its new assistant secretary for Fair Housing and Equal Opportunity. Read on to learn more about the new confirmation.
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HUD details worst case housing needs
Posted Date: Monday, August 14, 2017
The number of very poor unsubsidized families struggling to pay their monthly rent, and who may also be living in substandard housing, increased between 2013 and 2015, according to the Department of Housing and Urban Development’s “Worst Case Housing Needs” report. Read on for more details.
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Realtors targeted as cybersecurity ‘weak link’
Posted Date: Thursday, August 10, 2017
Scammers are not just targeting buyers and sellers in the real estate transaction, but are turning their attention to real estate professionals, the National Association of Realtors warned. Read on to learn more about a recent license-renewal scam in Florida and an example of a “business email compromise” scam.
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Groups: Keep language preference question off URLA
Posted Date: Thursday, August 10, 2017
The American Bankers Association, the Consumer Bankers Association, the Mortgage Bankers Association and the Housing Policy Council of the Financial Services Roundtable have responded to the Federal Housing Finance Agency’s request for input on issues faced by qualified Limited English Proficiency borrowers. The groups recommended language preference questions not be placed on the Uniform Residential Loan Application until certain concerns are met. Read on to find out what those concerns are.
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How should ‘foreclosure sale’ be defined?
Posted Date: Thursday, August 10, 2017
The U.S. District Court for the Eastern District of Wisconsin recently was tasked with determining whether a “foreclosure sale” under RESPA should be defined as a “complete foreclosure action” as defined by Wisconsin law. The plaintiffs had applied for loss mitigation after a sheriff’s sale of their property, but prior to the confirmation of that sale. Read on to learn more.
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Claims after foreclosure judgment weighed
Posted Date: Thursday, August 10, 2017
Why did the U.S. District Court for the Eastern District of New York dismiss a plaintiff’s claims under the Truth in Lending Act and RESPA? What is New York’s approach to res judicata, and how did that influence the court’s decision? What was missing from the plaintiff’s qualified written request?
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CFPB releases disclosure prototypes
Posted Date: Thursday, August 10, 2017
The Consumer Financial Protection Bureau unveiled the new “Know Before You Owe” overdraft disclosure prototypes designed to improve the model form that banks and credit unions already provide to consumers weighing overdraft coverage. Find out more about the language on these prototypes.
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PHH: A case about ‘Nothing’ and everything
Posted Date: Monday, August 7, 2017
At October Research, LLC’s National Settlement Services Summit in San Antonio, attendees heard from Ken Markison, vice president and regulatory counsel at the Mortgage Bankers Association, and Loretta Salzano, founding partner of Franzén and Salzano, about compliance touchpoints under RESPA Section 8, as the industry awaits the D.C. Circuit Court of Appeals’ decision in PHH Corp. v. CFPB.
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DOJ invited to weigh in on CFPB, Ocwen case
Posted Date: Monday, August 7, 2017
The U.S. District Court for the Southern District of Florida has granted Ocwen Financial Corp.’s motion to invite the U.S. Attorney General to express the AG’s opinion on the CFPB’s constitutionality. Read on to find out why the court came to this conclusion.
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RESPRO seeks to end discrimination against AfBAs
Posted Date: Monday, August 7, 2017
In a letter to Consumer Financial Protection Bureau Director Richard Cordray regarding the bureau’s assessment of the Ability to Repay (ATR)/Qualified Mortgage (QM) Rule, RESPRO called for the bureau to end discrimination against affiliated businesses properly organized under RESPA. Read on to learn what survey results the group used in support of its argument.
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CFPB issues $4.6 million penalty against Chase
Posted Date: Monday, August 7, 2017
The Consumer Financial Protection Bureau entered a consent order with JPMorgan Chase Bank, N.A. after determining the bank failed to provide accurate information for checking account screening reports, among other violations. Read on to learn more.
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MBA weighs consumer costs of GSE reform
Posted Date: Monday, August 7, 2017
The Mortgage Bankers Association has issued a paper titled “GSE Reform: Consumer Costs in a Reformed System.” The paper details six different components of reform that may affect consumer costs. Read on to learn more about these six factors and what the association recommends to offset higher costs.
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Cordray in contempt of subpoena, committee says
Posted Date: Monday, August 7, 2017
Before leaving for summer, House Financial Services Committee Republicans released a report concluding that there is sufficient basis for Congress to initiate contempt proceedings against Consumer Financial Protection Bureau Director Richard Cordray based on the bureau’s failure to respond to two specific subpoenas regarding the bureau’s arbitration rule. Read on to learn more.
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Whistleblower tip came from regulator
Posted Date: Monday, July 31, 2017
The Security and Exchange Commission Office of the Whistleblower recently announced an award of nearly $2.5 million to a government agency employee. This award marks the first time the commission has given a whistleblower award to a regulator. Read on for more details.
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CFPB releases pay-by-phone compliance bulletin
Posted Date: Monday, July 31, 2017
The Consumer Financial Protection Bureau has issued a compliance bulletin regarding fees for pay-by-phone services and their potential for UDAAP (unfair, deceptive or abusive acts or practices) violations. Read on to learn more.
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HUD seeks comments on Sec 8 renewal
Posted Date: Monday, July 31, 2017
The Department of Housing and Urban Development is seeking an extension from the Office of Management and Budget regarding a proposed information collection titled “Section 8 Renewal Policy Guide.” Read on for more details.
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Revisions sought for multifamily accelerated processing
Posted Date: Monday, July 31, 2017
The Department of Housing and Urban Development has requested comments regarding revisions of the lender qualifications under the Multifamily Accelerated Processing Guide. Read on to find out when comments are due and what specific questions the department has for the public.
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Group outlines successful transfers of servicing
Posted Date: Monday, July 31, 2017
The Strategic Mortgage Finance Group, LLC (also known as STRATMOR Group) has released a report titled “Transfers of servicing – A battle-tested methodology,” detailing how to create a seven-step plan for ensuring successful transfers. Read on for more details.
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Lawmaker: Flood insurance affordability still a concern
Posted Date: Monday, July 31, 2017
Although the National Association of Realtors and the House Financial Services Committee has come closer to agreeing on legislation to renew the National Flood Insurance Program, Rep. Maxine Waters (D-Calif.) still had concerns. Read on to find out out what she had to say.
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CFPB details TRID supervision standards
Posted Date: Thursday, July 27, 2017
On July 7, the Consumer Financial Protection Bureau finalized amendments to the TILA-RESPA Integrated Disclosure (TRID), making Oct. 1, 2018, the mandatory compliance date. When TRID initially became effective Oct. 1, 2015, Director Richard Cordray repeatedly stated that the bureau’s examinations would be “diagnostic and corrective” as opposed to “punitive.” Is this still the CFPB’s stance? What did the CFPB and attorney Richard Horn have to say?
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CFPB enforcement activity decreased in Q2
Posted Date: Thursday, July 27, 2017
There were only six enforcement actions finalized in the second quarter of this year, compared to 17 finalized in 2017’s first months. Does this activity signal any other changes at the bureau?
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Audit shows HUD improperly sold distressed mortgages
Posted Date: Thursday, July 27, 2017
An audit by the Office of Inspector General found that the Department of Housing and Urban Development did not conduct rulemaking or develop formal procedures for its single-family note sales program. As a result, public officials, citizens and industry participants were not given the opportunity to provide comments for a more than $18 billion program. Read on for more details.
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Lucia seeks Supreme Court review
Posted Date: Thursday, July 27, 2017
Counsel for Raymond Lucia - the “Buckets of Money” investment advisor – sought U.S. Supreme Court review of the D.C. Circuit Court of Appeal’s ruling in Lucia v. SEC, a case that has the potential to impact the outcome of PHH Corp. v. CFPB. Read on to learn more.
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Resolution to override arbitration rule moves forward
Posted Date: Thursday, July 27, 2017
The U.S. House of Representative passed H.J. Res. 111 by a 231-190 partisan vote. The resolution provides for congressional disapproval under the Congressional Review Act of the Consumer Financial Protection Bureau’s arbitration rule. What are the next steps? Read on to find out.
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Pennsylvania AG creates consumer financial protection unit
Posted Date: Monday, July 24, 2017
Pennsylvania Attorney General Josh Shapiro has announced that his office will create a Consumer Financial Protection Unit, which will be led by an attorney who helped create the Consumer Financial Protection Bureau. Read on to learn more.
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Group seeks preemption of state student loan servicing laws
Posted Date: Monday, July 24, 2017
The National Council of Higher Education Resources, a national trade association representing higher education finance organizations, has written to Department of Education, asking the department to issue guidance stating that the department’s rules and requirements preempt state and local laws and actions that purport to regulate the activities of participants in the federal student loan programs, including federal contractors.
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HUD announces winner of preservation award
Posted Date: Monday, July 24, 2017
The Department of Housing and Urban Development and the Advisory Council on Historic Preservation have announced that the East Baltimore Historic II project has won the Secretary’s Award for Excellence in Historic Preservation. Read on to learn more.
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MBA: Mortgage applications saw increase
Posted Date: Monday, July 24, 2017
Mortgage applications increased 6.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending July 14, 2017. Read on for more details.
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NAR, Committee reaches NFIP agreement
Posted Date: Monday, July 24, 2017
The National Association of Realtors announced that “significant improvements” have been made to the 21st Century Flood Reform Act (H.R. 2874), a bill that aims to improve the financial stability of the National Flood Insurance Program.
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