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A 'look behind the curtain' with Phil Schulman
Posted Date: Thursday, July 25, 2019
This is part one of a two-part series on strategic alliances. This week’s article discusses joint ventures. Next week’s article will focus on marketing services agreements.
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 for an in-depth analysis of different hypothetical situations involving business owners hoping to start a joint venture.
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Eleventh Circuit: Foreclosure lawsuit has no legs
Posted Date: Monday, July 22, 2019
A Florida borrower alleged her servicer’s motion to reschedule a previously ordered foreclosure sale – rather than cancel it altogether – violated loss mitigation procedures.
The U.S. District Court for the Southern District of Florida previously found no evidence the servicer moved for an order of foreclosure sale after the borrower submitted her complete loss mitigation application.
Read on to see why the Eleventh Circuit Court of Appeals affirmed the ruling.
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Eleventh Circuit: Yield spread premium is RESPA kickback
Posted Date: Thursday, July 18, 2019
In a case of first impression, the Eleventh Circuit Court of Appeals ruled that an Alabama district court erred in granting summary judgment to a mortgage lender accused of violating RESPA’s anti-kickback provisions in a class action lawsuit.
The plaintiffs alleged the lender’s payment of a “yield spread premium” to a broker constituted an illegal referral fee.
Read on for highlights of the appellate court’s ruling in the case.
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Gender pay gap rising again in compliance
Posted Date: Thursday, July 18, 2019
The gender gap is widening again between male and female compliance in-house counsel, according to a new study by the BarkerGilmore executive search firm.
Last year, the company’s annual In-House Counsel Compensation Report showed female compliance professionals earn 85 percent of what male in-house counsel earn.
Read on for details from the 2019 report, which also revealed a decrease in the median annual salary increase rate for all in-house counsel positions.
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NAR: Foreign real estate investment plummeting
Posted Date: Thursday, July 18, 2019
A decline in global growth and low housing inventory contributed to a drop in foreign investment in U.S. residential real estate over the past year.
That’s according to an annual National Association of Realtors’ (NAR) survey, which showed that foreign buyers purchased fewer U.S. existing homes from April 2018 through March 2019.
Read on to learn which countries continue to invest in American properties and which states remain popular for foreign investors.
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CFPB asks financial institutions to report elder financial abuse
Posted Date: Thursday, July 18, 2019
The Consumer Financial Protection Bureau (CFPB) has issued an updated advisory urging financial institutions to report to the appropriate local, state and federal authorities whenever they suspect that an older adult is the target or victim of financial exploitation.
The bureau also recommended those institutions file Suspicious Activity Reports (SARs) with the federal government when they suspect elder financial exploitation (EFE).
Read on for details from the updated advisory.
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HUD: Maine landlord discriminated against disabled vet
Posted Date: Thursday, July 18, 2019
A Clinton, Maine, landlord denied a veteran with disabilities the right to keep his assistance animal, according to the Department of Housing and Urban Development (HUD).
HUD filed the charge against Roderick Apartments, LLC and one of its agents after the veteran reported the landlord refused to lease an apartment to him because he uses a dog as an assistance animal.
Read on for details from HUD’s charge.
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BarkerGilmore adds former Staples EVP to senior advisor roster
Posted Date: Wednesday, July 17, 2019
Michael T. Williams, who most recently served as executive vice president, chief legal officer & secretary of Staples, Inc., has joined BarkerGilmore, a New York-based boutique legal and compliance executive search, advisory and leadership development firm.
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Montgomery: FHA doing 'everything possible' to make it easier to do business
Posted Date: Monday, July 15, 2019
As real estate transaction companies evolve to meet new demands in an increasingly digital industry, the Federal Housing Administration (FHA) is trying to revolutionize the way it does business.
Federal Housing Commissioner and Assistant Secretary for Housing of the Department of Housing & Urban Development (HUD) Brian Montgomery recently addressed a standing-room only crowd in Phoenix at the National Settlement Services Summit (NS3) on plans in motion for changes at FHA.
Read on for highlights of Montgomery’s keynote address.
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Servicer accused of ignoring 'facially complete' modification
Posted Date: Monday, July 15, 2019
A Texas borrower who accused their servicer of proceeding with a foreclosure sale even though their third loan modification application was “facially complete” claimed they suffered three types of actual damages.
The servicer argued the case should be dismissed because the facially complete requirement only applies to a borrower’s first loss mitigation application.
Read on to find out what a magistrate recommended regarding the servicer’s motion for summary judgment on the RESPA claim.
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NAR: Racial home ownership gap wide
Posted Date: Monday, July 15, 2019
Home ownership rates have increased gradually after taking a hit after the housing bubble, but wide racial disparities still exist, according to a new report by the National Association of Realtors (NAR).
NAR examined home ownership trends by state from 2009 through 2017, including rates among African-Americans, Asian and Pacific Islanders, American Indians and Caucasians.
Read on to see which states had high and low home ownership rates both overall and across racial categories.
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HUD charges Texas landlords with race discrimination
Posted Date: Monday, July 15, 2019
The Department of Housing and Urban Development (HUD) has charged a Plano, Texas, couple with violating the Fair Housing Act by refusing to lease a room to a prospective tenant because she is black.
HUD's charge alleges that in advertising on craigslist for a room in a five-bedroom house, a landlord required applicants to identify their race and submit a photograph of themselves.
Read on for details from HUD.
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ICBA asks CFPB for more rule transparency
Posted Date: Monday, July 15, 2019
The Independent Community Bankers of America (ICBA) is asking the Consumer Financial Protection Bureau (CFPB) to be more transparent when publishing and collecting comments on rules under review.
The trade group responded to the CFPB’s request for comment on its plan to publish a periodic review of rules to assess whether rules should continue as is, be amended or be rescinded.
Read on to see what the ICBA suggested.
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HUD, John Marshall launch fair housing academy
Posted Date: Monday, July 15, 2019
The Department of Housing and Urban Development (HUD) is partnering with the John Marshall Law School in Chicago to develop the National Fair Housing Training Academy (NFHTA).
The academy will prepare fair housing advocates, lawyers, investigators and other stakeholders on effective strategies and techniques for addressing discriminatory housing policies and practices throughout the nation.
Read on for reaction from HUD Secretary Ben Carson and the agency’s assistant secretary for Fair Housing and Equal Opportunity.
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FHFA reverses constitutionality stance in shareholder case
Posted Date: Thursday, July 11, 2019
The Federal Housing Finance Agency (FHFA) once again has reconsidered its stance in a case brought by three Fannie Mae and Freddie Mac shareholders.
Former acting director Joseph Otting previously stated it was unnecessary for the court to reach the constitutionality of the agency’s for-cause removal provision to resolve the case and affirm the dismissal of the plaintiffs’ claims.
Read on to learn what FHFA now is arguing.
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CFPB settles Freedom Debt lawsuit
Posted Date: Thursday, July 11, 2019
The Consumer Financial Protection Bureau (CFPB) has agreed to settle its lawsuit against Freedom Debt Relief for alleged deceitful practices in the company’s debt-settlement business.
The bureau’s lawsuit alleged the company violated the Telemarketing Sales Rule by charging advance fees and failing to inform consumers of their rights to funds they deposited with the company.
Read on to view the terms of the settlement, including consumer restitution and a civil money penalty.
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NAR wants expanded private flood insurance
Posted Date: Thursday, July 11, 2019
The National Association of Realtors (NAR) is arguing that closing the nation’s flood insurance problem is more complicated than simply reforming the National Flood Insurance Program.
NAR has submitted comments on proposed private flood amendments to the National Council of Insurance Legislators (NCOIL) State Flood Disaster Mitigation and Relief Model Act.
Read on for details from NAR President John Smaby’s letter to NCOIL President Dan Morrish.
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Report: Loan package defects skyrocketing
Posted Date: Thursday, July 11, 2019
Critical defects related to loan package documentation doubled from 2017 to 2018.
And in the fourth quarter of 2018, defects attributed to categories related to underwriting/eligibility continued to dominate overall quality issues, according to a new report from ACES Risk Management (ARMCO).
Read on for more highlights of the report, which also showed an increase of critical defects in Federal Housing Administration (FHA) loans and in the income/employment categories.
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NAR reports pending home sales up in most regions
Posted Date: Thursday, July 11, 2019
Lower than usual mortgage rates led to an increase in pending home sales in the month of May, with three of the four major regions seeing a gain in contract activity.
Lawrence Yun, the National Association of Realtors’ (NAR) chief economist, attributed the spike in sales to interest rates of 4 percent and below.
Read on for Yun’s home buying predictions for the coming months, as well as a regional sales breakdown.
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CFPB striving to increase credit for unbanked consumers
Posted Date: Monday, July 8, 2019
The Consumer Financial Protection Bureau (CFPB) has released its annual fair lending report, and Director Kathy Kraninger has vowed to take the agency’s work in fair lending to a new level.
In 2018, mortgage lending activity focused on redlining, underwriting, pricing, steering, servicing and Home Mortgage Disclosure Act (HMDA) data integrity.
Read on to see what else the CFPB is focusing on in regards to fair lending.
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OCC: Mortgage strength up, foreclosures down
Posted Date: Monday, July 8, 2019
The overall performance of first-lien mortgages during the first quarter of 2019 improved slightly from a year earlier, and foreclosures are significantly on the decline, according to the Office of the Comptroller of the Currency’s (OCC) quarterly report on mortgages.
Meanwhile, home forfeiture actions during the quarter – completed foreclosure sales, short sales and deed-in-lieu of foreclosure actions – were also way down.
Read on for details on the OCC report.
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Hearing set in CFPB's case against online lender
Posted Date: Monday, July 8, 2019
Oral arguments have been scheduled in a Consumer Financial Protection Bureau (CFPB) lawsuit against an online lender and its partners accused of collecting money borrowers did not owe.
The CFPB’s case against CashCall will go before the Ninth Circuit Court of Appeals this fall in Pasadena, Calif.
Read on for the CFPB’s reasoning as to why the district court erred by not granting restitution in its prior decision in favor of the bureau.
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CFPB extends HMDA comment period
Posted Date: Monday, July 8, 2019
The Consumer Financial Protection Bureau (CFPB) is extending the comment period on its Advance Notice of Proposed Rulemaking (ANPR) relating to the Home Mortgage Disclosure Act (HMDA).
The extension will give interested parties an opportunity to review the bureau’s annual overview of residential mortgage lending based on the HMDA data financial institutions collected in 2018 as requested by a variety of stakeholders.
Read on for more details from the CFPB.
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FTC kicks off compliance workshop series
Posted Date: Monday, July 8, 2019
The Federal Trade Commission (FTC) and its regional partners will hold a public workshop in Atlanta on truth-in-advertising basics and data security compliance.
FTC Commissioner Rohit Chopra and Georgia Attorney General Christopher M. Carr will deliver remarks at the workshop, the first in a series of sessions across the country.
Read on for details about the “Green Lights & Red Flags” session, which addresses social media marketing and data security.
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HUD gives record $2.3 billion for homeless
Posted Date: Monday, July 8, 2019
In a continuing effort to prevent and end homelessness, the Department of Housing and Urban Development (HUD) has announced a record $2.3 billion available to support thousands of local homeless assistance programs nationwide.
HUD’s Continuum of Care homeless assistance grants support a wide variety of local programs from street outreach and assessment programs to transitional and permanent housing for individuals.
Read on for reaction from HUD Secretary Ben Carson.
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Experts debate need for 'abusive' rulemaking
Posted Date: Monday, July 1, 2019
Industry experts generally agree that Section 1031 of the Dodd-Frank Act does not sufficiently define abusive acts or practices.
But two panels of experts at the Consumer Financial Protection Bureau’s (CFPB) first symposium differed on whether it’s necessary for an ‘abusive’ rulemaking to clearly define the word for regulators and businesses in enforcement actions.
Read on for remarks from CFPB Director Kathy Kraninger and panelists on both sides of the issue.
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Law firm files Supreme Court petition vs. CFPB
Posted Date: Monday, July 1, 2019
A California company has filed its petition making an argument for why the Supreme Court should use its fight against the Consumer Financial Protection Bureau to decide whether the agency’s structure violates the constitutional separation of powers.
This would be the second opportunity the Supreme Court has to decide whether the CFPB – and every regulation enacted by it – is unlawful.
Read on for details from the petition for writ of certiorari.
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House passes HUD appropriations bill
Posted Date: Monday, July 1, 2019
The House of Representatives has passed a bill that provides a total of $50.1 billion for the U.S. Department of Housing and Urban Development (HUD).
H.R. 3055, includes the bill providing appropriations for the Transportation Department and HUD – which would allow for $1.75 billion to fund the HOME Investment Partnership Program – $500 million above the 2019 enacted level. The president’s budget request recommended eliminating the program.
Read on for more details about the proposed law.
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More Realtor groups joining NAR's AHP fight
Posted Date: Monday, July 1, 2019
The National Association of Realtors (NAR) effort to protect association health plans (AHP) now has been joined by more than 200 state and local Realtor associations nationwide.
Earlier this year, a federal court held that provisions of the Department of Labor’s AHP rule were unlawful, a ruling which is currently being appealed by the Department of Justice.
Read on for an update from NAR President John Smaby.
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Trump eliminates VA home loan cap
Posted Date: Monday, July 1, 2019
The Blue Water Navy Vietnam Veterans Act, which eliminates the cap on home loans issued by the U.S. Department of Veterans Affairs (VA), has been signed into law by President Donald Trump.
H.R. 299 was passed unanimously by the Senate earlier this month, and the National Association of Realtors said it secured a victory in the bill by limiting proposed VA home loan fee increases.
Read on for reaction from the association.
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DOJ settles redlining suit against lender
Posted Date: Thursday, June 27, 2019
An Indiana financial services holding company has settled a lawsuit alleging mortgage lenders intentionally avoided providing services to people living in predominantly African-American neighborhoods.
The U.S. Department of Justice (DOJ) and the U.S. Attorney’s Office for the Southern District of Indiana filed a discrimination lawsuit against First Merchants Bank on June 13, alleging the bank violated the Fair Housing Act and Equal Credit Opportunity Act.
Read on for details of the settlement.
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HUD confirms DACA recipients ineligible for FHA loans
Posted Date: Thursday, June 27, 2019
Ending months of speculation, the U.S. Department of Housing and Urban Development (HUD) has confirmed that so-called “Dreamers” are not eligible borrowers.
HUD Assistant Secretary for Congressional and Intergovernmental Relations Len Wolfson recently sent a letter to Rep. Pete Aguilar (D-Calif.) stating that the Federal Housing Administration will not back mortgages for Deferred Action for Childhood Arrivals (DACA) benefit recipients.
Read on for more details from Wolfson’s letter.
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Trump creates council to eliminate affordable housing barriers
Posted Date: Thursday, June 27, 2019
President Donald Trump has signed an executive order creating a White House Council to remove regulatory barriers to affordable housing.
The council will engage with state, local and tribal leaders to identify and remove obstacles to affordable housing, and will look at ways to cut costs to spur construction.
Read on for reaction from the National Association of Realtors, Mortgage Bankers Association and National Association of Home Builders.
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NAR: Americans optimistic about selling
Posted Date: Thursday, June 27, 2019
Many more Americans believe that now is a good time to sell a home, according to a new survey from the National Association of Realtors (NAR).
The second quarter Housing Opportunities and Market Experience (HOME) survey showed the second quarter of 2019 saw a jump in optimism in selling.
Read on for details from the HOME report, which tracks current renters and homeowners’ views and aspirations regarding homeownership.
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Hispanic Realtor report details top agents, teams
Posted Date: Thursday, June 27, 2019
Hispanic Realtors represented more than $6.67 billion in combined sales volume in 2018, according to a new report from the National Association of Hispanic Real Estate Professionals (NAHREP).
The report, sponsored by Zillow, ranked the top 10 Latino agents and teams by number of real estate sales. El Paso, Texas; San Antonio; and Chicago were the most represented cities on the list.
Read on for more details from the NAHREP’s findings.
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Quicken settles FHA charges for $32.5 million
Posted Date: Monday, June 24, 2019
Quicken Loans has agreed to pay $32.5 million to settle a dispute involving the U.S. Department of Housing and Urban Development’s Federal Housing Administration lending program.
Federal Judge Gerald E. Rosen recently entered an order dismissing the 2016 suit with no legal findings of fault or admissions of guilt against Quicken, which had been under investigation since April 2012.
Read on for statements from the court-appointed mediator, HUD and the lender.
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URLA implementation delayed, revisions expected
Posted Date: Monday, June 24, 2019
The Federal Housing Finance Agency has halted plans to begin the optional use period for the redesigned Uniform Residential Loan Application form next week.
The agency announced in October 2017 that the redesigned URLA form could be used starting July 1, with a mandatory compliance date of February 2020.
Instead, the effective date of the form will be revised and the agency will consider overhauling the revised form.
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CFPB settles with student loan company
Posted Date: Monday, June 24, 2019
The Consumer Financial Protection Bureau has announced a settlement with Student CU Connect CUSO, LLC, a company set up to hold and manage private loans for students at ITT Technical Institute.
The bureau filed a complaint and a proposed stipulated judgment alleging that CUSO engaged in unfair acts and practices by providing substantial assistance to ITT Educational Services, Inc.
Read on for details from the judgment.
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Stratmor: Large banks lagging in mortgage profit game
Posted Date: Monday, June 24, 2019
Large banks lag far behind their independent competitors when it comes to making a profit on retail residential mortgages, according to mortgage advisory firm Stratmor Group.
That was one of the key findings from the most recent set of meetings between the Mortgage Bankers Association (MBA) and Stratmor Peer Group Roundtables (PGR). Ninety-two lenders participated in seven meetings MBA and STRATMOR held this spring.
Read on for details from Stratmor’s latest report.
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HUD awards $63 million to tribal communities
Posted Date: Monday, June 24, 2019
The U.S. Department of Housing and Urban Development has awarded $63 million to 85 Native American communities throughout the country to improve housing conditions and stimulate community development for residents.
HUD’s Indian Community Development Block Grant program includes funding construction projects that generate local job opportunities and supports a wide range of community development and affordable housing activities.
Read on for reaction from HUD Secretary Ben Carson.
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