News By Edition

As part of a monthly feature, RESPA News reached out to Marx Sterbcow, managing attorney at Sterbcow Law Group, for his analysis of how multiple listing service policy changes can lead to increased RESPA risk.

At this year’s National Settlement Services Summit (NS3), three experts discussed how to spot risk and build a company culture that is proactive and audit-ready, offering a regulator’s perspective and emphasizing the need for self-auditing.

The House voted 358-32 to pass the highly anticipated 21st Century ROAD to Housing Act on June 23, sending one of the most comprehensive housing reform measures in decades to President Donald Trump’s desk. The next day, Trump announced he would not sign the legislation until Congress passed a voter eligibility bill. 

Policymakers, researchers and industry stakeholders have focused on addressing a shortage of housing in the U.S., but changing demographic and market conditions suggest that the housing landscape may look markedly different in the years ahead. This is according to a white paper released on June 22 by the Mortgage Bankers Association that examined recent and emerging shifts in housing supply and demand.

On June 23, the Department of Housing and Urban Development announced 14 policy changes to its Federal Housing Administration (FHA) Single Family mortgage insurance program that aim to lower costs, reduce regulatory burdens and improve affordability for Americans seeking FHA-insured mortgages. 

D.C. Attorney General Brian Schwalb announced on June 12 that two apartment landlords will pay a total of $1.4 million and change their business practices as part of separate settlements that resolve allegations that the companies conspired with other landlords to use pricing software from RealPage, Inc., to inflate rents at over 50,000 apartment units throughout D.C. 

On June 16, the Senate passed the 21st Century ROAD to Housing Act with a vote of 87-8. Members of the Senate Banking, Housing, and Urban Affairs Committee and the House Financial Services Committee released updated bill text and a section-by-section analysis for the act.

The D.C. Circuit Court of Appeals denied the Consumer Financial Protection Bureau’s request to fast-track its modified reduction in force order but agreed to remand the matter back to the district court on June 19. 

Pending home sales in May increased by 3.8 percent month-over-month and 4.8 percent year-over-year, according to the National Association of Realtors Pending Home Sales report. All regions experienced gains both month-over-month and year-over-year.

The National Association of Mortgage Bankers sent a letter to Federal Housing Finance Agency Director Bill Pulte requesting a delay in the implementation of Fannie Mae Lender Letter LL-2026-03 and Freddie Mac Bulletin 2026-C, which deal with condominium project and property insurance standards.

Rep. Nikema Williams (D-Ga.) reintroduced the Promoting Responsive Inclusion and Diverse Engagement Act, a bill that ensures equal access to financial services and inclusion for LGBTQ+ individuals in the financial services industry. 

Bill Ensley, the founder of Bear Printing, spoke with RESPA News about his company’s marketing platform that connects title companies and real estate agents. RESPA is the architecture of his company, he said, so the platform was designed so that no ‘thing of value’ flows from a settlement service provider to a referral source.

A borrower accused his mortgage servicer and subservicer of misrepresenting mortgage delinquency and failing to correct errors included in a qualified written request (QWR). The borrower alleged Fair Debt Collection Practices Act (FDCPA) and RESPA violations. The servicers argued in their motion to dismiss that no FDCPA violation occurred as there was no misleading information in the mortgage statements and that they provided the response to the QWR as required by RESPA.

The Department of Housing and Urban Development (HUD) announced 15 recent fair housing enforcement actions as HUD increases civil rights enforcement and delivers relief for Americans facing housing discrimination. The actions include charges and settlements involving allegations of sexual harassment, discrimination against families with children, failure to accommodate individuals with disabilities and violations of protections for victims of domestic violence.

Sens. Elizabeth Warren (D-Mass.) and Alex Padilla (D-Calif.) led 20 other senators in sending a letter to Department of Housing and Urban Development (HUD) Secretary Scott Turner, voicing opposition to HUD’s proposed rulemaking that would effectively eliminate federal rental assistance for households with mixed immigration eligibility statuses, in violation of federal statutory requirements.

On June 3, Richard Cunningham, a real estate developer who was formerly employed by D.C. Housing Authority, pleaded guilty in connection with a scheme to defraud private mortgage lenders of over $15 million.

California Attorney General Rob Bonta announced his office reached a $4.6 million settlement with Select Portfolio Servicing, resolving allegations that the company broke California’s Homeowner Bill of Rights and federal mortgage servicing laws during the pandemic.

Veterans United Home Loans filed a motion to dismiss a RESPA class action amended complaint, arguing that the possibility of future referrals is not a “thing of value” and that RESPA safe harbor applies to its agent network structure. RESPA News reached out to Veterans United to comment on the suit.

The Department of Housing and Urban Development published a proposed rule in the Federal Register that would update the definition of a manufactured home and support innovative opportunities for multi-story manufactured housing as part of an effort to provide more affordable housing options. Comments are due Aug. 11.

Following the Department of Housing and Urban Development’s (HUD) Office of Inspector General opening an investigation, HUD Secretary Scott Turner announced the immediate suspension of the Los Angeles Homeless Services Authority, the lead agency for Los Angeles’ homelessness response.

Optimal Blue released its May 2026 Market Advantage mortgage data report, which found that total rate-lock volume declined 9 percent month-over-month but remained 7 percent higher year-over-year. Purchase activity accounted for over 81 percent of the total lock volume, while refinance share fell to 19 percent — its lowest level since June 2025.

Sen. Elizabeth Warren (D-Mass.), ranking member of the Senate Banking Committee, along with 10 committee members, introduced a bill to automatically fund the Consumer Financial Protection Bureau through the implementation of a funding floor.

President Donald Trump has nominated Brian Johnson to serve as the permanent director of the Consumer Financial Protection Bureau for a five-year term. Johnson spent more than two years in senior leadership roles at the bureau during Trump’s first term before leaving for the private sector. 

The California Department of Financial Protection and Innovation (DFPI) announced on June 9 that over 1,800 consumers who were victims of a multiyear mortgage fraud scheme will soon receive refunds totaling nearly $3 million. DFPI, along with the Federal Trade Commission, secured a court order against Green Equitable for falsely promising to reduce homeowner’s mortgage payments and prevent foreclosure during the pandemic.

A borrower sued his mortgage servicer, accusing it of failing to adequately respond to a qualified written request (QWR) and of failing to properly manage his escrow account. The borrower alleged the servicer violated RESPA, the Truth in Lending Act and the Fair Debt Collection Practices Act. The servicer filed a motion to dismiss, arguing that its response to the QWR complied with RESPA.

October Research, LLC will host a webinar June 17 at 2 p.m. (ET) titled “Q2 Economic Outlook” featuring Moody’s Analytics Economist Shandor Whitcher. We caught up with Whitcher ahead of his presentation to get his thoughts on the housing market.

The Department of Housing and Urban Development Assistant Secretary for Fair Housing and Equal Opportunity (FHEO) Craig Trainor issued a memo to FHEO staff, rescinding 2020 guidance that classified emotional support animals as reasonable accommodations under the Fair Housing Act.

At this year’s National Settlement Services Summit (NS3), experts discussed how state regulatory changes are shaping the industry, the impact of emerging technologies and offered ways to stay prepared and proactive.

The Federal Trade Commission filed a complaint against Accounting Business Consultants, Inc, doing business as National Amendment Assistance, and numerous other mortgage assistance companies, accusing them of deceiving consumers and charging unlawful advance fees. The court granted a temporary restraining order the next day.

The Department of Housing and Urban Development (HUD) announced a new Notice of Funding Opportunity on June 1 for $4.04 billion to “better serve America’s vulnerable populations through the Continuum of Care (CoC) homelessness assistance program.” HUD stated that this “is the most competitive funding opportunity in the history of the CoC program.”

The National Association of Realtors’ (NAR) strategic investment arm, Second Century Ventures, announced that one of the six companies selected for the 2026 NAR REACH program is LotRoll, described as the “first comprehensive data platform purpose-built for the manufactured housing market.”

On May 26, Maryland Gov. Wes Moore signed House Bill 0573, entitled “Fair Housing and Housing Discrimination - Regulations, Intent, and Discriminatory Effect,” which authorized the Department of Housing and Community Development to adopt regulations related to “affirmatively furthering fair housing.”

On June 4, Rep. Maxine Waters (D-Calif.), ranking member of the Housing Financial Services Committee, addressed the present administration’s “aggressive” deregulatory campaign during the committee hearing entitled “Oversight of Prudential Regulators.”

Connecticut Gov. Ned Lamont signed SB 340 into state law which establishes a process regarding the public marketing of certain real estate listings and creates an “opt-out” form for homesellers who wish to list their property privately, with New York in the process of doing the same. RESPA News reached out to Marx Sterbcow, managing attorney at Sterbcow Law Group, who shared what this may indicate for the industry.

National Association of Realtors President Kevin Brown penned a letter on May 21 to the Department of Justice’s Antitrust Division and the Federal Trade Commission, emphasizing the need for clear, practical and example-driven guidance to “reinforce procompetitive collaboration.”

The Department of Housing and Urban Development (HUD) announced the State and Local Best Practices for Home Construction Report. According to HUD Secretary Scott Turner, “These best practices are an initial list of recommendations to facilitate growth while respecting communities’ unique needs. Adding efficiency to local building processes will result in more affordable homeownership opportunities for all Americans.”

On June 1, the Department of Veterans Affairs updated its options for avoiding foreclosure, announcing the implementation of its new partial claim program which will begin accepting submissions on June 15.

On May 29, the Federal Housing Administration published a request for information in the Federal Register regarding single-family minimum property requirements which have “long supported the safety and soundness of the single-family homes the agency insures,” seeking to modernize the program.

U.S. District Court judge in California granted final approval of a $110 million settlement resolving a lending and hiring discrimination lawsuit against Wells Fargo. Under the settlement agreement, Wells Fargo will create a $100 million borrower assistance fund for mortgage assistance.

National Faith Housing Alliance, Rise Economy, BLDS, LLC, and SolasAI sued the Consumer Financial Protection Bureau (CFPB) regarding its recent final rule that amended Regulation B, the implementing regulation of the Equal Credit Opportunity Act (ECOA). The plaintiffs argued that the CFPB relied on “conclusory assertions and speculation, not evidence, to depart from decades of settled ECOA implementation.”

The U.S. House voted 396-13 to pass its amended version of the 21st Century ROAD to Housing Act, sending the act to the Senate for approval. The National Association of Realtors and the Mortgage Bankers Association released statements of support following the act’s passage.

The National Low Income Housing Coalition released an analysis of the House Appropriators’ Fiscal Year (FY) 2027 spending bill, which would fund the Department of Housing and Urban Development (HUD) at $71.38 billion, an 8 percent cut from the funding for HUD programs in FY 2026.

The Federal Housing Administration (FHA) announced that it is making enhancements to FHA Connection to streamline internal processes for case number assignments for units in condominium projects eligible for single-unit approval.

On May 21, Sens. Elizabeth Warren (D-Mass.), ranking member of the Senate Banking, Housing, and Urban Affairs Committee, Jack Reed (D-R.I.), Lisa Blunt Rochester (D-Del.) and Raphael Warnock (D-Ga.), along with 17 others, sent a letter to Department of Housing and Urban Development Secretary Scott Turner, urging him to rescind the notice of proposed rulemaking entitled “Establishing Flexibility for Implementation of Work Requirements and Term Limits,” which they say would likely increase evictions, homelessness and administrative costs.

On May 28, Rocket Companies filed a reply brief of its motion to dismiss a class action that alleged steering practices, claiming that the borrowers lack Article III standing and failed to demonstrate that cooperative brokerage safe harbor does not apply.

Defendants Compass, Inc. and Midwest Real Estate Data LLC filed their respective responses to Zillow’s motion for a preliminary injunction and a temporary restraining order in the parties’ recent antitrust case, arguing that Zillow’s alleged “irreparable harm” was “self-inflicted.” A judge then granted in part and denied in part the motion for a temporary restraining order.

Access Living, a leading advocacy organization for people with disabilities, announced the resolution of an eight-year-old civil rights lawsuit that alleged the city of Chicago funded and developed tens of thousands of affordable rental housing units without the required number of accessible units.

Pending home sales in April increased by 1.4 percent month-over-month and 3.2 percent year-over-year, according to the National Association of Realtors (NAR) Pending Home Sales report. NAR Chief Economist Dr. Lawrence Yun emphasized that the industry’s focus needs to be on “boosting housing supply.”

The Federal Housing Administration (FHA) posted a draft Mortgagee Letter (ML), entitled “Updates to Borrower Eligibility Requirements,” for review and feedback. The draft ML proposes new requirements for determining eligibility for borrowers with delinquent child support subject to federal administrative offset through an automated process to be implemented in the FHA Connection technology system.