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AfBA compliance demands
Posted Date: Thursday, August 20, 2020
Interest in affiliated business arrangements (AfBAs) is at an all-time high.
But these agreements come with compliance demands by lenders, underwriters and state regulators.
Read on to see what Saul Ewing Arnstein & Lehr Partner Francis X. Riley III, Sterbcow Law Group Partner Marx Sterbcow, Zillow Group Assistant General Counsel Jackie Mohr and Chuck Cain, senior vice president of FNF’s National Agency Division, had to say at a recent virtual RESPRO session about AfBA compliance trends.
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CFPB wants seasoned QMs to reduce compliance burden
Posted Date: Thursday, August 20, 2020
The Consumer Financial Protection Bureau (CFPB) has issued a notice of proposed rulemaking to create a new category of seasoned qualified mortgages (Seasoned QMs) to encourage innovation and help ensure access to responsible, affordable credit in the mortgage credit market.
The proposal would not disqualify a loan from becoming a Seasoned QM for the failure to make full contractual payments during the pandemic as long as certain conditions are met.
Read on for more from the CFPB.
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Texas borrower seeks $1.6 million for alleged RESPA violations
Posted Date: Thursday, August 20, 2020
A Texas borrower sued her servicer for allegedly failing to timely respond to qualified written requests, requests for information and notices of error submitted to the company’s general web information portal.
The servicer argued the claim should be dismissed because their communications regarding the loss-mitigation package and foreclosure were sent to the incorrect address.
Read on to see more details on the case, which was filed pro se.
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CFPB extends credit discrimination comment deadline
Posted Date: Thursday, August 20, 2020
The Consumer Financial Protection Bureau (CFPB) will provide an additional 60 days for public comment on its request for information (RFI) on how best to create a regulatory environment that expands access to credit and ensures that all consumers and communities are protected from discrimination.
The bureau said the extension provides interested parties with more time to address the many issues raised in the RFI.
Read on for more from the CFPB.
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MBA: Pandemic’s impact on mortgage delinquencies now apparent
Posted Date: Thursday, August 20, 2020
The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 8.22 percent of all loans outstanding at the end of the second quarter of 2020, according to the Mortgage Bankers Association's (MBA) National Delinquency Survey.
“The COVID-19 pandemic’s effects on some homeowners’ ability to make their mortgage payments could not be more apparent,” MBA Vice President of Industry Analysis Marina Walsh said.
Read on for details from MBA.
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House members slam adverse market fee
Posted Date: Thursday, August 20, 2020
House Financial Services Committee Chairwoman Maxine Waters and Rep. William Lacy Clay are speaking out against the government-sponsored enterprises’ (GSE) new adverse market fee. Refinance mortgage loans sold to Fannie Mae and Freddie Mac after Sept. 1 will include a new adverse-market refinance fee of 0.5 percent.
They join various industry groups in urging the Federal Housing Finance Agency (FHFA) to withdraw the new policy.
Read on for details from their statement.
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Industry groups ask FHFA to withdraw ‘misguided’ fee
Posted Date: Monday, August 17, 2020
A broad coalition of organizations representing the housing and financial services industries and public interest groups have banned together to protest the government-sponsored enterprises’ (GSE) new adverse market fee.
On Aug. 12, the GSEs announced they were adding a new 0.5 percent fee on all mortgage refinance transactions starting Sept. 1.
Read on to find out what RESPRO, the Mortgage Bankers Association, National Association of Realtors and others said in a joint statement.
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Florida borrower files TRID lawsuit against lender
Posted Date: Monday, August 17, 2020
A Florida borrower claimed her lender violated TRID by allegedly encouraging the borrower to commit fraud by creating an LLC to complete the mortgage loan and avoid disclosure requirements.
The borrower also claimed the lender assigned the mortgage to another servicer without notifying her.
The lender argued the borrower does not have standing to bring the suit because her “sole involvement” in the transaction was as manager of the newly created LLC. Read on for details from the court.
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Study: Mortgage servicer satisfaction down
Posted Date: Monday, August 17, 2020
Mortgage servicers are experiencing a surge in consumer inquiries during the pandemic.
And that surge is being met with more website utilization, long wait times with call centers and very little proactive communication, according to a new study by the consumer insights firm J.D. Power.
Read on for details from the study, which measured servicers’ communications, customer interaction, billing and payment process, escrow account administration and new customer orientation.
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NAR: Rising home prices not slowing down
Posted Date: Monday, August 17, 2020
The vast majority of the nation’s metro areas saw rising home prices in the second quarter of 2020, according to the National Association of Realtors’ (NAR) latest quarterly report.
Median single-family home prices rose year-over-year in 96 percent of measured markets in the second quarter, with 174 of 181 metropolitan statistical areas showing sales price gains, NAR said.
Read on for more details from the study and analysis from NAR Chief Economist Lawrence Yun.
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HUD approves new uses for coronavirus relief funds
Posted Date: Monday, August 17, 2020
The Department of Housing and Urban Development (HUD) has announced new flexibilities on the use of Community Development Block Grant (CDBG) funds to combat the pandemic.
HUD, which has provided more than $3 billion in CDBG funds to battle the coronavirus, now will allow communities to utilize their existing, non-CARES Act federal dollars to support their coronavirus recovery efforts.
Read on for details from HUD Secretary Ben Carson.
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Schulman talks Section 9: the RESPA ‘stepchild’
Posted Date: Thursday, August 13, 2020
RESPA Section 8 – which prohibits giving or receiving a “Thing of value” in exchange for the referral of settlement service business – gets lots of industry attention.
But it’s time to also give some credence to the little-discussed RESPA Section 9 and how it affects title company selection, Mayer Brown Partner Phil Schulman said at a recent virtual RESPRO session.
Read on for details on why you should be paying more attention to “the RESPA stepchild.”
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Washington landslide victim alleged servicer failed to disclose AfBA
Posted Date: Thursday, August 13, 2020
A Washington borrower whose home was damaged extensively from a landslide sued his servicer for allegedly failing to disclose its relationship with an affiliated business before denying his loss mitigation request.
The defendants argued affiliated business arrangements are exempt from 12 U.S.C. §§ 2607, which prohibits giving or accepting anything of value in exchange for referrals as part of real estate settlement service.
Read on to see how a judge ruled.
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FFIEC issues pandemic loan guidance
Posted Date: Thursday, August 13, 2020
On behalf of its member regulators, the Federal Financial Institutions Examination Council (FFIEC) has issued guidance for financial institutions to consider while working with borrowers as initial coronavirus-related loan accommodation periods come to an end.
The FFIEC noted that COVID-19 has had a significant adverse impact on consumers, businesses, financial institutions and the economy.
Read on for the joint statement from the Consumer Financial Protection Bureau, Federal Deposit Insurance Corp., Federal Reserve, National Credit Union Administration, the Office of the Comptroller of the Currency and the State Liaison Committee.
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NAR backs downpayment assistance legislation
Posted Date: Thursday, August 13, 2020
The National Association of Realtors (NAR) is supporting a proposed law that would remove barriers to first-time homeownership.
Earlier this month, Sens. Doug Jones (D-Ala.) and Cory Gardner (R-Colo.) introduced the American Dream Down Payment Act of 2020, a bipartisan bill that would create savings accounts to help prospective homebuyers more easily save for down payments and other eligible costs associated with buying a home.
Read on for details from NAR.
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FHFA announces new multifamily mortgage rules
Posted Date: Thursday, August 13, 2020
To increase awareness of available tenant protections, the Federal Housing Finance Agency (FHFA) now is requiring that multifamily property owners with mortgages backed by Fannie Mae or Freddie Mac who enter into a new or modified forbearance agreement must inform tenants in writing about tenant protections during the multifamily property owner's forbearance and repayment periods.
While in forbearance, property owners must agree not to evict tenants solely for the nonpayment of rent.
Read on to see what FHFA Director Mark Calabria had to say about the changes.
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HUD awards more CARES Act funding
Posted Date: Thursday, August 13, 2020
The Department of Housing and Urban Development (HUD) has announced $472 million in CARES Act funding to help low-income families during the coronavirus pandemic.
The money can be used by Public Housing Authorities nationwide to help families assisted by Housing Choice Vouchers and Mainstream Vouchers prevent, prepare for and respond to the coronavirus.
Read on for more from HUD Secretary Ben Carson and Assistant Secretary for Public and Indian Housing Hunter Kurtz.
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Former CFPB deputy director: Rescind MSA bulletin
Posted Date: Monday, August 10, 2020
Former Consumer Financial Protection Bureau (CFPB) Deputy Director Brian Johnson is calling on the agency to rescind its 2015 bulletin on marketing services agreements (MSAs).
And if CFPB Director Kathy Kraninger doesn’t do it on her own, Congress and President Donald Trump need to get involved, Johnson said in a new paper.
Read on for Johnson’s seven recommendations to the bureau to “help restore the rule of law” of RESPA Section 8.
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Outside counsel helps TRI Pointe Connect stay RESPA compliant
Posted Date: Monday, August 10, 2020
TRI Pointe Group, through some of its homebuilding operations, has been around for 100 years. It now is one of the top 10 largest public homebuilding companies based on revenue in the United States.
As of March 30, the company had $3.172 billion last 12 months (LTM) home sales revenue, and 5,678 LTM new home deliveries, with a $626,000 average sales price of homes delivered. Read on to see how the company has grown while remaining compliant with its affiliated businesses.
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FinCEN issues new CDD rule guidance
Posted Date: Monday, August 10, 2020
The Financial Crimes Enforcement Network (FinCEN) has issued new guidance on its Customer Due Diligence (CDD) rule.
The agency published responses to three frequently asked questions (FAQs) regarding CDD requirements for covered financial institutions.
The FAQs clarify the regulatory requirements related to obtaining customer information, establishing a customer risk profile and performing ongoing monitoring of the customer relationship to assist covered financial institutions with their compliance obligations in these areas.
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DOJ files sexual harassment lawsuit against N.J. landlord
Posted Date: Monday, August 10, 2020
The Department of Justice (DOJ) has filed a lawsuit alleging that the owner of hundreds of rental properties in Elizabeth, N.J., violated the Fair Housing Act by subjecting tenants to sexual harassment.
The Attorney General recently directed the DOJ to deploy all available enforcement tools against anyone who tries to capitalize on the COVID-19 crisis by sexually harassing people in need of housing.
Read on for details from the lawsuit.
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NAR: Foreign investment declining
Posted Date: Monday, August 10, 2020
Foreign buyers purchased $74 billion worth of U.S. existing homes from April 2019 through March 2020, a 5 percent decrease from the previous 12 months, according to a new survey from the National Association of Realtors (NAR).
Foreign buyers purchased 154,000 properties, down 16 percent from the prior year, NAR’s 2020 Profile of International Transactions in U.S. Residential Real Estate survey showed.
Read on for more survey highlights and reaction from NAR leaders.
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Chambers High Net Worth 2020 Recognizes 6 Butler Snow Attorneys
Posted Date: Wednesday, August 5, 2020
Chambers High Net Worth (HNW), a publication specifically aimed at the private wealth market, has recognized six Butler Snow attorneys in its 2020 edition. The publication also recognized Butler Snow in its firm rankings.
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CFPB requests RFI on credit discrimination
Posted Date: Monday, August 3, 2020
The Consumer Financial Protection Bureau (CFPB) has issued a request for information (RFI) seeking public input on how best to create a regulatory environment that expands access to credit while ensuring all consumers and communities are protected from discrimination.
The CFPB said the information on issues including artificial intelligence and disparate impact will help the bureau continue to explore ways to address regulatory compliance challenges while fulfilling its core mission to prevent unlawful discrimination and foster innovation.
Read on for details from the latest RFI.
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NS3 Preview: Cybersecurity focus more important than ever
Posted Date: Monday, August 3, 2020
During the 16th annual National Settlement Services Summit (NS3), slated for Sept. 1-3, attendees will have the opportunity to attend a track focused on cybersecurity.
This is one of three tracks featured at the show.
Read on for more information.
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FHFA extends temporary policy allowing purchase in forbearance
Posted Date: Monday, August 3, 2020
To support homeowners and mortgage lenders, the Federal Housing Finance Agency (FHFA) has approved an extension of the temporary policy that allows for the purchase of certain single-family mortgages in forbearance that meet specific eligibility criteria set by Fannie Mae and Freddie Mac.
Earlier this year, FHFA and the Consumer Financial Protection Bureau announced a program to ensure borrowers are protected during the pandemic.
Read on for reaction from FHFA Director Mark Calabria.
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Stratmor: Most servicers, lenders will survive pandemic
Posted Date: Monday, August 3, 2020
The last few months have proved challenging for lenders and servicers.
Although the longer-term impact of the COVID-19 pandemic remains to be seen, most mortgage industry players appear to have weathered the storm, according to a new report from mortgage advisory firm Stratmor Group.
Read on for highlights from the company’s latest Insights report, “Some Things Never Change: Supply and Demand, Unintended Consequences and Cash is King.”
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DOJ settles lawsuit against housing complexes, affiliates
Posted Date: Monday, August 3, 2020
The Department of Justice (DOJ) announced it recently resolved one the biggest housing accessibility cases in its history.
The owners, developers and builders of 82 multi-family housing complexes in 13 states have agreed to make extensive modifications to their properties and pay a penalty to resolve claims that they designed and constructed apartment complexes that are inaccessible to persons with disabilities.
Read on for highlights of the DOJ’s discrimination case.
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CSBS touts BSCA amendments
Posted Date: Monday, August 3, 2020
Bipartisan legislation has been proposed that would amend the Bank Service Company Act (BSCA) to allow federal and state banking agencies to coordinate examinations of technology service providers (TSPs) and share results.
The BSCA currently authorizes federal regulators to examine TSPs, but is silent about the authority and role of state regulators.
Read on for more information about the proposed amendments from the Conference of State Banking Supervisors.
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Carson meets with HUD foster program recipients
Posted Date: Monday, August 3, 2020
U.S. Housing and Urban Development (HUD) Secretary Ben Carson recently visited with recipients of HUD’s Foster Youth to Independence (FYI) Initiative and held a roundtable in Ravenna, Ohio, with local leaders to discuss the program.
The FYI initiative was launched one year ago to prevent or end homelessness among young adults under the age of 25 who are in, or have recently left, the foster care system.
Read on for more from HUD.
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CCPA enforcement has begun: Are you in compliance?
Posted Date: Thursday, July 30, 2020
A new privacy law that impacts the way settlement service providers access, classify, manage, retain and share the information they obtain from their customers now is being enforced.
Darren Abernethy, Of Counsel at Greenberg Traurig LLP, and Jeff Howeth, former general counsel for North American Title Group, shared compliance tips on the California Consumer Privacy Act at a recent virtual RESPRO session.
Read on for more from Abernethy and Howeth.
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NS3 Preview: Industry leaders to discuss innovation
Posted Date: Thursday, July 30, 2020
The 16th annual National Settlement Services Summit (NS3), slated for Sept. 1-3, will feature a track dealing with innovation throughout the title and mortgage industry, one of three tracks featured at the show.
Among other things, the sessions will examine artificial intelligence’s role in the title agency, how digital lenders are changing the real estate transaction, and how to create an innovative culture at your company.
Read on to learn more.
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Wade confirmed as FHA commissioner
Posted Date: Thursday, July 30, 2020
Five months after her nomination was announced by the White House, Dana Wade is officially commissioner of the Federal Housing Administration (FHA).
She previously served as acting commissioner and assistant secretary for housing, and takes the place of acting FHA Commissioner Len Wolfson.
Read on for reaction from Wade, Department of Housing and Urban Development (HUD) Secretary Ben Carson, HUD Deputy Secretary Brian Montgomery and Mortgage Bankers Association President and CEO Robert Broeskmit.
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CFPB settles with mortgage companies over deceptive ads
Posted Date: Thursday, July 30, 2020
The Consumer Financial Protection Bureau (CFPB) has filed consent orders against two more mortgage companies accused of using deceptive mailers to advertise Veterans Administration (VA)-guaranteed mortgages.
The consent orders are the latest in a series of ongoing investigations of mortgage companies concerning potentially unlawful advertising geared toward veterans, servicemembers and surviving spouses.
Read on for details from the CFPB’s consent orders, including the amount of the unsuspended civil penalties.
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DOJ settles BOA mortgage claim
Posted Date: Thursday, July 30, 2020
The Department of Justice (DOJ) and the U.S. Attorney’s Office have filed a civil complaint and proposed settlement agreement to resolve claims that Bank of America engaged in a pattern or practice of disability discrimination.
The department alleged the bank maintained a policy of denying mortgage and home equity loans to adults with disabilities who were under legal guardianships or conservatorships.
Read on for details from the DOJ.
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NAR: Existing-home sales at record high
Posted Date: Thursday, July 30, 2020
Existing-home sales rebounded at a record pace in June nationwide, showing strong signs of a market turnaround after three straight months of sales declines caused by the ongoing pandemic, according to the National Association of Realtors (NAR).
Total existing-home sales jumped substantially from May to June. In addition, the median existing-home price for all housing types in June was also up.
Read on for more details from NAR.
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HUD will get rid of Obama-era fair housing rule
Posted Date: Monday, July 27, 2020
Calling it complicated, costly and ineffective, the Department of Housing and Urban Development (HUD) announced it will terminate a fair housing rule launched under the administration of former President Barack Obama.
The Affirmatively Furthering Fair Housing (AFFH) regulation issued in 2015 will be replaced by a new rule called Preserving Community and Neighborhood Choice.
Read on to find out HUD’s reasoning for the change, and for reaction from the National Association of Realtors.
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CFPB settles with foreclosure relief company
Posted Date: Monday, July 27, 2020
The Consumer Financial Protection Bureau (CFPB) has resolved allegations accusing a California foreclosure relief company of engaging in deceptive and abusive acts or practices in violation of the Consumer Financial Protection Act (CFPA).
The bureau alleged the company and its CEO charged unlawful advance fees in connection with marketing and selling financial advisory and mortgage assistance relief services to consumers.
Read on for details on the judgment and civil money penalties.
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CFPB to issue ANPR on financial data
Posted Date: Monday, July 27, 2020
The Consumer Financial Protection Bureau (CFPB) announced it will issue an advance notice of proposed rulemaking (ANPR) later this year on consumer-authorized access to financial records.
The announcement follows a symposium the bureau held earlier this year on the topic, which included experts from consumer groups, fintechs, trade associations, financial institutions and data aggregators.
The bureau is releasing a summary report of the symposium proceedings. Read on for more from the CFPB.
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CFPB to host cost-benefit symposium
Posted Date: Monday, July 27, 2020
The Consumer Financial Protection Bureau (CFPB) will hold a symposium this week on the use of cost-benefit analysis in consumer financial protection regulation.
The CFPB said the symposium will help the agency explore developments in the cost-benefit analysis arena and will consider lessons that may be useful in the future.
The event will feature remarks by Director Kathy Kraninger and two panels of experts. Read on for additional details from the CFPB.
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NAR to House: Make racial equity a priority
Posted Date: Monday, July 27, 2020
Saying the racial wealth gap is primarily a housing wealth gap, the National Association of Realtors (NAR) warned members of Congress that action must be taken to ensure all Americans benefit equally from federal COVID-19 recovery provisions.
NAR President Vince Malta recently wrote a letter to House Financial Services Committee Chairwoman Maxine Waters and ranking member Patrick McHenry addressing the issue.
Read on for highlights from Malta’s letter to committee members.
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NAR supports First Time Homebuyer Pandemic Savings Act
Posted Date: Monday, July 27, 2020
The National Association of Realtors (NAR) has called on members of the House of Representatives to cosponsor and support Rep. Sean Maloney’s (D-N.Y.) First Time Homebuyer Pandemic Savings Act.
The legislation would allow first-time buyers to withdraw funds from their retirement accounts under the umbrella of coronavirus-related distributions to use toward the purchase of a home.
Read on for details from NAR President Vince Malta and Maloney.
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