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News By Edition
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RESPA News Monthly Edition
RESPA News Monthly December 2017
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Cordray resignation impact ‘may well be quite dramatic’
Posted Date: Thursday, November 16, 2017
Nine months before his term was set to expire, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray announced his plans to resign from the post by the end of November.
By doing so, Cordray leaves some uncertainty as to his successor and the leadership of the CFPB. Industry experts Phillip Schulman, Marx Sterbcow and Ken Trepeta talked with RESPA News about the immediate impact of Cordray’s imminent departure.
“The impact on the CFPB may well be quite dramatic,” Schulman said. Read on for more.
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Which way will CFPB go?
Posted Date: Monday, November 20, 2017
New leadership will be coming to the Consumer Financial Protection Bureau (CFPB). Whether that begins soon with Office of Management and Budget Director Mick Mulvaney – as CBS News reported last week – or when a new director is confirmed by the Senate, the way the CFPB does business is expected to be different.
But how different, and where will the changes come?
Experts told RESPA News of the industry’s biggest desire in the transition. Read on for more.
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How did we get here?
Posted Date: Monday, November 20, 2017
On a Monday night in November 2016, the day before the elections were set to take place, the idea of Consumer Financial Protection Bureau Director Richard Cordray leaving office a year later seemed only likely if Cordray was going to make a triumphant run for the Ohio governor’s role, riding the crest of a Democratic sweep around the country the next day.
On Nov. 15, 2017, Cordray told his staff that he would resign from his position by the end of the month, another financial regulator leader stepping aside as the regulatory climate changes in the administration of President Donald Trump.
But the groundwork for Cordray’s departure did not come on election night. It began in January 2014. Read on for more of the road to Cordray’s resignation.
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The tale of the Federal Vacancies Reform Act
Posted Date: Monday, November 20, 2017
As the news of Richard Cordray’s imminent departure was released last week, one of the first questions was whom would take over as head of the Consumer Financial Protection Bureau when Cordray left.
That question came because of a little-known statute called the Federal Vacancies Reform Act, and then-Treasury Secretary Timothy Geithner.
Read on for background on the 1998 federal statute and how it could come into play for the short-term leadership of the bureau.
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Warren discusses departure of Cordray
Posted Date: Monday, November 20, 2017
Before Richard Cordray took over as director of the Consumer Financial Protection Bureau (CFPB), he worked for then-Treasury Department special adviser Elizabeth Warren.
Now a senator, Warren (D-Mass.) took time last week to discuss her thoughts on Cordray’s time in charge of the bureau which she helped launch, as well as her thoughts on what the CFPB should do in the future, and whom should be in charge of the agency.
Read on for details from Warren’s press conference and her remembrances of hiring Cordray.
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Credit unions see opportunity for change
Posted Date: Monday, November 20, 2017
The National Association of Federally-Insured Credit Unions wrote Friday to the Consumer Financial Protection Bureau (CFPB), outlining nine areas in which the bureau could provide relief to credit unions following the transition of leadership after Director Richard Cordray’s resignation.
The letter, authored by Senior Regulatory Affairs Counsel Michael Emancipator, discussed potential areas for operational improvement as part of the CFPB’s 2018-2022 strategic plan.
Read on for details of the letter and how the association hopes the CFPB handles credit union concerns moving forward.
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Industry cheers House passing NFIP reforms
Posted Date: Monday, November 20, 2017
Last week the full House passed H.R. 2874, the 21st Century Flood Reform Act, which is a package of seven bills passed by the Financial Services Committee to reform and reauthorize the National Flood Insurance Program (NFIP).
The 21st Century Flood Reform Act would reauthorize the NFIP for five years, introduce private market competition, and provide programmatic reforms to help policyholders.
Stakeholders including the National Association of Realtors and Mortgage Bankers Association urged the Senate to pass reform before a temporary NFIP extension expires Dec. 8.
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Mulvaney to be interim CFPB director
Posted Date: Thursday, November 16, 2017
Former South Carolina representative and current director of the Office of Management and Budget Mick Mulvaney, who once called the Consumer Financial Protection Bureau (CFPB) "a joke," will be appointed as the interim director of the CFPB, CBS News first reported Thursday afternoon.
Mulvaney spent two terms in the House of Representatives, beginning in 2010, and served as a member of the Financial Services Committee during that time.
Read on for more on this story and stay with RESPANews.com for all the latest.
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First step: TRID bill passes committee
Posted Date: Thursday, November 16, 2017
H.R. 3978 put its first foot forward this week as the TRID bill easily was passed out of the House Financial Services Committee.
Committee members voted to send the bill to the full House for a vote by a 53-5 margin after a markup session involving 23 bills.
The TRID bill, which aims to fix the inaccurate disclosure of simultaneous issue title insurance, awaits a full House vote. Read on for reaction from primary sponsor Rep. French Hill (R-Ark.).
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Second act: Mortgage Choice Act back to full House
Posted Date: Thursday, November 16, 2017
For the second consecutive year, the Mortgage Choice Act breezed through approval from the House Financial Services Committee and awaits a vote from the full House.
The bill, which excludes from the calculation of points and fees insurance and taxes held in escrow and fees paid to affiliated companies as a result of their participation in an affiliated business arrangement, passed the full House last session but was not voted upon in the Senate.
Read on for details on the bill from its primary sponsor, Rep. Bill Huizenga (R-Mich.).
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NAR, trades voice tax bill opposition
Posted Date: Thursday, November 16, 2017
A day before the House prepared to vote on its first of tax cuts, and while the Senate Finance Committee was working on marking up its version of the bill, the National Association of Realtors (NAR) held a press call to discuss their views on the impact of current proposals on homeowners.
“Our message, and the message of our 1.3 million members, is that tax reform should first do no harm to homeownership,” newly installed NAR President Elizabeth Mendenhall said.
Yet NAR and other industry trade associations singled out portions of the House and Senate tax plans which they said would directly discourage homeownership. Read on for more.
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CFPB issues reply to tribal lenders’ writ
Posted Date: Monday, November 13, 2017
A pair of tribal online lenders filed a writ of certiorari with the Supreme Court to examine whether the Consumer Financial Protection Bureau (CFPB) has the right to issue a civil investigative demand to sovereign tribes.
The CFPB responded by saying the district court and Ninth Circuit Court of Appeals rulings affirming the bureau’s right to do so were legally justified.
Read on for more details about the issues in the case, and the solicitor general’s support of the CFPB’s positions in the case.
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Court: Failure to protect data an ‘unfair’ act
Posted Date: Monday, November 13, 2017
An Iowa-chartered credit union sued retailer Eddie Bauer for damage suffered after a data breach to the clothing retailer.
The case in the U.S. District Court’s Western District of Washington alleged that the retailer committed an unfair practice or act, in violation of the state’s Consumer Protection Act, among other allegations.
The district court found the credit union adequately alleged an unfair act under the law and denied a motion to dismiss from Eddie Bauer. Read on for more about the case.
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NAR firmly against House tax bill
Posted Date: Monday, November 13, 2017
New National Association of Realtors President Elizabeth Mendenhall hasn’t taken long to show she will fight for the best interests of her membership.
Mendenhall stepped into her new role with a strong letter to the House of Representatives against the tax cut proposal.
The letter details flaws within the House’s Tax Cuts and Jobs Act that go beyond changes to the mortgage interest deduction for homeowners. Read on for the details.
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Report: Most spend inefficiently on in-house counsel
Posted Date: Monday, November 13, 2017
A recent report conducted by Acritas found that a majority of in-house counsel offices are making inefficient use of their legal spend budget.
The sweet spot for internal spend at U.S. firms was found to be between 40 percent and 70 percent, but the report showed that the majority of firms were spending too little – or too much – to make best use of their legal spend budget.
Read on for more details from the report, including findings on the amount of in-house counsel being retained by small and large firms.
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Ocwen settles with Hawaii
Posted Date: Monday, November 13, 2017
Ocwen Financial Corp. announced that it has taken another step to reach resolutions to regulatory actions taken to the company by mortgage and banking regulatory agencies from 30 states and the District of Columbia.
The latest involves a settlement with Hawaii. That pushes the total number of states which Ocwen has settled with recently to 19 and the total number of jurisdictions where it has reached a resolution to 22.
Read on for more details of the agreement.
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Cordray highlights OSA work on Veterans Day
Posted Date: Monday, November 13, 2017
In marking Veterans Day weekend, Consumer Financial Protection Bureau Director Richard Cordray took time to author a blog post on the bureau’s website to promote the work done by the Office of Servicemember Affairs (OSA) to protect servicemembers and veterans facing financial issues.
Cordray stated that the veteran population is about 19 million today, and that OSA has been dedicated to serving the financial well-being of veterans.
Read on for more of what the bureau director cited as progress OSA has made.
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CFPB rules Rent-A-Center must comply with CID
Posted Date: Thursday, November 9, 2017
Last month, the Consumer Financial Protection Bureau (CFB) denied a petition from Rent-A-Center Inc., to set aside a civil investigative demand (CID) from the bureau.
In August, Rent-A-Center sent the CFPB a petition to set aside the CID, citing its rental-purchase lease business fell outside the statutory authority of the bureau, and that the CID it was issued failed to satisfy statutory requirements, citing the ruling against the bureau in CFPB v. Accrediting Council for Independent Colleges & Schools.
The CFPB denied the petition to set aside the CID. Read on to find out why.
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Borrower appeals over actual damages
Posted Date: Thursday, November 9, 2017
A Florida homebuyer who claimed she suffered damages as the result of her servicer failing to adequately respond to her qualified written request (QWR) appealed her case after the district court ruled she failed to prove actual damages caused by the failure to comply with RESPA.
The Eleventh Circuit Court of Appeals reviewed the case, looking into whether the homebuyer’s review time for her attorney constituted actual damages.
Read on to find out whether the appellate court affirmed the trial court’s decision.
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Couple charges practice of non-compliance
Posted Date: Thursday, November 9, 2017
When a new servicer took over a Pennsylvania couple’s account, it required a tax escrow. The couple, who did not escrow their taxes before the new servicer took over, objected and continued to make previous monthly payments.
The servicer sued the couple in foreclosure, but not until after the couple had sent four qualified written requests (QWRs), two of which were not timely answered.
Read on to see whether the district court agreed with the couple’s complaint that the failure to respond met the threshold for statutory damages.
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CFPB enforcement team gets new leader
Posted Date: Thursday, November 9, 2017
The Consumer Financial Protection Bureau (CFPB) announced that Principal Deputy Enforcement Director Kristen Donoghue will take over for outgoing Assistant Director of Enforcement Anthony Alexis.
Donoghue is a familiar name within the CFPB, having joined the agency in 2011 and working in the enforcement division since that time.
Read on for more about the change, as well as reaction from Director Richard Cordray.
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Survey: Protecting data a major concern
Posted Date: Thursday, November 9, 2017
Survey respondents from the Lenders One Cooperative’s annual Summer Conference overwhelmingly said that protecting data in the mortgage transaction was a central concern for the industry.
Nearly three-quarters of respondents said that they are very concerned about the protection of customers’ personally identifiable information during the mortgage originations and trading processes. That response came before the Equifax security breach had been made public.
Read on for more insights from the survey, including what respondents believe the real estate market will look like in 2018.
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GAO: 2013 guidance subject to CRA
Posted Date: Monday, November 6, 2017
In a recent decision with implications reaching far beyond its decision, the Government Accountability Office (GAO) has determined the financial institutions’ 2013 guidance on leveraged lending qualified as a rule subject to the Congressional Review Act (CRA).
Because the guidance never had been submitted to Congress, the 60-day CRA period on it has not started.
How did GAO come to its decision? Will the agencies submit the guidance to Congress? What are other federal regulators going to do with bulletins and guidance issued since 1996?
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NAR president: Ready to own future
Posted Date: Monday, November 6, 2017
In a press conference on the first day of the National Association of Realtors (NAR) annual conference in Chicago, incoming President Elizabeth Mendenhall said the association’s membership was prepared to own the future – whatever challenges and opportunities it brings.
Mendenhall, the CEO of Re/Max Boone Realty in Columbia, Mo., and a sixth-generation Realtor, said NAR was working to use the power of its 1.3 million members to affect change.
Read on for more from the soon-to-be leader of NAR and how she believes technology is playing a much different role for the industry than it ever has before.
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Realtors talk reg issues with FHA loans
Posted Date: Monday, November 6, 2017
About a year ago, the Federal Housing Administration (FHA) announced it would cut annual mortgage insurance premiums for FHA-insured loans – a move which quickly was reversed when President Donald Trump took office in January.
At the Regulatory Issues Forum during the National Association of Realtors annual conference in Chicago, the keynote speaker from the Department of Housing and Urban Development (HUD) discussed potential plans for premiums moving forward.
Read on for updates on FHA premium plans and the state of work on HUD’s proposed condo rule.
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‘Discussion guide’ on reverse mortgages discussed
Posted Date: Monday, November 6, 2017
At the fall meeting of the Consumer Financial Protection Bureau’s Consumer Advisory Board (CAB), the bureau for the first time referred to its work on reverse mortgages as part of its Know Before You Owe programs.
At the CAB meeting, attendees were presented with what one called public documents for consumers, and what a CFPB called a discussion guide.
What does this mean for potential rulemaking by the bureau on reverse mortgages? What areas were CAB members concerned about highlighting for consumers in the process? Read on for more.
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Realtors kick off annual conference
Posted Date: Monday, November 6, 2017
For the first time in more than 15 years, the National Association of Realtors is back in Chicago for its annual conference.
The show began Friday at McCormick Place, with more than 20,000 attendees expected. Read on for more about the show.
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Special counsel clears Cordray of Hatch Act allegations
Posted Date: Monday, November 6, 2017
The Office of Special Counsel (OSC) wrote to Consumer Financial Protection Bureau Director Richard Cordray last month to inform him that it cleared him of any possible violations of the Hatch Act.
The issue was raised by House Financial Services Committee Chairman Jeb Hensarling (R-Texas), among others, as rumors floated in August about Cordray potentially announcing a run for the Ohio governor’s race at Labor Day events.
Read on for explanation of what OSC’s investigation uncovered.
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Court rules in Wells discrimination case
Posted Date: Monday, October 30, 2017
Three Wells Fargo employees were fired, in part because they opened accounts or debit cards without a customer’s presence or authorization.
The employees filed suit against Wells Fargo, claiming their dismissal was motivated by racial discrimination and seeking damages under the New Jersey Law Against Discrimination. Wells Fargo moved for summary judgment.
The U.S. District Court of New Jersey used the burden-shifting regime set out in McDonnell Douglas v. Green to determine whether the firings were based on racial discrimination. “A plaintiff cannot defeat summary judgment by showing that an employer’s decision to terminate her was a bad decision,” the court wrote.
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Trades stand behind Mortgage Choice Act
Posted Date: Monday, October 30, 2017
Industry trade associations threw their weight behind the Mortgage Choice Act in a recent letter sent to the House of Representatives.
The bill, H.R. 1153, would make two adjustments to TILA’s definition of points and fees to “ensure greater consumer choice in mortgage and settlement services” under the Ability to Repay/Qualified Mortgage (QM) rule, the letter stated.
Read on for more details about the bill, including the bipartisan sponsorship it has and the benefits the trade associations see to amending the QM rule.
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Treasury report tackles disparate impact
Posted Date: Monday, October 30, 2017
A new Treasury Department report, conducted following an executive order requesting a review of financial regulation, addressed regulation around the insurance and asset management industries.
Among the headline recommendations in the report was the delay of implementation of the Department of Labor’s fiduciary rule and improving coordination between the Federal Insurance Office and state insurance regulators.
But among the other recommendations from Treasury was one regarding the Department of Housing and Urban Development’s use of the disparate impact rule. Read on for more of what the Treasury Department had to say on that.
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Waters works to add reverse mortgage protections
Posted Date: Monday, October 30, 2017
House Financial Services Committee Ranking Member Maxine Waters (D-Calif.) has introduced a bill to reform the Department of Housing and Urban Development’s (HUD) reverse mortgage programs.
The bill, called the Preventing Foreclosures on Seniors Act, would affect HUD’s Home Equity Conversion Mortgages program, which allows seniors to take out reverse mortgages.
Among the protections offered are loss mitigation options and non-borrowing spouses requirements. Read on for more of Waters’ bill.
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Report: Risk management anxiety grows
Posted Date: Monday, October 30, 2017
A new report detailing the regulatory and risk management state of the insurance industry finds anxiety levels increased from the last report in 2015.
Wolter Kluwer announced the results in its Regulatory and Risk Management Indicator report, and what it found was an overall rise in the level of regulator and risk concerns.
The anxiety level of insurers gauging their ability to manage risk across all lines rose 14 percent since the last report. Read on for more insights from the report, as well as the importance compliance officials are placing on cybersecurity.
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Life of loan bill has broad industry support
Posted Date: Monday, October 30, 2017
A bill with broad-based industry support involving Federal Housing Administration (FHA) mortgage insurance premiums has been introduced in the House of Representatives.
The bill, titled the Making FHA More Affordable Act, was introduced by House Financial Services Committee Ranking Member Maxine Waters (D-Calif.).
It has the backing of a number of real estate trade associations, including the National Association of Realtors (NAR). Read on for details of the bill and why supporters say now is the right time to reverse FHA’s current policy.
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Trade groups push House for TRID bill support
Posted Date: Thursday, October 26, 2017
The movement behind H.R. 3978 got a significant boost this week from a group of trade associations across the mortgage transaction.
The trade associations wrote to the House in support of the TRID Improvement Act of 2017, the bipartisan bill sponsored by Reps. French Hill (R-Ark.) and Ruben Kihuen (D-Nev.) that would allow for the accurate disclosure of simultaneous issue of title insurance.
H.R. 3978 has been introduced in the House and is awaiting mark up in the House Financial Services Committee. Read on for more about the bill and the industry groups voicing their support.
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Cancer-free now, MBA’s Stevens announces retirement
Posted Date: Thursday, October 26, 2017
Mortgage Bankers Association President and CEO David Stevens took the stage at MBA’s annual convention this week to tell attendees of the successes of the organization over the past year, including his personal success being in full remission of the cancer diagnosis he announced last year.
Two days later, in a press release at the end of the show, Stevens announced his retirement, to take effect in 2018.
Read on for details of Stevens’ history before joining MBA, his connections to Denver – where he made the announcement to retire – and the reasons behind his decision to step away.
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Ocwen mulls reverse mortgage business sale
Posted Date: Thursday, October 26, 2017
In an effort to focus on its mortgage service and forward lending channel, Ocwen Financial Corp. announced that it is enlisting help to consider the potential sale of its reverse mortgage business.
Liberty Home Equity Solutions Inc. has handled reverse mortgage origination services for Ocwen.
The company also is looking at the long-term strategy for another of its businesses. For more details on the plans, and whom Ocwen has recruited to help advise the company moving forward, read on.
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MBA director nominated for HUD role
Posted Date: Thursday, October 26, 2017
President Donald Trump has turned to the Mortgage Bankers Association (MBA) to find a nominee for a post within the Department of Housing and Urban Development (HUD).
The nominee previously worked at HUD under the George W. Bush administration before taking his role at MBA.
In addition, the president nominated a pair of people to the Federal Trade Commission as the FTC moves closer to having a full group of five commissioners for the first time since February 2013. Read on for more details.
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Stratmor report tackles originator turnover, tech investment tips
Posted Date: Thursday, October 26, 2017
The latest edition of the Stratmor Insights report looked into data from the Originator Census Survey, conducted last year, as the company prepares to launch its survey for 2018.
The most recent survey found that the average age of retail originators is vastly different than that of consumer direct originators.
In addition, Stratmor Senior Partner Garth Graham offered five tips that can serve as a pre-investment assessment for making the most of digital technologies. For insights from the report, read on.
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Re/Max, Quicken in court over MSA
Posted Date: Monday, October 23, 2017
In a case which involves two parties of a marketing services agreement suing for non-performance of the other, a U.S. district court in Colorado was asked first to rule upon where the case should be contested, and then whether Quicken Loans would be compelled to provide details of other marketing services agreements it has to determine whether Re/Max was in compliance with its agreement.
U.S. Magistrate Judge Michael J. Watanabe recently ruled on the motion to compel, granting it in part and denying it in part.
Both sides followed up with a confidentiality agreement that would address handling the documents Quicken Loans would be compelled to share.
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Examiners: One TRID error can have waterfall effect
Posted Date: Monday, October 23, 2017
In the latest edition of the Consumer Financial Protection Bureau’s (CFPB) Supervisory Highlights, the bureau for the first time addressed lessons learned from examinations done under the new TILA-RESPA Integrated Disclosure (TRID) rule.
In this report, RESPA News details the final three sections pointed out in the report, including one stage in which an inaccurate disclosure could lead to multiple TRID errors in the closing process.
Read on for more insight on the CFPB’s citations around these sections of the rule.
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RESPA charge vs. Fannie Mae survives dismissal
Posted Date: Monday, October 23, 2017
A borrower whose servicer settled a foreclosure proceeding for errors the servicer made in calculating escrow payments alleged that he still was being overcharged after the settlement.
His complaint against the servicer and Fannie Mae alleged that the companies did not respond to his qualified written request and refused to investigate and correct errors in his account.
The U.S. District Court in Maine ruled that the borrower was able to prove the ability to claim both actual and statutory damages, as well as proving a claim that Fannie Mae should be vicariously liable for damages, thus denying a motion to dismiss the RESPA allegations against both parties. Read on to see how the court reached its decision.
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Ocwen ticks one more off the list
Posted Date: Monday, October 23, 2017
Ocwen Financial Corp. announced that it has taken another step to reach resolutions to regulatory actions taken to the company by mortgage and banking regulatory agencies from 30 states and the District of Columbia.
The latest involves a settlement with a large southwestern state. In addition to the terms reached previously with states, Ocwen said it has agreed with the regulatory agency on certain additional communications with and for state borrowers, as well as certain review and reporting obligations.
Read on for more details of the latest agreement.
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FHFA brings preferred language to application form
Posted Date: Monday, October 23, 2017
The Federal Housing Finance Agency (FHFA) will add a preferred language question to the redesigned Uniform Residential Loan Application, the agency announced.
This question will enable borrowers who prefer to communicate in a language other than English to identify that language, and provides clear disclosures that the mortgage transaction is likely to be conducted in English and that language resources may not be available.
Why will the FHFA make the move? Read on for details of what to expect.
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Bureau updates HMDA platform status
Posted Date: Monday, October 23, 2017
As the industry prepares for compliance with the new Home Mortgage Disclosure Act (HMDA) rule Jan. 1, 2018, one of the questions often asked of the Consumer Financial Protection Bureau is when the industry will be able to access the new HMDA platform.
The bureau recently responded with an outline of the future plans for the platform’s release, as well as other resources which will be available as lenders prepare to file HMDA data in 2018.
Read on for details of the latest announcement.
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