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News By Edition
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RESPA News Monthly Edition
RESPA News Monthly May 2024
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What you need to know about title JVs in 2024
Posted Date: Monday, April 8, 2024
Florida Agency Network Operations Manager Andrea Somers and Chief Administrative Officer/President Amy Gregory shared with RESPRO 31 – One Stop’s audience how to build an affiliated title operation, one step at a time.
RESPA News took a front seat for a discussion on staffing, vendor relationships, centralization, and technology considerations that can make or break a joint venture.
Read on for more details.
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Motion for centralization of antitrust cases denied
Posted Date: Monday, April 15, 2024
The U.S. Judicial Panel on Multidistrict Litigation denied the transfer of nine actions in seven districts related to allegations of antitrust violations against the National Association of Realtors and real estate brokerage companies.
The denial means the cases will continue in their individual districts, for the time being.
Read on for more details.
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NAR antitrust issues persist, DOJ allowed to reopen 2020 investigation
Posted Date: Monday, April 8, 2024
The U.S. Court of Appeals for the District of Columbia held in favor of the Department of Justice (DOJ), stating it is permitted to reopen an antitrust investigation of the National Association of Realtors (NAR), which the department had entered into a settlement with in 2020.
Less than a year after the settlement was announced, the DOJ withdrew its proposed consent judgment and attempted to reopen the investigation. NAR petitioned the district court to set aside a new subpoena, arguing it was a violation of a promise made by the DOJ in its 2020 closing letter.
To learn more about the 2-1 appellate decision, read on.
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HomeServices Supreme Court petition denied
Posted Date: Thursday, April 18, 2024
HomeServices of America, the only defendant remaining in the Sitzer-Burnett trial related to real estate agent commissions and alleged antitrust violations, petitioned the U.S. Supreme Court on whether the Eighth Circuit erred when it rejected HomeServices' efforts to compel arbitration.
HomeServices’s petition for writ of certiorari argued the broker should never have had to face a trial, because the home sellers agreed to arbitrate disputes out of court.
Read on for more details.
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Sitzer-Burnett parties argue over motion for entry of judgment against HomeServices
Posted Date: Monday, April 15, 2024
As all but one party has settled in a case where the National Association of Realtors and major real estate brokerages were found liable by a jury for antitrust violations, the plaintiffs moved for entry of judgment.
HomeServices of America, the remaining defendant in the case, argued this action was premature, and stated final judgment should not be entered until the other parties’ proposed settlements were approved.
Read on for more details.
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Court asks whether insurers should face FHA liability under HUD disparate impact rule
Posted Date: Monday, April 8, 2024
Property Casualty Insurers Association of America (PCI) sued the U.S. Department of Housing and Urban Development (HUD) after the agency refused to exempt risk-based insurance practices from its 2013 disparate impact rule. Several claims in the case were dismissed in 2014, but the district judge who decided the case agreed with PCI that HUD had not adequately considered the issues at stake and ordered further analysis.
Since that dismissal, HUD’s 2013 disparate impact, or discriminatory effects, rule was repealed, then reinstated in 2023. In this most recent case, PCI maintained HUD’s rule was arbitrary and capricious, for the same reasons PCI believed so in 2013.
Read on for more details.
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Arrive Home names new COO
Posted Date: Tuesday, April 30, 2024
Arrive Home, an affordable housing program offering down payment assistance and alternative credit solutions, has appointed Mark Tribuna to the role of chief operations officer, where he will oversee operations and spearhead the growing company’s continued mission to expand access to homeownership for underserved borrowers.
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Report on mortgage servicing violations feature ‘junk fees,’ Reg X
Posted Date: Monday, April 29, 2024
The Consumer Financial Protection Bureau’s supervisory highlights identified problematic behavior amongst mortgage servicers related to Regulation X, Regulation Z, unfair, deceptive, and abusive acts or practices, and what the bureau deems as “junk fees.”
The report revealed servicers charging property inspection fees, sending homeowner’s deceptive notices, and violating loss mitigation rules. RESPA News spoke to experts on what businesses should take away from the report.
Read on for more details.
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Last defendant settles in Sitzer-Burnett: HomeServices to pay $250M
Posted Date: Monday, April 29, 2024
HomeServices of America, a Berkshire Hathaway company, was the last defendant to settle the Sitzer-Burnett case where a jury awarded plaintiffs $1.78 billion for antitrust violations related to the National Association of Realtors’ cooperative compensation rule.
Other real estate companies that have settled this case include Keller Williams, RE/MAX, and Anywhere Real Estate. The news of this most recent settlement will add $250 million to the amounts negotiated with the other defendants for redress.
Read on for more details.
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FAN, LPT Realty leadership to discuss building AfBAs
Posted Date: Monday, April 29, 2024
Florida Agency Network and Closingsuite.com CEO Aaron Davis and Chief Operations Officer Mike LaRosa, as well as The Duncan Duo Team at LPT Realty CEO Andrew Duncan, will share their insights Day One at the National Settlement Services Summit (NS3) in Naples, Fla., on when an affiliated business arrangement (AfBA) may be the next right step for title or real estate agents, how to build the operation, and what pitfalls to avoid in today’s environment.
NS3 is being held May 21-23, at the Naples Grande Beach Resort in Naples, Fla. “Building a Lucrative AfBA” will take place on Tuesday, May 21.
Read on for more details.
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FHFA, HUD leaders answer Senate committee questions related to regulatory oversight
Posted Date: Monday, April 29, 2024
The Senate Banking, Housing and Urban Affairs Committee convened a hearing to address pressing issues in the housing sector and assess the performance of its principal regulatory bodies, with senators asserting more overnight of the federal housing regulators is required.
The hearing featured testimony from Federal Housing Finance Agency Director Sandra Thompson and Department of Housing and Urban Development Acting Secretary Adrianne Todman.
Read on for more details.
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GAO releases CFPB performance audit
Posted Date: Monday, April 29, 2024
The Government Accountability Office’s (GAO) opinion on the Consumer Financial Protection Bureau’s financial statements and related internal controls found relevant materials reliable and controls effective.
It also provided an update on the 60 recommendations the GAO has made over the years to improve the bureau’s operations.
Read on for more details.
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eXp Realty names new CEO
Posted Date: Tuesday, April 23, 2024
eXp Realty, “the most agent-centric real estate brokerage on the planet” and the core subsidiary of eXp World Holdings, Inc. (Nasdaq: EXPI), announced the appointment of Leo Pareja as its new CEO, effective immediately.
He succeeds Glenn Sanford, who will now fully dedicate his efforts to his position as founder, chairman, and CEO of eXp World Holdings.
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CFPB financial reporting, transparency subject of House subcommittee hearing
Posted Date: Monday, April 22, 2024
The House Financial Services Committee Subcommittee on Financial Institutions and Monetary Policy spent almost two hours speaking with witnesses in a hearing entitled, “Agency Audit: Reviewing CFPB Financial Reporting & Transparency” where they discussed the Consumer Financial Protection Bureau’s transparency and accountability.
Notably, no representative from the agency in question was included in session.
Read on for more details.
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Ginnie Mae president resigns
Posted Date: Monday, April 22, 2024
Ginnie Mae President Alanna McCargo is resigning from her role, effective May 3. In her statement, she commended the organization’s team for the progress and accomplishments achieved during her tenure.
A few reports noted McCargo’s exit has occurred just weeks after a federal district court in Texas dismissed only part of a case against Ginnie Mae accusing the entity of violating the Administrative Procedures Act and tortious interference with property rights.
Read on for more details.
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Hundreds of orgs urge release of AFFH rule
Posted Date: Monday, April 22, 2024
The National Fair Housing Alliance and almost 300 housing, civil rights, and other interested organizations sent a letter requesting the Biden-Harris administration “immediately release” the affirmatively furthering fair housing rule proposed by the U.S. Department of Housing and Urban Development.
The rule was released for comment in February 2023, with the public comment period ending April 24, 2023, after receiving one extension. The final rule has yet to be released, according to the Office of Information and Regulatory Affairs’ website.
Read on for more details.
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Final rule increases lender participation in Indian Housing Loan Guarantee program
Posted Date: Monday, April 22, 2024
A final rule issued by the U.S. Department of Housing and Urban Development (HUD) is designed to bolster homeownership across Native American and tribal communities.
HUD acting Secretary Adrianne Todman said the enhancements to the Section 184 program will ensure homeownership and wealth-building opportunities are available to Native American families looking to become homeowners.
Read on for more details.
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March experiences backslide in existing home sales
Posted Date: Monday, April 22, 2024
Existing home sales saw slight contraction month-over-month as well as year-over-year last month.
The National Association of Realtors’ chief economist said home sales have stalled because interest rates have not made “any major moves.”
Read on for more details.
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Brown calls for collaboration to lower housing costs
Posted Date: Monday, April 22, 2024
Chair of the Senate Committee on Banking, Housing, and Urban Affairs Sen. Sherrod Brown (D-Ohio) called for collaboration amongst the agencies testifying before the legislators, stating it would be the only way to combat the rising costs of housing.
Read on for more details.
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American Real Estate Association offers agents, brokers NAR alternative
Posted Date: Thursday, April 18, 2024
Amidst allegations of sexual harassment, attempts at blackmail, and a jury finding of antitrust violations levied against the National Association of Realtors over the last year, two real estate professionals have started to offer an alternative trade group for real estate agents.
Mauricio Umansky and Jason Haber founded the American Real Estate Association with the goal to provide “unflinching advocacy and unrelating organizing on behalf” of its members.
Read on for more details.
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GSEs issue notices related to NAR antitrust settlement
Posted Date: Thursday, April 18, 2024
Fannie Mae and Freddie Mac released statements about their Selling Guide policies in light of the National Association of Realtors’ settlement with the real estate commission antitrust lawsuits.
The government-sponsored enterprises used official notifications to clarify the current treatment of property seller-paid buyer agent fees per their interested party contribution requirements.
Read on for more details.
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Info sharing agreement struck by FHFA, state bank supervisors
Posted Date: Thursday, April 18, 2024
The Federal Housing Finance Agency and the Conference of State Bank Supervisors entered into a memorandum of understanding establishing protocols between state financial regulators and the federal agency to facilitate information sharing regarding nonbank mortgage companies.
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Members of Congress ‘troubled’ by FHFA title waiver program
Posted Date: Thursday, April 18, 2024
Reps. Wiley Nickel (D-N.C.), Josh Gottheimer (D-N.J.), Brad Sherman (D-Calif.), and Nikema Williams (D-Ga.) were among 18 authors of a letter to President Joe Biden that laid out concerns about the administration’s announcement to “eliminate title insurance” made during this year’s State of the Union address.
The members of Congress wrote they were “troubled” by this statement and the Federal Housing Finance Agency title waiver pilot program introduced shortly after.
Read on for more details.
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FDIC identifies RESPA Section 8 violations amongst mortgage brokers, financial institutions
Posted Date: Monday, April 15, 2024
In its consumer compliance supervisory report, the Federal Deposit Insurance Corp. stated it identified RESPA Section 8 violations related to mortgage broker relationships.
The regulator said while institutions have policies and procedures that include ways to confirm whether services are provided, some have not developed processes to determine whether the payments are reasonably related to the value of the services.
Read on for more details.
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Is the CFPB considering ban on charging homebuyers for lender title insurance?
Posted Date: Monday, April 15, 2024
The settlement services industry was buzzing after a report from Bloomberg indicated the Consumer Financial Protection Bureau is considering a ban on charging homebuyers for lenders’ title insurance policies.
The information continues to fuel industry concerns that regulators are targeting settlement services in an attempt to lower housing costs for consumers, potentially increasing lending risks.
Read on for more details.
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New York bill would prohibit mandatory broker’s fees
Posted Date: Monday, April 15, 2024
Assemblymember Chantel Jackson of the New York legislature introduced a bill that, if passed, would prohibit single-agent dual agency, require representation agreements, and prohibit mandatory broker’s fees in residential real property transactions.
The bill was introduced to the Committee Assembly on April 9, then referred to the Assembly Judiciary. It proposes amendments to various paragraphs of subdivisions of section of real property law to change the real estate agency relationship disclosure statute.
Read on for more details.
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New VASP program will help veterans stay in their homes
Posted Date: Monday, April 15, 2024
The U.S. Department of Veterans Affairs is launching its Veterans Affairs Servicing Purchase program in an effort to assist veterans experiencing severe financial hardship stay in their homes.
Read on for more details.
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The Real Brokerage enters settlement in broker commission class action
Posted Date: Thursday, April 11, 2024
The Real Brokerage, one of the real estate companies named in an antitrust class action filed in the wake of Sitzer-Burnett, has entered into a settlement to resolve the case.
The settlement is related to the National Association of Realtor’s competitive compensation rule and the relationship between brokers and multiple listing services.
Read on for more details.
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Disabled woman sues housing commission over HUD program
Posted Date: Thursday, April 11, 2024
A woman who is disabled sued the Lake County Housing Commission Lake County, Calif., alleging the housing agency discriminated against her in violation of federal and state anti-discrimination laws because it refused to provide her with homeownership assistance.
The homeownership option is part of the U.S. Department of Housing and Urban Development’s Section 8 program that permits housing authorities to offer homebuying assistance to low-income families, but the defending agency did not participate in that portion of the program.
Read on for more details.
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CFPB analyzes consumer complaints about mortgage, debt/credit management
Posted Date: Thursday, April 11, 2024
In its Consumer Response Annual Report, the Consumer Financial Protection Bureau (CFPB) analyzed complaints submitted by consumers between January and December 2023.
The bureau received over 27,000 mortgage complaints last year, a majority of which were forwarded to companies for review.
Read on for more details.
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Contract-for-deed home sales targeted by new bill
Posted Date: Thursday, April 11, 2024
A bipartisan bill was introduced into the Senate that would require states to enact laws providing additional protections for homebuyers and discourage exploitative behavior by sellers.
The bill is related to a report showing how contracts-for-deed arrangements can take advantage of homebuyers looking for an affordable route to homeownership.
Read on for more details.
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Study gauges consumer knowledge, perception of real estate agent commissions
Posted Date: Thursday, April 11, 2024
Over a quarter of recent homebuyers had no idea how much their real estate agent was paid, with some respondents also stating they had no idea how the amount was determined or who paid the agent, according to a report published by Redfin.
“Home sellers often have a candid conversation about fees with their agent before signing an agreement to work together. Buyers would benefit from doing the same,” Redfin’s chief economist said.
Read on for more information on the study.
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Funds awarded to combat discrimination, expand homeownership opportunities
Posted Date: Monday, April 8, 2024
The U.S. Department of Housing and Urban Development has issued funds to aid in combatting discrimination, expanding homeownership opportunities, and boosting affordable housing and community development at the local, state, and national levels.
Specifically, grants will be distributed by the agency’s Fair Housing Initiatives Program to support fair housing entities, by its Self-Help Homeownership Opportunity Program via “sweat equity grants” to support non-profit, self-help housing organizations; and still more will go toward organizations serving Native Hawaiian, American Indian, and Alaska Native communities.
Read on for more details.
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Consumers’ attitudes on mortgage rates shift
Posted Date: Monday, April 8, 2024
Consumers reported being more optimistic for both homebuying and home selling, despite indicating a more negative outlook on whether mortgage rates will decrease over the next 12 months.
“With the historically low rates of the pandemic era now firmly behind us, some households appear to be moving past the hurdle of last year’s sharp jump in rates, an adjustment that we think could help further thaw the housing market,” Fannie Mae’s chief economist said about the results of March’s Home Purchase Sentiment Index.
Read on for more details.
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UWM, CEO accused of RESPA kickback, RICO violations
Posted Date: Thursday, April 4, 2024
United Wholesale Mortgage (UWM) and its CEO Mat Ishbia are under fire for allegedly violating RESPA and the Racketeer Influenced and Corrupt Organizations Act, aka RICO, along with other claims, according to a lawsuit filed in the Eastern District of Michigan.
The suit was filed by borrowers seeking class certification. They accused UWM of “orchestrating and executing a deliberate scheme, in coordination with a host of corrupted mortgage brokers, to cheat hundreds of thousands of borrowers out of billions of dollars in excess fees and costs that they paid to finance their homes.”
Read on to learn more about the accusations.
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What’s in store for real estate in 2024?
Posted Date: Thursday, April 4, 2024
The real estate industry is set for a lot of switch ups this year, with real estate agent commissions under scrutiny and regulators testing out title insurance alternatives.
RESPA News listened in at RESPRO 31 – One Stop in Houston while Arthur Sterbcow of the Sterbcow Law Group, Pam O’Connor, formerly of Leading Real Estate Companies of the World, and Craig Cheatham of The Realty Alliance, shared their perspectives on what’s ahead.
Read on for more details.
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Underwriters seek judgment on duties to defend, indemnify over kickback case
Posted Date: Thursday, April 4, 2024
An underwriter plaintiff filed a single complaint in the U.S. District Court of the District of Maryland, requesting declaratory judgment determining it has neither a duty to defend nor a duty to indemnify a mortgage lender currently embroiled in a RESPA class action.
The suit involved a professional services liability policy sold to the lender in 2020, covering the period from Oct. 15, 2020, to Oct. 15, 2021.
Read on for more details.
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Survey: Homebuyers successful in commission negotiation – if they know to ask
Posted Date: Thursday, April 4, 2024
A survey of over 2,000 consumers revealed that when borrowers were buying or selling their homes, those who knew their real estate agent commissions were negotiable and asked for a reduction had more than a 50 percent success rate.
“Like most things in life, you won’t know if your real estate agent will be willing to lower their commission fee until you ask,” LendingTree senior economist Jacob Channel said. “It can quite literally pay off.”
Read on for more details.
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Millennials take lead as largest group of homebuyers
Posted Date: Thursday, April 4, 2024
The 2024 “Home Buyers and Sellers Generational Trends Report” by the National Association of Realtors indicated millennials – Americans ages 25 to 43 – surpassed baby boomers (ages 59 to 77) as the largest demographic of homebuyers over the last year.
The report also revealed Gen Z has joined the housing market, with a small margin of homebuyers spanning the ages of 18 through 24.
Read on for more details.
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FRB of Richmond analyzes impact of buyer commissions on housing market
Posted Date: Monday, April 1, 2024
In a working paper analyzing the impact of the current real estate commission system on the housing market, the Federal Reserve Bank of Richmond Research Department offered two alternatives to current practices it believes would improve housing search efficiency and social welfare.
Marx Sterbcow of the Sterbcow Law Group shared his thoughts on the proposals with RESPA News.
Read on for more details.
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Farm brings FHA, ADA claims over zoning dispute
Posted Date: Monday, April 1, 2024
A farm looking to develop private land into senior housing brought claims under Fair Housing Act and Americans with Disabilities Act over the city’s denial of its rezoning application.
The city council’s reasons for denying the rezoning: the smaller lot size didn’t fit the city, the housing was “unattractive,” and it wanted wider frontages.
Read on for more details.
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Flood insurance snafu continues to cause RESPA trouble for Truist Bank
Posted Date: Monday, April 1, 2024
The battle continues between plaintiffs and Truist Bank in the Middle District of Florida in a case where the bank’s failure to pay flood insurance premiums on behalf of the homeowners resulted in a lack of coverage after Hurricane Ian damaged their home.
The homeowners sued under RESPA and implementing statute, Regulation X. Previously, the court denied Truist’s motion to dismiss. In this opinion, the court considered Truist’s motion for judgment on the pleadings.
Read on for more details.
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Settlement reached in North Carolina mobile home park ‘rent-to-own’ scheme
Posted Date: Monday, April 1, 2024
A federal district court in North Carolina approved a settlement agreement between a mobile home park and a class of tenants/home purchasers related to an improper “rent-to-own” scheme.
According to the complaint, the owner of the mobile home park, Riverstone Communities, LLC, allegedly designed its installment purchase contracts in ways meant to evade consumer and tenant protections.
Read on for more details.
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February existing home sales see almost 10 percent jump
Posted Date: Monday, April 1, 2024
Existing home sales experienced another jump this year, as February experienced the largest monthly increase in as year.
The National Association of Realtors’ chief economist said while increased housing supply is helping to meet market demand, which has been on a steady rise because of population and job growth, more inventory is still needed.
Read on for more details.
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HUD shares impact of annual mortgage insurance premium cut made in 2023
Posted Date: Monday, April 1, 2024
To determine the effectiveness of the cut in the price of annual mortgage insurance premiums paid by borrowers with Federal Housing Administration-insured mortgages, the U.S. Department of Housing and Urban Development shared how many borrowers were assisted in the year after the move, as well as the average savings on their mortgage payments.
Read on for more details.
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