News By Edition

As lenders prepared for the beginning of an optional use period for the redesigned Uniform Residential Loan Application (URLA), which the Federal Housing Finance Agency since has delayed, one of the key areas of the redesign included a new preferred language question.

This question would 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.

Read on for reaction from Katten & Temple’s Brian Levy and First Choice Loan Services’ Joshua Weinberg on an issue expected to feature prominently in future mortgage lending.

The 15th edition of the National Settlement Services Summit (NS3) launched with Acting Deputy Secretary, and Federal Housing Administration (FHA) Commissioner and Assistant Secretary for Housing of the U.S. Department of Housing & Urban Development (HUD) Brian Montgomery highlighting many topics and issues.

The day also featured independent underwriter and regulator panels, as well as a regulatory compliance session.

Read on for a few details of what Montgomery shared with the audience, as well as what transpired from the other opening day sessions.

For the eighth year, October Research, LLC, presented its annual awards for leadership, innovation and philanthropy, with some of the brightest stars in the title industry recognized for their efforts.

CEO and Publisher Erica Meyer presented the awards Wednesday at the 15th annual National Settlement Services Summit (NS3) in Phoenix.

Read on for details on the winners and their accomplishments.

Summer may be in its early stages, but Phoenix-area youths know the next school year is around the corner, and attendees at the National Settlement Services Summit (NS3) took time Tuesday to give them a hand.

The eighth annual “Make a Child Smile” community service event, sponsored by Adeptive Software, saw attendees put together book bags with school supplies to help for foster children through Arizona Helping Hands.

Read on for details from the event.

An Ohio borrower alleged her servicer violated RESPA by failing to send written correspondence notifying her that both a marriage certificate and valid marriage license were required to process her name change request.

The plaintiff claimed she suffered severe emotional distress, was prevented from getting a loan modification and incurred legal costs to defend the foreclosure action.

Read on to see how a federal judge ruled in the case.

The National Association of Realtors has filed an amicus brief in defense of the U.S. Department of Labor’s Association Health Plan rule.

Earlier this year, a federal court ruled that provisions of the DOL’s rule were unlawful, a ruling adversely impacting Realtors seeking more cost effective and comprehensive health insurance solutions through AHP options.

Read on to learn why NAR formally has joined the Department of Justice’s appeal of the ruling.

The National Settlement Services Summit (NS3) marks its 15th anniversary this week by heading further west than it ever has. In the Valley of the Sun, the largest crowd yet will gather to hear from the best the industry has to offer over three days at the Arizona Biltmore in Phoenix.

More than 700 attendees representing 340 companies – both records for NS3 – will get to hear from a pair of keynote speakers, a Fireside Chat between title and banking icons, and 59 presenters on subjects affecting all parties in the real estate transaction.

Read on for a preview of what’s to come this week.

The Federal Trade Commission has sent its annual update on enforcement activities related to TILA compliance to the Consumer Financial Protection Bureau (CFPB).

The information will use the FTC’s response to the CFPB to prepare the bureau’s 2018 annual report to Congress.

Read on for details from the FTC’s letter to the CFPB detailing enforcement efforts involving automobile financing, payday loans and financing of consumer electronics.

The Trump administration recently issued new guidelines that will expand the White House’s oversight of rulemaking processes of independent regulatory commissions such as the Consumer Financial Protection Bureau.

A nonpartisan paper for members of Congress has detailed the possible effects of an Office of Management and Budget memorandum which established a new process for determining whether rules are “major” under the Congressional Review Act.

Read on for details from the Congressional Research Service’s report.

Several industry trade groups are speaking up about the Federal Communication Commission’s (FCC) recent declaratory ruling that allows voice service providers to automatically block suspected robocalls unless a consumer opts out.

Some critics believe the ruling could block legitimate businesses from contacting their members.

Read on to learn what the Consumers Bankers Association, the American Bankers Association and the National Association of Federally-Insured Credit Unions are saying about the issue.

U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson recently shared his vision for how the agency can help Americans achieve higher levels of homeownership.

His remarks came June 7 during the D.C. Housing Authority Homeownership Celebration in Washington, D.C.

Read on for highlights of Carson's speech, which showcased several programs to promote self-sufficiency, strong families and job training in honor of National Homeownership Month.

A Washington buyer claimed he is entitled to actual damages because his servicer failed to respond to a notice of error related to a trial period plan.

The servicer argued it was not required to respond because the letter related to loan modification rather than the “servicing” of the loan.

Read on to find out why a federal judge denied the servicer’s motion to dismiss the complaint.

Butler Snow continues to expand its presence in Texas, South Carolina, Tennessee and Mississippi with the additions of Candice M. Carson to the firm’s Dallas office, Thomas A. Forbes to the firm’s Austin, Texas office, Robert E. Sumner IV to the firm’s Charleston, S.C. office, Douglas M. Weissinger to the firm’s Memphis, Tenn. office and Rebecca Lee Wiggs to the firm’s Ridgeland, Miss. office.

Seila Law said it will petition the Supreme Court to rule on a lawsuit to decide whether the Consumer Financial Protection Bureau’s (CFPB) structure violates the constitutional separation of powers.

This would be the second opportunity the Supreme Court has to decide whether the CFPB – and every regulation enacted by it – is unlawful. 

Read on for details from Seila Law’s motion for stay of the Ninth Circuit’s appellate ruling as it plans tofile a petition for writ of certiorari.

Advertising agreements, joint ventures and RESPA cases are hot industry topics. But there are other topics people are not talking about in compliance but should be.

That’s according to Foley & Lardner, LLP partners Christi Lawson and Jay Varon, who spoke at RESPRO’s spring session.

Read on for details about the latest in Artificial Intelligence models, e-Signing for real estate closings, recent Fair Credit Reporting Act claims and class actions, Home Mortgage Disclosure Act changes and alternative credit data.

In her first six months leading the Consumer Financial Protection Bureau (CFPB), Kathy Kraninger brought RESPA back in mortgage servicing after a 2 1/2 year hiatus and took action against one of the 10 largest Home Mortgage Disclosure Act (HMDA) reporters.

June 11 marked the end of the first six months of Kraninger’s term as director, and she vowed to continue promoting compliance and enforcing the law.

Read on for highlights of Kraninger’s term so far.

The National Association of Realtors (NAR) recently sent a letter to Federal Housing Finance Agency Director Mark Calabria reiterating some of its priorities about potential government sponsored enterprise reforms.

NAR President John Smaby urged Calabria not to dilute Freddie Mac’s and Fannie Mae’s mission of supporting liquidity and broad access – or risk affecting middle-income homebuyers and underserved markets in the post-subprime crisis.

Read on for more details from Smaby’s letter.

In recognition of June being national LGBT Pride Month, the National Association of Realtors has released its first Profile of Lesbian, Gay and Bisexual Buyers and Sellers.

The report analyzes the differences between LGB and other buyers and sellers.

Read on for details from the report, which found the youngest buyers – bisexuals – were the most likely to identify as both first-time buyers and sellers.

Since the implementation of TRID, the National Association of Federally-Insured Credit Unions (NAFCU) has received questions about providing gift cards in connection with mortgage loans.

The NAFCU compliance team recently spoke with the Consumer Financial Protection Bureau for some TRID guidance in several different scenarios.

Read on for the CFPB’s answers to several questions, including whether it is legal to send gift cards to a member after consummation of the mortgage loan.

House Financial Services Committee Chairwoman Maxine Waters recently addressed the National Flood Insurance Program (NFIP) during a policy speech. 

Waters spoke June 5 at the National Flood Conference in Washington, D.C. The event was hosted by the American Property Casualty Insurance Association and the Reinsurance Association of America.

Read on for Waters’ top priorities involving reform of the program and a long-term reauthorization of the NFIP.

The Consumer Financial Protection Bureau has entered into a settlement agreement with Freedom Mortgage Corp., one of the 10 largest Home Mortgage Disclosure Act (HMDA) reporters nationwide. 

The bureau found the Mount Laurel, N.J.-based mortgage lender’s loan officers intentionally reported inaccurate race, ethnicity and sex information. 

Read on for more details from the consent order, which was the fourth HMDA enforcement the bureau has issued.

A Maryland borrower sued his servicer for allegedly moving toward foreclosure after failing to provide specific enough reasons for denying his loss mitigation application.

The servicer argued the denial letter – which provided non-retention options including a short sale and a deed in lieu of foreclosure – specified that the plaintiff’s financial information did not support other loss mitigation options.

Read on to find out how a federal judge ruled.

The owners and manager of a rental home in Nampa, Idaho, are accused of violating the Fair Housing Act by refusing to rent the home to a married couple because they have more than two children. 

HUD’s charge alleges that the woman called the property manager, who is also the owners’ son, to inquire about the home and was told that the property was available.

Read on for more details from HUD’s charge.

In honor of June being National Homeownership Month, the U.S. Department of Housing and Urban Development is making $43 million in grants available to support hundreds of housing counseling organizations across the country.

HUD-approved housing counseling agencies will use this money to help people buy their first home, search for affordable rental housing or avoid foreclosure or eviction, the agency said. 

Read on to see what HUD Secretary Ben Carson said about the grants.

Mayer Brown has appointed Raj De as the managing partner of the firm’s office in Washington D.C., which has more than 200 lawyers.

Leading advisory, tax and assurance firm Baker Tilly Virchow Krause, LLP (Baker Tilly) admits 20 new partners specializing in a variety of industries and services across the firm.

The Consumer Financial Protection Bureau’s consent order with BSI Financial Services provides the industry with key details on the agency’s first RESPA enforcement against a mortgage servicer in more than two years.

The CFPB announced a settlement last week with Texas-based BSI, charging the company with violations of RESPA, TILA and the Consumer Financial Protection Act. 

Read on for details from the consent order on how the company mishandled BSI mortgage servicing transfers with loss mitigation and escrow information.

Enforcement activity at the Consumer Financial Protection Bureau (CFPB) has declined dramatically under the Trump administration, and consumers are getting significantly less monetary relief, according to reports by two consumer groups.

The leading source of complaints to the CFPB during the Trump administration involved the mortgage payment process. Yet home mortgage policing declined sharply under Trump.

Read on for details from the Consumer Federation of America and Public Citizen.

The Consumer Financial Protection Bureau (CFPB) has updated its TRID FAQ, a new frequently asked questions tool, to provide guidance on construction loans.

Two new questions and answers were published May 31. The initial TRID FAQ dealt with integrated disclosures compliance.

Read on for more details about the latest editions to the TRID FAQs, one of which addresses whether there are special disclosure provisions for construction-only or construction-permanent loans under the TRID rule.

A new National Association of Realtors (NAR) report shows a 5 percent increase in commercial member income from 2017 to 2018, even as limited inventory continued to plague the industry.

And more women are joining the field.

Read on for details on these and other trends highlighted in NAR’s 2019 Member Profile, which also analyzed Realtors’ business activity, business characteristics, demographics, and office and firm affiliation.

A New Jersey federal judge has dismissed a class action lawsuit alleging mortgage loan servicers and insurers charged borrowers for kickbacks when buying lender-placed insurance policies.

The borrower – whose property became inhabitable because of mold infestation – also accused the defendants of conspiring to undervalue losses on LPI-covered properties, then misappropriating the insurance proceeds when his New Jersey property was damaged.

Read on to learn why the case was dismissed.

RESPA enforcement officially is back, at least in mortgage servicing, as the Consumer Financial Protection Bureau announced a settlement Wednesday with BSI Financial Services, a mortgage servicer headquartered in Irving, Texas.

The bureau found that BSI handled mortgage servicing transfers with incomplete or inaccurate loss information, causing failures to recognize transferred mortgage loans with pending loss mitigation applications, in-process loan modifications and permanent loan modifications.

Read on for details of the violations of RESPA, TILA and Regulation X from the CFPB’s consent order.

The New York Department of Financial Services is proposing new regulations on mortgage loan servicers related to affiliated business arrangements (AfBAs), loss mitigation and single point of contact.

The comment period for the Proposed New Part 419 of the Superintendent’s Regulations, 3 New York Codes, Rules & Regulations ends June 29.

Read on for details from the proposal, which would take effect upon publication of the Notice of Adoption in the State Register.

A borrower claimed his servicer violated RESPA by failing to timely evaluate his short-sale application and loss mitigation request regarding his Washington home.

RESPA Section 1024.41 limits a mortgage servicer’s ability to conduct a foreclosure sale if a borrower submits a complete application more than 37 days before a foreclosure sale.

However, the servicer argued the regulation does not concern short sales. Read on for the judge’s reasoning on why the plaintiff may have a case.

The pay gap between male and female compliance in-house counsel is beginning to narrow, according to a new study by the BarkerGilmore executive search firm.

However, the company’s 2019 In-House Counsel Compensation Report also showed 41 percent of respondents believe they are unfairly compensated even though average annual salaries for all in-house positions across industries is on the rise.

Read on for more details from the survey.

The mission of the Puerto Rico Public Housing Authority is to provide affordable housing, rental assistance and homeownership programs to families and persons with disabilities. 

But the housing authority recently paid nearly $885,000 to resolve disability discrimination allegations filed by the agency’s own tenants, according to an agreement negotiated by the U.S. Department of Housing and Urban Development. 

Read on for reaction from HUD’s assistant secretary for Fair Housing and Equal Opportunity.

Attorney Mark M. Hosemann has joined Butler Snow’s Ridgeland office.

Hosemann will practice with the firm’s business services group.

The Consumer Financial Protection Bureau (CFPB) has issued its first rulemaking agenda since Director Kathy Kraninger took office in December.

The spring 2019 agenda lists the regulatory matters the bureau reasonably expects to consider from now until April 30, 2020.

Out of 11 items in the bureau’s latest rulemaking agenda, only two are in the final stages.  Read on to find out what those rules are, and what other rules are proposed.

The House of Representatives has passed the Consumers First Act, legislation introduced by House Financial Services Committee Chairwoman Maxine Waters (D-Calif.).

Waters has said the bill would block the administration’s anti-consumer agenda and reverse their past efforts to undermine the mission of the Consumer Financial Protection Bureau. The act also accuses the White House of politicizing the agency.

Read on for reaction from consumer groups.

A non-profit initiative that advocates on behalf of low-income people and communities of color has accused the Consumer Financial Credit Bureau of helping to facilitate discriminatory lending practices.

The California Reinvestment Coalition recently filed a lawsuit claiming the CFPB defied Section 1071 of the Dodd-Frank Act by failing to collect and disclose data on lending to women-owned, minority-owned and small businesses.

Read on for details from the federal suit.

Mortgage technology costs are skyrocketing for lenders in the current fintech world. At the same time, employee productivity is declining. 

To keep up with the ever-increasing complexities of originating a loan, a growing number of mortgage lenders are considering alternatives to the typical loan origination system deployment. 

Read on for tips from Stratmor Principal Andrew Weiss on the opportunities for lenders to customize their platforms with multiple vendors.

The U.S. Department of Housing and Urban Development has approved an agreement between a Minneapolis property owner and a female tenant who alleged the landlord solicited sex from her in exchange for a reduction in her rent. 

Read on to see reaction from HUD’s assistant secretary for Fair Housing and Equal Opportunity had to say about the unwelcome advances, and for details from the recent consent order.