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News By Edition
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RESPA News Monthly Edition
RESPA News Monthly
January 2023
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Chopra answers committee questions at CFPB semi-annual report
Posted Date: Thursday, December 22, 2022
Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra fielded questions related to the bureau’s semi-annual report from the U.S. House Committee on Financial Services, the committee’s last hearing this Congress.
Topics discussed included the CFPB’s funding structure, §1071 rulemaking, and the bureau’s issuance of guidance documents.
Read on for more details.
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Wells Fargo ordered to pay $3.7B by CFPB
Posted Date: Thursday, December 22, 2022
The Consumer Financial Protection Bureau ordered Wells Fargo to pay more than $2 billion in consumer redress and a $1.7 billion civil penalty for legal violations.
The bureau found the bank committed several acts affecting over 16 million customer accounts, including the misapplication of loan payments, wrongful foreclosure, and surprise overdraft fees.
Read on for more details about the order.
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CFPB filed amicus brief in TILA, RESPA case
Posted Date: Thursday, December 22, 2022
When a borrower failed to make required payments on his home equity line of credit, the bank servicing the loan withdrew the payments from a deposit account he had with it. The borrower sued, alleging violations of the Truth-in-Lending Act and RESPA.
The district court found for the bank, and the plaintiff appealed. The Consumer Financial Protection Bureau’s amicus brief was filed with the court without supporting either party.
Read on for more details.
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DOJ issues first resolution to end ‘crime-free’ rental housing program
Posted Date: Thursday, December 22, 2022
The Department of Justice resolved a race and national origin discrimination suit against the city of Hesperia, Calif., and the San Bernardino County Sheriff’s Department.
The suit involved the adoption and enforcement of a “crime-free” rental housing program, where rental property owners were required to evict tenants identified as engaging in “criminal activity” by the sheriff’s department on or near the property.
Read on for more details.
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Stabilized prices, 4.78 million in sales part of NAR 2023 prediction
Posted Date: Thursday, December 22, 2022
The National Association of Realtors (NAR) forecasted 4.78 million existing homes will be sold and prices will remain stable during 2023.
Lawrence Yun, NAR chief economist and senior vice president of research, also provided the top 10 markets to watch and his predictions for interest rates, rent prices and foreclosure levels.
Read on for more details.
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Report: Minimal increase in homelessness during pandemic
Posted Date: Monday, December 19, 2022
Despite concerns that the COVID-19 pandemic and subsequent economic impact would lead to a significant increase in the number of homeless individuals, the U.S. Department of Housing and Urban Development’s 2022 Annual Homeless Assessment Report showed only a slight increase in the number of people experiencing homelessness in 2020-2022.
The report showed homelessness among certain sub-populations decreased, including the number of veterans experiencing homelessness and the number of families with children.
Read on for more details from the report.
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Financial Services hears semi-annual report from CFPB
Posted Date: Monday, December 19, 2022
In a five-hour hearing, Consumer Financial Protection Bureau Director Rohit Chopra delivered the bureau’s semi-annual report to the U.S. House Committee on Financial Services.
In his opening statement, Chopra addressed the current state of the economy and household finance, promoted competition and a decentralized market, and shared what he thinks Congress needs to address in the coming session.
Read on for more details.
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Dispute over loss mitigation apps heard by Mass. court
Posted Date: Monday, December 19, 2022
Years of communications and loss mitigation applications related to a defaulted mortgage resulted in the U.S. District Court of Massachusetts hearing a case alleging Specialized Loan Servicing, LLC, violated RESPA, the Fair Debt Collection Practices Act, and other claims under state law.
The plaintiff contends the servicer denied processing several loss mitigation applications despite the “flurry of supplemental documentation” supplied by the borrower.
Read on for more details.
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Consumer protection the theme of committee 2022 recap
Posted Date: Monday, December 19, 2022
The Senate Committee on Banking, Housing, and Urban Affairs majority staff highlighted the achievements of 2022 and the outlook for 2023 in its end-of-year recap memo.
“The Banking, Housing, and Urban Affairs Committee used to be all about Wall Street and big corporations,” Sen. Sherrod Brown (D-Ohio) said. “When Democrats took control, we changed that.”
Read on for more details.
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CFPB issues NPR related to TILA preemption
Posted Date: Monday, December 19, 2022
The Consumer Financial Protection Bureau issued a notice of proposed rulemaking (NPR) to determine whether the Truth-in-Lending Act preempts New York State’s commercial financial law with respect to certain provisions.
The NPR followed a written request for the determination. The bureau also placed interested parties on notice it is considering making additional preemption determinations for other state laws similar to those in New York.
Read on to learn more about the NPR.
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FHA offers new assistance with HECMs
Posted Date: Monday, December 19, 2022
The Federal Housing Administration is offering a new COVID-19 HECM Property Charge Repayment Plan to senior homeowners struggling with payments related to their home equity conversion mortgages.
Read on for more details.
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Nationstar Mortgage faces Reg X class action
Posted Date: Thursday, December 15, 2022
A class action suit was filed against Nationstar Mortgage, alleging the mortgage servicer violated Regulation X when conducting COVID-19 loss mitigation business. According to the complaint, each class member applied for and was denied a loan modification under COVID-19 recovery options.
Nationstar stated the reason for these denials was because there was an insufficient reduction on the payment and interest portion of the applicants’ monthly payments.
Read on to learn more about the argument.
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USMI welcomes Seth Appleton as president
Posted Date: Thursday, December 15, 2022
U.S. Mortgage Insurers, an association that represents the nation’s leading private mortgage insurance companies, will welcome Seth Appleton, president of MISMO, as its president starting early 2023.
In addition to this announcement, MISMO announced Appleton’s acting replacement.
Read on for more details.
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Court reviews FHA claim over parking spot accommodation
Posted Date: Thursday, December 15, 2022
The U.S. District Court, M.D. Tennessee, Nashville division, issued a review on an amended complaint alleging violations of the Americans with Disabilities Act and the Fair Housing Act.
The plaintiff in the case had asked for a reasonable accommodation because of a permanent disability. She was injured after defendant’s alleged failure to maintain her accommodation, and when she sought to speak with them about the issue, was threatened with eviction.
Read on for more details.
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Racial equity agreement reached with Missouri housing provider
Posted Date: Thursday, December 15, 2022
The U.S. Department of Housing and Urban Development (HUD) and Aboussie Pavilion Apartments, an affordable rental housing provider in St Louis, executed a voluntary compliance agreement.
The review was opened after HUD’s Office of Fair Housing and Equal Opportunity received information indicating participation rates of Black residents were disproportionately low in comparison to the housing market.
Read on for more details.
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Manufactured housing Q&A with HUD’s Teresa Payne
Posted Date: Thursday, December 15, 2022
In a follow-up to October Research’s “Manufactured Housing Supply and Financing – featuring HUD and FHA” webinar, Teresa Payne, administrator for the U.S. Department of Housing and Urban Development’s Office of Manufactured Housing Programs, answered audience questions ranging from what can be done to remove local impediments to manufactured housing to how quality issues are being addressed.
Read on for the Q&A.
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NYDFS finds redlining issues in Long Island, Rochester, Syracuse
Posted Date: Monday, December 12, 2022
New York’s Department of Financial Services reported ongoing racial disparity in mortgage lending practices on Long Island, in Rochester and Syracuse.
“With our state in the midst of a housing crisis, practices like redlining not only restrict New Yorkers’ access to homeownership, but also threaten affordability statewide,” New York Governor Kathy Hochul said. “My administration remains committed to combatting housing discrimination in New York State and exploring solutions.”
To learn more about the issue, read on.
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Discovery motions continue in CFPB v. Townstone suit
Posted Date: Monday, December 12, 2022
In a follow-up to the RESPA News’ coverage on the motions filed in Consumer Financial Protection Bureau v. Townstone Financial, Inc., et al., the two parties provided further arguments for their motions to compel.
These motions to compel are part of the discovery process occurring while the defendant’s motion to dismiss the case is still pending. Among other documentation, the bureau is seeking access to some of Townstone owner Barry Sturner’s personal communications, and Townstone is seeking documentation of bureau employees’ interpretations of the company’s alleged discouraging statements.
Read on for more details.
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Seattle exceeds House America goals
Posted Date: Monday, December 12, 2022
The U.S. Department of Housing and Urban Development (HUD) applauded Seattle in its progress toward its House America commitment.
The program, launched in March 2021, is a national partnership where HUD and the U.S. Interagency Council on Homelessness work with local, tribal and state leaders in distributing emergency housing vouchers and HOME grants to help those struggling with homelessness.
Read on to learn about Seattle’s efforts.
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Colorado landlord charged with harassment, retaliation
Posted Date: Monday, December 12, 2022
The U.S. Department of Housing and Urban Development (HUD) charged a Colorado landlord with harassment and retaliation against a tenant because of their sex.
HUD seeks to stop the offending landlord from continuing his discriminatory conduct, damages for the complainant, and civil penalties for several violations of the Fair Housing Act.
Read on to learn more about the complaint.
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KeyBank loses consumer group support
Posted Date: Monday, December 12, 2022
The National Community Reinvestment Coalition found KeyBank failed to uphold a 2016 Community Benefit Agreement (CBA) it signed with the consumer group. This consequently led to it cutting off negotiations with the bank on a new CBA.
Despite the promises made in the 2016 CBA, the consumer group stated in a recent report the bank instead became, by one measure, “the nation’s worst major mortgage lender for Black homebuyers.”
Read on for more information from the report.
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CFPB issues NPR for ‘repeat offenders’ registry
Posted Date: Monday, December 12, 2022
The Consumer Financial Protection Bureau issued a notice of proposed rulemaking that would require certain nonbank financial firms to register with the bureau when they are subject to certain consumer financial protection agency or court orders.
The registry is meant to help unify efforts of consumer financial protection enforcers and provide increased transparency.
Read on for more details.
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CFPB, Townstone file responses to parties’ motions to compel
Posted Date: Thursday, December 8, 2022
The saga continues in the lawsuit brought by the Consumer Financial Protection Bureau against Townstone Financial, Inc. and its owner, Barry Sturner, as both parties filed responses to each other’s motions to compel.
Townstone’s and Sturner’s attorneys continued to argue the bureau is overreaching its statutory authority and threatens Sturner’s First Amendment rights. The bureau said the information Townstone is requesting is outside what can be compelled as part of discovery.
Read on to learn more about the arguments.
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Wells Fargo fights RESPA, FDCPA, other claims in bankruptcy case
Posted Date: Thursday, December 8, 2022
In an adversarial proceeding in U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, Wells Fargo was the servicer of a home equity loan for a plaintiff who filed for a Chapter 13 bankruptcy twice in relation to the loan.
The plaintiff brought several claims against Wells Fargo, including violations of RESPA, the Fair Debt Collection Practices Act, Bankruptcy Rule 3002.1, and other causes of action.
Read on to learn the court’s holding.
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Housing supply emerges as theme during House committee hearing
Posted Date: Thursday, December 8, 2022
In a follow-up to RESPA News’ coverage of the House Committee on Financial Services’ hearing titled, “Boom and Bust: The Need for Bold Investments in Fair and Affordable Housing to Combat Inflation,” representatives and witnesses discussed what can be done to combat inflation, particularly in the housing market.
After witnesses made their opening statements, the floor was opened up to committee members to ask questions and seek policy recommendations.
Read on to learn more about the hearing.
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CFPB won’t initiate HMDA enforcement actions for 2020-2022 data
Posted Date: Thursday, December 8, 2022
The Consumer Financial Protection Bureau does not intend to initiate enforcement actions or cite violations of the Home Mortgage Disclosure Act (HMDA) for failures to report closed-end mortgage loan data collected in 2022, 2021, or 2020.
The decision comes after the U.S. District Court for the District of Columbia vacated the portion of 2020 HMDA Final Rule dictating the reporting threshold for closed-end loans.
For more details on the case and the bureau’s decision, read on.
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House committee hears testimony on combating inflation in housing market
Posted Date: Monday, December 5, 2022
In a hearing in front of the entire House Committee on Financial Services, representatives and witnesses discussed what can be done to combat inflation, particularly in the housing market.
The conversation mostly considered how to balance policies to address both housing supply and demand, with criticisms of the administration’s focus on policies related to the demand without addressing issues with supplies.
Read on for more details.
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Court examines whether defendant is creditor under TILA
Posted Date: Monday, December 5, 2022
Whether the defendants count as creditors is the threshold question in a lawsuit heard by the U.S. District Court, District of Minnesota.
The plaintiff and defendants had entered into an agreement where the defendants would purchase a specified home on the plaintiff’s behalf, then issue a contract of deed to the plaintiff, who would then make payments to the defendants. Plaintiff alleges the defendants did not make any requisite written disclosures under the Truth-in-Lending Act.
Read on for more details.
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Sen. Brown urges CFPB to address ‘zombie mortgages’
Posted Date: Monday, December 5, 2022
In a letter to Consumer Financial Protection Bureau Director Rohit Chopra, Sen. Sherrod Brown (D-Ohio) urged the agency to review the second mortgage servicing practices of the servicers and debt collectors under its supervision.
The request comes after reports of mortgage servicers attempting to collect or foreclose on second mortgages borrowers did not know they had or thought were previously discharged, putting their homeownership at risk.
Read on for more details.
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2023 Conforming Loan Limits announced
Posted Date: Monday, December 5, 2022
The conforming loan limit values for 2023 have been determined by the Federal Housing Finance Agency.
The limits are applied to mortgages to be acquired by Fannie Mae and Freddie Mac and will be effective starting Jan. 1, 2023.
Read on for more details.
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HUD, FHA explain the benefits of manufactured housing
Posted Date: Monday, December 5, 2022
In a complimentary webinar, October Research, LLC welcomed Teresa Payne, administrator for HUD’s Office of Manufactured Housing, Office of Housing, and Esther Yamashiro, housing program officer of the Santa Ana Homeownership Center, Federal Housing Administration, to discuss the benefits of manufactured housing.
Read on for more details and a link to view the webinar.
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MISMO launches standard template for MBS bids
Posted Date: Monday, December 5, 2022
MISMO’s Bids Wanted in Competition standard template is officially available for industry use after it was given “candidate recommendation” status.
The template is meant to standardize the information transmitted during the bidding process for mortgage-backed securities.
Read on for more details.
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