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CFPB’s retraction of MSA bulletin a ‘blessing and a curse’
Posted Date: Thursday, October 8, 2020
The Consumer Financial Protection Bureau (CFPB) has rescinded its controversial bulletin on RESPA compliance with marketing services agreements (MSAs). The bulletin caused some large mortgage lenders to get out of MSAs entirely because of increased regulatory scrutiny.
Read on for reaction from former senior CFPB official Richard Horn, Franzen & Salzano Partner Loretta Salzano, Mayer Brown LLC Partner Phil Schulman, Sterbcow Law Group Partner Marx Sterbcow and RESPRO President and Executive Director Ken Trepeta.
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Holiday gift giving in a pandemic
Posted Date: Thursday, October 22, 2020
In a typical year, title agents and industry trade associations would be preparing for a constant stream of holiday parties to show their appreciation to partners, affiliates, and clients.
But 2020 is far from typical.
Chuck Cain, senior vice president of FNF’s National Agency Division, spoke to RESPA News about ways to market your business this holiday season during a pandemic while remaining compliant. Read on for Cain’s tips.
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CFPB publishes RESPA FAQ on gifts, promotions
Posted Date: Thursday, October 22, 2020
Just in time for the holidays, the Consumer Financial Protection Bureau (CFPB) recently released a set of Frequently Asked Questions (FAQs) about gifts and promotional activities under RESPA.
The FAQs asked under what conditions are gifts and promotions “normal promotional and educational activities,” and provided specific scenarios of activities that meet the conditions in Regulation X and those that would draw the ire of regulators.
Read on for more from the CFPB’s FAQs.
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CFPB issues final rule extending GSE patch
Posted Date: Thursday, October 22, 2020
The Consumer Financial Protection Bureau (CFPB) has issued a final rule to extend the government-sponsored enterprise (GSE) patch until the mandatory compliance date of a final rule amending the Qualified Mortgage loan definition.
The patch was scheduled to expire Jan. 10. The bureau is not amending the provision in Regulation Z stating that the GSE patch will expire if Fannie Mae and Freddie Mac exit conservatorship.
Read on for details from the CFPB.
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FinCEN: Bitcoin “mixer” violated BSA
Posted Date: Thursday, October 22, 2020
The Financial Crimes Enforcement Network (FinCEN) has assessed a $60 million civil money penalty against the founder of two convertible virtual currency “mixers” for violations of the Bank Secrecy Act.
The allegations include charges of conspiracy to launder monetary instruments and operating an unlicensed money transmitting business on the dark web so customers could anonymously pay for things like drugs, guns, and child pornography.
Read on for details from FinCEN.
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NAR launches ‘NAR en Español’ website
Posted Date: Thursday, October 22, 2020
The National Association of Realtors (NAR) has launched NAR en Español, a fully-Spanish sub site to the association’s main webpage.
As its Spanish-speaking membership continues to rise at a historic pace, the group’s NAR en Español initiative has provided networking opportunities and educational resources for Spanish-speaking Realtors since 2018.
Read on for details from NAR.
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FHA extends COVID-19 forbearance deadline
Posted Date: Thursday, October 22, 2020
The Federal Housing Administration (FHA) announced it is extending the date for single-family homeowners with FHA-insured mortgages to request an initial forbearance from their servicer to delay their mortgage payments for up to six months.
Homeowners experiencing a financial hardship due to the COVID-19 pandemic now may request an initial forbearance through Dec. 31, 2020.
The announcement was made during the MBA Annual Conference. Read on for more details.
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DOJ files False Claims Act suit against lender
Posted Date: Monday, October 19, 2020
A Kansas City, Mo.-based lender is accused of forging certifications and using unqualified underwriters to approve Federal Housing Administration-insured Home Equity Conversion Mortgages.
The Department of Justice (DOJ) has filed a complaint under the Financial Institutions Reform, Recovery and Enforcement Act and the False Claims Act against the lender.
Read on for details from the DOJ and the Department of Housing and Urban Development’s Office of Inspector General.
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OCC fines Morgan Stanley for vendor mismanagement
Posted Date: Monday, October 19, 2020
The Office of the Comptroller of the Currency (OCC) has assessed a $60 million civil money penalty against Morgan Stanley for failing to properly manage vendors.
The OCC said the bank did not exercise due diligence in selecting a vendor and monitoring its performance in two separate incidents.
Read on for details from the settlement agreement.
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CFPB offers to settle with debt collectors
Posted Date: Monday, October 19, 2020
The Consumer Financial Protection Bureau (CFPB) filed a proposed stipulated final judgment and order to settle its lawsuit against the nation’s largest debt collector and debt buyer.
Encore Capital Group, Inc., and its subsidiaries are accused of violating the Consumer Financial Protection Act, Fair Debt Collection Practices Act and Fair Credit Reporting Act.
Read on for details from the CFPB’s proposed settlement, including redress to consumers and civil money penalties.
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CFPB, NFL linebacker co-hosting virtual town hall
Posted Date: Monday, October 19, 2020
Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger has a new defense strategy to educate consumers about their finances.
Kraninger and an NFL linebacker will co-host a virtual town hall on how people can better manage their money during tough times.
Read on for more details from the CFPB.
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FHA launches tech platform for multifamily lenders
Posted Date: Monday, October 19, 2020
Tired of tediously submitting hundreds of pages to the Federal Housing Administration for your FHA insurance applications on multifamily properties?
The FHA announced the first module on its FHA Catalyst technology platform for multifamily lenders doing business with the agency is now available. The new module will allow eligible multifamily lenders to electronically submit applications for FHA insurance on multifamily properties.
Read on for details from FHA.
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Seila Law seeks oral argument to resolve CID issue
Posted Date: Thursday, October 15, 2020
Seila Law is arguing the Ninth Circuit Court of Appeals should deny the Consumer Financial Protection Bureau’s (CFPB) petition to enforce a civil investigative demand (CID) now that the Supreme Court has found the agency to be unconstitutionally structured.
The California law firm is seeking oral argument to resolve the issues on remand from the Supreme Court, including what relief the company may be entitled to receive.
Read on for the latest in the case.
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Moody's examines worst-case servicer scenarios
Posted Date: Thursday, October 15, 2020
A new analysis by Moody’s Investor Service examined whether large servicers will be able to meet advance obligations even if borrowers remain on forbearance for a full year.
The company studied five servicers - Quicken Loans, PennyMac Financial Services Inc., Freedom Mortgage Corp., PennyMac Mortgage Investment Trust, and Provident Funding Associate L.P.
Read on to see highlights of the study, which hinged upon the coronavirus outbreak’s impact on mortgage servicers.
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CFPB settles with Nissan
Posted Date: Thursday, October 15, 2020
The Consumer Financial Protection Bureau (CFPB) has issued a consent order against Nissan Motor Acceptance Corp., an auto financing subsidiary of Nissan North America, Inc., which services auto loans and leases originated by Nissan and Infiniti dealerships nationwide.
The bureau found that Nissan and its agents wrongfully repossessed vehicles and made deceptive statements in its loan extension agreements, among other allegations.
Read on for details from the CFPB’s consent order.
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HUD charges Texas city with discrimination
Posted Date: Thursday, October 15, 2020
The Department of Housing and Urban Development (HUD) announced it is charging a Texas city with violating the Fair Housing Act by refusing to approve proposals for affordable housing unless limited to elderly residents.
The charge arose from a complaint filed by a developer whose proposal to construct nearly 100 non-age restricted units of affordable housing was blocked because of the city’s policy.
Read on for details from HUD.
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NAR study shows coronavirus' impact
Posted Date: Thursday, October 15, 2020
A new study from the National Association of Realtors is confirming many of the migration trends that had been anticipated as a result of the COVID-19 pandemic.
According to two 2020 Community and Transportation Preference Surveys analyzing the impacts of the coronavirus, younger Americans – particularly those with children – have been most affected.
Read on to see what respondents deem important in terms of residing near highways, public transit, or their place of work.
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HUD earmarks $1.3 billion for Florida disaster recovery
Posted Date: Thursday, October 15, 2020
The Department of Housing and Urban Development (HUD) is making more than $1.3 billion in funding available to Florida, which the agency said will immediately help Floridians recover from Hurricane Michael and assist the investment in large-scale disaster mitigation projects.
Read on for details from HUD on the funding, available in part through the new Community Development Block Grant, Mitigation Program.
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Vetting your vendors
Posted Date: Monday, October 12, 2020
By now, most lenders, title insurance underwriters and settlement agents know how important it is to make every effort to comply with RESPA and other state and federal regulations.
But the COVID-19 pandemic – along with new regulatory initiatives in very specific areas– make it necessary to put that same effort into vetting your own vendors.
Read on to see what Chuck Cain, senior vice president of FNF’s National Agency Division, and Saul Ewing Arnstein & Lehr Partner Francis X. Riley III told attendees at the National Settlement Services Summit (NS3).
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DOJ sues New York real estate agency
Posted Date: Monday, October 12, 2020
The Department of Justice (DOJ) has filed a lawsuit against a New York real estate agency, alleging discrimination against African Americans when offering housing units for rent.
The defendants allegedly discriminated against prospective renters on the basis of race by treating African Americans who inquired about available rental units differently and less favorably than similarly situated white persons.
Read on for more details from the DOJ’s complaint, based on fair housing testing.
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Stratmor: Lenders’ pandemic pain points changing
Posted Date: Monday, October 12, 2020
COVID-19 has created huge problems for mortgage lenders, but their most significant challenges have evolved considerably since early in the pandemic, according to a new report from mortgage-advisory firm Stratmor Group.
At the start of the pandemic, lenders were most concerned about managing a remote workforce and CARES Act rules allowing temporary forbearance of mortgage payments.
By August, their concerns had shifted. Read on to find out more.
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HUD files religious discrimination complaint
Posted Date: Monday, October 12, 2020
Department of Housing and Urban Development (HUD) Secretary Ben Carson has accused the owner and manager of senior apartments in Oklahoma of violating the Fair Housing Act by removing Bibles and Christian reading material from the common areas.
The Fair Housing Act prohibits discrimination in housing and in housing-related services based on religion and other protected characteristics.
Read on for more from HUD’s complaint, initiated from a letter Carson received from an apartment resident.
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CSBS survey gauges pandemic impact on community banks
Posted Date: Monday, October 12, 2020
Concern about business conditions surpassed funding as the greatest challenge for community banks as they navigated the impact of the coronavirus pandemic, according to the Conference of State Bank Supervisors’ (CSBS) seventh annual national survey.
Last year, funding was the top concern, and only 6 percent of respondents listed business conditions as a challenge.
What was the top concern this year from CSBS respondents?
Read on to find out.
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CFPB issues consent order guidance
Posted Date: Wednesday, October 7, 2020
The Consumer Financial Protection Bureau (CFPB) has issued a policy statement on exceptional circumstances to terminate an administrative consent order early.
The guidance outlines the early termination application process for entities subject to a consent order – which generally have a five-year term - and the standards that the bureau intends to use when evaluating applications.
Read on for highlights of the CFPB’s policy statement, including early termination criteria.
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NAR calls for long-term flood insurance reform
Posted Date: Wednesday, October 7, 2020
The National Association of Realtors (NAR) is once again stressing the need for a permanent solution to the nation’s flood insurance problem.
The Senate recently passed a continuing resolution funding the government to Dec. 11 and extending insurance writing authority for the National Flood Insurance Program through Sept. 30, 2021. The president signed the bill Oct. 1.
Read on for more details from NAR President Vince Malta.
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DOJ settles with Texas housing providers
Posted Date: Wednesday, October 7, 2020
The Department of Justice has reached an agreement with the former owners of two apartment complexes in San Antonio, Texas, to resolve allegations that they imposed unlawful lease termination charges on servicemembers and refused to allow servicemembers to terminate their leases early.
Read on to see how much the owners will pay to compensate servicemembers and in civil penalties if a proposed consent order is adopted by a federal court.
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Industry leaders recognize National Cybersecurity Awareness Month
Posted Date: Wednesday, October 7, 2020
This October, the Real Estate Fraud Prevention Coalition is leading efforts to recognize National Cyber Security Awareness Month.
The FBI received nearly 1,300 cybersecurity complaints a day last year, recording more than $3.5 billion in total losses. This year is already on track to surpass that since COVID-19 has created new global cybersecurity threats.
Read on for more from the National Association of Realtors, RESPRO, American Land Title Association and Mortgage Bankers Association.
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HUD charges Wyoming property owner with discrimination
Posted Date: Wednesday, October 7, 2020
The Department of Housing and Urban Development (HUD) has charged a Wyoming property owner and its management company with imposing overly restrictive policies on families with children.
The Fair Housing Act prohibits housing discrimination based on familial status, including setting restrictive terms and conditions on tenants with children under 18.
Read on for more details from HUD’s charge, which stemmed from a complaint filed by a couple with four minor children.
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CFPB assesses TRID rule
Posted Date: Monday, October 5, 2020
Five years after TRID went into effect, the Consumer Financial Protection Bureau (CFPB) looked back on the impact of the rule on the industry in a report mandated by the Dodd-Frank Act.
The report found TRID has had mixed results.
On one hand, it has lessened consumer confusion. But that’s come at a significant cost to lenders and closing companies. Read on for details from the report and reaction from CFPB Director Kathy Kraninger.
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CFPB, FTC announce phantom debt crackdown
Posted Date: Monday, October 5, 2020
The Consumer Financial Protection Bureau, along with the Federal Trade Commission and more than 50 federal and state law enforcement partners, has announced a nationwide law enforcement and outreach initiative to protect consumers from phantom debt collection and abusive and threatening debt collection practices.
Read on for more about the Operation Corrupt Collector initiative, which also includes cases filed by the the Department of Justice and U.S. Postal Inspection Service.
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DOJ settles Virginia discrimination suit
Posted Date: Monday, October 5, 2020
The Department of Justice announced a proposed settlement with a Virginia property manager accused of taking or threatening adverse housing actions against women who refused his sexual demands.
The proposed consent order also resolves racial discrimination allegations. Attorney General William Barr recently directed the DOJ to deploy all available enforcement tools against anyone who tries to capitalize on the COVID-19 crisis by sexually harassing people in need of housing.
Read on for details.
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HUD settles with California, Hawaii housing providers
Posted Date: Monday, October 5, 2020
The Department of Housing and Urban Development (HUD) recently approved two separate conciliation agreements to resolve allegations of housing discrimination.
In one case, a California management company was accused of refusing to rent a two-bedroom unit to a couple with three children. In the other, HUD settled allegations stemming from a Hawaii tenant with disabilities.
Read on for reaction from HUD Assistant Secretary for Fair Housing and Equal Opportunity Anna María Farías.
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HUD finalizes revised Section 3 rule
Posted Date: Monday, October 5, 2020
The Department of Housing and Urban Development (HUD) has released the final rule implementing the Section 3 statute.
Section 3 requires that recipients of certain HUD funds make economic opportunities available for low- and very low-income individuals, especially recipients of government assistance for housing, living in the areas where HUD funds are spent. HUD said the final rule would reduce the regulatory burden on those entities that receive those funds. Read on for details.
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Law firm’s disaster plan saved it from four catastrophes
Posted Date: Monday, September 28, 2020
To say that Jaime Kosofsky has had a crazy year would be an understatement.
Over the July 4, 2019, holiday weekend, his North Carolina real estate law firm, Brady & Kosofsky, PA, was destroyed in a fire after pop-up thunderstorms moved through the area. Just when they were regaining their footing, two other disasters struck – on top of the COVID-19 pandemic.
Read on to see how the firm’s disaster recovery plan saved the business.
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Kickback case certified class action lawsuit
Posted Date: Monday, September 28, 2020
Borrowers who accused Bank of America and Genuine Title of engaging in a kickback scheme have won their battle to have their complaint certified as a class action lawsuit.
The named plaintiffs in the case alleged their broker received free marketing materials from Genuine Title in exchange for a referral, and that their payments to Genuine Title were shared in part with Bank of America in violation of RESPA.
Read on for the latest in the suit.
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FinCEN seeks comments on AML programs
Posted Date: Monday, September 28, 2020
The Financial Crimes Enforcement Network (FinCEN) has issued an advanced notice of proposed rulemaking (ANPRM) seeking public comment on potential regulatory amendments under the Bank Secrecy Act.
The proposals are intended to provide financial institutions greater flexibility in the allocation of resources and greater alignment of priorities across industry and government to improve effectiveness and efficiency of anti-money laundering programs.
Read on for details from FinCEN.
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OCC: Mortgage performance declining
Posted Date: Monday, September 28, 2020
The Office of the Comptroller of the Currency (OCC) reported the performance of first-lien mortgages in the federal banking system declined during the second quarter of 2020.
The mortgage metrics report examined current and delinquent mortgage performance through June 30, including the effects of foreclosure moratoriums associated with COVID-19. Servicers completed nearly 11,000 mortgage modifications in the second quarter of 2020.
Read on for more details from the OCC.
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Existing-home sales up
Posted Date: Monday, September 28, 2020
Existing-home sales continued to climb in August, marking three consecutive months of positive sales gains, according to the National Association of Realtors (NAR).
Each of the four major regions experienced both month-over-month and year-over-year growth, with the Northeast seeing the greatest improvement from the prior month. As a whole, sales rose 10.5 percent year-over-year.
Read on for NAR Economist Lawrence Yun’s thoughts on the report.
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HUD awards more CARES Act funding
Posted Date: Monday, September 28, 2020
The Department of Housing and Urban Development (HUD) announced more than half a million dollars in additional funding to HUD Fair Housing Assistance Program agencies in 12 states to support activities related to COVID-19.
The awards are part of $1.5 million in Partnership and Special Enforcement Effort funds provided through the CARES Act.
Read on for details from HUD on what the money will be used for.
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Maryland borrower sues over escrow funds
Posted Date: Thursday, September 24, 2020
A Maryland borrower sued her servicer for allegedly failing to conduct a reasonable investigation and respond to a qualified written request (QWR) and notice of error (NOE).
The borrower’s property was advertised for a tax sale after her escrow account became deficient for unpaid water bill charges on a Baltimore duplex unit she owned. The servicer argued it complied with its obligations under RESPA.
Read on to see how a judge ruled.
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HUD deputy secretary gives pandemic update at NS3
Posted Date: Thursday, September 24, 2020
At the National Settlement Services Summit (NS3), Department of Housing and Urban Development (HUD) Deputy Secretary Brian Montgomery shared with a virtual audience his views on how things have been progressing for homeowners during the COVID-19 pandemic.
Montgomery also discussed how the Federal Housing Administration is assisting people with home loans during financial hardship, as well as the key role technology is playing during remote working environments.
Read on for more of what Montgomery told conference attendees.
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Fed issues ANPR to address systemic racism
Posted Date: Thursday, September 24, 2020
The Federal Reserve Board has issued an Advance Notice of Proposed Rulemaking (ANPR) inviting public comment to help modernize the regulations that implement the Community Reinvestment Act (CRA).
The ANPR seeks feedback on ways to evaluate how banks meet the needs of low- and moderate-income (LMI) communities and address inequities in credit access.
Read on for more from Federal Reserve Board Gov. Lael Brainard and Acting Comptroller of the Currency Brian Brooks.
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CFPB settles with auto servicer
Posted Date: Thursday, September 24, 2020
The Consumer Financial Protection Bureau (CFPB) has entered into a settlement agreement with a California-based auto loan servicer.
The CCFP found the company engaged in unfair practices with its Loss Damage Waiver product, in violation of the Consumer Financial Protection Act, such as billing for coverage that was not provided.
Read on for details from the CFPB’s consent order, including what the business must pay in consumer redress and civil money penalties.
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CFPB extends Seasoned QM comment period
Posted Date: Thursday, September 24, 2020
The Consumer Financial Protection Bureau is extending the comment period on its notice of proposed rulemaking (NPRM) to create a new category of seasoned qualified mortgages (Seasoned QMs).
On Aug. 18, the bureau announced the NPRM to create Seasoned QMs as a way to encourage innovation and help ensure access to responsible, affordable credit in the mortgage market.
Read on for details on the extension.
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NAR announces new diversity director
Posted Date: Wednesday, September 23, 2020
The National Association of Realtors (NAR) announced the promotion of Andréa Moore to vice president of Diversity, Inclusion and Talent Opportunity.
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TRID causing banks to exit construction lending market
Posted Date: Monday, September 21, 2020
Construction lending is experiencing a robust revival. But regulatory burdens and a lack of guidance from the Consumer Financial Protection Bureau remain a potential pitfall to construction lending reaching its full potential.
That's according to a new survey by the American Bankers Association (ABA), in which bankers complained that TRID-related requirements pose important obstacles for construction financing.
Read on for details from ABA’s “Construction Lending in 2020” survey.
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CFPB sues student loan servicer
Posted Date: Monday, September 21, 2020
The Consumer Financial Protection Bureau (CFPB) has accused a student loan servicer of inducing students to take out loans by a variety of unfair practices.
In its complaint, filed in the District Court for the Southern District of Indiana, the bureau alleged that PEAKS provided substantial assistance to ITT Educational Services, Inc. in violation of the Consumer Financial Protection Act.
Read on for more from the CFPB’s complaint and stipulated judgment.
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CFPB announces advisory committee members
Posted Date: Monday, September 21, 2020
Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger has appointed new members to the Consumer Advisory Board and three other advisory councils who will work with the agency on a broad range of consumer financial issues and emerging market trends.
In spring 2019, Kraninger announced a series of enhancements to the bureau’s advisory committee charters, including: expanding the focus of the meetings, increasing their frequency and increasing term lengths.
Read on for more from the CFPB.
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HUD, Census Bureau release housing survey
Posted Date: Monday, September 21, 2020
The Department of Housing and Urban Development (HUD) and the U.S. Census Bureau have released a new survey that closely examines the nation’s pre-pandemic housing situation. The American Housing Survey covers topics such as housing quality, housing costs, home improvements, housing accessibility for people with disabilities and neighborhood characteristics. Read on for more details on the study from HUD Assistant Secretary for Policy Development and Research Seth Appleton.
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General counsel pay skyrocketing in some sectors
Posted Date: Monday, September 21, 2020
A firm’s general counsel used to be known solely as the legal department head. Now, the position has transformed into a key executive team member who contributes to strategic and risk management decisions. In order to recruit and retain top talent, many corporations are paying general counsel more than ever before, according to a new study by executive search firm BarkerGilmore. Read on for more details from the General Counsel Pay Trends 2020 Report.
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CBA announces board chair, chair-elect
Posted Date: Monday, September 21, 2020
The Consumer Bankers Association has elected Christine Channels, head of community banking and client protection at Bank of America, as chair of the Board of Directors and Michelle Lee, executive vice president, head of Eastern region, consumer banking at Wells Fargo, as chair-elect. Read on for comments from CBA President and CEO Richard Hunt.
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