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TRID 2.0's lingering issues
Posted Date: Monday, April 29, 2019
TRID 2.0 was likely the last major amendment to the TILA-RESPA Integrated Disclosure (TRID) rule for many years.
However, the Dodd-Frank mandated lookback coming in 2020 will provide the industry the opportunity to convince the bureau to do something about some of the rule’s lingering issues.
Attorneys Richard Horn and Richard Andreano Jr. addressed some of these ongoing issues while speaking in New Orleans at RESPRO’s spring session. Read on for more details from the session.
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Judge: Zillow co-marketing may violate RESPA after all
Posted Date: Thursday, April 25, 2019
In a stunning reversal, a federal judge has ruled that new allegations in a Washington state securities case plausibly allege that Zillow Group’s co-marketing program violated RESPA – and that the company encouraged such violations.
The judge also found a strong inference that both Zillow CEO Spencer Rascoff and Chief Financial Officer and Chief Legal Officer Kathleen Phillips made materially misleading statements about the co-marketing program.
Read on for details from the court’s decision.
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NS3 Preview: Practical considerations for strategic alliances
Posted Date: Thursday, April 25, 2019
Affiliated business arrangements (AfBAs), marketing and services agreements (MSA), desk rentals, Internet co-advertising and lead generation agreements are on the rise.
But the legal requirements for creating these arrangements are only the beginning.
Attorneys Phil Schulman and Holly Spencer Bunting will be speaking at the National Settlement Services Summit (NS3) this summer in Phoenix on “Practical Considerations for Title Agents Creating Strategic Alliances.” Read on for a session preview.
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NAR releases homebuyer trend report
Posted Date: Thursday, April 25, 2019
One in six Generation Xers purchased a multi-generational home in 2018, mainly because their adult children have either moved back or never left home, according to the National Association of Realtors (NAR).
Which generation is the most active of homebuyers overall?
Read on for more details from NAR’s 2019 Home Buyer and Seller Generational Trends study, which evaluated the generational differences of recent homebuyers and sellers.
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CFPB will meet with experts to discuss policy development
Posted Date: Thursday, April 25, 2019
The Consumer Financial Protection Bureau (CFPB) will be hosting a symposia series to encourage proactive and transparent dialogue about topics affecting the financial marketplace.
The series will be made up of panels with industry stakeholders, and is designed to help the CFPB with its policy development process, including possible future rulemakings on access to credit and other topics.
Read on for reaction from CFPB Director Kathy Kraninger.
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San Diego landlord settles discrimination claims
Posted Date: Thursday, April 25, 2019
The U.S. Department of Housing and Urban Development (HUD) has announced a fair housing agreement between a San Diego-area property management company and a family with a child who has a respiratory disability.
The agreement resolves allegations that the property manager refused to grant the mother's request to be moved to a unit away from her neighbors who were heavy smokers.
Read on for more details from HUD.
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HUD, Fannie Mae disagree on DACA loan eligibility
Posted Date: Friday, April 19, 2019
The Federal Housing Administration (FHA) and Fannie Mae are at odds over whether so-called “Dreamers” are eligible borrowers.
U.S. Sen. Bob Menendez (D-N.J.) sent a letter to U.S. Secretary of Housing and Urban Development (HUD) Ben Carson regarding whether the Trump administration has begun implementing an unofficial policy of denying FHA-insured mortgages to Deferred Action for Childhood Arrivals (DACA) recipients.
Read on for details from the senator’s letter, HUD’s response and Fannie Mae’s stance.
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NS3 Preview: Technology the future of compliance management
Posted Date: Friday, April 19, 2019
Attorneys Sean Burke and Marx Sterbcow have worked closely with regulators, having been involved representing an individual or company in a number of title-related cases that agencies have brought.
The highlight of their lessons: That technology is the way forward for compliance management in the industry. Burke and Sterbcow will be speaking at the National Settlement Services Summit (NS3) this summer in Phoenix on “Compliance Management Systems for Tomorrow.”
Read on for a session preview.
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Rhode Island judge dismisses failed communication claim
Posted Date: Friday, April 19, 2019
A Rhode Island buyer who claimed his servicer failed to respond to a notice of error argued the servicer should reimburse him for the cost of gasoline to visit his attorney and electricity to charge his cell phone to call his lawyer.
The servicer alleged the company’s responses to the borrower’s qualified written requests and notice of errors did not violate RESPA.
Read on for highlights of the judge’s decision.
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Stratmor: Lenders must be early adopters
Posted Date: Friday, April 19, 2019
Mortgage lenders must abandon their traditional aversion to being early adopters of technology if they are to succeed in today’s marketplace, according to mortgage advisory firm Stratmor Group.
Stratmor Senior Partner and CEO Lisa Springer provided key takeaways from the recent Mortgage Bankers Association (MBA) Technology Conference in Los Angeles.
Read on for Springer’s remarks on why lenders must take risks to succeed in today’s mortgage marketplace.
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CSBS highlights leverage ratio concerns
Posted Date: Friday, April 19, 2019
The Conference of State Bank Supervisors (CSBS) recently met with leaders at the Federal Reserve Board of Governors, Federal Deposit Insurance Corp. (FDIC), and House and Senate members at the agency’s 2019 Government Relations Fly-In.
Among the areas they discussed was the effect of community bank leverage ratio relief including in recent financial reform legislation.
Read on for details of the fly-in, which gave the agency an opportunity to share their top priorities with policy makers, from CSBS President and CEO John Ryan.
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HUD awards $15 million more to discrimination
Posted Date: Friday, April 19, 2019
To help end housing discrimination, the U.S. Department of Housing and Urban Development (HUD) has awarded an additional $15 million to support dozens of fair housing organizations.
HUD’s grants are provided through the department’s Fair Housing Initiatives Program (FHIP) to help people who believe they have been victims of housing discrimination and to educate the public and housing providers on fair housing laws.
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CFPB director touts enforcement by prevention
Posted Date: Thursday, April 18, 2019
New Consumer Financial Prevention Bureau (CFPB) Director Kathy Kraninger made her first public remarks Wednesday to lay out her vision for the bureau as the keynote speaker at the Bipartisan Policy Center in Washington, D.C.
Kraninger detailed four ways the CFPB will focus on prevention of harm to consumers under her watch.
Read on for highlights of Kraninger’s speech, which lauded “purposeful enforcement” on a case-by-case basis.
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NS3 Preview: Working together improves efficiency
Posted Date: Thursday, April 18, 2019
At the 2019 National Settlement Services Summit (NS3), Christopher Gulotta, a founding principal of the Gulotta Grabiner Law Group, PLLC, will serve as the lead panelist of “Partners Working Together.”
Specific pain points will be discussed as they relate to the lender, Realtor and builder perspective.
Read on to get a small preview of what this session will bring to the audience.
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Making JVs more profitable
Posted Date: Thursday, April 18, 2019
Joint ventures and AfBAs are experiencing a resurge in popularity due to recent case law decisions and a less active Consumer Financial Protection Bureau when it comes to RESPA enforcement.
But how do you make money with JVs, and how can you tell who will make a good partner?
Cornerstone Home Lending’s Andrina Valdes and TowneBank Mortgage’s Wendy Lewis offered tips. Read on for more from Valdes and Lewis from a recent RESPRO conference session.
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HUD wants public input on Opportunity Zones
Posted Date: Thursday, April 18, 2019
The U.S. Department of Housing and Urban Development (HUD) is seeking public input on how the agency can maximize the beneficial impact of Opportunity Zones for residents and their communities.
The request for information (RFI) will allow the public to share existing knowledge and provide recommendations to HUD regarding the use of public and private investments in urban and economically distressed communities, including qualified Opportunity Zones.
Read on for details of the RFI.
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Borrower accuses servicer of violating dual tracking ban
Posted Date: Thursday, April 18, 2019
A borrower from Puerto Rico filed a motion to dismiss a foreclosure of a reverse mortgage, claiming the federal court lacks jurisdiction to hear the case because it was filed while her loss mitigation application still was pending.
The servicer alleged that during its consideration of the application, the borrower withdrew her deed in lieu of foreclosure application to pursue a short sale instead.
Read on to find out how the judge ruled.
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CFPB's deputy wants less-is-more regulatory approach
Posted Date: Monday, April 15, 2019
The days of the “more is more” regulatory approach by the Consumer Financial Protection Bureau (CFPB) may be coming to an end.
The CFPB’s new proposed modus operandi?
Keep regulatory rules as simple as possible while encouraging decentralized decision-making, acting CFPB deputy director Brian Johnson said while speaking recently at the George Mason University Law & Economics Center’s Ninth Annual Financial Services Symposium.
Read on for more of Johnson’s remarks.
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NS3 Preview: Privacy, wire fraud issues to be tackled
Posted Date: Monday, April 15, 2019
In the last year, several states introduced, and some have passed, data privacy legislation. This year’s legislative session will include several more bills designed to protect consumers’ privacy.
During this same period, wire fraud has more than doubled as fraudsters are getting more knowledgeable about whom to target in the real estate transaction.
Read on to see how both issues significantly impact the escrow industry from two industry leaders who will share their insights during the National Settlement Services Summit June 18-20 in Phoenix, Ariz.
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Report: Hispanics play critical role in homeownership growth
Posted Date: Monday, April 15, 2019
Hispanics are driving homeownership growth in America, according to a new report that measures the impact of language and culture in home purchase transactions.
The Hispanic Wealth Project, in collaboration with the National Association of Hispanic Real Estate Professionals, recently released the annual 2019 State of Hispanic Wealth Report.
Read on for details from the report, which also found three straight years of income growth and record low Hispanic poverty rates.
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HUD: Illinois couple engaged in Section 8 scheme
Posted Date: Monday, April 15, 2019
A Cook County, Ill., couple committed fraud by illegally accepting housing assistance to rent a property they jointly owned, according to a complaint filed by the U.S. Department of Housing and Urban Development (HUD).
The couple enacted a scheme in which one of them posed as a landlord to “lease” the home from the other party while seeking rental assistance from the local housing authority.
Read on for details from HUD’s complaint.
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Maryland borrowers sue over foreclosure timing
Posted Date: Monday, April 15, 2019
A Maryland couple accused their servicer of proceeding with a foreclosure sale after they allegedly provided a complete and timely loss mitigation application.
Fay Servicing, LLC argued the company is not liable for violating RESPA Section 1024.41(g), which 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.
Read on to find out how a federal judge ruled.
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Carson talks housing future with MBA
Posted Date: Monday, April 15, 2019
U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson recently spoke about the agency’s latest initiatives at the Mortgage Bankers Association (MBA) National Advocacy Conference in Washington, D.C.
Carson shared HUD’s plans to increase access to financing across the housing industry, including stimulating economic development and job creation by making long-term capital investments in low-income neighborhoods.
Read on for more of Carson’s remarks from the MBA conference.
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JVs, AfBAs are back – thanks to PHH
Posted Date: Thursday, April 11, 2019
The 2018 court decisions in CFPB v. PHH and CFPB v. Borders & Borders have created renewed interest in advertising agreements and affiliated business arrangements (AfBAs) – in particular, the District of Columbia Circuit Court’s interpretation of Section 8(c)(2), the cornerstone for all marketing and advertising activities.
Read on for details from Holly Spencer Bunting, partner at Mayer Brown, who spoke recently in New Orleans about the latest trends in advertising agreements and AfBAs at the RESPRO spring conference.
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CFPB report highlights mortgage servicer problems
Posted Date: Thursday, April 11, 2019
Programming errors in the servicing platform and lapses in servicer oversight led to thousands of consumers being overcharged on mortgage notes, according to the Consumer Financial Protection Bureau’s (CFPB) 18th edition of Supervisory Highlights.
The report also showcased problems with misrepresenting private mortgage insurance (PMI) cancellation denial reasons, failure to exercise reasonable diligence to complete loss mitigation applications and reverse mortgage issues.
Read on for more from the CFPB’s report.
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Kraninger to use new FFIEC platform to promote consistency
Posted Date: Thursday, April 11, 2019
Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger is the new chairwoman of the Federal Financial Institutions Examination Council (FFIEC).
Kraninger succeeds Jelena McWilliams, who chairs the Federal Deposit Insurance Corporation (FDIC), for a five-year term ending March 31, 2021.
Read on to learn how Kraninger views the FFIEC post, which marks the first time since the CFPB was launched that its turn to be chairman came up.
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Alabama court dismisses lawsuit over condemned house
Posted Date: Thursday, April 11, 2019
An Alabama borrower whose house was demolished after he failed to make necessary repairs accused his servicer of failing to send explanations to letters related to servicing of his mortgage loan.
The defendants argued the loan was primarily for investment purposes and therefore not covered under RESPA. However, the plaintiff claimed he intended to renovate the property, move into and rent it.
Read on for highlights from the magistrate judge’s opinion.<
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CFPB publishes HMDA data
Posted Date: Thursday, April 11, 2019
Home Mortgage Disclosure Act (HMDA) Modified Loan Application Registers (LARS) data has been published for 5,400 financial institutions.
This marks the first year in which additional data reported by certain institutions under the 2015 HMDA will be available, the Consumer Financial Protection Bureau (CFPB) reported.
The LARS – modified to protect privacy – contains loan level information for 2018 on individual HMDA filers. Read on for more information on the latest HMDA news.
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CFPB plans to cut spending, staff
Posted Date: Monday, April 8, 2019
The Consumer Financial Protection Bureau (CFPB) will become more efficient by slashing spending and reducing staff this year and beyond, according to the agency’s annual performance plan for fiscal year 2019.
The CFPB expects to spend $533 million in FY 2019 and $503.9 million in FY 2020, a drop of 9 percent from 2018.
Read on for more from the report, which also advocates decreasing the agency’s Supervision, Enforcement and Fair Lending budget.
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Home sellers sue NAR over buyer commissions
Posted Date: Monday, April 8, 2019
The National Association of Realtors (NAR) and national real estate broker franchisors violated federal antitrust laws by conspiring to require home sellers to pay inflated buyer broker commissions, according to a class action lawsuit filed by a group of home sellers.
The plaintiffs are arguing NAR’s Buyer Broker Commission Rule has led to home sellers being saddled with a cost that would be borne by the buyer in a competitive market.
Read on to learn why NAR calls the lawsuit baseless.
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Elder financial abuse skyrocketing, CFPB reports
Posted Date: Monday, April 8, 2019
Since 2013, financial institutions have reported to the federal government more than 180,000 possible crimes targeting older adults, involving more than $6 billion.
In an effort to prevent elder financial exploitation and to punish wrongdoers, the Consumer Financial Protection Bureau (CFPB) analyzed these suspicious activity reports (SARs) filed with the Financial Crimes Enforcement Network.
Read on for highlights from the CFPB’s first public analysis of elder financial exploitation SARs.
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Former NAR economist confirmed as FHFA director
Posted Date: Monday, April 8, 2019
Former National Association of Realtors (NAR) economist Mark Calabria has been confirmed as the next director of the Federal Housing Finance Agency (FHFA).
The Senate voted 52-44 Thursday to confirm Calabria, who once oversaw HUD's regulation of the mortgage market under RESPA. Calabria said he supports ending the conservatorship of Fannie Mae and Freddie Mac.
Read on to see what NAR President John Smaby said of the confirmation.
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HUD issues proposed Section 3 rule
Posted Date: Monday, April 8, 2019
The U.S. Department of Housing and Urban Development (HUD) has published a proposed rule to improve the effectiveness and efficiency of Section 3 of the Housing and Urban Development Act of 1968.
Section 3 requires employment, training, contracting and other economic opportunities generated by certain HUD financial assistance to be directed to low- and very low-income persons, especially government housing recipients.
Read on for reaction from HUD Secretary Ben Carson.
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Janet Ray joins Blackacre
Posted Date: Friday, April 5, 2019
Boutique real estate law firm Blackacre LLP announced that real estate attorney Janet Ray has joined the company.
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Bradley Williams joins Dorsey & Whitney
Posted Date: Friday, April 5, 2019
International law firm Dorsey & Whitney LLP has hired Bradley Williams as a partner at the firm’s Minneapolis Real Estate & Land Use practice group.
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HUD sues Facebook for fair housing violations
Posted Date: Monday, April 1, 2019
The U.S. Department of Housing and Urban Development (HUD) is the latest entity to sue Facebook over its advertising platform.
HUD alleges that Facebook violated the Fair Housing Act by unlawfully discriminating based on race, color, national origin, religion, familial status, sex and disability by restricting who can view housing-related ads on Facebook’s platforms and across the internet.
Read on for reaction from HUD Secretary Ben Carson and Facebook.
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Utah AfBA changes signed into law
Posted Date: Monday, April 1, 2019
Utah Gov. Gary Herbert has signed a bill into law that dramatically will expand affiliated business arrangements (AfBAs) in title and real estate.
Senate Bill 121, sponsored by Sen. Daniel Hemmert and Rep. Mike Schultz, was supported by RESPRO, which led the effort to secure changes to Utah affiliated business law to allow AfBAs under certain requirements.
Read on for reaction from RESPRO President and Executive Director Kenneth Trepeta.
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CFPB suspends $75 million in fines, redress
Posted Date: Monday, April 1, 2019
A debt relief service that was found to have defrauded consumers even after a permanent injunction recently agreed to pay more than $35 million in restitution and a $40 million civil money penalty to the Consumer Financial Protection Bureau.
However, the CFPB suspended the vast majority of the $75 million in fines and redress based on the defendants’ financial statements showing they were unable to pay the total amount.
Read on for details from the consent judgment.
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NAR, NAFCU react to reform announcement
Posted Date: Monday, April 1, 2019
Industry associations are in support of President Donald Trump’s intent to sign a presidential memorandum to develop a reform plan for the housing finance system.
However, Carrie Hunt, general counsel for the National Association of Federally-Insured Credit Unions, testified March 27 before the Senate Banking Committee to stress the importance of moving cautiously with any reforms.
Read on for reaction from the National Association of Realtors and more of Hunt’s testimony.
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Realtors 'disappointed' in AHP regulation ruling
Posted Date: Monday, April 1, 2019
The U.S. Department of Labor’s attempt to issue final association plan regulations has been struck down, but the National Association of Realtors (NAR) isn’t giving up yet on providing high-quality, lower-cost coverage alternatives to all its members.
The regulations became effective Jan. 1 and enabled member-based groups to offer comprehensive health coverage to millions of employees and self-employed people at an affordable price.
Read on for more details from NAR President John Smaby.
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HUD, California housing providers resolve discrimination allegations
Posted Date: Monday, April 1, 2019
HUD has approved a conciliation agreement with a Modesto, Calif. rental property owner and his management company to resolve allegations that they refused to rent a unit to a couple because they have three children.
A HUD Fair Housing Initiatives Program agency filed a complaint on behalf of the couple, alleging that the family was denied the opportunity to rent a two-bedroom unit.
Read on for details from the agreement.
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