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Court peppers sides in CFPB case
Posted Date: Tuesday, March 3, 2020
A packed courtroom heard eight of the nine Supreme Court justices ask questions of counsel as the high court began its final public work in determining the constitutionality of the Consumer Financial Protection Bureau.
The case drew high-profile visitors, including two former bureau directors, Richard Cordray and Mick Mulvaney, as well as legislators, trade association executives and representatives, and attorneys.
Read on for more details from our live on-site coverage.
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Circuit Court rejects ‘sham’ MSA suit
Posted Date: Thursday, March 19, 2020
The Fourth Circuit Court of Appeals has dismissed a Maryland couple’s class action lawsuit accusing their broker of receiving unearned fees by referring customers to a title company for settlement in a “sham” marketing agreement.
The couple sought treble damages of more than $11.2 million, alleging the defendants violated RESPA through an illegal kickback scheme.
Read on for reaction from RESPRO President and Executive Director Ken Trepeta and Ballard Spahr attorneys.
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FHFA, HUD suspend foreclosures, evictions
Posted Date: Thursday, March 19, 2020
The Federal Housing Finance Agency (FHFA) and the Department of Housing and Urban Development have announced a joint moratorium on foreclosures and evictions for at least 60 days because of coronavirus concerns.
The FHFA’s foreclosure and eviction suspension applies to homeowners with a government-sponsored enterprise (GSE)-backed, single-family mortgage.
Read on for more from Federal Housing Commissioner Brian Montgomery, FHFA Director Mark Calabria and Consumer Financial Protection Bureau Director Kathy Kraninger.
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FinCEN penalizes bank official for AML failures
Posted Date: Thursday, March 19, 2020
The Financial Crimes Enforcement Network (FinCEN) has assessed a civil money penalty against a former bank executive for allegedly failing to prevent violations of the Bank Secrecy Act (BSA) during his tenure.
The bank used automated transaction monitoring software to spot potentially suspicious activity, but improperly capped the number of alerts generated, limiting the ability of law enforcement to target criminal activity, according to FinCEN.
Read on for more details from the regulator.
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DOJ sues Philadelphia condo association
Posted Date: Thursday, March 19, 2020
The Department of Justice has filed a lawsuit alleging that a Philadelphia condominium association discriminated against persons with disabilities who need assistance animals, including emotional support and service animals.
The lawsuit arose from a complaint filed by a condo owner with the Department of Housing and Urban Development.
Read on for details from the complaint, which seeks monetary damages, civil penalties and a court order barring future discrimination.
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FinCEN offers BSA guidance on scams
Posted Date: Thursday, March 19, 2020
The Financial Crimes Enforcement Network (FinCEN) is encouraging financial institutions to communicate concerns related to the coronavirus and to remain alert to related illicit financial activity.
FinCEN detailed emerging trends of potential illicit behavior involving imposter, investment and product scams, along with insider trading.
Read on for details on how to notify the agency of suspicious activity in conjunction with the Bank Secrecy Act.
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Supreme Court delays arguments, could impact Seila ruling
Posted Date: Monday, March 16, 2020
For the first time in more than 100 years, the Supreme Court has delayed oral arguments.
The high court announced Monday that it is postponing arguments scheduled for the March session in keeping with public health precautions. The postponement could cause a delay in decisions expected this summer in pending cases, including Seila Law v. the Consumer Financial Protection Bureau, which could decide the constitutionality of the bureau.
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PHH attorney gives Seila Law insights
Posted Date: Monday, March 16, 2020
As the lead attorney for PHH Corp., Mitch Kider led the team of lawyers who first argued that the bureau’s single-director, for-cause only removal structure was unconstitutional.
PHH appealed a $109 million judgment for alleged RESPA violations under then-Consumer Financial Protection Bureau Director Richard Cordray. Kider, chairman and managing partner at Weiner Brodsky Kider PC, gave his thoughts to RESPA News about Seila Law’s case against the CFPB.
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DOJ settles Ohio disability discrimination suit
Posted Date: Monday, March 16, 2020
The Department of Justice has agreed to settle a lawsuit accusing an Ohio developer and a franchisor of designing and constructing multifamily properties that are inaccessible to persons with disabilities.
The settlement resolves a 2019 lawsuit accusing the developer of violating the Fair Housing Act (FHA) when they designed and constructed 32 condominium properties in the state with steps and other features that made them inaccessible to persons with disabilities.
Read on for more details from the settlement.
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Comptroller visits Memphis to talk CRA
Posted Date: Monday, March 16, 2020
Comptroller of the Currency Joseph Otting recently helped lead a community tour of Memphis, Tenn., to highlight successful examples of financing community reinvestment, economic revitalization and financial empowerment.
The tour brought together more than 60 bankers and community leaders to discuss a proposed rulemaking that would modernize Community Reinvestment Act regulations.
Read on for more information on the proposal, which could spur increased bank financing for small business.
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Study: Millennial homebuyers mirror silent generation
Posted Date: Monday, March 16, 2020
A number of the homebuying characteristics of younger millennials are replicating the buying desires of those in the silent generation, according to a new National Association of Realtors’ (NAR) study.
NAR’s 2020 Home Buyer and Seller Generational Trends report researched each generation to examine the differences of recent homebuyers and home sellers.
Read on for details from NAR’s 2020 Home Buyer and Seller Generational Trends report.
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HUD helping young people aging out of foster care
Posted Date: Monday, March 16, 2020
The Housing and Urban Development (HUD) has allocated an additional $1.1 million to the agency’s new Foster Youth to Independence Initiative (FYI).
Ten housing authorities will receive this funding, continuing HUD's efforts to assist young adults transitioning out of foster care and who are at risk of homelessness.
Read on for details from HUD.
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Senator: Kraninger more powerful than Trump
Posted Date: Thursday, March 12, 2020
The Consumer Financial Protection Bureau’s single-director, for-cause removal only structure was a key issue at a recent Senate Banking Committee hearing.
Kraninger testified as part of her statutory requirement of reporting on the bureau’s semi-annual report to Congress.
Read on for highlights from the hearing, which brought out senators’ opinions on what the Supreme Court should do in Seila Law v. CFPB, a case that could decide the constitutionality of the bureau.
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CFPB updates responsible conduct bulletin
Posted Date: Thursday, March 12, 2020
The Consumer Financial Protection Bureau (CFPB) has updated its 2013 responsible business conduct bulletin to emphasize the importance of cooperating with regulators.
The bureau said responsible conduct can improve the agency’s ability to promptly detect violations, increase the effectiveness of its supervisory and enforcement work, enable the bureau to better focus its finite resources, and help more consumers get redress.
Read on for details from the CFPB’s new guidance.
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CFPB sues bank over credit card disputes
Posted Date: Thursday, March 12, 2020
For the second time in a month, the Consumer Financial Protection Bureau (CFPB) has filed a TILA lawsuit against a bank.
The CFPB filed suit Monday against an Illinois-based bank for allegedly opening deposit and credit card accounts in consumers’ names without their knowledge or consent; transferring funds from consumers’ existing accounts to new, improperly opened accounts and activating unauthorized lines of credit on consumers’ accounts.
Read on for details from the suit.
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Zillow report details best times to list home
Posted Date: Thursday, March 12, 2020
Early signs for 2020 suggest inventory will be historically tight and bidding wars could be the norm in many markets.
But savvy sellers may be able to maximize their returns by listing their home at the right time, according to a new Zillow analysis.
Read on for details from Zillow examining when is the best time to list to get higher premiums vs. to make a quick sale.
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Trades rally Congress against G-fee increases
Posted Date: Thursday, March 12, 2020
The National Association of Realtors (NAR) has joined nearly 35 real estate industry trade groups in writing U.S. Senate and House leadership against raising guarantee fees charged by the government-sponsored enterprises (GSEs).
Guarantee fees are intended to cover the credit risk and other costs that the GSEs incur when they acquire single-family loans from lenders.
Read on to learn who NAR, the American Bankers Association (ABA), Credit Union National Association (CUNA) and Mortgage Bankers Association (MBA) believe would be the unintended consequences of raising G-fees to cover Fannie Mae and Freddie Mac credit risks.
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Former CFPB official joins Bradley
Posted Date: Wednesday, March 11, 2020
Michael Gordon has joined Bradley's Washington, D.C. office as a partner in its Banking and Financial Services Practice Group and as part of the firm’s Government Enforcement and Investigations Team.
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NAR issues coronavirus guidance
Posted Date: Monday, March 9, 2020
Despite canceling two conferences scheduled to take place in California later this month, the National Association of Realtors (NAR) is urging the real estate industry not to panic about coronavirus, and not to discriminate.
NAR has issued new Realtor-specific guidance offering ways agents can attempt to keep themselves and their clients safe from the virus while complying with the Fair Housing Act.
Read on for details from the latest association guidance.
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DOJ put on defensive by Supreme Court
Posted Date: Monday, March 9, 2020
Solicitor General Noel Francisco was in an unusual position.
While at the Supreme Court March 3 to defend a civil investigative demand, Francisco was immediately put on the defensive by justices because of the Department of Justice’s atypical legal strategy in Seila Law’s case against the Consumer Financial Protection Bureau (CFPB). Justices asked Francisco why the DOJ took the unusual decision not to defend a statute passed by Congress.
Read on for highlights of oral arguments which RESPA News attended in Washingon D.C.
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NAFCU supports bill calling for CFPB commission
Posted Date: Monday, March 9, 2020
The National Association of Federally-Insured Credit Unions (NAFCU) is the latest trade group to call for the single-director Consumer Financial Protection Bureau (CFPB) to switch to a bipartisan commission.
Rep. Blaine Luetkemeyer (R-Mo.) previously introduced a bill in the House of Representatives to change the CFPB’s governance structure, and NAFCU is expected to advocate for its passage.
Read on for details from NAFCU President and CEO Dan Berger.
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Stratmor: Involve the borrower in tech investments
Posted Date: Monday, March 9, 2020
Lenders are spending more than ever before on tech as a percentage of loan costs, but aren’t satisfied with the technology choices they’ve made.
In addition, most lenders have no idea how their customers feel about their technology choices, according to mortgage advisory firm Stratmor Group.
Read on for Stratmor MortgageSAT Director Mike Seminari’s thoughts on why the borrower’s perception is important when it comes to implementing new technology.
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HUD settles harassment case with California landlords
Posted Date: Monday, March 9, 2020
The Department of Housing and Urban Development (HUD) has approved a conciliation agreement to settle allegations of sexual harassment against the owners and managers of a Bakersfield, Calif. apartment complex.
The owners and managers settled allegations they treated subjected female tenants to sexual harassment, including unwelcome sexual comments and advances.
Read on for details from the agreement and reaction from HUD.
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FHFA addresses affordability with record-breaking contribution
Posted Date: Monday, March 9, 2020
The National Association of Realtors (NAR) is on board with the Federal Housing Finance Agency’s (FHFA) record-breaking contribution to help solve the housing affordability problem.
“We applaud Director (Mark) Calabria for prioritizing the efficacy of the National Housing Trust Fund and the Capital Magnet Fund,” NAR President Vince Malta said.
Read on to learn how much the FHFA has allocated to the National Housing Trust Fund and the Capital Magnet Fund.
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1-on-1: Cordray on TRID, PHH ruling, new book
Posted Date: Thursday, March 5, 2020
Richard Cordray has worn several hats in his career, but he did not plan to be an author.
But an author he now is, with the publishing this week of “Watchdog: How protecting consumers can save our families, our economy, and our democracy.”
Cordray talked by phone with RESPA News for nearly a half hour the week before the book was released – an interview which October Research publications have pursued since the time he was nominated to be director in 2011 – and discussed the process of chronicling his time at the bureau, the overhaul of the mortgage disclosure rule, his decision in the PHH Corp. case and RESPA compliance, and the phone call that nearly resulted in his firing.
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Industry reacts to CFPB constitutionality case
Posted Date: Tuesday, March 3, 2020
Seila Law’s case against the Consumer Financial Protection Bureau (CFPB) was expected to decide the constitutionality of the CFPB.
However, RESPRO Executive Director Ken Trepeta said he is not so sure now.
“My take is that maybe this wasn’t the best case to bring to the Supreme Court,” he told RESPA News. Read on for more live on-site reaction from the case.
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Supreme Court discusses fate of CFPB
Posted Date: Tuesday, March 3, 2020
If there was a rock concert for financial services case law, Tuesday’s oral arguments before the Supreme Court in Seila Law v. CFPB might just have been it.
In the courtroom to hear arguments on the constitutionality of the nearly 9-year-old federal agency were two of its former directors – Richard Cordray and Mick Mulvaney – legislators, trade association executives, compliance attorneys and more.
Inside, Seila Law attorney Kannon Shanmugam reiterated arguments the company has made in cases before, while court-appointed attorney Paul Clement faced stern questioning in his defense of the CFPB.
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Cordray book details his near-firing
Posted Date: Monday, March 2, 2020
In the new book released today by Richard Cordray on his time as director of the Consumer Financial Protection Bureau, Cordray’s writing sounds much like his speeches and presentations during his time in office – thought out, straight forward and detailed.
So it comes as no surprise that nearly 200 pages into “Watchdog: How protecting consumers can save our families, our economy, and our democracy” the biggest revelation is mentioned with little buildup.
Read on for details from Cordray’s book, including the never-before-told story of how close he came to being fired.
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RESPA News heads to Supreme Court
Posted Date: Monday, March 2, 2020
Oral arguments are set to begin at 10 a.m. March 3 in a case to decide the constitutionality of the Consumer Financial Protection Bureau, and RESPA News will be there to provide all sides of the argument.
Arguments are slated to run 70 minutes, split between Seila Law, the Department of Justice, the court-appointed amicus curiea and the House of Representatives.
Read on for a preview of the hearings, and follow us on Twitter @RESPANews and online at RESPANews.com for updates throughout the day.
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HUD settles with San Diego housing providers
Posted Date: Monday, March 2, 2020
The Department of Housing and Urban Development (HUD) has reached a conciliation/voluntary compliance agreement resolving allegations that San Diego landlords refused to allow a tenant with disabilities have a designated parking space.
FPI Management and Wakeland Atmosphere deny discriminating against the tenant but agreed to pay the resident $12,500.
Read on for more details from the settlement.
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State regulators launch supervision tech platform
Posted Date: Monday, March 2, 2020
The Conference of State Bank Supervisors (CSBS) has issued a nationwide roll out of the State Examination System, the first nationwide platform to bring state regulators and companies into the same technology space for supervision.
The CSBS said the new system will enhance supervisory oversight of nonbanks while making the process more efficient for regulators.
Read on for details from the CSBS.
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FDIC releases new fintech, bank guide
Posted Date: Monday, March 2, 2020
The Federal Deposit Insurance Corp.’s technology lab has released a new guide to help financial technology companies and others partner with banks to encourage technological innovation in the banking sector.
The guide is an initial effort to address concerns the FDIC has heard from banks and technology companies across the country related to challenges associated with on-boarding.
Read on for details about FDiTech’s guide, “Conducting Business with Banks: A Guide for Third Parties.”
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Fox & Roach says flexibility, education key to staying RESPA compliant
Posted Date: Thursday, February 27, 2020
Berkshire Hathaway HomeServices Fox & Roach Realtors has been the No. 1 company in the Berkshire Hathaway network four years in a row out of more than 1,000 real estate companies across the country.
The Devon, Penn.-based brokerage’s market dominance is three times the market share of its nearest competitor. Read on to learn what Larry Flick V, BHHS Fox & Roach Realtors CEO, attributes to the company's success.
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CFPB ‘insider’ leaves for private sector
Posted Date: Thursday, February 27, 2020
Consumer Financial Protection Bureau (CFPB) Deputy Director Brian Johnson is leaving the agency to offer his consumer financial services and public policy expertise to a Washington, D.C. law firm.
As second-in-command of the agency and principal advisor to Director Kathy Kraninger, he has been responsible for all policy development and strategic planning and execution of the CFPB’s examination, enforcement, rulemaking and research activities.
Read on to see what’s next for Johnson.
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DOJ urges Supreme Court to address severability in Seila
Posted Date: Thursday, February 27, 2020
The Department of Justice (DOJ) has stepped up its fight against Seila Law’s request to abolish the Consumer Financial Protection Bureau (CFPB).
Both the DOJ and law firm agree that the for-cause removal provision of the Consumer Financial Protection Act is unconstitutional, but differ on whether the removal restriction is severable from the rest of the Dodd-Frank Act.
Read on for details from the parties’ final briefs in the case that will decide the constitutionality of the CFPB.
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HUD settles with California landlords
Posted Date: Thursday, February 27, 2020
The Department of Housing and Urban Development (HUD) has approved a conciliation agreement resolving allegations accusing California landlords of discriminating against families with children.
HUD alleged a group of property owners and managers denied or limited housing to families with children by imposing different occupancy terms and conditions on them.
Read on for reaction from HUD’s assistant secretary for fair housing and details on the agreement.
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CFPB issues changes to time-barred debt disclosures
Posted Date: Thursday, February 27, 2020
The Consumer Financial Protection Bureau (CFPB) has issued a Supplemental Notice of Proposed Rulemaking regarding the collection of time-barred debt.
The bureau proposes to prohibit collectors from using non-litigation means (such as calls) to collect on time-barred debt unless collectors disclose to consumers during the initial contact and on any required validation notice that the debt is time-barred.
Read on for more from the CFPB.
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Seila, DOJ say brief dodges constitutionality question
Posted Date: Monday, February 24, 2020
An Orange County, Calif., law firm appealing a civil investigative demand is accusing the court-appointed attorney who will argue in support of the Consumer Financial Protection Bureau’s structure of attempting to derail the resolution of the constitutionality question he was supposed to address.
Similar claims are being made by the Department of Justice in Seila Law’s case against the CFPB, which is scheduled for oral arguments before the Supreme Court on March 3.
Read on for more details about the final briefs from the sides.
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Wade nominated as FHA commissioner
Posted Date: Monday, February 24, 2020
The White House recently announced it plans to nominate Dana Wade to take Brian Montgomery’s place as Federal Housing Administration (FHA) commissioner when Montgomery leaves to become deputy secretary at the Department of Housing and Urban Development (HUD).
However, the position remains in limbo, as Montgomery’s promotion as the agency’s second-in-command is not yet official.
Read on to see what the Mortgage Bankers Association is asking the full Senate to do.
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Report: Real estate disclosures too complex
Posted Date: Monday, February 24, 2020
Real estate disclosures are overly complex and legalistic, lack important information, are untimely, and are confusing to many home sellers and buyers.
That’s according to a new report from the Consumer Federation of America (CFA), which analyzed diverse real estate disclosures about agent representation required by 50 states and Washington, D.C.
Read on for more from CFA’s study, which detailed how states can improve their agency disclosures.
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CFPB: Brokers deceived disabled veterans
Posted Date: Monday, February 24, 2020
The Consumer Financial Protection Bureau (CFPB) and the states of South Carolina and Arkansas have filed a lawsuit accusing three companies of helping to broker contracts offering high-interest credit to disabled veterans and other consumers.
The case builds on several previous bureau actions against other entities that used similar contracts and similar marketing tactics to veterans.
Read on for details from the lawsuit, filed in a South Carolina federal court.
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CFPB hosting financial records symposium
Posted Date: Monday, February 24, 2020
The Consumer Financial Protection Bureau (CFPB) will hold a symposium Feb. 26 on Consumer Access to Financial Records and Section 1033 of the Dodd-Frank Act.
The event will be webcast on the bureau’s website.
Read on for more details on the symposium.
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HUD awards $655 million for affordable tribal housing
Posted Date: Monday, February 24, 2020
The Department of Housing and Urban Development (HUD) has awarded more than $655 million in Indian Housing Block Grants (IHBG) to Native American Tribes in 38 states.
Funding will be distributed to eligible Tribes and their tribally designated housing entities (TDHEs) to carry out a range of affordable housing activities in their communities.
Read on for reaction from HUD Secretary Ben Carson and Assistant Secretary for Public and Indian Housing R. Hunter Kurtz.
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