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Industry calls for CFPB commission after Supreme Court ruling
Posted Date: Monday, June 29, 2020
Industry experts and trade organizations said they fear the Supreme Court’s ruling Monday will lead to more questions than answers as to the agency’s powers.
The Supreme Court found that the Consumer Financial Protection Bureau’s (CFPB) single-director, for-cause removal structure is unconstitutional.
Read on for reaction from RESPRO President/Executive Director Ken Trepeta, attorney Marx Sterbcow, Dorsey & Whitney Partner Joseph Lynyak III, among others.
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The Kagan dissent: Majority made ‘serious error’
Posted Date: Thursday, July 23, 2020
The majority decision in Seila Law vs. CFPB finding the agency’s single-director, for-cause only removal structure to be unconstitutional was an abuse of the court’s power, Justice Elena Kagan argued in her dissenting opinion.
“In reversing course today — in spurning a ‘pragmatic, flexible approach to American governance’ in favor of a dogmatic, inflexible one, the majority makes a serious error,” Kagan wrote.
Read on for more highlights of Kagan’s dissent, which was joined by justices Ruth Bader Ginsburg, Stephen Breyer and Sonia Sotomayor.
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CFPB issues automatic savings program template
Posted Date: Thursday, July 23, 2020
The Consumer Financial Protection Bureau has issued a new template under its Compliance Assistance Sandbox Policy to more easily help employers create automatic savings programs for their staff.
The policy permits third-party entities such as service providers or non-profits to secure a template that can serve as the foundation for approval applications from covered entities that provide consumer financial products or services.
Read on for more details about the policy.
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HUD approves settlement with California housing authority
Posted Date: Thursday, July 23, 2020
The Department of Housing and Urban Development (HUD) has approved a conciliation/voluntary compliance agreement involving the Sacramento Housing and Redevelopment Agency (SHRA) and one of its tenants with disabilities.
The agreement resolves a March 12 complaint that SHRA staff violated the Fair Housing Act when they delayed installing additional grab bars in a unit in response to the tenant’s reasonable accommodation request.
Read on for more from HUD’s agreement.
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CFPB releases Making Ends Meet survey
Posted Date: Thursday, July 23, 2020
The Consumer Financial Protection Bureau has released the first results from a survey designed to provide a deeper understanding of how often U.S. consumers have difficulty making ends meet and how they cope with financial shortfalls.
The report is weighted to be nationally representative of consumers with a credit record and will provide insight on markets for consumer financial products and services.
Read on for more details on the report.
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NAR, NAHB launch joint green housing initiative
Posted Date: Thursday, July 23, 2020
To keep up with growing demand, the National Association of Realtors (NAR) and the National Association of Home Builders (NAHB) have partnered on a new initiative to educate consumers about the high-performance home marketplace.
The trade groups will educate consumers on the benefits of green homes and facilitate communication on home performance between buyers, builders and real estate agents.
Read on for more details from NAR and NAHB.
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Butler Snow Joins Law Firm Antiracism Alliance
Posted Date: Monday, July 20, 2020
Butler Snow is among more than 175 law firms to join the newly formed Law Firm Antiracism Alliance (LFAA), a collaboration aimed to identify and dismantle structural or systemic racism in the law.
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McNees Joins Law Firm Antiracism Alliance
Posted Date: Monday, July 20, 2020
McNees Wallace & Nurick LLC proudly announces its participation in the new Law Firm Antiracism Alliance. LFAA is a partnership of more than 185 law firms dedicated to addressing racial injustice through large-scale pro bono projects and using its position to advocate for change in laws and policies that encourage, perpetuate or allow racial inequality.
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BarkerGilmore adds Audrey Rubin to roster
Posted Date: Monday, July 20, 2020
Audrey Rubin, nationally acclaimed as both a pioneer of the legal operations function and a preeminent leader in the business of law, has joined the advisory and coaching division of BarkerGilmore, a New York-based boutique executive search firm.
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Mortgage attorney Melanie Feliciano joins Garris Horn
Posted Date: Monday, July 20, 2020
Financial services law firm Garris Horn LLP, a virtual law firm focused on financial regulation, announced today that mortgage industry legal and compliance veteran attorney Melanie Feliiano has joined the firm. Feliciano will add a new dimension to the growing legal team, bringing over 15 years of mortgage industry experience. She joins the firm’s leadership team as partner.
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The Thomas dissent: Humphrey’s foundation ‘nonexistent’
Posted Date: Monday, July 20, 2020
Supreme Court Justice Clarence Thomas agreed with the majority decision in Seila Law vs. CFPB that found the agency’s single-director, for-cause only removal structure to be unconstitutional.
However, Thomas said his fellow justices got it wrong by finding the remedy was simply to sever 12 U.S.C. §5491(c)(3) from the rest of the Dodd-Frank Act.
Read on for a detailed look at Thomas’ concurring dissent in the CFPB case.
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NS3 Preview: Compliance Track features RESPA experts, regulators
Posted Date: Monday, July 20, 2020
The 16th annual National Settlement Services Summit (NS3), slated for Sept. 1-3, will feature an entire compliance track this year, one of three tracks featured at the show.
Four top regulators will kick things off by participating in a panel discussion about how many of the regulations affecting the industry recently are coming from the state level.
Read on to see who is speaking, what other compliance topics will be discussed and how you can register.
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CFPB releases updated pandemic complaint data
Posted Date: Monday, July 20, 2020
The Consumer Financial Protection Bureau (CFPB) has issued an updated Complaint Bulletin, analyzing the more than 8,000 complaints it received from January through May 2020 that mention coronavirus or related terms.
The CFPB has handled more than 2.2 million consumer complaints since 2011 – 187,000 of which were submitted this year.
What are consumers’ top concerns about mortgages, credit cards and credit reporting? Read on to find out.
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FHA wants revised servicing policies
Posted Date: Monday, July 20, 2020
The Federal Housing Administration (FHA) has published proposed revisions to its single-family servicing policies to remove unnecessary barriers for homeowners seeking mortgage payment relief.
The draft changes are not effective policy, and do not impact FHA’s special COVID-19 home retention options.
Read on to learn more about the proposed revisions from acting FHA Commissioner Len Wolfson and FHA Deputy Assistant Secretary for Single Family Housing Joe Gormley.
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CFPB issues credit builder loans report
Posted Date: Monday, July 20, 2020
The Consumer Financial Protection Bureau (CFPB) has released a report showing that a credit builder loan (CBL) could increase the likelihood of establishing a credit record for consumers without one, and could help improve the credit scores of those with no current outstanding debt.
The report examined 1,531 credit union members who were offered a financial institution’s CBL in 2014 and 2015.
Read on for details from the CFPB’s study.
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CFPB sues student-loan debt relief company
Posted Date: Monday, July 20, 2020
The Consumer Financial Protection Bureau (CFPB) has filed a complaint against a Texas-based student-loan debt-relief business and its owners.
The bureau also filed suit against four attorneys. The CFPB said the defendants were part of a nationwide student-loan debt-relief operation that charged thousands of consumers saddled with private student-loan debt $11.8 million in illegal upfront fees in violation of the Telemarketing Sales Rule.
Read on for details from the CFPB.
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FHFA announces tenant protections
Posted Date: Monday, July 20, 2020
The Federal Housing Finance Agency (FHFA) has announced a measure that will help renters in multifamily properties stay in their homes during the pandemic while supporting multifamily property owners.
Fannie Mae and Freddie Mac are allowing servicers to extend forbearance agreements for multifamily property owners with existing forbearance agreements. Meanwhile, landlords must suspend all evictions for renters unable to pay rent.
Read on for more from FHFA Director Mark Calabria.
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COVID-19’s impact on mortgage and title industries
Posted Date: Thursday, July 16, 2020
Katten & Temple, LLP, Of Counsel Brian Levy and Franzen & Salzano Partner Loretta Salzano recently spoke on the pandemic’s impact on the mortgage and title industries during a virtual RESPRO session.
The session, moderated by Ballard Spahr Partner Richard Andreano, discussed forbearance and foreclosure relief programs on servicing operations, regulatory loosening of work-at-home restrictions, and other pandemic issues.
Read on for session highlights from Levy and Salzano.
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NS3 Preview: Regulators, largest underwriter panel yet featured
Posted Date: Thursday, July 16, 2020
Department of Housing and Urban Development Deputy Secretary Brian Montgomery and Fannie Mae Senior Vice President and Chief Economist Douglas G. Duncan will be featured speakers at the 2020 National Settlement Services Summit. The event is slated for Sept. 1-3. Read on for more details on NS3.
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NAR to HUD: Withdraw disparate impact rule
Posted Date: Thursday, July 16, 2020
The National Association of Realtors (NAR) has asked the Department of Housing & Urban Development (HUD) to withdraw its proposed rule to amend the Fair Housing Act’s (FHA) disparate impact standard.
HUD has said the proposed rule would better reflect a Supreme Court ruling which held that disparate impact claims are cognizable under the FHA.
Read on to see what NAR President Vince Malta told HUD in a recent letter.
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Supreme Court will hear FHFA constitutionality case
Posted Date: Thursday, July 16, 2020
Weeks after the Supreme Court declared the Consumer Financial Protection Bureau’s (CFPB) single-director, for-cause removal only structure to be unconstitutional, the high court has decided to hear a case regarding the similarly-structured Federal Housing Finance Agency (FHFA).
The case stemmed from a dispute over a 2012 agreement between the FHFA, Treasury Department and several Fannie Mae and Freddie Mac shareholders.
Read on for details on the latest in the case.
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CFPB sues student loan debt-relief business
Posted Date: Thursday, July 16, 2020
The Consumer Financial Protection Bureau (CFPB) has settled with a Deerfield, Fla.-based company that provides debt-relief services to consumers with federal student loan debt.
The bureau alleged the defendants charged illegal advance fees in violation of the Telemarketing Sales Rule to consumers who were seeking to renegotiate, settle, reduce or alter the terms of their loans.
Read on to find out details on the settlement agreement.
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CFPB sues financial-services company
Posted Date: Thursday, July 16, 2020
The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against a Delaware financial-services company operating in Florida and New York.
The allegations accuse the business of falsely representing it was a commercial bank and that consumers’ deposits were safe and comparable to a traditional savings account with a guaranteed return.
The bureau seeks redress for consumers, an injunction and civil money penalties. Read on for more from the lawsuit.
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A look at the Supreme Court’s severability analysis
Posted Date: Monday, July 13, 2020
It wasn’t much of a surprise that the Supreme Court concluded 12 U.S.C. §5491(c)(3), which provides the Consumer Financial Protection Bureau (CFPB) director with at-will protection from removal by the president, violates the separation of powers.
After all, even the Department of Justice – and CFPB Director Kathy Kraninger herself –previously had agreed the agency is unconstitutional. The justices’ next task in Seila Law v. CFPB wasn’t so straightforward.
Read on for highlights from the Supreme Court’s severability analysis.
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CFPB issues final rule on small-dollar lending
Posted Date: Monday, July 13, 2020
The Consumer Financial Protection Bureau (CFPB) has issued a final rule on small-dollar lending to help ensure the continued availability of the products in the pandemic.
The rule rescinds the mandatory underwriting provisions of the 2017 rule after finding the legal and evidentiary bases for them insufficient, but does not rescind or alter the payments provisions of it.
Read on for more from CFPB Director Kathy Kraninger.
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CFPB names new deputy director, consumer education division
Posted Date: Monday, July 13, 2020
The Consumer Financial Protection Bureau (CFPB) has hired a full-time deputy director and announced leaders of the newly created Consumer Education and External Affairs (CEEA) Division.
Thomas Pahl, who has served as policy associate director for Research, Markets, and Regulations since April 2018, replaces former Deputy Director Brian Johnson, who left the bureau to return to private practice in February.
Read on to learn more about Pahl and the new CEEA members.
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CFPB ratifies regulatory actions
Posted Date: Monday, July 13, 2020
The Consumer Financial Protection Bureau (CFPB) wants the financial marketplace to know that it’s business as usual for the agency – despite the Supreme Court’s decision which found the bureau to be unconstitutional.
The CFPB recently ratified certain regulatory actions it took over the past eight years “out of an abundance of caution” in light of the June 29 decision in Seila Law v. CFPB.
Read on for more details from the bureau.
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HUD charges Atlanta housing providers with discrimination
Posted Date: Monday, July 13, 2020
The Department of Housing and Urban Development (HUD) has accused the owners of an Atlanta apartment complex of refusing to allow a resident with severe asthma to move to another apartment.
HUD’s charge alleges the defendants denied the request after mold, mildew and other water damage caused by repeated flooding in a woman’s apartment began to affect her son’s health.
Read on for more details from the charge.
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FHA expands pandemic home retention measures
Posted Date: Monday, July 13, 2020
The Federal Housing Administration (FHA) has announced more ways to help single-family homeowners who are impacted financially by the pandemic to bring their mortgage current at the end of their COVID-19 forbearance.
Effective immediately, mortgage servicers will be able to use an expanded menu of loss-mitigation tools to assess homeowners’ eligibility for other options to bring their mortgages current if they do not qualify for FHA’s COVID-19 National Emergency Standalone Partial Claim.
Read on for more details from FHA’s announcement.
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Digging in to CFPB majority decision
Posted Date: Thursday, July 9, 2020
Supreme Court Chief Justice John Roberts has a simple reason as to why the Consumer Financial Protection Bureau (CFPB) may continue to operate – despite the fact that the agency’s structure is unconstitutional.
“We think it clear that Congress would prefer that we use a scalpel rather than a bulldozer in curing the constitutional defect we identify today,” Roberts wrote in Seila Law v. CFPB.
Read on for more highlights of the majority opinion in the case, authored by the chief justice.
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HUD plan would let homeless shelters sex segregate
Posted Date: Thursday, July 9, 2020
The Department of Housing and Urban Development (HUD) has announced plans to amend the Equal Access rule to allow homeless shelters the ability to operate as single-sex or sex-segregated facilities.
HUD said its proposal empowers shelter providers to set policies that align with their missions, such as safeguarding victims of domestic violence or human trafficking.
Read on to see what the Center for American Progress has to say about the plan.
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DOJ settles Pennsylvania housing discrimination case
Posted Date: Thursday, July 9, 2020
The Department of Justice (DOJ) has resolved allegations that three senior living companies discriminated against residents and prospective residents with disabilities.
The U.S. District Court for the Eastern District of Pennsylvania has approved a consent order filed by the DOJ that alleged the companies required residents to sign a lease requiring an initial physical assessment as a requirement of tenancy and potential eviction if a resident develops certain health conditions.
Read on for more of the allegations and details from the consent order.
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CFPB issues proposed rule on escrow exemptions
Posted Date: Thursday, July 9, 2020
The Consumer Financial Protection Bureau (CFPB) has issued a notice of proposed rulemaking (NPRM) that would amend Regulation Z to exempt certain insured depository institutions and insured credit unions from the requirement to establish escrow accounts for certain higher-priced mortgage loans (HPMLs).
The NPRM action is the last mandatory rulemaking to implement the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).
Read on for more details from the CPPB’s rulemaking activity.
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Weltman, Weinberg & Reis welcomes new attorneys
Posted Date: Monday, July 6, 2020
Weltman, Weinberg & Reis Co., LPA, a full-service creditors' rights law firm entering its 90th year in business, is pleased to announce the addition of attorneys Garry A. Masterson and Alexander C. Weinberg to the firm’s Cleveland office.
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Supreme Court declares CFPB unconstitutional
Posted Date: Monday, June 29, 2020
The Supreme Court has held that the Consumer Financial Protection Bureau’s (CFPB) single-director, for-cause removal structure is unconstitutional because it violates the separation of powers.
However, the court found that the structure can be saved by striking out the for-cause termination provision.
Read on for more details from this long-awaited case.
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CFPB issues interim rule on pandemic loss-mitigation options
Posted Date: Monday, June 29, 2020
The Consumer Financial Protection Bureau (CFPB) has published an interim final rule (IFR) to help mortgage servicers better assist consumers transition out of financial hardship caused by the COVID-19 pandemic.
The IFR makes it clear that servicers do not violate Regulation X by offering certain COVID-19-related loss-mitigation options based on an evaluation of limited application information collected from the borrower.
Read on for more details from the CFPB’s IFR.
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ARMCO: Critical defects decreased in 2019
Posted Date: Monday, June 29, 2020
Regulatory compliance issues were down 51 percent in 2019 from 2018, to a multi-year low of 5.17 percent of all critical defects.
And loan package/documentation defects were volatile in 2019 but still posted a 12 percent improvement compared with 2018, according to a new report from ACES Risk Management (ARMCO).
Read on to see other highlights of ARMCO’s report, including which six defect categories showed improvement from Q3 to Q4.
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FFIEC releases HMDA mortgage lending data
Posted Date: Monday, June 29, 2020
The Federal Financial Institutions Examination Council (FFIEC) has made 2019 mortgage lending data available on transactions at financial institutions covered by the Home Mortgage Disclosure Act (HMDA).
The data helps the public assess how financial institutions are serving the housing needs of their local communities and facilitate federal financial regulators’ fair lending, consumer compliance and Community Reinvestment Act examinations.
Read on for more details from the FFIEC.
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CFPB publishes interpretive rule to determine underserved areas
Posted Date: Monday, June 29, 2020
Some entities that do business in rural or underserved counties are exempt from certain regulatory requirements of TILA.
The Consumer Financial Protection Bureau (CFPB) has issued an interpretive rule to provide guidance to creditors and other persons involved in the mortgage origination process about the way in which the bureau determines which counties qualify as “underserved” for a given calendar year. Read on for more from the CFPB.
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HUD awards nearly $1 million in CARES Act funding
Posted Date: Monday, June 29, 2020
The Department of Housing and Urban Development (HUD) announced it will award $962,160 to 19 organizations to help combat COVID-19.
Fair Housing Assistance Program agencies in New York, Louisiana, Rhode Island, Iowa, Pennsylvania, Massachusetts, California, Texas, Indiana, Florida, Nebraska, Hawaii, South Carolina, Maryland, Michigan, Connecticut and New Jersey will receive the awards, which are funded through the CARES Act.
Read on for more from HUD Assistant Secretary for Fair Housing and Opportunity Anna Maria Farias.
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Court examines RESPA standards on loss-mit evaluation errors
Posted Date: Thursday, June 25, 2020
A borrower who was denied a loss mitigation by her servicer sued for RESPA violations after her notice of error letters were not timely returned.
The New York district court examined, as a matter of apparent first impression, whether errors in evaluating loss-mitigation options were subject to RESPA’s servicer response requirements.
Read on for details from the ruling.
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CFPB temporarily extends GSE patch
Posted Date: Thursday, June 25, 2020
The Consumer Financial Protection Bureau’s (CFPB) announced it will provide a temporary “QM patch” extension.
The CFPB issued two Notices of Proposed Rulemaking to address the impending expiration of the Ability-To-Repay/Qualified Mortgage (ATR/QM) rule. The rule created the patch as a temporary QM definition that also provides QM status to certain mortgage loans eligible for purchase or guarantee by Fannie Mae or Freddie Mac.
Read on for more from the CFPB and National Association of Realtors.
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CFPB settles with contracts for deeds firms
Posted Date: Thursday, June 25, 2020
The Consumer Financial Protection Bureau announced it reached a settlement with a trio of companies which worked together to provide contracts for deeds to consumers.
The companies – Harbour Portfolio Advisors, LLC; National Asset Advisors, LLC; and National Asset Mortgage, LLC – will pay a collective $35,000 in civil money penalties.
Read on for details of the bureau’s allegations against the firms.
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More in-house counsel unsatisfied with pay
Posted Date: Thursday, June 25, 2020
Executive search firm BarkerGilmore has released its annual In-House Compensation Report.
The report examined pay rates for different job sectors including healthcare, industrial and manufacturing, technology and professional services, as well as among gender lines. It also examined which practice areas are most likely to consider a move for compensation issues.
Read on for more details from the study and BarkerGilmore Founding Partner John Gilmore.
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OCC issues interim final rule on assessments
Posted Date: Thursday, June 25, 2020
The Office of the Comptroller of the Currency (OCC) has approved an interim final rule that will reduce assessments due to be paid to the OCC this fall.
This interim final rule provides temporary relief against the adverse impact of COVID-19 on national banks, federal savings associations and federal branches and agencies of foreign banks.
Read on for details from acting Comptroller of the Currency Brian Brooks.
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