News By Edition

Read on to see what Katten & Temple, LLP, Of Counsel Brian Levy and Mayer Brown Partners Phil Schulman and Holly Spencer Bunting had to say at the session, “Your RESPA Questions Answered.”

The Consumer Financial Protection Bureau (CFPB) and the New York Attorney General have filed a lawsuit alleging a network of five different New York companies used illegal methods to collect debts.

The companies are accused of using deceptive and harassing methods to induce consumers to make payments, including threatening people with arrest.

Read on for remarks from CFPB Director Kathy Kraninger and Attorney General Letitia James.

The Consumer Financial Protection Bureau (CFPB) has issued a consent order against another mortgage company accused of targeting servicemembers and veterans with deceptive loan advertisements. 

This time, the consent order was filed against a California corporation that is licensed as a mortgage broker or lender in 22 states. This is the eighth case stemming from a bureau sweep of investigations of multiple mortgage companies.

Read on for details.

The rule, commonly referred to as Section 1071 or Small Business HMDA, is statutorily mandated. The CFPB was sued in 2019 by a group of community organizations claiming the bureau has broken the law by not putting the rule into effect.

Read on to see how you can make your voice heard.

The acquisition adds automated compliance software ComplianceAnalyzer and TRID Monitor to SitusAMC's technology portfolio. 

Read on for details on the acquisition.

A Kansas couple filed a lawsuit accusing their servicer of entering into an illegal fee-sharing arrangement and violating the payment posting rule.

The borrowers claimed the fee-sharing arrangement is an illegal kickback prohibited by 12 C.F.R. § 1024.14 and 12 U.S.C. § 2607. The company argued the case should be dismissed because those provisions only apply to fees imposed at origination.

Read on to see how a judge ruled.

Industry trade groups are providing input to a Consumer Financial Protection Bureau (CFPB) proposal to change the way a qualified mortgage (QM) is determined.

The plan would create a standard based on the spread of loan price against the average prime offer rate, as well as eliminate debt-to-income as a standalone factor for QM eligibility.

Read on to see what RESPRO and the National Association of Realtors is suggesting the CFPB do.

The Consumer Financial Protection Bureau (CFPB) has issued a report examining the early effects of the COVID-19 pandemic on consumer credit.

The report found that consumers have not experienced significant increases in delinquency or other negative credit outcomes as reported in credit record data following the onset of the COVID-19 pandemic in the United States – despite sharp increases in unemployment.

Read on for details from the CFPB’s report.

Regulators have issued a joint statement on financial institutions affected by Hurricane Laura and the California wildfires.

The guidance by the Board of Governors of the Federal Reserve System, Conference of State Bank Supervisors, Federal Deposit Insurance Corporation, National Credit Union Administration and Office of the Comptroller of the Currency addressed lending, temporary facilities, publishing requirements, regulatory reporting requirements and the Community Reinvestment Act.

Read on for more information from the regulators.

Five federal regulatory agencies have announced they will extend the comment period on a proposal to revise the Interagency Questions and Answers Regarding Flood Insurance. 

The joint release by the Board of Governors of the Federal Reserve System, Farm Credit Administration, Federal Deposit Insurance Corp., National Credit Union Administration and Office of the Comptroller of the Currency stated the comment period has been extended because of the COVID-19 pandemic. 

Read on for more from the regulators.

The National Association of Realtors (NAR) is asking the Federal Housing Finance Agency (FHFA) to reconsider its proposed rule regarding capital standards at Fannie Mae and Freddie Mac.

FHFA said its re-proposed capital rule for the government-sponsored enterprises (GSEs) would strengthen Fannie and Freddie so they can continue to serve the mortgage market and help low- and moderate- income households access credit throughout the economic cycle.

Read on for NAR’s take.

The Consumer Financial Protection Bureau (CFPB) is arguing the Ninth Circuit Court of Appeals should enforce a civil investigative demand (CID) against an Orange County, Calif., law firm now that the company’s constitutional objection has been resolved by the Supreme Court.

The CFPB is seeking a CID from the firm concerning information on the fees the company charges to consumers for debt relief and marketing methods for debt relief or other services.

Read on for the latest on the case.

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against a San Diego-based debt collector/buyer conglomerate accused of violating the terms of a previous consent order.

Encore Capital Group, Inc. and its subsidiaries, which together comprise the largest debt collector and debt buyer in the United States, currently are subject to a 2015 consent order with the bureau.

Read on for details from the CFPB’s federal lawsuit.

The Consumer Financial Protection Bureau (CFPB) has issued a consent order against three more mortgage companies accused of targeting servicemembers and veterans with deceptive loan advertisements.

The CFPB’s latest consent order was filed against a Delaware limited liability corporation that is licensed as a mortgage broker and lender in about 31 states. The action was the seventh case stemming from a bureau sweep of investigations of multiple mortgage companies.

Read on for details from the CFPB.

The Consumer Financial Protection Bureau (CFPB) has entered into settlements with two companies accused of violating the Electronic Fund Transfer Act (EFTA) and the Remittance Transfer Rule.

The bureau found one of the companies failed to adhere to error resolution requirements and properly respond to cancellation requests, provide refunds and give required disclosures.

Read on for details from the CFPB’s consent order, including how much the companies must pay in civil money penalties.

The Department of Housing and Urban Development (HUD) has charged a New Jersey condominium association with housing discrimination after its management company allegedly refused to allow a resident with disabilities to keep an assistance animal.

The charge was filed after the wife of a tenant with Crohn’s disease and mental disabilities notified HUD that Dan-Mar Management refused to let her husband have a support dog in their condo.

Read on for more from HUD.

A California borrower sued his servicer for allegedly failing to provide Loan Estimate (LE) or Closing Disclosure (CD) forms as required under TRID.

The plaintiff filed an ex parte motion for temporary restraining order, requesting the court enjoin a scheduled foreclosure. The servicer filed an opposition to the motion.

At issue was the legality of the way the servicer structured the loan. Read on to see how a judge ruled.

Some of the brightest stars in the title industry were recognized at October Research, LLC’s ninth annual awards for leadership, innovation and philanthropy.

Publisher and CEO Erica Meyer presented the awards Wednesday at the 16th annual National Settlement Services Summit (NS3).

Read on for details about this year’s award winners, along with a look back to award winners of years past.

The Make a Child Smile community service event was held at the National Settlement Services Summit (NS3) for the ninth year in a row.

This year’s event, sponsored by Adeptive Software, featured a discussion between Terri Hanson, vice president, account services at Adeptive, and Toys for Tots President and CEO Lt. General James Laster.

Toys for Tots distributed more than 2 million toys, books and games already this year during the pandemic. Read on for more from the NS3 presentation.

The Consumer Financial Protection Bureau (CFPB) has issued a new Home Mortgage Disclosure Act (HMDA) analysis.

The data are used to assist in determining whether financial institutions are serving the housing needs of their local communities and help identify possible discriminatory lending patterns.

Institutions covered by HMDA are required to annually collect and report specified information about each mortgage application purchased during the prior calendar year. Read on for more details from the CFPB.

Pending home sales in July achieved another month of positive contract activity, marking three consecutive months of growth, according to the National Association of Realtors (NAR).

Each of the four major regions saw gains in both month-over-month and year-over-year pending home sales transactions.

The Pending Home Sales Index rose 5.9 percent to 122.1 in July. Year-over-year, contract signings rose 15.5 percent. Read on for analysis from NAR Chief Economist Lawrence Yun.

The Department of Housing and Urban Development (HUD) announced it will speed federal disaster assistance to the state of California and provide support to homeowners and low-income renters forced from their homes in areas affected by the wildfires.

On Aug. 22, President Donald Trump issued a major disaster declaration for Lake, Monterey, Napa, San Mateo, Santa Cruz, Solano, Sonoma, and Yolo counties.

Read on for more from the HUD announcement.

The Federal Housing Administration (FHA) and the Federal Housing Finance Agency (FHFA) announced they will extend their foreclosure and eviction moratoriums through at least Dec. 31.

The guidance applies immediately to homeowners with FHA-insured single family and reverse mortgages. It also directs mortgage servicers to halt all new foreclosure actions and suspend all foreclosure actions currently in process and cease all evictions of persons from FHA-insured single-family properties.

Read on for details from FHA and FHFA.

For the first time, Zillow will be making an appearance at the National Settlement Services Summit (NS3).

Ryan Berry, the senior vice president, central operations at Zillow Group, keynotes NS3, which runs Sept. 1-3.

Read on for details about the virtual conference, its featured speakers, and the networking opportunities to come.

An Arizona borrower alleged his servicer did not pay required property taxes in a timely manner, causing late charges to accrue. Despite repeated assurances the borrower would not be responsible for the incurred fees, the servicer paid the overdue fees out of escrow funds.

The plaintiff sued for RESPA to recover for the erroneously charged funds.  

The servicer argued RESPA does not permit a private right of action. Read on to see how a judge ruled.

The Consumer Financial Protection Bureau (CFPB) has issued a consent order against another mortgage company for sending consumers numerous mailers for Veterans affairs (VA)-guaranteed mortgages that contained false, misleading and inaccurate statements or that lacked required disclosures.

The CFPB said the company’s actions violated the Consumer Financial Protection Act’s (CFPA) prohibition against deceptive acts and practices, the Mortgage Acts and Practices—Advertising Rule (MAP Rule) and Regulation Z.

Read on for details from the consent order.

The Consumer Financial Protection Bureau (CFPB) has issued a request for information to examine the impact of the rules that implement the Credit Card Accountability Responsibility and Disclosure Act.

The bureau is required under Section 610 of the Regulatory Flexibility Act to review certain rules within 10 years of their publication and consider the rules’ effect on small businesses.

Read on to see what type of information the CFPB seeks from the public.

The Consumer Financial Protection Bureau (CFPB) recently passed rules encouraging banks to work with customers affected by the pandemic, while assuring them that actions taken in good faith will not be subject to examiner criticism.

CFPB Director Kathy Kraninger recently discussed the new higher-level inquiries with attendees of the American Bankers Association Risk and Compliance Virtual Conference.

Read on for more details about the new Prioritized Assessments and other top CFPB pandemic issues.

After pushback from more than 20 industry trade groups and members of Congress, the Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to delay the implementation date of their adverse market fee. 

FHFA also announced the government-sponsored enterprises will exempt refinance loans with loan balances below $125,000. Several other products are also exempt from the fee.

Read on for reaction from RESPRO and the Mortgage Bankers Association.

The Consumer Financial Protection Bureau (CFPB) has filed its third case stemming from a sweep of investigations of multiple mortgage companies accused of using deceptive mailers to advertise Veterans Affairs-guaranteed mortgages.

The latest consent order was issued against a California corporation, which is licensed as a broker or lender in 11 states, that sent mailers that contained false statements or lacked required disclosures.

Read on for more from the CFPB.

An Idaho borrower sued her servicer for allegedly violating RESPA by failing to timely respond to her qualified written request (QWR).

The suit alleged the servicer did not provide a written response acknowledging receipt of the QWR within five days, and did not “provide the information or explain why it is unable to do so” within 30 days as required by federal law.

Read on for the latest in the case.

A new report from the Federal Deposit Insurance Corp. (FDIC) shows that commercial banks and savings institutions saw a significant decrease in profits from a year ago, while liquidity and capital levels remained strong to meet loan demand and absorb any losses in the future.

The decline in net income is a continuation of uncertain economic conditions.

Read on for details from the FDIC’s latest Quarterly Banking Profile, and for reaction from the American Bankers Association.

The Department of Housing and Urban Development (HUD) recently hosted a roundtable with local and federal officials in Pennsylvania to discuss its new Preserving Community and Neighborhood Choice rule.

Last month, HUD announced it would terminate the Affirmatively Furthering Fair Housing regulation issued in 2015 under the administration of former President Barack Obama.

Read on for more about the new rule from HUD and Rep. Fred Keller (R-Pa.-12th District).

The federal banking agencies have issued a joint statement updating their existing enforcement guidance to enhance transparency about how they evaluate enforcement actions when financial institutions fail to meet Bank Secrecy Act/anti-money laundering (BSA/AML) obligations.

The statement also addresses how the agencies evaluate violations of individual components (known as pillars) of the BSA/AML compliance program.

Read on for details of the new BSA/AML guidance from the Federal Reserve, Federal Deposit Insurance Corp., National Credit Union Administration and the Office of the Comptroller of the Currency.

The Financial Crimes Enforcement Network (FinCEN) issued new guidance to provide clarity and transparency when contemplating compliance or enforcement actions against covered financial institutions that violate the Bank Secrecy Act (BSA). 

FinCEN released its guidance in conjunction with federal regulators. The Federal Reserve, Federal Deposit Insurance Corp., National Credit Union Administration and the Office of the Comptroller of the Currency issued their own recent joint BSA guidance.

Read on for details from FinCEN, which is encouraging financial institutions to self-report violations.

An Arizona couple accused their servicer of failing to notify them in writing that it received their application or communicating with them on the status of their request for help.

At issue was § 1024.41(b)(2), which requires a servicer to review the loss-mitigation application 45 days or more before a foreclosure sale and notify the borrower within five days after receiving the application whether it is complete or incomplete.

Read on for highlights of the judge’s ruling.

The CFPB found the bank’s overdraft enrollment practices violated the Electronic Fund Transfer Act and Regulation E.

Read on to see how much the consent order requires the bank to pay in restitution to 1.42 million consumers, as well as the civil money penalty.

Existing-home sales continued on a strong, upward trajectory in July, marking two consecutive months of significant sales gains, according to the National Association of Realtors (NAR).

Each of the four major regions attained double-digit, month-over-month increases. However, one region showed a year-over-year decline.

Read on for reaction from NAR Chief Economist Lawrence Yun – who said the housing market is “well past the recovery phase” – and President Vince Malta.