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How Realtors can stay compliant with co-marketing
Posted Date: Wednesday, December 19, 2018
Unlike banks and lenders, real estate agents are not subject to routine federal examinations.
But they still need to know the legal boundaries of RESPA’s Section 8, which prohibits a person from giving or accepting a thing of value for referrals of settlement service business related to a federal mortgage loan.
Read on for co-marketing tips from Loretta Salzano, founding partner of the Atlanta-based Franzen and Salzano law firm.
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Kraninger confirmed as CFPB director
Posted Date: Thursday, December 6, 2018
As expected, Kathy Kraninger was confirmed by the Senate Thursday to become the Consumer Financial Protection Bureau’s (CFPB) second full-time director.
She will be in charge of the bureau for five years, following Richard Cordray’s four-year stint from 2013 through his resignation in November 2017.
Read on for reaction from the National Association of Realtors (NAR) and other industry trade groups on the confirmation, which will end the one-year tenure of acting director Mick Mulvaney.
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RESPRO, NAR want TRID fix
Posted Date: Monday, December 17, 2018
RESPRO has teamed up with the American Land Title Association (ALTA) and other agencies to send a message to new Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger.
The associations want Kraninger to use existing regulatory authority to update the TRID rule to allow the accurate disclosure of title insurance premiums and any potential available discounts to homeowners.
Read on for details from the joint letter, which calls for allowing title companies to disclose available discounts and accurate premiums.
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Bar association split on debt collection exemption
Posted Date: Thursday, November 29, 2018
As Congress considers legislation which would officially exempt lawyers, law firms and employees from the definition of “debt collector” under the Dodd-Frank Act, the American Bar Association (ABA) is split in its support for the bill.
A group of consumer fellows from the Consumer Financial Services Committee of the ABA wrote to the president to criticize the association’s lobbying efforts to pass the bill.
Read on for details of the ABA dispute and of the legislation being considered.
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Stratmor: This mistake costs lenders $200,000 a year
Posted Date: Wednesday, December 19, 2018
What costs lenders thousands of dollars a year and annoys borrowers? Asking for the same document multiple times.
That’s according to the December Stratmor Group Insights report, “The Borrower Experience: Is this Simple Mistake Costing You $200,000 a Year?”
Read on for details from the report, which shows the average lender doing 5,000 loans annually is losing $243,000 in lost referrals and repeat business because of the problem.
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DOJ argues CFPB unconstitutional
Posted Date: Thursday, December 13, 2018
The Department of Justice (DOJ) is arguing the Consumer Financial Protection Bureau (CFPB) is unconstitutional because the agency’s single director cannot be removed without cause.
This marks the first time the government has alleged the CFPB is unconstitutional. State National Bank of Big Spring, Texas, has petitioned the U.S. Supreme Court to rule on a lawsuit making a case for the abolishment of the bureau and every regulation enacted by it.
Read on for highlights of the government’s brief in response to the petition.
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7th Circuit: Attorney fees not actual damages
Posted Date: Thursday, December 6, 2018
A Wisconsin couple who fought to stay in their foreclosed home sued their servicer for damages, claiming their attorney fees were directly related to Wells Fargo Bank’s alleged RESPA violations stemming from a qualified written request (QWR).
A circuit court recently affirmed a district’s court previous decision granting the servicer’s motion to dismiss the claims for out-of-pocket expenses or emotional distress damages.
Read on for highlights of the appellate court’s opinion.
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Kraninger stops plans to change CFPB name
Posted Date: Wednesday, December 19, 2018
Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger has abruptly stopped controversial plans to change the agency’s name.
Last March, then-acting director Mick Mulvaney announced the bureau would be rebranded the Bureau of Consumer Financial Protection, its official name under the Dodd-Frank Act.
Read on for details from Kraninger’s Wednesday email to CFPB staffers announcing the news that she has scrapped all ongoing efforts to make changes to existing products and materials related to the name correction initiative.
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Ohio judge determines how long servicer subject to RESPA
Posted Date: Wednesday, December 19, 2018
An Ohio woman claimed she was forced to incur expenses and damages because she had to hire counsel to send Requests for Information and Notices of Error to determine what went awry in the loss mitigation application process.
The servicer argued that because a foreclosure judgment already had been obtained before it received the RESPA notices from the plaintiff, it is not subject to RESPA.
Read on to see why the judge disagreed with the servicer.
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CFPB: Students at sponsored colleges pay higher bank fees
Posted Date: Wednesday, December 19, 2018
Colleges that had deals with banks pushed their students into higher-fee accounts with those banks rather than offer more affordable alternatives, according to an unpublished Consumer Financial Protection Bureau (CFPB) analysis.
The analysis raises questions about potential conflicts of interest and detailed student use of college-sponsored deposit and prepaid accounts.
Read on for details from the report, prepared by the bureau’s Office for Students and Young Consumers.
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CFPB proposes new no-action letter policy
Posted Date: Monday, December 17, 2018
The Consumer Financial Protection Bureau (CFPB) is seeking public comment on a new proposed policy on no-action letters.
The bureau is proposing to revise its 2016 policy, which has only seen one no-action letter issued since its inception, to streamline the application process.
Read on for more details on the proposal, which also calls for creating a Product Sandbox to include approval relief under safe harbor provisions.
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NAR: Blockchain will soon penetrate real estate market
Posted Date: Monday, December 17, 2018
Although Blockchain usage is not yet widely prevalent in the industry, it likely soon will become a major part of all real estate transactions in the near future, according to the National Association of Realtors (NAR).
A guidance paper from NAR seeks to educate Realtors on what exactly Blockchain technology is, as well as regulatory hurdles that could arise as the technology begins to penetrate the market.
Read on for more from NAR President John Smaby.
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Borrowers blame servicer's noncompliance for $1 million loss
Posted Date: Monday, December 17, 2018
A pair of borrowers sued their servicer for more than $1 million in lost equity in their California home. They also sought various fees, costs and emotional distress damages.
The complaint alleged the servicer’s 39-month delay in their loan mitigation process forced them to sell their home quickly rather than look into other loss mitigation options.
Read on to see why a federal judge rejected the servicer’s motion to dismiss.
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Former NAR economist picked for FHFA's top post
Posted Date: Monday, December 17, 2018
A former National Association of Realtors (NAR) economist has been nominated to head the Federal Housing Finance Agency (FHFA) by President Donald Trump.
Mark Calabria currently serves as the chief economist for Vice President Mike Pence. If confirmed by the Senate, Calabria will succeed current FHFA Director Mel Watt, who has led the agency since 2014.
Read on for reaction from NAR President John Smaby.
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HUD gives more help to homeless veterans
Posted Date: Monday, December 17, 2018
In a continuing effort to help end veteran homelessness, the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Veterans Affairs (VA) will provide a second round of funding to help provide permanent homes to veterans and their families experiencing homelessness in six states and Washington, D.C.
The program will give an additional 424 vouchers to local public housing agencies.
Read on for more details from the federal agencies.
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Kraninger era officially begins
Posted Date: Thursday, December 13, 2018
Kathy Kraninger began her first official day as the Consumer Financial Protection Bureau’s (CFPB) new director on Dec. 11.
She was sworn in Dec. 10 by Vice President Mike Pence and held a press conference the next day.
Read on for comments from Kraninger’s first appearance in front of the media and for reaction from the news conference from RESPRO President and Executive Director Kenneth Trepeta and Americans for Financial Reform.
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CFPB settles with federal savings association
Posted Date: Thursday, December 13, 2018
The Consumer Financial Protection Bureau (CFPB) has entered into a settlement agreement with a federal savings association accused of obtaining consumer reports without a permissible purpose.
According to the consent order, the bank obtained consumer reports of consumers who were not seeking a credit extension or involved in any form of credit transaction, account review or account collection.
Read on for details of the consent order, which is enforceable for five years.
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NAR announces staffing changes
Posted Date: Thursday, December 13, 2018
The National Association of Realtors (NAR) has announced staffing changes in the organization’s advocacy, marketing communications, member experience and technology groups.
NAR said its new organizational structure is designed to bolster its advocacy efforts by realigning its lobbying resources to interact more effectively on key issues with members of Congress and key committees most relevant to the real estate industry.
Read on for details on the staffing changes.
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CFPB launches beta version of HMDA Platform
Posted Date: Thursday, December 13, 2018
The Consumer Financial Protection Bureau (CFPB) recently conducted a beta launch of the Home Mortgage Disclosure Act (HMDA) Platform for data collected in 2018.
The beta release allows financial institutions to become familiar with the HMDA Platform and, in particular, determine whether their sample Loan Application Register (LAR) data complies with the reporting requirements outlined in the Filing Instructions Guide for HMDA data collected in 2018.
Read on for more details on the beta release.
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CFPB's student loan lawsuit could get boost from DOE audit
Posted Date: Monday, December 10, 2018
A previously undisclosed U.S. Department of Education (DOE) audit report bolsters allegations that the nation’s largest federal and private student loan servicer illegally cheated struggling student borrowers out of their rights to lower repayments, according to U.S. Sen. Elizabeth Warren (D-Mass.).
The Consumer Financial Protection Bureau (CFPB) filed a complaint in January 2017 against Navient, formerly known as Sallie Mae, Inc.
Read on for details from Warren’s letter to Navient.
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CFPB files deception complaint against non-bank mortgage company
Posted Date: Monday, December 10, 2018
The Consumer Financial Protection Bureau (CFPB) has filed a claim of deception against a non-bank mortgage company that allegedly misled veterans by overstating the benefits of refinancing.
According to the lawsuit, the Nevada company hired a team of loan officers to staff a new Texas office to generate loans through in-home visits to veterans.
Read on to find out details of the proposed settlement, which would require a civil penalty and redress to consumers.
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ABA: Don't raise credit union CRE appraisal threshold
Posted Date: Monday, December 10, 2018
A recent proposal by the National Credit Union Administration (NCUA) to raise the threshold at which credit unions must obtain appraisals for commercial real estate (CRE) transactions from $250,000 to $1 million would create an unleveled playing field between banks and credit unions, according to the American Banking Association (ABA).
ABA officials say the proposal would put the NCUA’s regulatory treatment of credit unions dramatically out-of-step with its sister agencies.
Read on for more details from the comment letter.
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Whitepaper details how credit unions can win more mortgage business
Posted Date: Monday, December 10, 2018
A marketing automation software provider has published a new white paper outlining why and how credit unions can thrive in home finance business.
In its new whitepaper, “The Keys to Credit Union Success in Mortgage,” Intuvo details how credit unions can win more mortgage business and outlines the key benefits of a strong mortgage lending program.
Read on for details from Intuvo’s recent report.
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NAR: Realtors donate more money to charitable causes
Posted Date: Monday, December 10, 2018
Eighty-two percent of Realtors donate money to charitable causes every year, compared with the national average of 56.6 percent of Americans who do so, according to a new report from the National Association of Realtors (NAR).
The Community Aid and Real Estate (CARE) Report provides insight on the monetary and volunteer contributions that general members at-large, broker-owners and association executives of Multiple Listing Services (MLS) give to society.
Read on for details from the CARE Report.
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Regulators: AI can help banks, credit unions combat money laundering
Posted Date: Thursday, December 6, 2018
The Financial Crimes Enforcement Network (FinCEN) and its regulatory partners have issued a joint statement to encourage banks and credit unions to take innovative approaches to combating money laundering, terrorist financing and other illicit financial threats.
FinCEN, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA) and the Office of the Comptroller of the Currency (OCC), say adopting new technologies can enhance the effectiveness and efficiency of Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance programs.
Read on for more details from the joint statement.
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Senate passes seventh flood insurance extension this year
Posted Date: Thursday, December 6, 2018
The National Flood Insurance Program (NFIP) has once again been extended – this time for two weeks.
Congress acted Thursday to fund the government through Dec. 21, extending the NFIP through the same day in the process.
Read on for more details on the latest NFIP extension from National Association of Realtors (NAR) Senior Vice President of Government Affairs Shannon McGahn, who called the continuous short-term extensions unsustainable.
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ACUS launches AI initiative to improve regulatory activities
Posted Date: Thursday, December 6, 2018
The Administrative Conference of the United States has announced upcoming partnerships with renowned scholars on the use of artificial intelligence in the federal administrative process.
The collaborations with Stanford Law School and New York University School of Law will result in potential uses of artificial intelligence to improve rulemaking and other regulatory activities throughout the federal government.
Read on for details of the partnerships, which may be used to develop agency-wide recommendations on artificial intelligence.
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HUD awards $23 million to fight housing discrimination
Posted Date: Thursday, December 6, 2018
The U.S. Department of Housing and Urban Development (HUD) has awarded more than $23 million to nearly 80 fair housing organizations working to protect consumers from housing discrimination.
Provided through HUD's Private Enforcement Initiative (PEI), these grants offer a range of assistance to the nationwide network of fair housing organizations so they can carry out testing and enforcement activities.
Read on to see which states received the grant money.
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Butler Snow adds 2 attorneys to Ridgeland office
Posted Date: Monday, December 3, 2018
Butler Snow announced that Timothy W. Lindsay and Robin Banck Taylor have joined the firm’s Ridgeland office. Lindsay and Taylor will both practice with the firm’s labor and employment group.
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Butler Snow ranked Top 10 Underwriter's Counsel Firm
Posted Date: Friday, November 30, 2018
Butler Snow has announced the firm has been ranked as a top 10 underwriter’s counsel firm nationally by the Thomson Reuters US Municipals Review for the first nine months of 2018. The firm ranked 10th in the category.
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Thurnblom rejoins Dorsey & Whitney
Posted Date: Friday, November 30, 2018
International law firm Dorsey & Whitney LLP has announced that Michele Thurnblom has rejoined the firm’s real estate and land use group as a partner in its Minneapolis office.
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Sheppard Mullin hires new attorneys for NY real estate group
Posted Date: Friday, November 30, 2018
Sheppard, Mullin, Richter & Hampton LLP announced that seven attorneys have joined the firm’s Real Estate, Land Use and Environmental practice group in New York from Venable LLP. Among the group joining are partners Peter G. Koffler, formerly chair of Venable’s New York Real Estate practice group and vice chair of the firm’s national practice, Brian N. Gurtman and Ross A. Honig; special counsel Julia Geykhman, Robert J. Gorzelany and Lee Weiss, and associate Jared Wachtler.
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Kraninger is ‘what the industry is looking for’
Posted Date: Friday, November 30, 2018
Kathy Kraninger has pledged to fulfill the Consumer Financial Protection Bureau’s (CFPB) mission of protecting consumers of financial products and services in a fair and transparent manner.
The Senate voted Thursday to clear a final procedural hurdle to confirm the former associate director for the Office of Management and Budget (OMB) as the CFPB’s second full-time director, setting her up for a final vote next week.
Read on to hear more from Phil Schulman, partner at Mayer Brown.
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Stratmor: Lenders support CRA compliance
Posted Date: Thursday, November 29, 2018
The Fed may be looking at relaxing Community Reinvestment Act (CRA) regulations, but the vast majority of bank lenders believe complying with CRA requirements should continue to be a key part of mortgage lending, according to a recent Stratmor Group survey.
Ninety-five percent of banks that participated in the survey of CRA and Low to Moderate Income lending stated they have a strong internal focus on the CRA.
Read on for more details from the survey.
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Claims of failure to correct servicing errors dismissed
Posted Date: Thursday, November 29, 2018
A Missouri woman who was denied a loan modification sued her servicer for RESPA violations for allegedly failing to investigate her claims of forgery and correct any errors in servicing.
Nationstar Mortgage, LLC argued the plaintiff failed to identify any RESPA violation because the statute does not require a servicer to retroactively review and grant loan modification requests or correct damage to a borrower’s credit rating.
Read on to see a federal judge’s decision.
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CFPB updates LO, HOEPA rule guides
Posted Date: Thursday, November 29, 2018
The Consumer Financial Protection Bureau (CFPB) has updated the Loan Originator Guide and the Home Ownership and Equity Protection Act (HOEPA) rule guide to reflect amendments made by Section 107 of the Economic Growth, Regulatory Relief and Consumer Protection Act.
The changes include a final rule to implement a new provision requiring appraisals for higher-risk mortgages that was added to TILA by the Dodd-Frank Act.
Read on for details of the rule updates.
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Bureau, Fed propose inflation adjustments for threshold
Posted Date: Thursday, November 29, 2018
The Consumer Financial Protection Bureau (CFPB) and the Federal Reserve Board jointly proposed amendments to Regulation CC that would adjust for inflation the amount of funds depository institutions must make available to their customers.
The amendments would apply in circumstances ranging from next business day withdrawal of certain check deposits to setting the threshold amount for determining whether an account has been repeatedly withdrawn.
Read on to find out what the proposed adjustment methodology would be.
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RESPA kickback class settlement official
Posted Date: Monday, November 26, 2018
A settlement is being made available to class action members in a lawsuit alleging Emery Federal Credit Union engaged in a kickback scheme with the defunct Genuine Title, LLC.
The settlement benefits will be funded by Emery and administered by a court-appointed settlement administrator through a common fund. The settlement was proposed in 2017 and approved in January 2018 before being finalized in the fall.
Read on for more details of the settlement, which awarded $2.7 million in attorneys’ fees.
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House nears vote on Mortgage Fairness Act
Posted Date: Monday, November 26, 2018
The House Financial Services Committee recently reported a bill to change TILA/RESPA rules and TRID tolerances to the full House for its consideration.
H.R. 2570, the Mortgage Fairness Act, is designed to amend TILA to revise the definition of “points and fees” under a high-cost mortgage.
Read on for more details on the bill, which proponents deem necessary due to mortgage brokerage fee issues stemming from the final Qualified Mortgage (QM) rule.
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NAR wants changes to CRA
Posted Date: Monday, November 26, 2018
The Office of the Comptroller of the Currency (OCC) received plenty of input on whether reforms are needed to the Community Reinvestment Act (CRA).
The National Association of Realtors (NAR) commented on the need to expand access to residential mortgage credit for low- and moderate-income homebuyers, as well as borrowers of color.
Read on for more details from NAR’s comment letter, as well as another proposed change submitted by the American Bankers Association (ABA).
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NAFCU: Credit unions don't need CRA regulation
Posted Date: Monday, November 26, 2018
Should credit unions be subject to Community Reinvestment Act (CRA) regulation?
Banking lobbyists think so. But National Association of Federally-Insured Credit Unions (NAFCU) President and CEO Dan Berger disagrees, arguing against proposed reforms to put credit unions under the CRA.
Read on for more details from a recent NAFCU letter to the Financial Services Committee detailing why the CRA law should not apply to credit unions.
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CFPB in settlement talks with Texas debt collector
Posted Date: Monday, November 26, 2018
A settlement is being made available to class action members in a lawsuit alleging Emery Federal Credit Union engaged in a kickback scheme with the defunct Genuine Title, LLC.
The settlement benefits will be funded by Emery and administered by a court-appointed settlement administrator through a common fund. The settlement was proposed in 2017 and approved in January 2018 before being finalized in the fall.
Read on for more details of the settlement, which awarded $2.7 million in attorneys’ fees.
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