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Treliant: COVID-19 no excuse to violate RESPA
Posted Date: Monday, April 13, 2020
Regulatory activity may have temporarily slowed down because of the coronavirus, but companies in the financial services sector should not use the pandemic as an excuse for scaling back their compliance efforts.
That’s according to experts at Treliant, a Washington, D.C.-based regulatory compliance consulting firm.
Read on to see what Treliant Managing Partner Ross Marrazzo told RESPA News about why companies should not side-step consumer protections and restrictions.
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Technology, social distancing and Realtors
Posted Date: Thursday, April 16, 2020
It’s too soon to tell just how much of an effect the pandemic will have on the spring buying and selling season. But technology-savvy Realtors are adapting to the new reality of managing deals virtually in the era of social distancing.
Jessica Lautz, NAR’s vice president of demographics and behavioral insights, spoke with RESPA News about how technology has advanced to allow Realtors to do their work remotely amidst COVID-19.
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Ginnie Mae launches ‘last resort’ servicer relief program
Posted Date: Thursday, April 16, 2020
Ginnie Mae has issued an All Participants Memorandum (APM) to announce the expansion of its issuer/servicer assistance programs in response to the COVID-19 national emergency.
The APM introduces a new version of the existing Pass-Through Assistance Program (PTAP) for use by issuers facing a temporary liquidity shortfall directly attributable to the novel coronavirus. The existing PTAP program had been tailored to natural disaster situations with more limited impact.
Read on for details from Ginnie Mae.
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North Carolina borrower sues for illegal foreclosure
Posted Date: Thursday, April 16, 2020
A North Carolina borrower filed two lawsuits claiming his servicer violated RESPA by foreclosing on him while he had a pending loan modification request.
The borrower alleged the servicer made false representations that caused him to suffer $212,000 in unspecified damages, plus $255,000 in punitive damages. The servicer claimed the complaint was barred by the doctrine of res judicata.
Read on for highlights of the judge’s opinion.
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CFPB issues remittance transfer guidance
Posted Date: Thursday, April 16, 2020
The Consumer Financial Protection Bureau (CFPB) has issued guidance to prevent disruption for consumers who rely on remittance transfers.
To minimize the impact of the pandemic on the remittances market, the CFPB issued a policy statement that will enable insured institutions to continue to focus on the immediate needs of their customers by taking a flexible approach to the bureau’s supervision and enforcement of remittance transfers.
Read on for details of the bureau’s statement.
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Supreme Court resumes some oral arguments
Posted Date: Thursday, April 16, 2020
The Supreme Court will resume oral arguments in a limited number of previously postponed cases.
On its website, the court announced it will hear oral arguments in 13 cases via telephone conference in early May, the first time the court will conduct arguments virtually.
Read on for details from the Supreme Court about its plans going forward.
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Agencies issue revised guidance on loan modifications
Posted Date: Monday, April 13, 2020
The federal financial institution regulatory agencies have issued a revised interagency statement to provide additional information regarding loan modifications.
The revised statement clarifies the interaction between the interagency statement issued March 22, and the temporary relief provided by Section 4013 of the Coronavirus Aid, Relief, and Economic Security Act, which was signed into law March 27.
Section 4013 allows financial institutions to suspend the requirements to classify certain loan modifications as troubled debt restructurings.
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CFPB to be ‘flexible’ during public health crisis
Posted Date: Monday, April 13, 2020
The Consumer Financial Protection Bureau (CFPB) announced it is postponing some data collections from industry on bureau-related rules to allow companies to focus on responding to consumers who have been adversely affected by the coronavirus.
The bureau also will make changes to its supervisory activities to account for operational challenges at regulated entities.
Read on for reaction on the bureau’s temporary actions from CFPB Director Kathy Kraninger.
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Ohio borrower accuses servicer of RESPA infractions
Posted Date: Monday, April 13, 2020
An Ohio borrower accused her servicer of failing to adequately respond to qualified written requests (QWR) after a dispute over force placed insurance.
The servicer argued its notices adequately communicated what information it needed to complete her loss mitigation application.
Read on to see why the judge sided in part with the borrower and partially with the servicer on their competing motions for summary judgment.
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NAR: Post-pandemic rebound likely
Posted Date: Monday, April 13, 2020
Spring is usually the unofficial start of the home buying and selling season.
But although there is likely to be a slowdown in real estate activity this year, a new National Association of Realtors’ (NAR) survey shows that many agents are optimistic the market will undergo a post-pandemic rebound.
The survey asked real estate agents how the coronavirus outbreak has impacted the residential and commercial real estate markets. Read on for NAR Economist Lawrence Yun’s thoughts.
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HUD makes handling sexual harassment in housing a priority
Posted Date: Monday, April 13, 2020
The Department of Housing and Urban Development (HUD) has stepped up its efforts to eradicate sexual harassment under its jurisdiction.
HUD Assistant Secretary for Fair Housing and Equal Opportunity Anna Maria Farias warned that despite the coronavirus pandemic, “HUD is open for business and working to ensure that no one has to tolerate harassment or unwanted sexual advances in the place they call home.”
Read on for more details.
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Cordray whitepaper warns CFPB to watch servicers, lenders
Posted Date: Thursday, April 9, 2020
First, he wrote a book detailing his experiences as the former head of the Consumer Financial Protection Bureau (CFPB).
Now, Richard Cordray has helped write a whitepaper that gives current CFPB Director Kathy Kraninger advice on what the bureau should be doing during the coronavirus pandemic.
That advice includes paying close attention to what mortgage servicers and lenders are doing, and to temporarily stop all non-essential rulemaking. Read on for more from Cordray and his two-former CFPB co-authors.
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HUD updates mortgage relief plan
Posted Date: Thursday, April 9, 2020
The Department of Housing and Urban Development (HUD) now is instructing mortgage servicers to offer deferred or reduced payments for up to a year.
HUD recently announced a tailored set of mortgage payment relief options for single-family homeowners with Federal Housing Administration-insured mortgages experiencing financial hardship as a result of the coronavirus.
Also included is an extension period for seniors with Home Equity Conversion Mortgages.
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CFPB settles with short-term lender
Posted Date: Thursday, April 9, 2020
The Consumer Financial Protection Bureau (CFPB) has announced a settlement with a Texas short-term lender accused of making deceptive representations in its TV advertisements and telemarketing calls.
This was the agency’s first enforcement action since March 9, before the pandemic began to shut down work across the country.
Read on for details from the CFPB’s consent order, including the amount the lender must pay in redress and penalties.
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FinCEN adds to BSA guidance
Posted Date: Thursday, April 9, 2020
The Financial Crimes Enforcement Network (FinCEN) recently updated its March 16 guidance instructing financial institutions with how to comply with Bank Secrecy Act (BSA) obligations during the coronavirus pandemic.
The new notice addresses how depository institutions and federally insured credit unions should handle the Coronavirus Aid, Relief, and Economic Security Act’s Paycheck Protection Program loans, among other issues.
Read on for details from FinCEN’s latest BSA guidance.
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DOJ sues Kentucky landlords for sexual harassment
Posted Date: Thursday, April 9, 2020
The Department of Justice announced (DOJ) has filed a lawsuit alleging that the co-owners and managers of rental properties in Russellville, Ky., subjecting female tenants to sexual harassment and retaliation.
The lawsuit alleges the landlord sexually harassed a number of female tenants since at least 2012, and that his co-manager wife threatened and retaliated against women who complained about her husband’s conduct.
Read on for details from the DOJ’s latest sexual harassment complaint.
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Weltman, Weinberg & Reis merges Cleveland offices
Posted Date: Monday, April 6, 2020
Weltman, Weinberg & Reis Co., LPA a full-service creditors' rights law firm entering its 90th year of client service, has merged its two Cleveland offices. Just 10 minutes south of downtown Cleveland, the firm’s headquarters has completed construction and renovations to welcome staff from the downtown Lakeside Avenue office.
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CARES Act to benefit Realtors
Posted Date: Monday, April 6, 2020
The National Association of Realtors (NAR) has published a comprehensive guide to the $2 trillion, 880-page bipartisan COVID-19 relief package that was recently signed by President Donald Trump.
The CARES (Coronavirus, Aid, Relief, and Economic Security) Act’s benefits for Realtors includes $350 billion for the Small Business Administration’s (SBA) 7(a) loan program, which allows eligible small businesses to secure up to $10 million toward mortgage interest, rents, utilities and payroll.
Read on for details from NAR.
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New Ginnie Mae program to give servicers forbearance relief
Posted Date: Monday, April 6, 2020
Millions of borrowers are expected to seek forbearance relief amid the coronavirus crisis, and Ginnie Mae is launching a new program to help mortgage servicers pay their own investors while customer payments stop.
Ginnie Mae Principal Executive Vice President Seth Appleton announced a plan to ease servicers’ potential liquidity problems following business disruptions related to COVID-19.
Read on for details about the program, which will be implemented by April 13.
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Borrower claims servicer engaged in dual tracking
Posted Date: Monday, April 6, 2020
A borrower fighting foreclosure on her New York home sued her servicer in federal court for allegedly failing to provide her with disclosures required under RESPA for money that should have been returned to her for Hurricane Sandy home repairs.
The servicer argued the state court previously ruled on her claims in its foreclosure case.
The borrower alleged the RESPA claim was not barred by the trial court’s foreclosure judgment because it stated a claim for dual tracking under the Dodd-Frank Act that was never adjudicated.
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CFPB publishes credit reporting guidance
Posted Date: Monday, April 6, 2020
The Consumer Financial Protection Bureau (CFPB) has released a policy statement outlining the responsibility of credit reporting companies and furnishers during the COVID-19 pandemic.
In response to the pandemic, many lenders are being flexible when it comes to consumers making payments.
The bureau’s statement stresses the need for lenders to report accurate information about these arrangements to credit bureaus. Read on for reaction from CFPB Director Kathy Kraninger.
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CFPB issues RFI to help new taskforce
Posted Date: Monday, April 6, 2020
The Consumer Financial Protection Bureau (CFPB) has issued a request for information (RFI) to help a new taskforce reach its goal of examining the existing legal and regulatory environment facing consumers and financial services providers.
The Taskforce on Federal Consumer Financial Law seeks input from the public to help identify areas of consumer protection on which it should focus its research and analysis.
Read on for more information about the RFI from the CFPB.
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Lender settles HECM False Claim Act allegations
Posted Date: Monday, April 6, 2020
A Tulsa, Okla.-based mortgage lender has settled allegations that its predecessor knowingly originated and underwrote hundreds of Home Equity Conversion Mortgage loans insured by the Federal Housing Administration that did not meet critical Department of Housing and Urban Development (HUD) requirements.
Urban Financial violated FHA requirements for HECM loans prior to May 1, 2010, when ordering appraisals in an attempt to influence the appraised value, the Department of Justice (DOJ) said in its complaint.
Read on to learn how much the lender agreed to pay to resolve the allegations, and for reaction from the DOJ and HUD.
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Managing mortgage servicing rights
Posted Date: Monday, March 30, 2020
The COVID-19 virus is having a significant impact on owners of mortgage servicing rights (MSRs).
Mortgage advisory firm Stratmor Group suggests MSR owners take a holistic approach in this highly volatile market, taking into consideration many factors impacting cash flows that seem to be changing every day.
Read on for the company's nine critical factors that MSR owners should consider in today’s market.
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Servicer wins dismissal after long court fight
Posted Date: Monday, March 30, 2020
A Florida borrower sued her servicer after her home was sold at a foreclosure sale.
The claim was remanded to a Florida district court after the Eleventh Circuit Court of Appeals overturned the lower court’s prior ruling that rejected her allegations against a mortgage servicer.
Read on to see why a district court has once again dismissed the woman’s claim that her servicer failed to properly notify her that her loan modification was denied.
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HUD takes housing discrimination fight to another level
Posted Date: Monday, March 30, 2020
The Department of Housing and Urban Development (HUD) has awarded nearly $40 million to fair housing organizations working nationwide to help end housing discrimination.
More than $1 million of the funding is being awarded to grantees located in Opportunity Zones, which aim to stimulate long-term investments in low-income communities.
Read on for reaction from HUD Secretary Ben Carson and National Association of Realtors President Vince Malta.
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ARMCO: Critical defects continue to decline
Posted Date: Monday, March 30, 2020
For the fourth quarter in a row, critical defects related to loan package documentation continued a downward spiral, according to a new report from ACES Risk Management (ARMCO).
In addition, the overall critical defect rate in the third quarter of 2019 was at its lowest point since the fourth quarter of 2016, while income/employment defects were up slightly.
Read on for reaction from ARMCO Executive Vice President Nick Volpe.
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CFPB postponing reporting, PACE data collections
Posted Date: Monday, March 30, 2020
The Consumer Financial Protection Bureau (CFPB) will postpone some data collections on its rules to allow financial companies to respond to the COVID-19 pandemic.
CFPB Director Kathy Kraninger said the temporary actions – including a survey of firms providing Property Assessed Clean Energy financing to consumers – are necessary to help financial companies focus their resources on helping consumers.
Read on to learn details on what is being postponed.
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CFPB issues lender credit guidance under TRID
Posted Date: Thursday, March 26, 2020
The Consumer Financial Protection Bureau (CFPB) has issued guidance on lender credits in relation to TRID.
Ten new questions and answers were published recently via the bureau’s TRID FAQ, a frequently asked questions tool.
Read on for a detailed glimpse into the CFPB’s new guidance, which defines the term “lender credit” under the TRID rule, and details lenders’ requirements in disclosing closing costs on Closing Disclosures and Loan Estimates.
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Regulators issue COVID-19 guidance for lenders
Posted Date: Thursday, March 26, 2020
The federal financial institution regulatory agencies and the state banking regulators have issued an interagency statement to guide financial institutions on how to move forward in the wake of the public health crisis.
Among the guidance, the agencies encourage institutions “to work prudently with borrowers.”
Read on for more from the joint statement by the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corp., National Credit Union Administration, Office of the Comptroller of the Currency, Consumer Financial Protection Bureau and the Conference of State Bank Supervisors.
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Judge issues partial dismissal in RESPA suit against servicer
Posted Date: Thursday, March 26, 2020
A New York man filed a class action lawsuit alleging his servicer proceeded with foreclosure sales even when borrowers submitted timely and complete loss mitigation applications. He also claimed the servicer failed to properly evaluate applications or state specific reasons for denying them.
The servicer argued the RESPA claims should be dismissed because the matter had already been judged by a state court.
Read on for the judge’s ruling from the district court in New York.
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Fed temporarily reducing bank exams
Posted Date: Thursday, March 26, 2020
To respond to the immediate concerns caused by the coronavirus, the Federal Reserve announced it will “temporarily reduce” bank examination activities on the financial institutions it oversees.
The Fed vowed to work with financial institutions to understand the specific issues they are facing during the public health crisis.
Read on for details from the regulator, which said its new focus would be on broader monitoring of the financial system.
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ARMCO publishes HMDA help on ACES IQ
Posted Date: Thursday, March 26, 2020
ACES Risk Management (ARMCO) has added Home Mortgage Disclosure Act (HMDA) questions to its technology offerings to make compliance easier.
With this set of HMDA-specific questions, ACES users can quickly and easily conduct quality control on their HMDA data before reporting this data to their assigned federal HMDA regulator, the company announced.
Read on for details on the additions to the ACES Intelligent Questionnaire from ARMCO CEO Trevor Gauthier.
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Howard Hanna touts longtime RESPRO involvement
Posted Date: Monday, March 23, 2020
In 1957, Howard W. Hanna Jr. started Howard Hanna Real Estate Services with a single office in Pittsburgh using a modest dividend check.
Today, the business is the third-largest real estate company in the United States. President Duffy Hanna spoke to RESPA News about the company’s experience with affiliated businesses and RESPA compliance lessons they’ve gained in these affiliations over the years. Read on for Part III of our series on affiliated companies.
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House committee announces housing stimulus plan
Posted Date: Monday, March 23, 2020
The House Financial Services Committee has released plans for a fiscal stimulus package in response to the coronavirus.
The package calls for banning all evictions, foreclosures, and repossessions –including manufactured homes, RVs, and cars – for the duration of the public health crisis.
Read on to see what Committee Chairwoman Maxine Waters (D-Calif.) says about how servicers and financial institutions could be affected if the plan is adopted.
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NAR: Homebuyer interest changes
Posted Date: Monday, March 23, 2020
Nearly half of real estate agents report that homebuyer interest has changed because of the coronavirus outbreak, according to a new survey from the National Association of Realtors (NAR).
NAR’s Economic Pulse Flash Survey asked members questions about how the coronavirus outbreak, including the significant declines in stock market values and mortgage interest rates, has impacted home buyer and seller interest and behavior.
Read on for survey results.
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DOJ files North Dakota housing discrimination suit
Posted Date: Monday, March 23, 2020
The Department of Justice (DOJ) has filed a lawsuit alleging a North Dakota company failed to design and construct multifamily residential properties to be accessible for people with disabilities.
The lawsuit states that significant physical accessibility barriers exist at 116 units constructed over a 15-year period, including excessive slopes to entrances and inadequate interior space to maneuver a wheelchair and inaccessible parking.
Read on for details from the DOJ’s lawsuit.
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OCC: Mortgage performance improved in 2019
Posted Date: Monday, March 23, 2020
The overall performance of first-lien mortgages during the fourth quarter of 2019 showed foreclosures were up slightly from the previous quarter, but down significantly from a year ago.
The OCC’s quarterly report covers 29.2 percent of all residential mortgages outstanding in the U.S., or 15.7 million loans totaling $3.1 trillion in principal balances.
Read on for statistics from the Office of the Comptroller of the Currency’s (OCC) quarterly report on mortgages.
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HUD awards millions for homeless programs
Posted Date: Monday, March 23, 2020
The Department of Housing and Urban Development (HUD) has announced more than $118 million in grants to support local homeless assistance programs across the country.
This round of HUD's Continuum of Care grants will provide support to approximately 630 local programs on the front lines, on top of an additional $2.2 billion in grants announced earlier this year.
Read on for details from HUD.
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