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News By Edition
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RESPA News Monthly Edition
RESPA News Monthly
February 2024
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Overturn, uphold, or amend? Supreme Court hears Chevron arguments
Posted Date: Thursday, January 18, 2024
RESPA News was in the room where it happens as the Supreme Court heard oral arguments on whether Chevron deference, an interpretive rule used by the judiciary, should be overturned.
Afterward, we spoke with David Friend, former senior counsel at the Consumer Financial Protection Bureau, Richard Andreano of Ballard Spahr, and Jonathan Masur of the University of Chicago, for their insight.
Read on for more details.
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Redlining settlement against City National Bank inspires FHA, ECOA suit
Posted Date: Monday, January 29, 2024
A plaintiff in a California district court claimed City National Bank violated the Fair Housing Act and the Equal Credit Opportunity Act when it denied her home loan application, claiming the decision was based on the bank’s alleged redlining practices as identified by a 2023 Department of Justice settlement.
City National filed a motion to dismiss, asserting the plaintiff’s claims are time-barred.
Read on for more details.
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MLSs settle antitrust case, NAR remains as sole defendant
Posted Date: Monday, January 29, 2024
One of the many lawsuits against the National Association of Realtors (NAR) and multiple listing services (MLSs) alleging antitrust violations filed a notice of settlement between the plaintiff and the MLSs, leaving NAR as the sole defendant in the case.
The argument is similar to newer cases being filed, asserting NAR used its control over the MLSs to “to exclude new and disruptive market entrants to the benefit of NAR members, and the detriment of consumers.”
Read on for more details.
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Two plead guilty to misappropriating HUD funds
Posted Date: Monday, January 29, 2024
The presidents of a pest control company and an air conditioning service provider pleaded guilty to federal program theft after misappropriating funds from the U.S. Department of Housing and Urban Development.
The funds, meant for the administration of public housing projects in Puerto Rico, added up to over $430,000.
Read on for more details.
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Fannie Mae breaks down new Mission Index
Posted Date: Monday, January 29, 2024
Fannie Mae leadership shared how its social index, which provided insights into the Enterprise’s mission-oriented lending activities underlying its mortgage-backed securities, has been updated, as well as the groundwork for Fannie Mae’s and Freddie Mac’s single-family social bond programs.
While the name of the index is new, the two vice presidents stated it is an evolution of their previous index enhanced through market feedback meant to promote access to home financing.
Read on for more details.
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Mortgage rates should drop below 6 percent by end of 2024
Posted Date: Monday, January 29, 2024
“More normal” was the phrase Fannie Mae’s Economic and Strategic Research Group used in its forecast for 2024’s mortgage interest rates. The lower rate is expected to boost refinance volume, which indications show is already on the upswing.
The group stated it expects the annualized pace of existing home sales to move up to 4.5 million units by the fourth quarter, compared with 3.8 million in Q4 2023. A full recovery to the pre-pandemic sales rate, however, is likely years away.
Read on for more details.
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Cenlar promotes four vice presidents
Posted Date: Thursday, January 25, 2024
Ewing, New Jersey-based mortgage subservicer Cenlar FSB has announced the promotion four leaders to vice president (VP) roles, and one to a director position.
The VPs promoted include Shanth Ananthuni to the role of VP of digital transformation, Dana Cifelli to VP of internal communications, David Drakesmith to VP of information technology (IT), and Bernadette Felix also to VP of IT.
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Memphis bank, DOJ resolve lending discrimination claims
Posted Date: Monday, January 22, 2024
The Department of Justice and Patriot Bank have entered into an agreement to resolve claims that the Memphis community bank engaged in a pattern or practice of discrimination against majority-minority neighborhoods.
“This settlement embodies Dr. Martin Luther King Jr.’s commitment to promoting economic justice and ensuring that Black Americans and all communities of color are able to achieve the American dream, and equally access credit to purchase a home,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said.
Read on for more details.
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Tax bill to help housing affordability, strengthen communities
Posted Date: Monday, January 22, 2024
A bill introduced by Senate Finance Committee Chair Ron Wyden (D-Ore.) and House Ways and Means Committee Chair Jason Smith (R-Mo.) aims to help promote the financial well-being of working families, in part by increasing the number of tax credits to facilitate affordable housing.
The bill, titled the Tax Relief for American Families and Workers Act of 2024, should also strengthen communities and Main Street businesses.
Read on for more details.
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Freedom Mortgage experiences ‘solid’ 2023
Posted Date: Monday, January 22, 2024
Independent mortgage company Freedom Mortgage helped almost 80,000 borrowers finance their home as the lender wrapped up a “solid” 2023.
“I’m proud of how our dedicated and compassionate employees worked together, not just when it came to helping our customers finance their dreams, but also for the tremendous impact they’ve made in their local communities,” Freedom Mortgage President and CEO Stanley Middleman said.
Read on for more details.
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Existing home sales cool in December
Posted Date: Monday, January 22, 2024
Existing home sales dipped in December, according to the National Association of Realtors. The inventory of unsold existing homes also experienced a decrease.
December’s existing home sales fell to the lowest level seen in nearly 30 years, with the median home price for 2023 reaching a record high.
Read on for more details.
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Top cities for Gen Z homeownership mostly in Midwest, Texas
Posted Date: Monday, January 22, 2024
The oldest of Generation Z, identified as individuals born between 1997 and 2012, are entering the housing market for the first time.
A study by Point2, a division of Yardi Systems Inc., indicated these first-time homebuyers would have better odds of purchasing a home in the Midwest or South than in other regions.
Read on for more details.
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Lawmakers react to CFPB overdraft rule
Posted Date: Monday, January 22, 2024
Reps. Maxine Waters (D-Calif.), Patrick McHenry (R-N.C.), and Andy Barr (R-Ky.), as well as Sen. Sherrod Brown (D-Ohio), all gave their reactions to the Consumer Financial Protection Bureau’s proposed rule related to overdraft fees.
The rule is meant to rein in excessive overdraft fees charged by banks by closing a loophole in the Truth in Lending Act.
Read on for more details.
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Senators implore HUD, CFPB to look into Navy Federal
Posted Date: Thursday, January 18, 2024
In light of the suit filed against Navy Federal Credit Union, Sen. Sherrod Brown (D-Ohio), chairman of the Senate Committee on Banking, Housing, and Urban Affairs, and nine other senators penned a letter to the heads of the Department of Housing and Urban Development and the Consumer Financial Protection Bureau requesting the agencies look into the credit union’s home lending practices.
An investigative report by CNN released in the last few months of 2023 resulted in a class action discrimination suit against the credit union alleging its lending practices violated federal fair housing and fair lending laws.
Read on for more details.
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eSignature, Lockbox listed as amongst ‘most impactful’ tech in real estate
Posted Date: Thursday, January 18, 2024
Realtors responding to the National Association of Realtors’ (NAR) survey on technology identified the tools that most benefited them over the last 12 months.
According to the results, 79 percent said eSignature was very impactful, 66 percent cited Lockbox/showing tech, and 48 percent stated cloud storage. When asked if their brokerage provided them with all the technology tools they needed to succeed, 35 percent agreed, and 28 percent strongly agreed.
Read on for more details.
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Home price growth decelerates
Posted Date: Thursday, January 18, 2024
While home prices increased in the fourth quarter of 2023, the increase was smaller than the previous quarter’s growth.
According to Fannie Mae’s Home Price Index, single-family home prices increased 7.1 percent from the fourth quarter of 2022 to the same quarter in 2023, up from the third quarter 2023’s revised annual growth rate of 5.1 percent.
Read on for more details.
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CFPB warns consumers about bureau impersonators
Posted Date: Thursday, January 18, 2024
The Consumer Financial Protection Bureau (CFPB) issued a warning to consumers about scammers impersonating the agency to target victims.
The bureau reminded consumers it will never contact them to ask for sensitive information or to request money.
Read on for more details.
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Realtors Relief Foundation welcomes new vice president, directors
Posted Date: Wednesday, January 17, 2024
The Realtors Relief Foundation (RRF), renowned for its commitment to providing housing assistance following natural disasters and crises, proudly announces the election of Gregory Hrabcak as the new vice president, and David Legaz and JoAnne Poole as new directors.
This strategic enhancement to the RRF board of directors aims to fortify the foundation’s vision for impactful nationwide assistance.
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ECOA, TILA claims arise from zombie mortgage dispute
Posted Date: Monday, January 15, 2024
In the U.S. District Court for the Eastern District of California, a loan servicer’s motion to dismiss a multi-count complaint was considered. The plaintiff alleged violations of the Equal Credit Opportunity Act and the Truth in Lending Act, as well as various state and common law claims, in the servicing of a second mortgage that was “dormant” from 2009 until 2015.
The borrower alleged that in the interim, she received no mortgage statements and the loan stopped appearing on her credit report.
Read on for more details.
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Timing expectations, document requirements focus of CFPB audit
Posted Date: Monday, January 15, 2024
In its audit of the Consumer Financial Protection Bureau, the Office of Inspector General (OIG) found the bureau could enhance its enforcement investigations process. OIG’s recommendations related to tracking the length of enforcement investigations and documentation requirements.
OIG’s scope of analysis included investigations closed with or without enforcement actions from January 2017 through December 2021. The office selected 15 of 268 investigations during the period that the bureau settled, filed a public enforcement action for, or closed without action.
Read on for more details.
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How stakeholder ‘inequality aversion’ can impact lending performance
Posted Date: Monday, January 15, 2024
Financial research advisors from the Federal Reserve Bank of New York looked at the lending habits of banks, looking in particular at the impact of stakeholders’ inequality aversion on overall bank performance.
“We find that banks with more inequality-averse stakeholders by our measure tend to have smaller approval gaps,” the report stated.
Read on for more details.
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HUD, N.Y. housing provider enter into non-discrimination agreement
Posted Date: Monday, January 15, 2024
The Department of Housing and Urban Development (HUD) and a housing provider in Brooklyn, N.Y. executed a voluntary compliance agreement. The action resolves a compliance concern in the marketing of studio and one-bedroom units.
According to the agreement, HUD’s Office of Fair Housing and Equal Opportunity opened a review of the property after receiving information indicating a disproportionately low participation rate of Black and Hispanic residents relative to the housing market area.
Read on for more details.
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Blue Sage Solutions launches API-based servicing platform
Posted Date: Monday, January 15, 2024
Cloud-based technology provider Blue Sage Solutions launched a digital service platform to support lenders through the entire lifecycle of a mortgage.
The initial version of the system has the necessary functions for interim servicing, with full-scale servicing functionality to follow.
Read on for more details.
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DOJ’s civil rights division, other agencies pledge to advance equity in AI
Posted Date: Monday, January 15, 2024
Multiple federal agencies, including the Department of Justice, Consumer Financial Protection Bureau, and the Department of Housing and Urban Development, met to discuss what efforts can be made to address discrimination or other adverse situations that may arise through the use of artificial intelligence (AI) and other advanced technologies.
The meeting highlighted efforts these entities have made since an April 2023 joint statement where these agencies pledged to uphold “America’s commitment to the core principles of fairness, equality and justice” as AI becomes more commonplace in consumer products.
Read on for more details.
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Watch for RESPA News live at the Supreme Court Jan. 17
Posted Date: Thursday, January 11, 2024
October Research is sending Chief Knowledge Officer Mary Schuster and RESPA News Editor Elizabeth Childers back to Capitol Hill, where the two will listen in as the U.S. Supreme Court hears arguments about Chevron deference, an interpretive holding that has influenced administrative law over the last 40 years.
Keep an eye on RESPA News’ X account and Schuster’s LinkedIn for live coverage.
Read on for more details.
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Florida judge considers motion to dismiss ECOA, FHA claims
Posted Date: Thursday, January 11, 2024
Four defendants in a Florida case filed motions to dismiss. The complaint accused them of violating the Equal Credit Opportunity Act, the Fair Housing Act, and other federal statutes.
The court first addressed whether the complaint was a “shotgun” pleading before moving on to whether the plaintiff stated a claim upon which relief can be granted.
Read on for more details.
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Consumer optimism about housing market improves
Posted Date: Thursday, January 11, 2024
Consumers’ perception of homebuying conditions improved toward the end of 2023, with Fannie Mae’s Home Purchase Sentiment Index revealing respondents’ expectations for mortgage rates to go down over the next 12 months.
“Notably, homeowners and higher-income groups reported greater rate optimism than renters; in fact, for the first time in our National Housing Survey’s history, more homeowners, on net, believe mortgage rates will go down than go up,” Fannie Mae’s deputy chief economist said.
Read on for more details.
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Nearly one-third of American homeowners ‘house poor’
Posted Date: Thursday, January 11, 2024
In a report based on Census Bureau data, researchers found almost a third of American homeowners are “house poor,” meaning they are housing burdened, spending 30 percent or more of their gross income on housing costs.
One surprising statistic: about one in five homeowners who did not have a mortgage were included in this number, indicating the rising costs of maintaining a home are taking their toll.
Read on for more details.
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HUD offers over $40M for homebuyer, homeowner counseling services
Posted Date: Thursday, January 11, 2024
The U.S. Department of Housing and Urban Development is offering $40.25 million in grant funding to support housing counseling services for homebuyers, homeowners, and renters.
Parties wishing to participate need to apply by Feb. 8.
Read on for more details.
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NAR president resigns over attempted blackmail
Posted Date: Monday, January 8, 2024
National Association of Realtors (NAR) President Tracy Kasper will be stepping down after she received threats to disclose a personal, non-financial matter unless she compromised her position with the organization.
Kasper did not comply with the threat and reported it to law enforcement, NAR stated in a release. The leadership team added it was deeply concerned about any attempt to undermine its governance and is taking steps to protect the organization.
Read on for more details.
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RESPA kickback defendant moves to decertify plaintiff class in Maryland
Posted Date: Monday, January 8, 2024
In a case where the plaintiff class accuses their mortgage servicer of violating RESPA and the Racketeer Influenced and Corrupt Organizations Act, the defendant moved to decertify the class. The court also addressed a portion of the bank’s motion for summary judgment.
This decision is the latest action in a case against the First National Bank of Pennsylvania for actions taken by its predecessor First Mariner Bank. The complaint alleged the bank had an illicit kickback arrangement with All Star Title.
Read on for more details.
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Mortgage, real estate regulations in effect for 2024
Posted Date: Monday, January 8, 2024
Changes to the Truth in Lending Act, Fair Credit Reporting Act as well as rules and regulations impacting federally-related mortgages go into effect this year – here’s a roundup of those modifications and updates.
Read on for more details.
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Trade group letter supports budget requests for FHA, Ginnie Mae
Posted Date: Monday, January 8, 2024
Several trade groups penned a letter to the heads of the transportation, housing, and urban development appropriations subcommittees expressing support for the full funding of the 2024 budget requests for the Federal Housing Administration and Ginnie Mae.
The letter emphasized the importance of both entities to the mortgage market.
Read on for more details.
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Mortgage tech company offers cyber security solution
Posted Date: Monday, January 8, 2024
Considering the recent cyber security incidents announced by First American, Fidelity National Financial, and Mr. Cooper, WaterfallCalc’s founder Donna Schmidt shared how her company can help keep loss mitigation procedures on track for servicers in the event they experience a breach or attack.
Read on for more details.
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Luetkemeyer announces retirement
Posted Date: Monday, January 8, 2024
Rep. Blaine Luetkemeyer (R-Mo.), a member of the House Financial Services, is retiring at the end of his term.
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Arizona multiple listing services face Zillow lawsuit
Posted Date: Thursday, January 4, 2024
Zillow filed a lawsuit against two multiple listing services (MLSs), citing antitrust injury to it and its brand ShowingTime.
The real estate company alleged Arizona Regional Multiple Listing Service and Metro Multiple Listing Service originally agreed to integrate ShowingTime, Zillow’s service to facilitate homebuyer tours. However, the MLSs launched their own showing service, discouraged the use of ShowingTime, and eventually removed it from their member portals altogether.
Read on for more details.
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The Real Brokerage named in latest antitrust class action
Posted Date: Thursday, January 4, 2024
The Real Brokerage, along with the National Association of Realtors, HomeServices of America, Keller Williams, Realty, Inc, and several other real estate companies were listed as defendants in the most recent antitrust case filed in relation to buyer broker commissions.
The plaintiff, Daniel Umpa, requested class certification in his complaint filed in the U.S. District Court for the Western District of Missouri.
Read on for more details.
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Refis in review – what a decade can tell us about refinance trends
Posted Date: Thursday, January 4, 2024
In analyzing 10 years of data on home refinances, the Consumer Financial Protection Bureau found consumers were more likely to take cash-out refinances when interest rates are increasing, with rate-and-term options more common when interest rates are decreasing.
“Despite the recent decrease in volume, cash-out refinance originations are a segment of the mortgage market worth monitoring, especially since they were considered one of the mechanisms that exacerbated the 2008 financial crisis,” the bureau stated.
Read on for more details.
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Recovery: The 2024 word for real estate, mortgage markets
Posted Date: Thursday, January 4, 2024
While a recession is still avoidable and total economic collapse unlikely in 2024, this year is slated to offer as many challenges as opportunities for consumers.
Lending Tree Senior Economist Jacob Channel offered the company’s state of housing and predictions for the coming year.
Read on for more details.
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New home sales improve year-over-year
Posted Date: Thursday, January 4, 2024
The U.S. Department of Housing and Urban Development (HUD) and the Census Bureau indicated the sales of new single-family homes increased year-over-year, while Freddie Mac reported decreasing interest rates.
According to HUD, sales of new single-family houses in November 2023 were at a seasonally adjusted annual rate of 590,000, 1.4 percent more than the estimate for November a year before.
Read on for more details.
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Appellate judge considers RESPA plaintiff’s motion for reconsideration
Posted Date: Friday, December 29, 2023
A U.S. district judge in the Eastern District of North Carolina considered a plaintiff’s motion for reconsideration after a court dismissed her RESPA claim against Specialized Loan Servicing (SLS) and Freddie Mac.
The plaintiff’s original complaint alleged SLS had “deliberately” miscalculated her escrow amount, resulting in a higher payment than what she was “entitled” to.
Read on for more details.
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Plaintiff class certified in PHH overtime case
Posted Date: Friday, December 29, 2023
A district judge in the District of New Jersey granted class certification for plaintiffs in a case against PHH Mortgage Corp. where the mortgage servicer is accused of not properly compensating loan officers for overtime pay in violation of the Fair Labor Standards Act.
The plaintiffs seek compensation for lost earnings and an end to illegal practices.
Read on for more details.
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Proposal could impact healthcare access for real estate agents
Posted Date: Friday, December 29, 2023
The U.S. Department of Labor’s Employee Benefits Security Administration proposed a rescission of a 2018 rule that expanded the definition of association health plan.
The National Association of Realtors stated it was concerned with this change, as it would impact access to healthcare for real estate agents.
Read on for more details.
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Pending home sales flat in November
Posted Date: Friday, December 29, 2023
November’s pending home sales experienced no changes compared with the month before. A dip in the South was offset by gains in the Northeast, Midwest, and West.
Though consumers may not have entered into more contracts, a higher number of lockboxes were open over the month, indicating consumer interest.
Read on for more details.
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Senators propose extending consumer credit protections
Posted Date: Friday, December 29, 2023
Sen. Jack Reed (D-R.I.) introduced a new bill that would enable all consumers to benefit from certain consumer credit protections provided to veterans under the Military Lending Act.
Titled the Predatory Lending Elimination Act, S. 3549 will extend the effective 36 percent interest rate cap on consumer loans (including fees) to all consumers, including veterans and Gold Star families.
Read on for more details.
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