|
|
News By Edition
|
RESPA News Monthly Edition
RESPA News Monthly
December 2022
|
|
Don’t end up on the RESPA gift-giving naughty list
Posted Date: Monday, November 28, 2022
While RESPA enforcement does not seem like a priority for regulators, giving attention-grabbing gifts to your work contacts risks placement on the RESPA naughty list and inviting regulators in to further scrutinize your business practices.
Ken Trepeta, executive director and president of RESPRO, and Mayer Brown LLP Partner Holly Spencer Bunting spoke to RESPA News about how to stay on regulators’ nice list for this holiday season.
Read on for more details.
|
|
|
New Title II, HECM loan limits for 2023
Posted Date: Thursday, December 8, 2022
The Federal Housing Administration confirmed the 2023 loan limits for the Single Family Title II forward mortgage and Home Equity Conversion Mortgage insurance programs.
These limits are established after the Federal Housing Finance Agency announces its conforming loan limits for Freddie Mac and Fannie Mae.
Read on for more details.
|
|
|
CFPB files petition for cert with Supreme Court
Posted Date: Monday, November 28, 2022
In the wake of the Fifth Circuit’s decision stating the Consumer Financial Protection Bureau’s funding structure is unconstitutional, the agency filed a petition for a writ of certiorari to the U.S. Supreme Court, bypassing an en banc review of the decision at the district level.
The petition argues while the bureau is not subject to review by appropriations committees, it is still accountable to Congressional oversight in other ways that satisfy the checks and balances required by the separation of powers doctrine.
Read on for more details.
|
|
|
2022 midterm elections result in committee changes
Posted Date: Monday, November 28, 2022
Nearly three weeks after the midterm elections ended, there is a clear indication as to which party will be in control of each of the chambers of Congress.
While the Senate is staying in the hands of a Democrat majority – supported by two independents that caucus with them – the House of Representatives will see Republicans in the majority for the first time in four years.
Read on to learn what changes may be on the horizon.
|
|
|
FHFA met 30 of 33 performance goals FY 2022
Posted Date: Monday, November 28, 2022
The Federal Housing Finance Agency’s (FHFA) 2022 performance and accountability report showed what steps the agency has taken to fulfill its statutory responsibilities and complete its 2021-2024 strategic plan.
Among these actions, FHFA finalized changes to the Enterprise Regulatory Capital Framework, strengthened statutory mission programs, and continued to oversee the development and implementation of equitable housing finance plans.
Read on for more details from the report.
|
|
|
Atlanta Housing Authority enters agreement with HUD
Posted Date: Monday, November 28, 2022
Atlanta Housing Authority and the U.S. Department of Housing and Urban Development (HUD) reached an agreement to address issues the regulator found in the housing authority’s 2021 compliance review.
“Public housing providers who receive federal assistance have a responsibility to ensure equal opportunity in housing for all the residents they serve,” HUD Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity Demetria McCain said.
For more on the terms of the agreement, read on.
|
|
|
HUD expands flood insurance options
Posted Date: Monday, November 28, 2022
The U.S. Department of Housing and Urban Development, through the Federal Housing Administration (FHA), will allow homeowners with FHA-insured mortgage financing to obtain flood insurance policies from private providers, so long as it confirms to FHA requirements.
The National Association of Realtors and Mortgage Bankers Association commended the agency.
Read on for more details.
|
|
|
RESPA QWR case considers class certification
Posted Date: Monday, November 21, 2022
In a case from the U.S. District Court, District of Maryland, the court considered a motion to strike class certification for a claim based on whether the plaintiff’s letter to Caliber Home Loans constituted a qualified written request (QWR).
The plaintiffs were seeking a class certification to challenge Caliber’s “policy and practice” of continuing to report negative credit information after receiving QWRs.
Read on for more details.
|
|
|
CFPB takes enforcement action against Carrington Mortgage
Posted Date: Monday, November 21, 2022
The Consumer Financial Protection Bureau is taking action against Carrington Mortgage Services, stating the servicer engaged in deceptive acts or practices under the Consumer Financial Protection Act and violated the Fair Credit Reporting Act and its implementing statute Regulation V.
The consent order is related to actions Carrington took to mislead certain homeowners who sought a CARES Act forbearances.
Read on for more details.
|
|
|
FHA report shows agency efforts in affordability crisis
Posted Date: Monday, November 21, 2022
The Federal Housing Administration’s (FHA) 2022 report to Congress briefed the legislature on the financial status of the Mutual Mortgage Insurance Fund, FHA loss mitigation efforts throughout the year, and how the agency worked to reduce barriers to homeownership.
“I’m so proud of FHA’s work to make homeownership possible for our nation’s underserved households and communities,” Federal Housing Commissioner Julia Gordon said. “Behind the bottom-line numbers are some two million individuals and families who were able to achieve homeownership or stay in their homes through hard times thanks to assistance from FHA.”
Read on for details from the report.
|
|
|
HUD finds Oklahoma housing providers engaged in discrimination
Posted Date: Monday, November 21, 2022
The U.S. Department of Housing and Urban Development (HUD) issued a letter of finding against an Oklahoma housing provider and the property management company, both recipients of HUD funds.
The agency found the entities discriminated against tenants by failing to appropriately respond to known serious racial harassment and retaliated against affected tenants by moving to terminate their tenancy.
Read on for more details.
|
|
|
NAR 2023 leadership team announced
Posted Date: Monday, November 21, 2022
The National Association of Realtors (NAR) installed its new leadership team for 2023 at its 2022 NAR NXT convention in Orlando.
The association named its president, president-elect, first vice president, treasurer, vice president of association affairs, and vice president of advocacy. Regional vice presidents also were named.
Read on to learn who will be leading NAR in the coming year.
|
|
|
HUD leadership goes international at UN Climate Conference
Posted Date: Monday, November 21, 2022
U.S. Department of Housing and Urban Development (HUD) Secretary Marcia Fudge and Deputy Secretary Adrianne Todman spoke at the 27th UN Climate Conference about what actions their agency has taken to reduce its energy and carbon footprint.
HUD’s climate action plan was discussed at the first ministerial meeting on urbanization and climate change.
To learn more about HUD’s plan, read on.
|
|
|
House subcommittee discusses persistent poverty in America
Posted Date: Thursday, November 17, 2022
In a subcommittee hearing titled, “Persistent Poverty in America: Addressing Chronic Divestment in Colonias, the Southern Black Belt, and the U.S. Territories,” representatives from the U.S. House Committee on Financial Services and witnesses discussed the issues impacting some of the poorest areas in the nation and how they can be addressed.
The key words at the hearing: homeownership and affordable housing.
Read on for more details.
|
|
|
‘The Color of Law’ author talks segregation with NAR
Posted Date: Thursday, November 17, 2022
Bryan Greene, National Association of Realtors’ (NAR) vice president of policy advocacy, and best-selling author Richard Rothstein discussed issues of equity in housing and how to address the impact of historical segregation at NAR NXT.
Rothstein’s book, The Color of Law: A Forgotten History of How Our Government Segregated America, spent 50 weeks on the New York Times best seller list and has provided its readers a view on how federal, state, and local government policies exacerbated and even created segregated communities, leading to racial homeownership and wealth gaps.
Read on for more details about the discussion and on Rothstein’s new project.
|
|
|
FHA commissioner discusses innovation in homeownership
Posted Date: Thursday, November 17, 2022
Fair Housing Commissioner and Assistant Secretary for Housing at the U.S. Department of Housing and Urban Development Julia Gordon joined Ivory Innovations and Urban Institute at a symposium featuring the 2022 Ivory Prize for Housing Affordability winners and top 10 finalists.
The commissioner discussed innovations in affordable housing, the Fair Housing Administration’s report to Congress on its mutual mortgage insurance fund, how the agency has helped families stay in their homes, policy changes that have provided more opportunities for homeownership and equitable mortgage lending, and manufactured housing.
Read on for more details.
|
|
|
CFPB reports on tenant background checks show costly errors
Posted Date: Thursday, November 17, 2022
Two reports from the Consumer Financial Protection Bureau revealed how errors in background checks can contribute to high costs and barriers to quality rental housing.
The reports analyzed more than 24,000 complaints, showing the challenges renters face when background information is incorrect and what little recourse they have to resolve these issues.
Read on for more details.
|
|
|
Freddie Mac mortgage survey receives makeover
Posted Date: Thursday, November 17, 2022
Freddie Mac revamped its Primary Mortgage Market Survey, the industry’s standard for mortgage interest rates.
The government sponsored enterprise will replace its traditional survey approach with loan application information submitted to its automated underwriting system, Loan Product Advisor.
Read on to learn about other improvements.
|
|
|
PHH motion to dismiss RESPA ‘dual-tracking’ case is denied in Ohio
Posted Date: Monday, November 14, 2022
In this followup to a recent decision made by the U.S. District Court for the Northern District of Ohio, PHH Mortgage Corp. moved for summary judgment against Angela Ruckman, who brought claims against the mortgage servicer under Regulation X, RESPA, and the Ohio Residential Mortgage Lending Act.
The court denied PHH’s motion, stating the record sufficiently shows genuine dispute in material facts and a jury could find the servicer may have engaged in dual tracking.
Read on for more details.
|
|
|
TILA, ECOA, and FHA claims brought against rent-to-buy program
Posted Date: Monday, November 14, 2022
The U.S. District Court for the Southern District of Indiana heard the latest motions in a case alleging violations of the Equal Credit Opportunity Act, disparate treatment and disparate impact under the Fair Housing Act, violations of the Truth-in-Lending Act, and violations of various Indiana Code provisions.
The lawsuit involves the defendants’ rent-to-buy program, where customers would sign agreements to purchase a house once a certain number of rental payments occurred. Defendant James Hotka admitted the success rate of these contracts was low, with an estimated 70 percent of the agreements failing within six months.
Read on for more details about the case.
|
|
|
Enterprise multifamily purchase caps smaller for 2023
Posted Date: Monday, November 14, 2022
The Federal Housing Finance Agency determined the 2023 multifamily loan purchase caps for Fannie Mae and Freddie Mac.
These caps reflect “an anticipated contraction” of the multifamily originations market in the coming year.
Mortgage Bankers Association President and CEO Bob Broeksmit commended the agency for its continued commitment to affordable rental housing and for providing stable liquidity in the marketplace.
Read on for more details about the caps.
|
|
|
RAD transaction preserves 113 homes for low-income seniors
Posted Date: Monday, November 14, 2022
The U.S. Department of Housing and Urban Development’s Office of Multifamily Housing closed a rental assistance demonstration transaction with the housing authority in Joliet, Ill.
The project will preserve 113 affordable rental homes for low-income seniors.
Read on for more details.
|
|
|
Companies for 2023 REACH Canada program announced
Posted Date: Monday, November 14, 2022
National Association of Realtors-backed Second Century Ventures selected six tech companies for its 2023 REACH Canada program.
The program was created to assist technology companies’ scale across the real estate vertical and adjacent markets through education, mentorship and market exposure.
Read on to learn more about the program and selected companies.
|
|
|
MBA’s 2023 affordable homeownership advisory council
Posted Date: Monday, November 14, 2022
The Mortgage Bankers Association’s advisory council on affordable homeownership, formed in 2019, will have 30 members for 2023.
The council provides strategic and practical guidance to the association’s affordable housing effort, the CONVERGENCE Initiative.
Read on to discover who’s on the council.
|
|
|
Veteran homelessness rate sees biggest drop in years
Posted Date: Thursday, November 10, 2022
The preliminary results of the 2022 Point-in-Time (PIT) count revealed the biggest drop in veteran homelessness in more than five years.
This year’s count is the first full count since 2020, and the U.S. Interagency Council on Homelessness’ Executive Director Jeff Olivet said the fact veteran homelessness continued to drop despite a pandemic shows real progress being made.
Read on for more details about the PIT and housing tips for veterans.
|
|
|
FHA claim based on addiction as a disability survives dismissal
Posted Date: Thursday, November 10, 2022
In a lawsuit out of Louisiana, plaintiffs allege they were discriminated against on the basis of disability.
The disability at issue was addiction, and the discriminatory act was eviction because of a criminal record. Plaintiffs stated the landlord refused to honor a reasonable accommodation to make an exception to its criminal record policy, as the record was related to the disability.
Read on for more details.
|
|
|
2022 first-time homebuyer looks different than years past
Posted Date: Thursday, November 10, 2022
While the rate of first-time homebuyers is the lowest on record, the typical age of the homebuying category was at an all-time high, the National Association of Realtors announced in this year’s profile of homebuyers and sellers.
The organization said housing affordability and inventory challenges had a significant impact on when, where, and how consumers purchased homes.
Read on to learn what other records were broken.
|
|
|
Complaints filed for appraisal discrimination in Baltimore
Posted Date: Thursday, November 10, 2022
The National Community Reinvestment Coalition (NCRC) filed two complaints with the U.S. Department of Housing and Urban Development alleging an appraiser discriminated against a homeowner based on race.
The complaints arose from a yearlong NCRC investigation into appraisal practices in Baltimore. The organization conducted “mystery shopper” tests where appraisal companies were hired at random for full examinations and the appraiser would meet the homeowner face-to-face.
Read on for more details.
|
|
|
Waters urges caution in letter to the Fed
Posted Date: Thursday, November 10, 2022
In a letter to Jerome Powell, the chair of the Board of Governors of the Federal Reserve System, Congresswoman Maxine Waters (D-Calif), urged caution in raising interest rates, as doing so may inflict “unnecessary pain on millions of individuals and families while sending the economy into a devastating recession.”
The letter comes after the Federal Open Market Committee announced a fourth consecutive super-sized hike in interest rates, creating the fastest set of rate hikes in 40 years.
Read on for more details.
|
|
|
RealPage faces lawsuit related to rent price optimization software
Posted Date: Monday, November 7, 2022
RealPage, a technology company that provides myriad SaaS products for real estate owners and managers, is one of many defendants in a class action lawsuit related to its price optimization software.
The suit follows a report finding the algorithm used in the products may cause inflated rent prices and suppress competition in the housing market. Sen. Sherrod Brown (D-Ohio) also penned a letter to the Federal Trade Commission chair requesting review of the situation.
Read on for more details.
|
|
|
California pro se FHA claim survives motion to dismiss
Posted Date: Monday, November 7, 2022
The city and county of San Francisco and its Chinatown Community Development Center (CCDC) are the named defendants in a lawsuit where the plaintiff alleges she was discriminated against on the basis of race, disability, and because she receives supplementary security income.
In the present opinion, the court was considering CCDC’s motion to dismiss the claims against it for several reasons, including it not being a public entity for purposes of Title II of the American with Disabilities Act.
Read on for more details.
|
|
|
NFHA to FHFA: FHLBanks need to do more
Posted Date: Monday, November 7, 2022
The National Fair Housing Alliance was among several fair and affordable housing interest groups requesting the Federal Housing Finance Agency ensure the Federal Home Loan Banks (FHLBanks) do more to promote fair and affordable housing.
The letter was in response to the agency seeking comment on its comprehensive review of the FHLBank system.
Read on for more.
|
|
|
NAR IDs ‘most impactful’ real estate tech for 2022
Posted Date: Monday, November 7, 2022
A National Association of Realtors’ (NAR) survey asked its members about its current technology usage and attitudes about the future of real estate technology.
“It’s clear that technology plays a key role in our members’ lives and businesses,” NAR CEO Bob Goldberg said.
Read on for more details.
|
|
|
Blank Rome LLP gains partner in compliance practice group
Posted Date: Monday, November 7, 2022
Blank Rome LLP, an Am Law 100 firm, added a new partner to its Financial Institutions Litigation & Regulatory Compliance practice group.
The addition has experience ranging from being a managing director for Promontory MortgagePath, LLC’s regulatory legal, compliance and risk team to being senior counsel for the Consumer Financial Protection Bureau.
Read on for more details about who Blank Rome calls a “compliance pro.”
|
|
|
|
Home warranty company faces RESPA kickback allegations
Posted Date: Thursday, November 3, 2022
In an action filed by the California Department of Insurance, American Home Shield of California, Inc. faces allegations stating the company violated California Insurance Code §12760 and RESPA’s kickback provision.
Loretta Salzano, Franzén and Salzano, P.C. president, spoke with RESPA News about the importance of the case and why the industry should be paying attention.
Read on for more details.
|
|
|
Servicer’s force-placed insurance at heart of RESPA claim
Posted Date: Thursday, November 3, 2022
Freedom Mortgage Corp. is the defendant in a lawsuit filed in the U.S. District Court, District of New Jersey, where the plaintiff alleges Freedom’s charges related to a force-placed insurance on a property with no dwelling was not bona fide and reasonable, and therefore a RESPA violation.
The court’s decision granted summary judgment in favor of Freedom on one of the five counts; the other four will move on to the next phase of the lawsuit.
For more details about the case, read on.
|
|
|
CFPB ruling echoes through the industry
Posted Date: Thursday, November 3, 2022
As word continues to spread about the Fifth Circuit case, more experts in the housing industry and other housing groups have speculated on what it may mean for the Consumer Financial Protection Bureau, the agency’s enforcement actions, and what will happen should the issue be heard by the U.S. Supreme Court.
“[T]he Fifth Circuit chose to favor Wall Street over consumers,” U.S. Sen. Sherrod Brown (D-Ohio) said in a release. “After more than a decade of coordinated and sustained attacks on consumers, and repeated failures to weaken the CFPB, big corporations and anti-consumer interests have turned to the courts to incapacitate the only financial agency that specifically looks out for consumers."
Read on for more details.
|
|
|
NAR, NFHA voices support for recent FHFA changes
Posted Date: Thursday, November 3, 2022
The Federal Housing Finance Agency has made recent changes that have earned praise from the National Association of Realtors and the National Fair Housing Alliance (NFHA).
Changes to the Enterprises’ pricing framework to eliminate upfront fees known as loan level pricing adjustments, the validation of new credit score models, and the granting of public access to uniform appraisal dataset aggregate statistics all work toward eliminating inequities in the housing market and promoting a robust housing market, NFHA said.
Read on for more details.
|
|
|
HUD announces $148M to help combat COVID-19 hardships
Posted Date: Thursday, November 3, 2022
The U.S. Department of Housing and Urban Development Office of Multifamily Housing Programs has opened a new application period for COVID-19 supplemental payment funding.
This will give the owners of multifamily properties that are participating in assisted housing programs access to more than $148 million in supplemental operating funds.
Read on for more details.
|
|
|
‘Continuing wrong’ doctrine doesn’t save Calif. RESPA claim
Posted Date: Monday, October 31, 2022
The U.S. District Court of the Southern District of California considered a RESPA action against a servicer, where the servicer allegedly failed to supplement or rectify a response to a qualified written request after multiple attempts.
In response to the defendant’s motion to dismiss claim, the plaintiff asserted the ‘continuing wrong’ doctrine tolls the limitation period of the statute.
Read on for more details.
|
|
|
Lawsuit alleging ‘dual tracking’ RESPA violation survives motion to dismiss
Posted Date: Monday, October 31, 2022
In a suit out of the Northern District of Ohio, a homeowner claims PHH Mortgage Corp., d/b/a PHH Mortgage Servicing, violated RESPA and the Ohio Residential Mortgage Lending Act, and Clunk, Hoose Co., L.P.A. violated the Fair Debt Collection Practices Act.
The RESPA violation alleged is one for dual tracking, where the lender was pursuing foreclosure while simultaneously working with the borrower to mitigate said action.
For more details, read on.
|
|
|
HUD Secretary talks housing affordability, equity with AARP
Posted Date: Monday, October 31, 2022
U.S. Housing and Urban Development (HUD) Secretary Marcia Fudge delivered a keynote speech at the American Association of Retired Persons’ (AARP) Livable Communities Housing Workshop.
The discussion was moderated by Rosanna Márquez, former Midwest regional administrator for HUD and current AARP board member. The two discussed HUD’s plan to advance housing for all ages, the affordability crisis and how to overcome local challenges to building new developments.
For more about their discussion, read on.
|
|
|
FHFA report shows drop in forbearance plans, borrowers on payment deferrals
Posted Date: Monday, October 31, 2022
The Federal Housing Finance Agency’s (FHFA) foreclosure prevention, refinance and federal property manager report for July 2022 showed a decrease month-over month in the number of forbearance plans initiated and in the number of borrowers who received payment deferrals after completing a COVID-19 related forbearance plan.
July also saw less refinance activity than June, as borrowers found greater monthly affordability in 30-year fixed rate mortgages than in the increased interest rate savings of 15-year fixed rate ones.
Read on for more details.
|
|
|
HUD invests $5M in housing, infrastructure in disadvantaged communities
Posted Date: Monday, October 31, 2022
Through the Thriving Communities Technical Assistance program, the U.S. Department of Housing and Urban Development (HUD) is offering $5 million to help strengthen local communities’ ability to “align transformational infrastructure projects funded by the bipartisan infrastructure law with other crucial investments, such as affordable housing.”
The U.S. Department of Transportation and Environmental Protection Agency are also providing technical assistance under the same program.
Read on for more details on HUD’s plans for the funding.
|
|
|
FHA proposes plan to adjust manufactured home loan limits
Posted Date: Monday, October 31, 2022
The Federal Housing Administration has issued a proposed rule related to adjusting the limits on loans that finance manufactured homes titled as personal property.
“Adjusting loan limits to current market conditions will make Title I a much more useful source of affordable loan financing for manufactured homes,” Federal Housing Commissioner Julia Gordon said.
Read on for more details.
|
|
|
| Monthly Newsletter |
|
Cover Story:
|
|