News By Edition

It’s been four years since the new mortgage disclosure rules went into effect, and most major TRID problems have been resolved.

But one big issue remains: the Consumer Financial Protection Bureau’s (CFPB) low level of priority given to providing formal guidance to the industry about the TILA-RESPA Integrated Disclosure Rule.

Read on for more of what Richard Horn, partner at Garris Horn PLLC and the former CFPB senior official who led the original TRID rule, told RESPA News.

The Trump administration’s plans to change housing finance in America would undermine the Federal Housing Administration’s (FHA’s) ability to create affordable homeownership opportunities, according to House Financial Services Committee Chairwoman Maxine Waters.

Federal Housing Finance Agency (FHFA) Director Mark Calabria spoke at a committee hearing, which also was attended by Treasury Secretary Steven Mnuchin and Housing and Urban Development Secretary Ben Carson.

Read on to see what Calabria had to say.

Industry representatives say generating reports on suspicious activity can be labor intensive, and that financial institutions need institution-specific feedback on whether the reports they submitted were useful.

The Government Accountability Office (GA) recently released a report finding the Financial Crimes Enforcement Network (FinCEN) does not consistently communicate with all supervisory and law enforcement agencies on implementing Bank Secrecy Act/anti-money laundering (BSA/AML) regulations.

Read on for highlights from the GAO’s study.

A Louisiana buyer who alleged payments were not being properly applied to her mortgage loan alleged her servicer failed to respond to a qualified written request (QWR) seeking information as to the accuracy of her account.

The district court found the plaintiff adequately claimed the servicer violated her rights under RESPA. 

Read on for more details from the judge’s opinion, which also ruled on TILA and Fair Debt Collection Practices Act claims.

State regulators are encouraging the industry to integrate state-developed data standards with mortgage loan origination systems to enhance the quality of loan review and examination processes and reduce regulatory burdens.

The Conference of State Bank Supervisors (CSBS) and American Association of Residential Mortgage Regulators (AARMR) want to better address data transfer in e-exams and understand challenges in delivering cleanly mapped data.

Read on for reaction from CSBS and AARMR.

The Government Accountability Office (GAO) has released a new report giving reverse mortgage suggestions for the Federal Housing Administration (FHA), including some recommendations on providing better oversight of its servicers. 

GAO also recommended FHA work with Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger to complete an agreement for sharing the results of CFPB examinations of HECM servicers with FHA. 

Read on for details from the GAO’s study.

A joint study by the American Public Transportation Association (APTA) and the National Association of Realtors (NAR) showed that neighborhoods located within a half-mile of public transit services improved both commercial and residential real estate market values.

“Access to public transportation is an extremely valuable community amenity,” a NAR vice president said.

Read on for more reaction from APTA on the report, which explored seven metropolitan regions that provide access to heavy rail, light rail, commuter rail and bus rapid transit.

Funding and cybersecurity top the concerns for community banks, according to the sixth annual community bank survey conducted by the Conference of State Bank Supervisors (CSBS).

That’s a marked shift from previous years, when regulatory compliance costs were found to be the chief issue for community banks, CSBS officials said.

Read on for more details from the survey, compiled from data from 571 community banks, and CSBS Chairman Bret Afdahl.

The Federal Trade Commission (FTC) has begun mailing thousands of refund checks totaling nearly $2.7 million to consumers who paid an up-front fee to re-sell their unwanted timeshares.

The FTC’s 2016 complaint alleged a Florida company and related defendants bilked at least $15 million from property owners by falsely claiming they had a buyer or renter ready to buy or rent their properties for a specified price.

Read on for more details on the scheme.

The Department of Housing and Urban Development (HUD) has awarded nearly $8.4 million to seven universities and two other research institutions to improve the agency’s and the public's knowledge of housing-related health and safety hazards.

One goal is to develop new methods for identifying and mitigating lead-based paint hazards.

Another program seeks to develop scientific techniques to control other home-health related risks. Read on for details on the grants.

Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger faced accusations of lax enforcement even toward bad actors as she testified this week to give the agency’s semi-annual report to Congress.

Kraninger appeared before the House Financial Services Committee on Wednesday and the Senate Banking Committee on Thursday to discuss the bureau’s mission and defend her actions as director.

Read on for highlights of both hearings, which fulfills Congress’ statutory responsibility to accountability and transparency.

A pair of Maryland buyers alleged their servicer failed to conduct an investigation into conflicting escrow statements and tax overpayments.

The servicer argued there are no viable claims against them because they are not lenders under Maryland statute, and that the claims all stemmed from the alleged violation of the state statute.

Read on for highlights from the judge’s opinion.

Vacation homes are in demand because of increased financial wealth and low mortgage rates, according to a new National Association of Realtors (NAR) study.  

Over the last five years, the median sales price in vacation home counties – in both expensive and inexpensive areas – increased at a higher pace than all existing and new homes sold. 

Read on for details from the report and reaction from NAR Chief Economist Lawrence Yun.

The role of the general counsel has evolved from legal watchdog to pivotal, corporate decision maker, according to a new study by the BarkerGilmore executive search firm.

A steady increase in compensation is the result of this change, the firm said.

Read on for details from the company’s 2019 General Counsel Pay Trends Report, which also showed the disparity between male and female general counsel compensation.

The Federal Housing Administration (FHA) has introduced training materials to help mortgagees and other stakeholders with the implementation of the Condominium Project Approval section of the Single Family Housing Policy Handbook. 

FHA’s new condo project approval requirements became effective Oct. 15. 

Read on for details on FHA’s new pre-recorded webinars that will provide guidance on how to execute the changes required by the Condo Project Approval Final Rule.

John V. Levonick, a mortgage banking and financial services attorney who focuses on regulatory compliance and emerging technology, has joined Ballard Spahr in the firm's New York City office.

Industry fintechs now have a $170 billion total market share. But there are compliance and regulatory challenges in keeping up with all this new technology.

Experts at RESPRO’s fall session recently got together to find some solutions.

Read on to see what panelists from Old Republic National Title Insurance, DHI Mortgage, CalAtlantic Title, Brady & Kosofsky real estate law firm and Pavaso told attendees at the event.

One month after a RESPA lawsuit filed by the Consumer Financial Protection Bureau (CFPB) against Ocwen Financial Corp. was dismissed for being an impermissible “shotgun” pleading, a similar suit against the mortgage servicer by the state of Florida has been partially thrown out.

The Florida Attorney General’s Office and the state’s Office of Financial Regulation (OFR) sued the servicer and its subsidiaries for alleged improper servicing of single-family residential mortgages.

Read on for highlights of the judge’s opinion.

The Consumer Financial Protection Bureau (CFPB) has issued a rule which finalizes certain aspects of its May Notice of Proposed Rulemaking (NPRM) under the Home Mortgage Disclosure Act (HMDA).

 It extends the current temporary threshold for collecting and reporting data about open-end lines of credit under HMDA and clarifies partial exemptions from certain HMDA requirements.

Read on for more details from the CFPB’s final HMDA rule.

The Consumer Financial Protection Bureau (CFPB) is looking for consumer protection experts to join a new taskforce to update federal consumer financial laws.

The Taskforce on Federal Consumer Financial Law will look into the existing legal and regulatory environment facing consumers and financial services providers and recommend ways to improve and strengthen consumer financial laws and regulations.

Read on for more details on how to apply.

The Department of Housing and Urban Development (HUD) has approved a settlement with housing providers in the greater Los Angeles area.

The settlement resolves allegations that they refused to allow residents with disabilities to keep assistance animals.

Read on for details of what the providers agreed to do to resolve the complaint, as well as reaction from HUD Assistant Secretary for Fair Housing and Equal Opportunity Anna Maria Farias.

The Department of Housing and Urban Development (HUD) has made a combined $112 million available to expand the supply of permanent affordable housing for very low-income persons with disabilities.

For the first time in nine years, funding is available for both components of the Section 811 Program - traditional Section 811 Supportive Housing for Persons with Disabilities and Section 811 Project Rental Assistance.

Read on for more details on HUD’s plan.

The House of Representatives has asked the Supreme Court to deny a petition for a writ of certiorari filed by a law firm appealing a civil investigative demand request.

However, if the court grants review of Seila Law’s case against the Consumer Financial Protection Bureau, the House is requesting to argue for the bureau since the Department of Justice has chosen not to defend the constitutionality of the agency.

Read on for the latest in the court saga.

With the renewed popularity in marketing agreements and other strategic alliances between real estate service providers, October Research, LLC put together a two-part webinar series with two industry experts to shed light on whether a certain business opportunity is legal.

Mayer Brown LLC partners Phil Schulman and Holly Spencer Bunting offered insight on affiliated business arrangements in Part I of the webinar, “Strategic Alliances for Today’s Title Industry.”

Read on for information from the webinar and how you can register for Part 2.

Federal Housing Commissioner (FHA) Brian Montgomery has been recommended to officially become the second most senior official at the Department of Housing and Urban Development (HUD).

President Donald Trump has nominated Montgomery for deputy secretary – the position the FHA commissioner has held on an interim basis since January.

Read on for reaction from the National Association of Realtors (NAR), Mortgage Bankers Association (MBA) and the U.S. Mortgage Insurers (USMI).

The Consumer Financial Protection Bureau has issued guidance on Economic Growth, Regulatory Relief, and Consumer Protection Act amendments to the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE) Act.

The four new questions published pertain to compliance with the SAFE Act as of Nov. 24, the effective date of the 2018 amendments to the statute.

Read on for details on the FAQs, including the bureau’s advice on state transitional license availability.

Consumers have more choices than ever for their mortgage business.

To help stand apart from the competition, a growing number of lenders are turning to Robotic Process Automation (RPA) to increase efficiency and reduce costs, according to a new study by mortgage advisory firm Stratmor Group. 

Read on for details on why your company may want to consider RPA, and what challenges lenders face when deploying the technology.

Global law firm Goodwin announced that 33 lawyers have been elected to the firm’s partnership, effective immediately.

A Mississippi payday loan company is arguing the Consumer Financial Protection Bureau’s structure violates the constitutional separation of powers, and the only solutions are to set aside all actions or abolish the bureau entirely.

All American Check Cashing recently filed a petition for a writ of certiorari with the Supreme Court, stating it is urgent justices decide not only whether the structure of the CFPB is constitutional, but how to fix that alleged structural constitutional violation.

Read on for highlights of All American’s petition.

For the first time in 10 years, the Office of the Ombudsman has released a public report on its activities as an independent, neutral and confidential liaison between the Federal Deposit Insurance Corp. and its stakeholders.

The report found that regulatory issues – including TRID – were the top industry concern.

Read on to find out what other regulatory complaints stakeholders cited in the study, with stemmed from outreach visits to stakeholders.

The Consumer Financial Protection Bureau has filed suit against brokers accused of deceptively offering high-interest credit to veterans.

The companies misrepresented to consumers that the contracts the businesses broker are valid and enforceable when, in fact, the contracts are void under federal and state law.

Read on to find out how else the companies allegedly violated the Consumer Financial Protection Act’s prohibition against deceptive acts or practices.

Consumer Financial Protection Bureau Director (CFPB) Kathy Kraninger has appointed new members – and increased the sizes of – the Consumer Advisory Board (CAB).

The new CAB will consist of 12 members, up from the nine members that were appointed under former CFPB acting director Mick Mulvaney. The bureau also has increased the sizes of its other advisory councils.

Read on to see more details on the new members.

A Hamburg, N.Y., landlord refused to rent a one-bedroom apartment to a man who has part-time custody of a teenage son, according to a charge by the Department of Housing and Urban Development (HUD).

HUD’s charge stated the owner of a mixed-use property with two apartments was heard on a recorded call saying he did not want any children living at the property.

Read on for details from HUD.

The Department of Housing and Urban Development (HUD) has awarded $42.8 million in housing counseling grants to help 1 million Americans keep their current homes or avoid foreclosure.

Nearly half of the state and local counseling agencies selected received preference because they will provide counseling to individuals and families within designated Opportunity Zones.

Read on for more information on the grants, plus reaction from HUD Secretary Ben Carson.

Shareholders of Fannie Mae and Freddie Mac who are suing over the government’s new worth sweep of profits by the agencies are claiming their lawsuit is the best case to decide the constitutionality of single-director agencies like the Consumer Financial Protection Bureau (CFPB).

The shareholders have filed for a writ of certiorari with the Supreme Court to decide the constitutionality of a single director independent agency and provide relief to the shareholders.

Read on to learn why the shareholders say Collins v. Mnuchin – rather than Seila Law – is the case the Supreme Court should choose to decide the constitutionality of a single director with for-cause provision.

The Department of Justice (DOJ) has filed a complaint under the False Claims Act alleging a Federal Housing Administration (FHA) loan was improperly obtained for a Texas hospital project. 

Department of Housing and Urban Development (HUD) officials said the case should serve as a cautionary notice to both borrowers and mortgage industry professionals. 

Read on for details about the complaint, plus reaction from HUD and the DOJ.

The House of Representatives recently passed legislation that will make it easier for banks to work with cannabis companies in compliance with state law.

The Secure and Fair Enforcement Banking Act (SAFE) would make reforms to ensure that state-authorized and regulated cannabis businesses are not forced to operate with cash only.

Read on for reaction from the National Association of Realtors (NAR) and House Financial Services Committee Chairwoman Maxine Waters.

Examiners found problems with creditors disclosing inaccurate annual percentage rates (APR) and the total annual loan cost (TALC) in reverse mortgage transactions, according to the Consumer Financial Protection Bureau’s (CFPB) Supervisory Highlights.

The report covers bureau supervision activities generally completed between December 2018 and March 2019, and includes examination findings in mortgage origination.

Read on for details from the report, which is compiled to show how the bureau examines institutions for compliance.

President Donald Trump recently signed H.R. 4378 into law, a stopgap appropriations bill which extends federal funding to programs through Nov. 21. 

Among the programs which received extended funding was the National Flood Insurance Program (NFIP). 

Read on for reaction from National Association of Realtors President John Smaby about the extension of the NFIP.

The Consumer Financial Protection Bureau (CFPB) has a new fair lending associate director and four other additions to its executive team.

Bryan Schneider will serve as associate director in the Supervision, Enforcement and Fair Lending Division. He joins the bureau after having served as the secretary of the Illinois Department of Financial and Professional Regulation, a cabinet-level agency.

Read on to see who the other four new executive team members are.

The Consumer Financial Protection Bureau (CFPB) has issued a request for information (RFI) seeking ideas on new ways to advance regulatory innovation and compliance.

The bureau is exploring using the same collaborative innovation model that the United Kingdom’s Financial Conduct Authority has had success with, according to a recent notice in the Federal Register.

Read on for more information on Tech Sprints – small teams of regulators, financial institutions and industry experts who work together to develop solutions to clearly-identified challenges using modern technologies and approaches.

A new National Association of Realtors (NAR) Housing Opportunities and Market Experience (HOME) survey shows that more than half of polled Americans are optimistic about the housing market.

In the third quarter of 2019, 63 percent of people said they believe that now is a good time for a home purchase, with 34 percent of those respondents saying they believe that strongly.

Read on for reaction from NAR Chief Economist Lawrence Yun.

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against the largest debt collection company in the multi-unit housing industry for alleged violations of the Fair Credit Reporting Act, Regulation V and the Consumer Financial Protection Act.

Defendant Maryland-based Fair Collections & Outsourcing, Inc., collects debt on behalf of large apartment complexes, including student and military housing, and assisted living facilities.

Read on for details from the CFPB’s suit.

Eight months after arguing the Consumer Financial Protection Bureau’s (CFPB) structure is constitutional, the Department of Justice (DOJ) has reversed its stance in a case brought by a law firm appealing a civil investigative demand (CID) request.

The fact that CFPB Director Kathy Kraninger agrees with the DOJ’s new position could prompt the Supreme Court to take up the case and decide once and for all whether the bureau – and every regulation enacted by it – is unlawful.

Read on for highlights of the DOJ’s latest brief and Kraninger’s letter to House Majority Leader Mitch McConnell.

Consumer Financial Protection Bureau Director Kathy Kraninger has denied Bank of America Corp.’s request to set aside or modify a civil investigative demand as to its sales practices.

The CFPB served the bank with a CID in March as part of an investigation into whether depository institutions or others had engaged in unlawful acts or practices in connection with unauthorized consumer bank, credit card and other accounts.

Read on for highlights of Kraninger’s decision.

The Department of Housing and Urban Development (HUD) has charged housing professionals based in New York, Pennsylvania and Georgia with discrimination for failing to design and construct a 40-unit condominium development in Brooklyn in accordance with the accessibility requirements of the Fair Housing Act.

HUD initiated a complaint in 2015 after staff found the site lacked accessible routes and entrances into and through the common areas and units accessible kitchens and accessible bathrooms.

Read on for more, as well as reaction from HUD’s general counsel and assistant secretary for Fair Housing and Equal Opportunity.

The Consumer Financial Protection Bureau (CFPB) is making it easier for members of the public to get answers to questions by enhancing the agency’s Consumer Complaint Database.

The CFPB said improvements to the controversial database include modified disclaimers to provide better context to the published data, and integrating financial information and resources into the complaint process.

Read on for comments from CFPB Director Kathy Kranginer.

The Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) will host a public workshop in December to discuss issues affecting the accuracy of both traditional credit reports and employment and tenant background screening reports. 

The CFPB said the workshop seeks to bring together industry representatives, consumer advocates and regulators for a wide-ranging public discussion on multiple issues impacting the accuracy of consumer reports.

Read on for more details about the event.

Expanding on its commitment to redevelop severely distressed assisted housing and revitalize neighborhoods, the Department of Housing and Urban Development (HUD) has awarded more than $5 million to communities in four states.

Funded through HUD’s Choice Neighborhoods program, the grants will help local leaders craft comprehensive, homegrown transformation plans.

Read on for more details from HUD.