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RESPA, the holidays, and you: Experts discuss compliant gift-giving practices
Posted Date: Thursday, October 31, 2024
Ho-ho-hold off on distributing your holiday gifts to colleagues and the companies you do business with until you check out RESPA News’ tips on RESPA-compliant holiday gift-giving.
We asked two experts to take a look at gift-giving scenarios and let us know if they would be appropriate under the act.
Read on for more details.
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Title company to pay $500K to settle DC OAG kickback allegations
Posted Date: Thursday, October 24, 2024
This newest settlement to resolve allegations of an illicit kickback scheme requires the targeted title company to pay $500,000.
The company denied that its arrangements were in violation of district consumer protection laws, stating the time and cost of litigating the matter as the main reason for its decision to settle.
Read on for more details.
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AGs support HUD in case challenging discriminatory effects rule
Posted Date: Monday, October 21, 2024
Nineteen state attorneys general joined in filing an amicus brief with the U.S. Court of Appeals for the Seventh Circuit, requesting the presiding judge affirm the lower court’s finding that insurers and other parties are liable under the Fair Housing Act for housing practices that may have a discriminatory effect on persons in protected classes, regardless of whether the insurer had discriminatory intentions.
“Having insurance is an essential part of owning a home,” Maryland Attorney General Anthony Brown said. “This lawsuit will help ensure that the insurance industry does not reinforce the harmful history of housing discrimination.”
Read on for more details.
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Third-party vendor snafu results in RESPA headache for mortgage servicer
Posted Date: Monday, September 30, 2024
Alleged typographical errors made by a third-party vendor on a loan modification caused issues for the servicer and lender when they attempted to foreclose on the property, sparking a breach of contract claim and allegations of RESPA violations.
The servicer and lender argued the modification was not valid or enforceable because it contained incorrected financial provisions.
Read on for more details.
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Class action against Newrez filed over servicer ‘pay-to-pay’ fee
Posted Date: Friday, October 4, 2024
A complaint has been filed in a federal district court in Texas against Newrez, alleging a servicer it acquired earlier this year overcharged borrowers for processing their mortgage payments over the phone.
This is just the most recent case alleging servicers are profiting over marked up processing and transaction fees.
Read on for more details.
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Borrower attempts to pay mortgage with silver dollar, brings RESPA complaint against servicer
Posted Date: Friday, October 4, 2024
A RESPA claim was brought by a borrower who attempted to pay his mortgage in full with a single silver dollar, failed to remit any payments and refused to sign a replacement note when the lender informed him the original had been inadvertently lost or destroyed.
The court considered both parties’ motions for summary judgment.
Read on for more details.
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Judge rules on whether ‘junk fee’ case against Nationstar continues
Posted Date: Thursday, October 10, 2024
A U.S. District Court judge in Washington considered Nationstar Mortgage’s motion for judgment on the pleadings in a case where the servicer and Freddie Mac are accused of illegally charging fees for mortgage loan payoff statements.
The Consumer Financial Protection Bureau and the Justice Department filed an amicus brief earlier this year requesting the court to find that the plaintiffs had adequately stated a claim under the Fair Debt Collection Practices Act.
Read on for more details and access to the full court opinion.
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Bill regulating AI discrimination, bias introduced in Senate
Posted Date: Monday, September 30, 2024
Sen. Edward Markey (D-Mass.) introduced a bill aimed at regulating artificial intelligence (AI), which could have major implications for mortgage lenders using automated tools in their credit decisions.
Read on for more details.
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NCRC sounds alarm on investors disrupting housing market
Posted Date: Thursday, October 10, 2024
The National Community Reinvestment Coalition found 2023’s mortgage market was an “unprecedented perfect storm,” with high housing values attracting investors looking for expensive assets and rental revenue.
Key takeaways related to how lending terms are influencing efforts to close the racial wealth gap and the impact of investors buying up single-family properties.
Read on for more details.
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Redlining suit against Townstone Financial ends in settlement
Posted Date: Friday, November 1, 2024
A LinkedIn post from counsel revealed Townstone Financial, a mortgage broker located in Chicago, and the Consumer Financial Protection Bureau have entered into a settlement to resolve allegations of redlining and violations of the Equal Credit Opportunity Act.
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Scammer poses as Navy Federal employee, victim seeks to invalidate loan
Posted Date: Thursday, October 31, 2024
A federal court in the eastern district of Pennsylvania considered a consumer’s plea to invalidate a fraudulent loan taken out under her name by a scammer posing as a Navy Federal Credit Union employee.
Navy Federal, while sympathetic toward her plight, moved to dismiss the action, stating her claim lies with the scammer, not the lender.
Read on for more details.
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Reg X reform, cybersecurity top-of-mind issues going into 2025
Posted Date: Thursday, October 31, 2024
Hladik Onorato & Federman, LLP Partner Stephen Hladik shared his insights on what the regulatory landscape is going to look like for the mortgage industry in the coming months, and how to handle challenges as they come.
Read on for more details.
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Rural, urban communities offered funds to support housing
Posted Date: Thursday, October 31, 2024
The U.S. Department of Housing and Urban Development is making $12 million available to expand access to affordable housing and homeownership opportunities, specifically to those living in rural and urban communities.
Read on for more details.
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Treasury awards $246M to promote affordable housing, community facilities
Posted Date: Thursday, October 31, 2024
The U.S. Department of the Treasury awarded $246.4 million designated for affordable housing and community development to almost 50 organizations.
The funds were awarded via the Treasury’s Community Development Financial Institutions Fund.
Read on for more details.
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Borrowers attempt TILA, RESPA claim against PHH
Posted Date: Monday, October 28, 2024
Borrowers proceeding pro se attempted to bring claims under several statutes, including the Truth in Lending Act and RESPA, alleging the servicer on one of their mortgages failed to waive portions of a deferred principal balance in connection with a loan modification.
PHH Mortgage, the servicer in question, maintained that the waivers were applied, even if they were not applied on the original dates listed in the agreement.
Read on for more details.
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RESPA kickback reform needed, MBA argues
Posted Date: Monday, October 28, 2024
To mark 50 years since RESPA’s enactment, the Mortgage Bankers Association (MBA) released a white paper on what reform is needed to modernize its provisions and align the law with current market practices.
“By enacting RESPA, Congress expressed an intent to outlaw kickbacks or referral fees that unnecessarily increase the costs of settlement services,” MBA stated in the report. “There is virtually no empirical evidence that RESPA lowers costs post-enactment. Subsequent reforms to the mortgage industry regulatory environment following enactment of the [Dodd-Frank Act] and its implementing regulations have also called into question the purpose and necessity of RESPA Section 8.”
Read on for more details.
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Rocket Mortgage, Solidifi, others hit with discrimination complaint
Posted Date: Monday, October 28, 2024
The Justice Department (DOJ) filed a complaint alleging Rocket Mortgage, Solidifi, Maverick Appraisal Group Inc., and an individual appraiser discriminated against a Black homeowner when they undervalued her home.
The DOJ further accused Rocket of retaliating against the homeowner and interfering with her rights.
Read on for more details.
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Existing home sales performance down in September
Posted Date: Monday, October 28, 2024
Continuing the trend from last month, September’s existing home sales continued to decline, possibly because of consumers hesitating about making such a large purchase before the upcoming election, according to the National Association of Realtors.
Three out of the four major regions reported sales decline, both month-over-month as well as year-over-year.
Read on for more details.
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Lenders identify opportunities to standardize closing costs
Posted Date: Monday, October 28, 2024
Fannie Mae’s Mortgage Lender Sentiment Survey asked lenders about opportunities to simplify and standardize closing costs and where they believed costs could be reduced.
According to respondents, fees related to borrower credit reports and verification of income, employment, and assets, are the biggest opportunity to reduce overall costs when buying a home.
Read on for more details.
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FHFA NPRM focuses on Federal Home Loan Bank governance
Posted Date: Monday, October 28, 2024
The Federal Housing Finance Agency’s notice of proposed rulemaking (NPRM) suggested updates and clarification on the regulatory requirements related to the governance of the Federal Home Loan Banks.
Interested parties have 90 days after the NPRM is published in the Federal Register to provide feedback.
Read on for more details.
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Another title company settles kickback allegations with DC AG
Posted Date: Thursday, October 24, 2024
Universal Title, a title company headquartered in Alexandria, Va., settled allegations of illicit kickback schemes brought by the Washington, D.C., Office of the Attorney General. The company agreed to pay $500,000 to resolve the issue.
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TILA claim brought over second mortgage after borrower believed loan charged off
Posted Date: Monday, October 21, 2024
A borrower brought claims under the Truth in Lending Act, the Fair Debt Collection Practices Act, and state law over a mortgage servicer attempting to foreclose on her home despite the fact the servicer had not sent a statement about the loan since 2014.
The borrower believed the loan had been closed after a 2015 foreclosure action had been placed “on hold” and her follow-up attempts to learn the status of her loan went ignored.
Read on for more details.
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FHLBank affordable housing, community development support increases significantly
Posted Date: Monday, October 21, 2024
The Federal Home Loan Banks (FHLBanks) significantly increased their support of affordable housing and community development initiatives, according to a report issued by the Federal Housing Finance Agency.
Of note, earnings improvement across the FHLBank system in 2023 corresponded with greater commitments to lower-income communities, resulting in assistance to almost 65,000 low- or moderate-income households and support for more than 400 targeted economic development projects.
Read on for more details.
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Housing affordability still stretched, despite projected home price deceleration
Posted Date: Monday, October 21, 2024
Fannie Mae’s Economic and Strategic Research Group stated the economy “appears to be on firmer footing” than previously thought, according to the group’s October commentary.
While economic growth is still expected to slow from the pace recorded in 2023, the extent to which it is supposed to slow is decreasing.
Read on for more details.
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Freddie Mac chief risk officer discusses how GSE manages risk
Posted Date: Monday, October 21, 2024
Today’s housing market is influenced by several factors, and effectively managing risk is vital in maintaining a healthy housing finance industry.
Freddie Mac’s Executive Vice President and Chief Risk Officer Anil Hinduja discussed how the government-sponsored enterprise keeps a pulse on the ongoing volatility of the market, legal and regulatory changes, and increasing frequency and severity of natural disasters and cybersecurity events.
Read on for more details.
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HUD announces appointments to Housing Counseling Federal Advisory Committee
Posted Date: Monday, October 21, 2024
The U.S. Department of Housing and Urban Development (HUD) announced the appointment of 11 members to its Housing Counseling Federal Advisory Committee.
The committee serves a critical advisory role to HUD by shaping the direction of its Housing Counseling Program and providing guidance on how to better serve prospective buyers, homeowners and renters.
Read on for more details.
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Lender appeals court’s decision over foreclosure action
Posted Date: Thursday, October 17, 2024
Bank of America attempted to appeal a court’s finding that its foreclosure on a borrower’s home was in time-bared by the statute of limitations.
The bank based its argument on the fact it was an assignee of the U.S. Department of Housing and Urban Development’s Federal Housing Administration and should enjoy the same immunity as the agency from the state’s statute of limitations.
Read on for more details.
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Fairway ‘disappointed’ in redlining settlement outcome
Posted Date: Thursday, October 17, 2024
After a multi-agency investigation into Fairway Independent Mortgage Corp.’s lending practices and potential violations of the Equal Credit Opportunity Act ended in a settlement this week, the lender expressed its disappointment in the outcome.
RESPA News reached out to an industry expert for their insight into why the October Research community should be paying attention.
Read on for more details.
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How affordable housing issues may impact presidential election
Posted Date: Thursday, October 17, 2024
Surveys of both renters and homeowners indicated that for many, affordable housing is one of the top three issues influencing which presidential candidate they will support come Nov. 5.
According to the data, more than 25 percent of overall respondents cited housing affordability as a priority, with a notable difference between renters and homeowners.
Read on for more details.
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FinCEN renews order related to title company reporting requirements
Posted Date: Thursday, October 17, 2024
The Financial Crimes Enforcement Network (FinCEN), an entity within the U.S. Treasury, renewed its geographic targeting orders (GTOs) requiring title insurance companies to identify the natural persons behind shell companies used in non-financed purchases of residential real estate.
The terms of the GTOs were effective Oct. 16 and will end on April 14, 2025. The GTOs continue to provide valuable data on the purchase of residential real estate by persons possibly involved in various illicit enterprises, FinCEN stated. Renewing the GTOs will further assist in tracking illicit funds and other criminal or illicit activity, as well as continuing to inform FinCEN’s regulatory efforts in this sector.
Read on for more details.
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Waters asks for support for housing package after GAO report
Posted Date: Thursday, October 17, 2024
After the Government Accountability Office (GAO) released a report on the rising state of homelessness amongst older adults, U.S. Rep Maxine Waters (D-Calif.) called for support for her housing package, a series of bills meant to address the affordable housing and homelessness crises.
According to the GAO findings, an estimated 138,000 older adults (ages 55 and older) experienced homelessness on a single night in 2023, representing 21 percent of the overall homeless population. Interviews with housing service providers and other stakeholders indicated difficulties in finding affordable housing with accessibility features, and harder-to-find services such as home health care once in housing.
Read on for more details.
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Fairway settles redlining claims with agencies
Posted Date: Tuesday, October 15, 2024
The Consumer Financial Protection Bureau (CFPB) and the Justice Department (DOJ) filed a complaint against and a proposed settlement with Fairway Independent Mortgage Corp. related to allegations the lender illegally redlined Black neighborhoods in Birmingham, Ala., via its marketing and sales actions.
Read on for more details.
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NAR petitions SCOTUS to opine on DOJ investigation
Posted Date: Monday, October 14, 2024
True to its word, the National Association of Realtors submitted its petition for writ of certiorari to the U.S. Supreme Court, asking the highest court in the land to weigh in on whether the Justice Department should be allowed to reopen its investigation into the organization’s clear cooperation and other policies.
The question appearing in the petition was, “Whether the United States enjoys greater rights than a private party to withdraw from a contract based solely on its determination that it no longer wishes to be bound by that contract.”
Read on for more details.
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Massachusetts AG, mortgage servicer agree to lay zombie mortgage issue to rest
Posted Date: Monday, October 14, 2024
The Massachusetts Attorney General reached a settlement with a mortgage servicer over allegations of violating state consumer protection laws. Franklin Credit Management Corp. was accused of improperly attempting to collect debts related to second-lien mortgages.
These mortgages fall into a specific category – typically originated before the Great Recession, the mortgagors will experience years of silence from mortgage servicers responsible for these debts, only for collections to resume or foreclosure proceedings to start suddenly and sometimes without warning.
Read on for more details.
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Borrower brings TILA case over ‘nuisance dog’
Posted Date: Monday, October 14, 2024
A borrower who purchased her New Mexico home this summer brought an action under civil rights law and the Truth in Lending Act after discovering the neighbor had a large “nuisance” dog, which the borrower claimed was intentionally kept under wraps until after the rescission period on her purchase had lapsed.
She asserted had she known about the animal prior to purchasing, she would not have entered into the sale, and she requested the court rescind the transaction.
Read on for more details.
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DOJ enters into first redlining settlement with a credit union
Posted Date: Monday, October 14, 2024
For the first time in Justice Department history, the agency resolved allegations of redlining in predominantly Black and Hispanic neighborhoods against a credit union.
The Philadelphia-located lender will invest $6.52 million to increase credit opportunities for communities of color in and around its service area.
Read on for more details.
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Funding available to support NC residents after Hurricane Helene
Posted Date: Monday, October 14, 2024
The U.S. Department of Housing and Urban Development is offering $3 million though its Rapid Unsheltered Survivor Housing program to offer aid to North Carolina residents who are experiencing or at risk of homelessness after Hurricane Helene.
Read on for more details.
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Manufactured housing added to market price index
Posted Date: Monday, October 14, 2024
The Federal Housing Finance Agency updated its house price index to include data related to manufactured homes for the first time.
Read on for more details.
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RESPA class action brought by Virgin Island borrowers over charges for lapsed insurance coverage
Posted Date: Thursday, October 10, 2024
A class of borrowers in the U.S. Virgin Islands brought suit against Bank of Nova Scotia as their lender and Scotiabank de Puerto Rico, Inc., as the loans’ servicer alleging violations of RESPA because the servicer continued to charge the borrowers for forced-place insurance that had lapsed.
Borrowers only discovered after Hurricanes Irma and Maria that they were without hazard coverage.
Read on for more details.
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Agency roundtable focuses on future housing policy
Posted Date: Thursday, October 10, 2024
The U.S. Department of Housing and Urban Development’s (HUD) roundtable on defining the next generation of housing policy considered issues in housing supply, rental assistance, homelessness, renter protections, and homeownership facing the country today.
HUD’s top leaders facilitated these sessions, and academics and researchers from leading universities and research centers provided key insights, the agency stated in a release.
Read on for more details.
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Aduvo launches 'set-it-and-forget-it' mortgage marketing platform
Posted Date: Thursday, October 10, 2024
Aduvo, a new platform designed to simplify the marketing and sales efforts of mortgage professionals, has officially launched.
Created in response to existing marketing systems that are time-consuming to adopt, Aduvo offers loan officers “set-it-and-forget-it” marketing automation that turns hidden opportunities in their contacts into closed loans.
Read on for more details.
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Voxtur promotes new CEO
Posted Date: Wednesday, October 9, 2024
Voxtur Analytics Corp. has named Ryan Marshall as CEO. As the new CEO, Marshall brings a deep understanding of the company’s operations, market dynamics, and growth potential.
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Relief available for those impacted by Hurricane Helene
Posted Date: Friday, October 4, 2024
In the aftermath of Hurricane Helene, federal and state regulators are offering guidance and regulatory flexibility to help financial institutions in their recovery efforts.
Their approach is based on longstanding interagency guidance for supporting banks and credit unions during major disasters.
Read on for more details.
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Myth-debunking survey reveals economic strength of Hispanic households
Posted Date: Friday, October 4, 2024
The Hispanic Wealth Project (HWP) and the National Association of Hispanic Real Estate Professionals identified the key areas that can help to reduce the proportional wealth gap between Hispanic and non-Hispanic white households by 50 percent by 2034.
The two organizations stated the four factors that contributed to HWP hitting its goal to triple Hispanic household wealth by 2024 two years ahead of schedule may also address this new objective.
Read on for more details.
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Feedback requested on cyber incident reporting requirements
Posted Date: Friday, October 4, 2024
A mortgagee letter on reporting requirements related to cyber security incidents was posted for participant feedback on the Federal Housing Administration’s Single-Family Housing Drafting Table.
Read on for more details.
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FHFA re-proposes rule on Suspended Counterparty Program
Posted Date: Friday, October 4, 2024
The Federal Housing Finance Agency has revised its proposal to amend the Suspended Counterparty Program after considering feedback from interested stakeholders requesting clarification and expressing concerns that the rule as originally proposed was overly broad.
Read on for more details.
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RESPRO bound! – RESPA News will be in D.C. Oct. 7-8
Posted Date: Thursday, October 3, 2024
RESPA News will be at the National Harbor in Washington, D.C., for RESPRO’s COMPLIANCE24. Compliance is our publication’s bread and butter, and our team is looking forward to bringing you the highlights that will help the October Research community stay ahead of the competition.
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RESPA News’ NAR Settlement Resource Center – what you need to know
Posted Date: Thursday, October 3, 2024
A lot has happened in the real estate compliance arena the last 12 months – some would argue more than in the last 12 years. And like everything these days, there’s more to it than what can be relayed in an “elevator” pitch.
One of the biggest changes has been the discontinuation of the National Association of Realtors’ (NAR) requirement that buyers’ agent compensation be listed on the multiple listing services (MLSs). What was par for the course has now been altered, and the past few months have been filled with questions while brokers and real estate agents adjust to a new normal.
How did we get here, and what was the problem? The RESPA News’ NAR Settlement Guide will provide you with the context behind this change, as well as insight from industry experts on what these changes mean for your business.
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Millions in settlements, subsidies result from Justice Department combating redlining efforts
Posted Date: Thursday, October 3, 2024
To mark the third anniversary of the Combating Redlining Initiative, Justice Department (DOJ) leadership discussed the impact the program has had and how it holds financial institutions accountable for practices restricting economic opportunity in communities of color.
The Combating Redline Initiative is just the DOJ’s most recent push to enforce fair housing laws. Its meeting with Black business owners in Washington, D.C., during a walking tour along the city’s U Street Corridor highlighted “how access to credit and loan services can be transformative in providing access to economic opportunity and generational wealth for Black communities,” DOJ Assistant Attorney General Kristen Clarke said.
Read on for more details.
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Fairway Mortgage promotes two new execs
Posted Date: Thursday, October 3, 2024
Fairway Independent Mortgage Corp. announced the promotions of Haley Parker and Brittny Hovland within its corporate executive ranks.
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Survey says: Home values and housing quality continue to improve
Posted Date: Monday, September 30, 2024
The U.S. Department of Housing and Urban Development (HUD) and the Census Bureau’s American Housing Survey (AHS) indicated homeowners are making energy efficient improvements, which increases home values, and notable improvements in housing quality.
This year marks the 50th anniversary of the American Housing Survey (AHS), the largest regular national housing sample survey in the country and tracks housing units over time.
Read on for more details.
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Affordability still restricts housing market, despite mortgage rate decline
Posted Date: Monday, September 30, 2024
Fannie Mae’s Economic and Strategic Research (ESR) Group stated that despite a significant decline in mortgage rates and an increase in housing supply, its projection for economic growth over the next few months is that it will be “slow.”
Fannie Mae Senior Vice President and Chief Economist Doug Duncan said borrowers may still be biding their time before jumping into the housing market.
Read on for more details.
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Pending home sales experience August increase
Posted Date: Monday, September 30, 2024
August’s pending home sales increased month-over-month.
The National Association of Realtors’ chief economist said the change indicated improvement in housing affordability.
Read on for more details.
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Congresswoman Waters reintroduces act to support MDIs and CDFIs
Posted Date: Monday, September 30, 2024
Congresswoman Maxine Waters (D-Calif.) announced the reintroduction of H.R. 9767, the “Promoting and Advancing Communities of Color Through Inclusive Lending Act” to support minority depository institutions (MDIs) and community development financial institutions (CDFIs).
Read on for more details.
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