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News By Edition
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RESPA News Monthly Edition
RESPA News Monthly
July 2023
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CFPB Director Chopra delivers semi-annual report
Posted Date: Friday, June 30, 2023
In separate sessions over two days, Consumer Financial Protection Bureau Director Rohit Chopra testified in front of the Senate Committee on Banking, Housing, and Urban Affairs and the House Financial Services Committee in the agency’s semi-annual report to Congress.
Read on for more details.
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Plaintiffs in NAR antitrust case appeal settlement approval
Posted Date: Monday, June 10, 2024
Some of the plaintiffs listed as proposed class members in the case against the National Association of Realtors (NAR) and major real estate brokers across the U.S. have filed a notice of appeal, stating concerns the approved settlements could negatively impact separate claims.
One plaintiff, James Mullis, made a similar argument to the one made by Batton plaintiffs’ motion for injunction, which the court overruled when it approved the settlements for RE/MAX, Keller Williams, Anywhere, and NAR.
Read on to learn what the party is concerned about.
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NAHREP appoints new chair to board of governors
Posted Date: Wednesday, June 28, 2023
The National Association of Hispanic Real Estate Professionals appointed the senior vice president and national director of multicultural community lending at PrimeLending, a PlainsCapital company, as chair of its 2023 corporate board of governors.
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FDIC, HUD, OCC host discussion on expanding homeownership
Posted Date: Monday, June 26, 2023
The Federal Deposit Insurance Corp., the U.S. Department of Housing and Urban Development, and the Office of the Comptroller of the Currency hosted a panel of experts who discussed how to expand homeownership resources to underserved communities.
The speakers focused on homeownership products and programs for community banks and community organizations to promote homeownership.
Read on for more details.
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Middle Class Borrower Protection Act passes in House
Posted Date: Monday, June 26, 2023
Before the 230-189 vote in favor of the Middle Class Borrower Protection Act, U.S. Rep. Patrick McHenry (R-N.C.) addressed the House of Representatives on why he supported the bill, stating it would repeal an upfront fee pricing structure he claimed punished borrowers with higher credit scores by increasing their costs on certain lending products.
The legislation, introduced by Rep. Warren Davidson (R-Ohio), calls for the reversal of changes made to the Federal Housing Finance Agency’s loan level pricing adjustment structure, which eliminated some fees for creditworthy borrowers by increasing fees on other products, like vacation or secondary homes.
Read on for more details.
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AMI adjustment expands mortgage relief reach
Posted Date: Monday, June 26, 2023
The U.S. Department of Housing and Urban Development updated the area median income levels, a key metric in determining whether a consumer is eligible for assistance with home financing.
According to the California Mortgage Relief Program, this means more homeowners in that state are now eligible for grants of up to $80,000 in relief from financial hardships brought on by the pandemic.
Read on for more details.
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May enjoys increase in existing home sales
Posted Date: Monday, June 26, 2023
May saw a small increase in the rate of existing home sales, according to the National Association of Realtors.
Regionally, the nation was split as to whether it experienced month-over-month gains.
Read on for more details.
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60+ day delinquency rate lowest since pandemic
Posted Date: Monday, June 26, 2023
Fannie Mae and Freddie Mac completed over 58,000 foreclosure prevention actions during the first quarter of 2023, almost 6,000 more than the previous quarter.
These prevention actions included loan modifications, repayment plans, forbearance plans, charge-offs-in-lieu, and payment deferrals. Of note, the Federal Housing Finance Agency’s report showed the 60+ day delinquency rate is at the lowest level seen since the pandemic.
Read on for more details.
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HUD builds foundation for new housing affordability solutions
Posted Date: Monday, June 26, 2023
The U.S. Department of Housing and Urban Development has made recent steps toward addressing the national housing affordability challenge by offering a notice of funding opportunity and restructuring an office that will support a new pathway to increasing the housing supply.
Read on for more details.
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Plaintiff attempts to stall foreclosure with TILA, RESPA claims
Posted Date: Thursday, June 22, 2023
A U.S. federal district judge ruled on the motions for summary judgment for a mortgagee and its servicer.
Among several contract-oriented claims, the plaintiff alleged the servicer violated the Truth in Lending Act and RESPA during multiple foreclosure and bankruptcy proceedings.
Read on for more details.
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GAO issues new recommendations for HUD
Posted Date: Thursday, June 22, 2023
The U.S. Government Accountability Office (GAO) updated its June 2022 priority recommendations for the U.S. Department of Housing and Urban Development (HUD).
The GAO stated HUD implemented five of the 11 priority recommendations made last year, and it added additional items for the agency to address.
Read on for more details.
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Rep. Waters requests hearing on AI, reintroduces bills addressing housing crisis
Posted Date: Thursday, June 22, 2023
Rep. Maxine Waters (D-Calif.), ranking member of the House Committee on Financial Services, penned a letter to Committee Chair Rep. Patrick McHenry (R-N.C.) requesting a hearing on the impact of artificial intelligence on the housing and financial services industries.
In an additional bid to assist with the affordable housing crisis, Waters reintroduced legislation that represents the single largest investment in solving the nation’s housing issues.
Read on for more details.
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Forbearance rates decrease in May, close to pre-COVID-19 levels
Posted Date: Thursday, June 22, 2023
The total number of loans now in forbearance is reaching levels not seen since before the CARES Act, Mortgage Bankers Association vice president of industry analysis stated in the organization’s Loan Monitoring Survey.
The analysis covers 66 percent of the first-mortgage servicing market for the month of May.
Read on for more details.
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Investing in Main Street: HUD’s new funding to promote affordability
Posted Date: Thursday, June 22, 2023
A notice of funding opportunity for $2 million through the HOPE VI Main Street Program was issued by the U.S. Department of Housing and Urban Development.
The money will go to assist communities in creating affordable housing in central business districts.
Read on for more details.
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Chopra defends CFPB interpretive guidance policy in committee hearing
Posted Date: Monday, June 19, 2023
During the Consumer Financial Protection Bureau’s semi-annual report to the House Financial Services Committee, its director Rohit Chopra fielded questions from representatives on the bureau’s publication of interpretive guidance and advisory opinions.
The representatives accused the agency of legislation “by blog post,” which Chopra repeatedly denied.
Read on for more details.
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FHFA makes its annual report to Congress
Posted Date: Monday, June 19, 2023
The Federal Housing Finance Agency reported to Congress on the actions taken in 2022 to support equitable and sustainable access to mortgage credit nationwide.
One of the many topics included credit risk management for Fannie Mae and Freddie Mac, especially in an environment with higher interest rates, uncertainty in the banking sectors, and challenges in certain multifamily industry sectors.
Read on for more details.
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Keynote speaker talks ‘Creating a Different and Better Tomorrow Together’
Posted Date: Monday, June 19, 2023
Ed Molitor, founder and CEO of The Molitor Group and host of the podcast “The Athletics of Business,” spoke at the 19th annual National Settlement Services Summit (NS3) in St. Louis, the yearly conference hosted by October Research, LLC.
Molitor shared his keys to success with the audience and how “self-awareness is the competitive advantage.”
Read on for more details.
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New JV formed between eXp Realty, Vesta Settlements to serve Virginia
Posted Date: Monday, June 19, 2023
Washington state-based real estate brokerage eXp Realty, the core subsidiary of eXp World Holdings, Inc., is entering into a strategic title and brokerage joint venture with Vesta Settlements, LLC to bring local title services to eXp agents in Virginia.
It is the first of its kind for the brokerage, which plans to launch additional title service ventures across the country this year.
Read on for more details.
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Strong growth in below-median income homeownership rate buoys housing market
Posted Date: Monday, June 19, 2023
The overall increase in the total homeownership rate for the U.S. was supported by strong growth in the homeownership rate for below-median family income households, according to Freddie Mac’s economic, housing, and mortgage market outlook.
The outlook showed new home sales as of April 2023 comprised the largest percentage of total home sales since 2008, excluding the temporary spike seen at the onset of the COVID-19 pandemic.
Read on for more details.
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Standards under NSPIRE rule pending publication
Posted Date: Monday, June 19, 2023
The U.S. Department of Housing and Urban Development’s Final Inspection Standards Notice is pending publication in the Federal Register.
The notice is part of the agency’s new National Standards for Physical Inspection of Real Estate (NSPIRE), which go into effect on July 1.
Read on for more details.
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Chopra testifies in semi-annual CFPB report to Senate
Posted Date: Thursday, June 15, 2023
Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra testified in front of the Senate Committee on Banking, Housing, and Urban Affairs in the agency’s semi-annual report to Congress.
While the session largely concerned “junk fees” and the bureau’s data breach, Chopra also shared information about what the CFPB is doing to combat zombie mortgages, redlining, and a possible recession.
Read on for more details.
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HUD pursues action against 7 firms for mortgage relief fraud
Posted Date: Thursday, June 15, 2023
Seven firms and six individuals were named as respondents in the U.S. Department of Housing and Urban Development’s complaint alleging mortgage relief fraud in New York.
The agency accuses these entities of targeting financially distressed homeowners based on their race, color, or national origin in violation of the Fair Housing Act.
To learn more about the case, read on.
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Judge: ‘Bait and switch’ does not constitute TILA violation
Posted Date: Thursday, June 15, 2023
A Pennsylvania federal district judge ruled on Rocket Mortgage’s motion to dismiss a complaint brought under the Truth in Lending Act (TILA), where the plaintiffs alleged Rocket violated the act when it terminated their loan application prior to execution.
Rocket argued the claim must be dismissed because the loan was never consummated; therefore, TILA was never triggered.
To learn the judge’s opinion, read on.
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NFHA concerned about fair housing funding
Posted Date: Thursday, June 15, 2023
National Fair Housing Alliance Executive Vice President Nikitra Bailey said her organization is “extremely concerned” about cuts made to fair housing enforcement funds in the debt ceiling agreement passed by Congress and signed by President Joe Biden.
The legislatures passed the Fiscal Responsibility Act, which lifted the federal debt ceiling until 2025 in exchange for capping federal spending programs at fiscal year 2023 levels for 2024 and allowing a 1 percent increase in 2025.
Read on for more details.
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Language options introduced for FHA-insured mortgages
Posted Date: Thursday, June 15, 2023
The Federal Housing Administration introduced five language options for mortgage documents and related resources.
The offering is intended to assist those involved in the origination process better explain the terms of mortgage products to individuals whose preferred language might not be English.
Read on for more details.
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Deferred principal balance dispute leads to RESPA claim
Posted Date: Monday, June 12, 2023
A Washington homeowner disputed the deferred principal balance on her mortgage statement after struggling to find the refinance rates she desired.
The borrower brought a RESPA suit against Flagstar Bank, the servicer, in relation to its answers to her qualified written requests and notices of error.
Read on for more details.
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Agencies request input on reconsiderations of value guidance
Posted Date: Monday, June 12, 2023
The Consumer Financial Protection Bureau, the Federal Reserve, and three other federal regulatory agencies have issued a request for comment, requesting feedback on the proposed guidance for reconsiderations of value.
The purpose of the guidance is to explain the risks of a deficient valuation, provide processes for reconsideration, and help financial institutions manage the risks associated with subpar residential real estate valuations.
Read on for more details.
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Judge considers dismissal in RESPA QWR case
Posted Date: Monday, June 12, 2023
After the plaintiff’s RESPA claim related to a qualified written request survived the defendant’s motion to dismiss, the court gave her leave to amend her complaint.
The U.S. District Court for the District of New Hampshire now hears U.S. Bank’s second motion to dismiss the amended complaint and considers whether the plaintiff sufficiently alleged actual damages.
Read on for the verdict.
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Small balance loan program supports affordable rental properties
Posted Date: Monday, June 12, 2023
Freddie Mac Senior Vice President of Multifamily Production and Sales Steve Johnson shared why the company’s small balance loan program is important when discussing affordable housing options.
The program provides financing to multifamily family properties with five to 50 units, often an underserved group of property owners.
Read on for more details.
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Despite higher prices and interest rates, homebuyers remain optimistic
Posted Date: Monday, June 12, 2023
Fannie Mae’s Economic & Strategic Research (ESR) Group asked consumers what they considered important when defining the “good life,” in a survey measuring how the desire to own a home relates to other life aspirations.
It then compared responses collected at the end of 2022 with those gathered at the end of 2020 to see how the public’s attitude has changed when asked about what factors they use to define the “life they’d like to have.”
Read on for more details.
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Native American homebuyers see fee reduction
Posted Date: Monday, June 12, 2023
The U.S. Department of Housing and Urban Development’s Office of Native American Programs will reduce fees for homebuyers utilizing the Section 184 Indian Home loan, making homeownership more affordable for Native American families.
Read on for more details.
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Wells Fargo, Nationstar move for summary disposition in RESPA foreclosure case
Posted Date: Thursday, June 8, 2023
A mortgagor in Michigan challenged the foreclosure on his home, alleging fraud and a RESPA violation. The dispute involved a reinstatement payment that was remitted the same day as the sheriff’s sale on the property.
Wells Fargo and Nationstar moved for summary disposition, requesting the case be dismissed because the complaint was so clearly unenforceable that no factual development could justify recovery.
Read on for more details.
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Industry professionals help October Research ‘Make a Child Smile’, supporting families in crisis
Posted Date: Thursday, June 8, 2023
This year’s attendees at the National Settlement Services Summit (NS3), located at the Hyatt Regency at The Arch in St. Louis, helped make a positive impact on their host city by participating in Make a Child Smile.
Celebrating 10 years of giving back, participants filled hundreds of bookbags with school supplies for children at the Saint Louis Crisis Nursery.
Read on for more.
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Industry elite honored with October Research awards
Posted Date: Thursday, June 8, 2023
A forward-thinking employer, a title-decisioning pioneer, and a fisherman-turned-fundraiser were honored at the 19th annual National Settlement Services Summit at the Hyatt Regency at The Arch in St. Louis.
CEO and Publisher Erica Meyer presented awards for leadership, innovation and philanthropy at the 19th annual National Settlement Services Summit (NS3) for awards.
Read on to learn who received this year’s awards.
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Housing market supply lacking for middle-income buyers
Posted Date: Thursday, June 8, 2023
In the midst of national affordability challenges, housing inventory is short more than 300,000 homes for middle-income buyers, more than any other income bracket.
According to a report from National Association of Realtors and Realtor.com, El Paso, Texas, Boise, Idaho, and Spokane, Wash., have the fewest affordable homes of the 100 largest metro areas, while three cities in Ohio have the most affordable.
Read on for more details.
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Pride Month sees new initiative to combat homelessness
Posted Date: Thursday, June 8, 2023
The U.S. Department of Housing and Urban Development (HUD) is launching a new initiative specifically addressing homelessness amongst LGBTQ youth.
HUD will partner with local communities and service providers to reduce barriers to housing and access to shelter.
Read on for more details.
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Borrower brings RESPA QWR, escrow claims against Nationstar Mortgage
Posted Date: Monday, June 5, 2023
The U.S. District Court of the Northern District of Texas, Dallas Division heard the RESPA claims from a borrower who claimed his mortgage servicer failed to adequately respond to a qualified written request and to remit an escrow surplus check.
The court was considering the servicer’s motion for summary judgment.
Read on for more details
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NAGLREP report showcases LGBTQ homeownership experience
Posted Date: Monday, June 5, 2023
In its fifth annual report on the experiences of the LGBTQ community in residential housing, the National Association of Gay and Lesbian Real Estate Professionals shared data and what it reveals about the environment of residential housing as it pertains to the community.
Read on for more details from the report.
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ESSA Bank & Trust, DOJ settle discrimination allegations
Posted Date: Monday, June 5, 2023
The Department of Justice’s (DOJ) Civil Rights Division and ESSA Bank & Trust of Stroudsburg, Penn., reached a settlement related to allegations the bank was engaging in redlining activities.
The investigation began after the DOJ received a referral from the Federal Deposit Insurance Corp.
Read on for more details.
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Mortgage delinquencies stay low in March
Posted Date: Monday, June 5, 2023
The mortgage delinquency rate nationwide is keeping with the trend of historic lows, supported by the lowest unemployment rate seen in the last 50 years, according to CoreLogic’s Loan Performance Insights for March.
Notably, serious delinquencies dropped to their lowest levels in the last 20 years.
Read on for more details.
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National Homeownership Month celebrated with new HUD campaign
Posted Date: Monday, June 5, 2023
The U.S. Department of Housing and Urban Development (HUD) is launching a multi-year campaign in honor of National Homeownership Month to generate awareness about housing counseling opportunities in communities that have faced systemic barriers to homeownership.
“This National Homeownership Month, we will reflect on the importance of homeownership as a tool for wealth-building and stability for American families,” HUD Secretary Marcia Fudge said.
To learn more about HUD’s recent projects, read on.
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Input requested on multifamily tenant protections
Posted Date: Monday, June 5, 2023
The Federal Housing Finance Agency (FHFA) issued a request for input on tenant protections at multifamily properties backed by Fannie Mae and Freddie Mac.
FHFA Director Sandra Thompson said the agency is looking for help in identifying nationwide challenges impacting underserved communities.
Read on for more details.
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Conn. mortgage lender appeals license revocation, civil penalty
Posted Date: Thursday, June 1, 2023
A mortgage lender based in Connecticut appealed the state’s Department of Banking (DOB) decision to revoke its license and apply a $750,000 civil penalty.
The DOB found the lender was allowing unlicensed individuals to take residential mortgage loan applications or offer and negotiate terms of residential mortgage loans.
The action arose out of a routine compliance audit in 2018.
Read on for more details.
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Middle Class Borrower Protection Act raises fair housing concerns
Posted Date: Thursday, June 1, 2023
A bill titled the “Middle Class Borrower Protection Act of 2023,”introduced by Rep. Warren Davidson (D-Ohio), would cancel the changes made to the single-family pricing framework by the Federal Housing Finance Agency.
The updates to the framework and its impact on the guarantee fees of federally-insured mortgages have sparked in-depth debate on the subject.
Read on for more details.
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Disparate impact concerns highlight representatives’ letter to HUD
Posted Date: Thursday, June 1, 2023
Reps. Maxine Waters (D-Calif.) and Ayanna Pressley (D-Mass.) sent a letter to the U.S. Department of Housing and Urban Development addressing the use of biometric technology in federal assisted housing.
The letter came after a notice was sent to public housing agency directors and public housing field office directors about the application process for emergency safety and security grants.
Read on for more details.
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April pending home sales remain flat
Posted Date: Thursday, June 1, 2023
Modest increases in three regions were offset by decreases in the fourth, as measured by the National Association of Realtors’ Pending Home Sales Index.
This resulted in a flat pending home sales rate for the month of April.
Read on for more details.
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FHA proposes new option to help struggling borrowers
Posted Date: Thursday, June 1, 2023
The Federal Housing Administration is requesting feedback on a proposal for a new home retention option to help homeowners who are struggling to meet their mortgage obligations.
The proposed option gives homeowners who are unable to obtain a significant payment reduction with other loss mitigation options a way to keep their existing interest rate and temporarily reduce their monthly payments.
Read on for more details.
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