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This Week in Washington

HUD settles Alabama discrimination case

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This Week in Washington
Monday, July 23, 2018

An Alabama public housing board accused of disability discrimination has entered into a voluntary compliance/conciliation agreement with the U.S. Department of Housing and Urban Development (HUD).

The case began when a woman with disabilities filed a complaint with HUD alleging the Mobile Housing Board denied her request for a Housing Choice Voucher.

A compliance review conducted by HUD then found the board also failed to build units in accordance with the Uniform Federal Accessibility Standards (UFAS). Section 504 and HUD regulations require that 5 percent of dwelling units in multifamily housing projects – or at least one unit (whichever is greater) – must be accessible for those with hearing or visual impairments. Units also must be constructed in accordance with the Americans with Disabilities Act (ADA).

In addition, the review also found the board did not abide by the requirements of the Section 3 program, which mandates that HUD recipients direct employment and other economic opportunities to low- and very low-income persons and businesses that hire them.

Under the terms of the agreement, the housing board will pay the woman $117,500 and issue her a Housing Choice Voucher. The agreement also states that the board will allocate $114,000 for Section 504-related improvements at three separate developments: Downtown Renaissance ($61,500), Renaissance Gardens ($19,200) and The Renaissance ($33,300).

The Mobile Housing Board also agreed to appoint a qualified individual to serve as its Section 3 coordinator and to help contractors develop Section 3 plans.

“When organizations that control access to housing fail to meet their responsibilities under the nation’s housing laws, it makes finding suitable housing even more difficult, especially for persons with disabilities,” Anna Maria Farias, HUD assistant secretary for Fair Housing and Equal Opportunity (FHEO), said in a news release. “The agreement we are announcing today is yet another example of HUD’s commitment to meeting its obligation to protect the rights of individuals and families seeking housing.”

The board has a choice of building new units or converting 135 of its 2,696 existing units to become UFAS-compliant for the mobility impaired, plus an additional 54 hearing and visually-impaired units, according to the agreement.

According to the compliance agreement, the review was carried out during the week of Aug. 28, 2017, by reviewing in-house and on-site records; surveying administrative offices, common areas and designated UFAS and reasonably accommodated/partially accessible units, and interviewing staff.

The agreement will be binding for at least three years, or until the board satisfactorily completes the provision terms.

The board receives funding under the Low-Income Public Housing Program (LIPH), Housing Choice Voucher Program and the Section 8 Substantial Rehabilitation Loan Program.

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12 USC Section 2605 or Section 6 is titled Servicing of mortgage loans and administration of escrow accounts. It pertains to qualified written requests, notices of transfer of servicing and the administration of escrow accounts.
An arrangement that involves a person who is in a position to refer business as part of a real estate settlement service and who has an interest in a settlement services provider.

In the arrangement, the person, who has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent in a settlement services provider, directly or indirectly refers business to that provider or influences a consumer to select that provider.
An arrangement that involves a person who is in a position to refer business as part of a real estate settlement service and who has an interest in a settlement services provider.

In the arrangement, the person, who has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent in a settlement services provider, directly or indirectly refers business to that provider or influences a consumer to select that provider.
A mortgage disclosure that lists all estimated charges and fees associated with your loan. In addition to fees and charges, it will list your loan amount, mortgage rate, loan term and estimated monthly payment. Your escrows due at closing for insurance and taxes will also be outlined. Mortgage lenders are legally required to provide a GFE within three days of receiving your application.
A mortgage disclosure that lists all estimated charges and fees associated with your loan. In addition to fees and charges, it will list your loan amount, mortgage rate, loan term and estimated monthly payment. Your escrows due at closing for insurance and taxes will also be outlined. Mortgage lenders are legally required to provide a GFE within three days of receiving your application.
Under RESPA Section 2605(e)(1)(B), a qualified written request is a written correspondence that includes: 1) the name and account of the borrower, or has enough information to allow the servicer identify that information; and 2) a statement of the reasons for the belief of the borrower that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

A QWR cannot be written on a payment coupon or other payment medium supplied by the servicer.
Under RESPA Section 2605(e)(1)(B), a qualified written request is a written correspondence that includes: 1) the name and account of the borrower, or has enough information to allow the servicer identify that information; and 2) a statement of the reasons for the belief of the borrower that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

A QWR cannot be written on a payment coupon or other payment medium supplied by the servicer.
12 USC Section 2609 or Section 10 is titled Limitation on requirement of advance deposits in escrow accounts. It governs escrow accounts including notifications and statements to borrowers. Section 10 also sets out penalties for those who violate the section.
RESPA Section 3 provides that a thing of value includes any payment, advance, funds, loan, service or other consideration

Regulation X says thing of value includes: monies, things, discounts, salaries, commissions, fees, duplicate payments of a charge, stock, dividends, distributions of partnership profits, franchise royalties, credits representing monies that may be paid at a future date, the opportunity to participate in a money-making program, retained or increased earnings, increased equity in a parent or subsidiary entity, special bank deposits or accounts, special or unusual banking terms, services of all types at special or free rates, sales or rentals at special prices or rates, lease or rental payments based in whole or in part on the amount of business referred, trips and payment of another person’s expenses or reduction in credit against an existing obligation.
A form used by a settlement or closing agent itemizing all charges imposed on a borrower and seller in a real estate transaction. This form represents the closing transaction and provides each party with a complete list of incoming and outgoing funds. RESPA requires the HUD-1 to be used as the standard real estate settlement form in all transactions in the U.S. involving federally related mortgage loans.
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