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Do you know UDAAP? You should
Posted Date: Thursday, July 14, 2016
Under the Dodd-Frank Act, all covered persons or service providers are prohibited from committing unfair, deceptive, or abusive acts or practices (UDAAP). Seem straightforward? It’s not. With the Consumer Financial Protection Bureau with rooting out questionable activities, you can’t afford to let UDAAP compliance fall by the wayside. Luckily, two RESPA experts are here to help.
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Encino ruling weakens CFPB’s Chevron deference position
Posted Date: Thursday, July 7, 2016
Counsel for PHH Corp. claimed that the U.S. Supreme Court’s recent decision in Encino Motorcars, LLC v. Navarro (No. 15-415) supports PHH Corp.’s case that Chevron deference should not be given to the Consumer Financial Protection Bureau’s interpretation of RESPA Section 8. Read on for more details.
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Court’s signals PHH Corp. likely to be decided soon
Posted Date: Thursday, July 14, 2016
In State National Bank of Big Spring v. Jacob J. Lew, the U.S. District Court for the District of Columbia has decided to defer certain separation-of-powers constitutionality challenges regarding the Consumer Financial Protection Bureau to the D.C. Circuit’s anticipated decision in PHH Corp. v. CFPB. The court did, however, rule that Director Richard Cordray’s recess appointment and subsequent ratification of rules implemented stands. Read on to learn more.
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RESPA claim against BofA survives motion to dismiss
Posted Date: Thursday, July 7, 2016
The U.S. District Court for the District of New Jersey filed a memorandum opinion June 28 that denied defendant Bank of America, N.A.’s motion to dismiss. Plaintiff Edyta Rojecki had alleged that Bank of America violated RESPA when it sold her home June 5, 2015, while it was still considering, and requesting documents for, a loan modification. Read on to learn more.
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Problems after servicing transfer lead to TILA, RESPA complaint
Posted Date: Thursday, June 30, 2016
In a second amended complaint containing 27 counts, an Illinois resident charged her servicer and others with violations of TILA and RESPA for problems caused during servicing rights transfers. Read on to see whether the resident’s claims survived motions to dismiss from the servicer.
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Class certification granted in TILA case vs. Wells
Posted Date: Thursday, June 30, 2016
A California plaintiff suing Wells Fargo for failing to provide an accurate payoff statement for her home mortgage was granted class certification by the district court. Read on for details of the case.
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‘Shamelessly admitted practice’ not TILA violation
Posted Date: Monday, July 11, 2016
The U.S. District Court for the District of Connecticut dismissed a plaintiff’s Truth in Lending Act claim, finding that a car dealership’s practices – albeit shameless – did not result in undisclosed finance charges. Read on to learn more about the trade-in promotion that led a plaintiff to bring a TILA claim and state “unfair and deceptive” claim.
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Ohio Supreme Court clarifies standing in collection
Posted Date: Thursday, July 14, 2016
The Ohio Supreme Court ruled on a case where the lender had a mortgage securing a promissory note, but could not enforce the note. Did the lender need to be the current holder of both the note and mortgage to have standing to file a foreclosure action? Read on to find out.
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CFPB releases semi-annual report, leaves out PHH
Posted Date: Monday, July 11, 2016
The Consumer Financial Protection Bureau released its semi-annual report to Congress, detailing its activities from Oct. 1, 2015, to March 31, 2016. The report includes enforcement action summaries (without discussing the ongoing case against PHH Corp.) as well as what the bureau has been doing to assist with the implementation of TRID. Read on for more details.
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Supervisory Highlights spotlights servicing
Posted Date: Thursday, July 7, 2016
The Consumer Financial Protection Bureau released its 12th edition of Supervisory Highlights, covering theactivities of the supervision unit generally between January and April 2016. The report discusses compliance with the bureau’s Title XIV rules and RESPA Section 8. Read on for a detailed look at the bureau’s findings.
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PHH Corp. v. CFPB finds place in House debate
Posted Date: Thursday, July 14, 2016
During the House’s debate on the fiscal year 2017 Appropriations Bill, Rep. Luke Messer (R-Ind.) brought forth an amendment to prohibit the CFPB from using any funds to take administrative actions past the Dodd-Frank Act’s three-year statute of limitations. To support his amendment, Messer spoke about PHH Corp. v. CFPB. Read on to learn more.
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How federal process might land in state court
Posted Date: Monday, July 11, 2016
What do Rocky Balboa and class action plaintiffs have in common? The ability to come back after a seemingly knock-out punch, that’s what. Earlier this year, the U.S. Supreme Court ruled in Spokeo, Inc. v. Robins that a plaintiff filing a claim for statutory damages under the Fair Credit Reporting Act must show that he or she suffered a “concrete” or actual injury, instead of just a technical violation. That does not necessarily mean the fight is over. Read on to learn more.
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Lawmaker asks HUD to extend reverse mortgage option to co-ops
Posted Date: Thursday, July 14, 2016
In a letter to HUD Secretary Julián Castro, who recently appeared before the House Financial Services Committee, Rep Eliot Engel (D-N.Y.) urged Castro to swiftly issue regulations to allow co-op owners to participate in HUD’s Home Equity Conversion Mortgage (HECM) program. Read on to learn more.
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Don’t forget these compliance pressure points in vendor management
Posted Date: Thursday, July 14, 2016
In an article titled, “Mortgage industry struggles to avoid vendor management land mines,” Buckley Sandler LLP attorneys Elizabeth McGinn and Moorari Shah discuss various compliance touchpoints related to vendor management. Read on to learn more.
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Castro to defend HUD’s accountability in House hearing
Posted Date: Monday, July 11, 2016
The House Financial Services Committee will host HUD Secretary Julián Castro on July 13 for a hearing titled, “HUD Accountability.” According to a committee memorandum, the purpose of the hearing is to examine the recently announced proposed changes to HUD’s Distressed Asset Stabilization Program, which critics say would move the program away from its open and competitive bidding process and reduce private sector investor participation. Read on to learn more.
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Bi-partisan letter warns against releasing GSEs from conservatorship
Posted Date: Monday, July 11, 2016
Sens. Mark R. Warner (D-Va.) and Bob Corker (R-Tenn.) sent a letter to Federal Housing Finance Agency Director Mel Watt, urging him to “avoid taking any steps that may facilitate the release of the government sponsored enterprises, Fannie Mae and Freddie Mac, out of conservatorship without comprehensive reform.” Read on to learn more about who signed onto the letter and what else was suggested.
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Minnesota firm fined $1 million over force-placed insurance
Posted Date: Thursday, July 7, 2016
The Minnesota Department of Commerce has imposed a $1 million penalty against American Modern Insurance Group after finding that the insurer had charged excessive premium rates to homeowners within its force-placed insurance policies. “[F]or years, American Modern charged excessive rates to Minnesota homeowners who were forced to buy its policies,” Commerce Commissioner Mike Rothman said. Read on to learn more.
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DOJ, CFPB settle redlining case against BancorpSouth
Posted Date: Thursday, July 7, 2016
The Department of Justice and Consumer Financial Protection Bureau announced a proposed settlement agreement with BancorpSouth Bank that would settle allegations that BancorpSouth violated the Fair Housing Act (FHA) and Equal Credit Opportunity Act (ECOA) by using policies and practices that unlawfully discriminated against African-Americans and other residents of predominantly minority communities. Read on to find out about the evidence the agencies uncovered, and how.
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HUD policy recognizes tribal sovereignty
Posted Date: Thursday, July 7, 2016
With the Consumer Financial Protection Bureau using its UDAAP authority to issue a proposed rule that would affect tribal payday lending, the topic of state and tribal sovereignty has entered into regulatory discussions in recent years. The Department of Housing and Urban Development recently announced an improved Tribal Government-to-Government Consultation Policy and is seeking comments on its plan to establish a new Tribal Intergovernmental Advisory Committee. Read on to learn more.
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Americans say housing, finance policies are an election concern
Posted Date: Thursday, June 30, 2016
More than 20 percent of Americans say that housing and finance policies by a presidential candidate will influence their vote in November, according to a new study conducted for loanDepot. Read on to see other highlights from the research.
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CFPB takes J.G. Wentworth to court over CID
Posted Date: Thursday, June 30, 2016
When J.G. Wentworth stopped complying with the Consumer Financial Protection Bureau’s (CFPB) requests in a civil investigative demand because it didn’t believe the bureau had jurisdiction over the company, the CFPB filed suit to force compliance. Read on for the details.
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President threatens veto on House appropriations
Posted Date: Thursday, June 30, 2016
In a new statement of administrative policy, the president’s office said that it strongly opposes the House of Representatives’ appropriations bill, and his senior advisors would recommend vetoing it if it was passed. That, though, was not the end. The statement address individual issues within the appropriations bill as well, including agencies such as the Consumer Financial Protection Bureau. Read on for the details.
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House bill would allow payday rule exemption
Posted Date: Thursday, June 30, 2016
A bill introduced by Rep. Scott Tipton (R-Colo.) would allow states or federally recognized Indian tribes to request an exemption from the Consumer Financial Protection Bureau’s final rules on small-dollar lending. Read on for details of the proposal.
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Bill would give Congress veto over CFPB rules
Posted Date: Friday, June 24, 2016
A bill introduced in the House of Representatives would empower Congress to authorize any rule promulgated by the Consumer Financial Protection Bureau that would have an economic impact of $100 million or more. Read on for the details.
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Amended complaint adds RESPA violation allegation
Posted Date: Friday, June 24, 2016
In a foreclosure case in Massachusetts, a borrower who alleged that his servicer’s conduct on a rescheduled foreclosure case was negligent sought to amend his complaint to include violations of RESPA. Read on to see whether the district court allowed the RESPA complaint to survive.
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CFPB: Mortgage servicing technology failing
Posted Date: Friday, June 24, 2016
In a new Supervisory Highlights report focused solely on mortgage servicing, the Consumer Financial Protection Bureau cited numerous unfair and deceptive practices its examiners have found since new servicing rules took effect in January 2014. In addition, the bureau said that “bad computer systems or outdated technology” often cited for mistakes were not sufficient excuses for noncompliance. Read on for the details.
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Association urges NAIC not to issue MSA bulletin
Posted Date: Wednesday, June 22, 2016
A trade association has written to the National Association of Insurance Commissioners (NAIC), asking the NAIC to stop work on a bulletin addressing marketing service agreements. Read on for details of why the association wants to have the process halted.
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Appellate court rules on whether tax liens subject to TILA
Posted Date: Wednesday, June 22, 2016
A consolidated Texas case in front of the Fifth Circuit Court of Appeals asked whether the transfer of a tax lien constitutes an extension of credit that is subject to TILA protections. District court ruling split on whether the lien transfers were subject to TILA. Read on to find out what the appellate court had to say.
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GAO says CFPB should shore up financial reporting
Posted Date: Wednesday, June 22, 2016
The Government Accountability Office (GAO) reported that its audit of the Consumer Financial Protection Bureau’s financial statements shows a significant deficiency in the bureau’s internal control over financial reporting. To address the deficiencies, the GAO offered five recommendations to the bureau. Read on for more details.
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FTC steps in to halt alleged mortgage relief scam
Posted Date: Wednesday, June 22, 2016
The Federal Trade Commission has gained an injunction against a set of law firms, claiming that they would tell potential customers that they would bring lawsuits against lenders for mortgage fraud and void consumers’ mortgage notes “to give you your home free and clear, and/or to award you relief and monetary damages.” Read on for details of the case.
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Agencies work to promote housing counseling benefits
Posted Date: Wednesday, June 22, 2016
A nationwide collaboration of trade and industry agencies have joined forces in the hopes of promoting the benefits of housing counseling to buyers and sellers. Among the groups involved are the Mortgage Bankers Association and the National Association of Realtors. Read on for the details.
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HUD proposes Section 8 subsidy recalculation
Posted Date: Wednesday, June 22, 2016
The Department of Housing and Urban Development (HUD) has proposed a new rule governing the geography used to calculate so-called Fair Market Rents for its Housing Choice Voucher program. In some metropolitan areas, HUD said the choices that families have about where to live are severely limited, in part because of the current method of calculating their rental assistance. Read on for the details and how to comment.
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Countrywide sued over RESPA appraisal violations
Posted Date: Monday, June 20, 2016
A class-action lawsuit was filed in California, charging Countrywide Financial Corp., Bank of America Corp. and LandSafe Appraisal Inc. with violations of RESPA and racketeering for creating an appraisal fraud scheme from 2003-2008. Read on for details of the case.
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Court rules mortgage fraud forfeiture is excessive
Posted Date: Monday, June 20, 2016
The Ninth Circuit Court of Appeals ruled that the forfeiture penalty awarded in a mortgage fraud case in Las Vegas was in violation of the Eighth Amendment’s Excessive Fines Clause. Read on for details from the opinion and what lies ahead in the case.
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HSBC settles shareholder lawsuit over subprime practices
Posted Date: Monday, June 20, 2016
HSBC Holdings Plc agreed to pay more than $1 billion to settle a 14-year-old shareholder lawsuit over allegations that executives of a U.S. subprime-lending business acquired by the bank misled investors. Read on for the details.
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CFPB issues adjustments to TILA thresholds
Posted Date: Monday, June 20, 2016
The Consumer Financial Protection Bureau announced its annual adjustments to the dollar amounts of various thresholds under the Truth in Lending Act regulations that will apply to certain consumer credit transactions in 2017. Read on to find out what the levels will be for 2017.
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Lenders upbeat headed into summer
Posted Date: Monday, June 20, 2016
A new survey of lender sentiment from Fannie Mae shows that the industry is broadly positive about the housing market headed to the third quarter. The survey included opinions on the purchase and refi markets, credit availability and profits. Read on for the details.
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