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FHA to reduce multifamily mortgage insurance rates
Posted Date: Monday, February 1, 2016
Beginning April 1, the Federal Housing Administration (FHA)
announced that it will cut multifamily mortgage insurance rates to stimulate
the production and rehab of affordable, mixed-income and energy-efficient
housing. See the details here.
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OCC lifts mortgage-servicing restrictions for two banks
Posted Date: Wednesday, February 10, 2016
The Office of the Comptroller of the Currency has terminated mortgage-servicing related enforcement actions against U.S. Bank and Santander, the agency recently announced. The OCC said that the banks had met the requirements placed upon them following the 2013 agreement between the agency and banks. See the details of the accord here.
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JPMorgan settles RMBS lawsuits for billions
Posted Date: Thursday, January 28, 2016
JPMorgan Chase & Co. reached a settlement with both Ambac Financial Group Inc. and Lehman Brothers Holding Group in response to their RMBS lawsuits. As part of the settlement, JPMorgan will be dishing out nearly $2.5 billion. See the details of the suits here.
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Wells Fargo agrees to $1.2 billion FHA settlement
Posted Date: Friday, February 5, 2016
Wells Fargo & Co. announced that it would pay $1.2 billion to resolve some civil claims related to its Federal Housing Administration lending program. The claims are related to practices that occurred between 2001 and 2010. See the details here.
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FDIC settles with Morgan Stanley over RMBS violations
Posted Date: Friday, February 5, 2016
Morgan Stanley & Co. is the latest Well Street bank to settle with the Federal Deposit Insurance Corporation, agreeing to pay $62.95 million to resolve claims over residential mortgage-backed securities, the FDIC recently announced. See the details of the settlement here.
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Tennessee Bank to pay for discriminatory lending practices
Posted Date: Friday, February 5, 2016
After allegedly discriminating against African-American and Hispanic applicants for mortgage loans and failing to place bank branches in minority-concentrated areas, First Tennessee Bank has agreed to pay $1.9 million for violating the Fair Housing Act. See the details here.
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Federal Reserve settles with HSBC for $131 million
Posted Date: Wednesday, February 10, 2016
The Federal Reserve Board announced a multi-million dollar penalty against HSBC North America Holdings, Inc. and HSBC Finance Corporation for deficiencies in residential mortgage loan servicing and foreclosure processing. See the details of the settlement here.
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9th Circuit: TILA amendment not applied retroactively
Posted Date: Monday, February 1, 2016
A recent 9th Circuit case considered the retroactivity of 15 U.S.C. § 1641(g), an amendment of the Truth In Lending Act (TILA) which requires a creditor who obtains a mortgage loan by sale or transfer to notify the borrower of the transfer in writing. See what the court found here.
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Wells Fargo, Genuine Title reach settlement in class action lawsuit
Posted Date: Monday, February 8, 2016
Following an enforcement action by the Consumer Financial Protection Bureau in January 2015, in which the bureau accused JPMorgan Chase, Wells Fargo and now defunct Maryland-based title company Genuine Title of taking illegal kickbacks as part of a marketing “scheme,” Wells and Genuine Title also faced a class-action based on the accusations. Finally, they have reached a settlement. See the details here.
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Only one left standing in consumer suit against JPMorgan Chase
Posted Date: Monday, February 1, 2016
An Alabama homebuyer brought a suit against JPMorgan Chase for violations of four federal statutes, including RESPA, after the servicer repeatedly tried to foreclose on his property only to have the foreclosures cancelled or postponed each time. When Chase brought motions to dismiss all four claims, however, one was still left standing. See the details here.
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Couple pays mortgage twice after becoming victims of mortgage fraud
Posted Date: Monday, February 1, 2016
A couple in Pennsylvania nearly lost the farm that had been in their family for 200 years following a Ponzi scheme which victimized more than 800 homeowners, and forced them to double-pay on their mortgage. See the details of the story here.
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Fourth time not a charm in Arizona RESPA case
Posted Date: Thursday, January 28, 2016
The U.S. District Court for the District of Arizona recently ruled on a case involving allegations of RESPA violations, the Fair Debt Collection Practices Act and the Truth in Lending Act. It was the fourth time that the litigant had been before the court on this matter, but his allegations left much to be desired. See what happened here.
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Court: RESPA duties not triggered if QWR not sent
Posted Date: Monday, January 25, 2016
A homeowner in Harrison, Mich., sued Ocwen Loan Servicing, LLC, after she says the servicer violated RESPA by failing to respond to her qualified written request. Ocwen, however, argued that it was not obligated to respond to the request because the customer did not send her letter to the correct address because of a typographical error. See what the court had to say here.
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CFPB corrects error in TRID final rule
Posted Date: Wednesday, February 10, 2016
The Consumer Financial Protection Bureau published a Federal Register notice Feb.10 to confirm that prepaid property taxes, homeowner’s association dues, condominium fees and cooperative fees are not subject to the 0 percent tolerance category on the TILA-RESPA Integrated Disclosure forms.
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Oral arguments scheduled for PHH v. CFPB
Posted Date: Thursday, January 28, 2016
Oral arguments for the appeal by PHH Corp. against the Consumer Financial Protection Bureau (CFPB) have been scheduled, an order released by the District of Columbia Circuit Court of Appeals indicates. PHH is appealing Director Richard Cordray’s interpretation of RESPA, which led to a $109 million judgment against the company. Read on for details.
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Mortgages most complained-about product in New York, CFPB says
Posted Date: Monday, February 1, 2016
The Consumer Financial Protection Bureau (CFPB) released its monthly consumer complaint snapshot recently, which highlighted complaints from New York and the New York City metro area. The report also highlighted complaints regarding debt settlement, check cashing, money orders and credit repair. See what it had to say here.
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CFPB deputy assistant director joins BuckleySandler
Posted Date: Thursday, January 28, 2016
BuckleySandler LLP has hired its second former senior Consumer Financial Protection Bureau (CFPB) official to join its CFPB practice. See more information about the firm’s new hire and her new responsibilities here.
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Housing reform bill passes House, receives enthusiastic support
Posted Date: Wednesday, February 10, 2016
The U.S. House of Representatives has voted unanimously to pass the Housing Opportunity Through Modernization Act, H.R. 3700, which is set to expand opportunities for homeownership. The bill reforms “19 areas and 65 to 70 provisions” of existing law, under the Department of Housing and Urban Development (HUD) and the Agriculture Department’s Rural Housing Service. See the details here.
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Report: CFPB should take steps to protect successor homeowners
Posted Date: Friday, March 25, 2016
A new report from the National Consumer Law Center indicates that those recovering after the loss of a loved one, or from a divorce, have a more difficult time avoiding foreclosure. The report is accompanied by a law review article which argues that federal agencies should take further steps in resolving the rights of successor homeowners. Keep reading to learn more about the problem faced most often by widows, orphans and the recently divorced.
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House passes bill to extend servicemembers’ foreclosure protection
Posted Date: Friday, March 25, 2016
The House of Representatives recently passed on year extension granted to military servicemembers to protect them from foreclosure. See the details of the bill, and how one representative says that such a law should be permanent, here.
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Report shows modest TRID non-compliance risk in secondary market
Posted Date: Friday, March 25, 2016
Errors in TILA-RESPA Integrated Disclosure loans are not likely to cause a disproportionately high risk for residential mortgage backed securities investors, a recent report states. According to the report, most investors are likely to face a maximum penalty of $4,000, plus attorney’s fees. See the details here.
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NAFCU requests NCUA to continue its TRID hold harmless period
Posted Date: Wednesday, March 23, 2016
Carrie Hunt, executive vice president of government affairs and general counsel at the National Association of Federal Credit Unions recently sent a letter to the National Credit Union Administration Board Chairman Debbie Matz, requesting that Matz reaffirm her stance on considering “good faith efforts” to comply with the TILA-RESPA Integrated Disclosure rule. See how Matz responded here.
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SEC to investigate mortgage servicers’ collection practices
Posted Date: Wednesday, March 23, 2016
The Securities and Exchange Commission is investigating mortgage servicers to determine whether they are going after delinquent mortgage loan borrowers prematurely. See more details about the SEC investigations here.
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BoA settlement leads to $13 million grant for legal aid in Illinois
Posted Date: Wednesday, March 23, 2016
As part of a settlement between the U.S. Justice Department and Bank of America over illegal practices in handling mortgage-backed securities before and during the housing crisis, the Lawyers Trust Fund of Illinois is receiving $13 million to help homeowners and renters in Illinois to handle foreclosure-related problems. See the details of the settlement and program here.
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Attorney indicted for defrauding elderly client
Posted Date: Wednesday, March 23, 2016
After allegedly defrauding an elderly client out of $2 million dollars via a sham real estate transaction, an Atlanta attorney this week faced his arraignment hearing. See the details of the case here.
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FTC, NAR issue warning about mortgage closing scam
Posted Date: Monday, March 21, 2016
Mortgage consumers have increasingly been becoming victims of a new mortgage closing cost phishing scam, according to a warning issued by the Federal Trade Commission and the National Association of Realtors. See the details of the scam here.
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W.J. Bradley Mortgage to close its doors
Posted Date: Monday, March 21, 2016
W.J. Bradley Mortgage Capital and its related closings announced March 13 that it is winding down the company. See more details here.
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Florida court refuses to hear state-decided RESPA claim
Posted Date: Thursday, March 17, 2016
After a couple in Florida failed to block the foreclosure action against them in state court, and were unable to get the decision reversed on the appellate level, they turned to the U.S. District Court for the Middle District of Florida to rescind their loan, alleging violations of RESPA and the Florida Fair Debt Collection Practices Act. The judge, however, determined that the couple had already had their day in court.
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CFPB launches mortgage blog series
Posted Date: Thursday, March 17, 2016
The Consumer Financial Protection Bureau has launched a new blog series entitled “Mortgage Moves,” which aims to assist consumers in understanding what they will need to consider when obtaining a mortgage. See more details here.
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CFPB to host next TRID webinar in April
Posted Date: Thursday, March 17, 2016
The Consumer Financial Protection Bureau (CFPB) announced that the Federal Reserve will be hosting a webinar on the TILA-RESPA Integrated Disclosure rule at 2 p.m. EDT Tuesday, April 12. This is the CFPB’s second webinar since the rule was implemented Oct. 3, 2015.
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Cordray to testify before the House Financial Services Committee
Posted Date: Monday, March 14, 2016
Consumer Financial Protection Bureau Director Richard Cordray is set to testify before the House Financial Services Committee on Wednesday, March 16. Questions are expected to revolve around whether the CFPB’s activities are actually harming, rather than protecting, consumers. See the likely topics of questioning here.
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Court addresses ‘bona fide error’ in FDCPA foreclosure case
Posted Date: Monday, March 14, 2016
The U.S. District Court for the Southern District of Alabama decided on a punitive class action in which a mortgage servicer and the trustee of a mortgage backed securities trust was alleged to have violated the Fair Debt Collection Practices Act. In its defense, the servicer and trustee argued that the violation was a “bona fide error.” See how the court responded here.
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CFPB to discuss elder financial abuse at meeting
Posted Date: Monday, March 14, 2016
The Consumer Financial Protection Bureau will be hosting its latest meeting of its Credit Union Advisory Council with Director Richard Cordray. The meeting will discuss the CFPB’s strategic outlook and elder financial abuse. See the details here.
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Monitor finds no issues with servicers’ settlement compliance
Posted Date: Thursday, March 10, 2016
Joseph A. Smith, monitor of the National Mortgage Settlement, filed his seventh and last set of compliance reports with the United States District Court for the District of Columbia. The report includes an overview of the process through which the team has reviewed the servicers’ work, and summaries of each servicer’s performance for the third quarter 2015. See what the report had to say here.
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Court finds borrowers’ RESPA case well-pleaded
Posted Date: Thursday, March 10, 2016
After borrowers in Ohio alleged that their servicer had failed to respond to their qualified written request (QWR) in violation of RESPA, the servicer filed a motion for judgment on the pleadings. However, unlike in most QWR cases, here the judge was not so sure that the servicer was “clearly entitled to judgment.” See what the judge had to say here.
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Wells Fargo unveils downpayment assistance program
Posted Date: Thursday, March 10, 2016
Wells Fargo teamed up with NeighborWorks America to help potential homeowners with their downpayments. So far, the program has helped more than 11,000 homeowners across 40 communities who now own their home after participating in the program. Now, the program is expanding even further. See where it’s going next here.
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Schulman joins Mayer Brown
Posted Date: Thursday, March 10, 2016
One of the nation’s most widely respected and most recognized RESPA attorneys, Phil Schulman, along with a group of other consumer financial services colleagues, have joined the team at Mayer Brown, Schulman recently announced. See the details of the move here.
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FTC writes to CFPB regarding 2015 debt collection practices
Posted Date: Wednesday, March 2, 2016
The Federal Trade Commission (FTC) recently sent a letter to the Consumer Financial Protection Bureau which summarized last year’s debt collection activities taken on by the FTC. The letter is intended to provide the CFPB with information for its annual report to Congress on the federal government’s FDCPA activities. See what the FTC has been up to here.
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Third Circuit refuses to hear TILA disclosure case
Posted Date: Wednesday, March 2, 2016
In the second time that the case has come before the Ninth Circuit Court of Appeals, the court has refused to rehear a Truth in Lending Act putative class action case which alleged that Wells Fargo and U.S. Bank failed to make proper mortgage disclosures. See the details of the case here.
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HUD offers $40 million for homebuyer counseling
Posted Date: Wednesday, March 2, 2016
The Department of Housing and Urban Development announced that it will provide $40 million in grant money to organizations that provide counseling to prospective homebuyers. See the details of the offer here.
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CFPB webinar provides CPE credits
Posted Date: Thursday, February 25, 2016
An announcement from the Consumer Financial Protection Bureau on its webinar Tuesday to discuss the TILA-RESPA Integrated Disclosure rule as it pertains to construction loans included a notice that the webinar series hosted by the Federal Reserve would qualify for Continuing Professional Education credits. Read on to see how to obtain the credits.
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Report: Purchase loans plummet from third to fourth quarter
Posted Date: Thursday, February 25, 2016
A new look at the first quarter of mortgage loans made under the TILA-RESPA Integrated Disclosure (TRID) rule appears to show that production under the new regulations slowed more than typically anticipated. Read on for the details.
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First-time homebuyer risk growing
Posted Date: Thursday, February 25, 2016
A measure of housing risk from the American Enterprise Institute for Public Policy Research shows that the risk faced by first-time homebuyers is growing, while the housing market for first-time buyers has been slowed by the implementation of the TILA-RESPA Integrated Disclosure rule. Read on for the details.
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Report: Google closing mortgage comparison site
Posted Date: Thursday, February 25, 2016
Google’s move into mortgage comparison shopping will end just four months after its high-profile launch, according to a recent report. Read on to see when the move will be made and why it is happening.
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NC court contemplates potential Section 8 violation in RESPA case
Posted Date: Friday, February 19, 2016
After becoming unsure of whom exactly their loan servicer was, two plaintiffs who held their property as tenants in common filed suit against a variety of defendants attempting to figure it out. In the legal aftermath that ensued, the plaintiffs alleged, among other things, that First Financial Services and Gateway Funding Diversified Mortgage Services were in violation of RESPA Section 8. See the court’s discussion of this claim here.
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Are millennials being pushed out of the housing market?
Posted Date: Friday, February 19, 2016
There has been a lot written about why those born between 1980 and 2000 are hesitant about jumping into homeownership. Most speculate that the generation has been saddled by unprecedented levels of student debt, came into the job market during the greatest economic crisis since the Great Depression, and thus are simply unable to afford to purchase a home. However, this might not be the whole story. Read on to find out more.
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Mortgage loans took longer to close in January
Posted Date: Friday, February 19, 2016
Mortgage loans in 2016 are taking longer to close, a new report by Ellie Mae states. According to the report, the average time to close a loan has increased since the implementation of the TILA-RESPA Integrated Disclosure rule. See the details here.
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NC court contemplates potential Section 8 violation in RESPA case
Posted Date: Thursday, February 18, 2016
After becoming unsure of whom exactly their loan servicer was, two plaintiffs who held their property as tenants in common filed suit against a variety of defendants attempting to figure it out. In the legal aftermath that ensued, the plaintiffs alleged, among other things, that First Financial Services and Gateway Funding Diversified Mortgage Services were in violation of RESPA Section 8. See the court’s discussion of this claim here.
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Clinton proposes $25 billion in housing reform initiatives
Posted Date: Thursday, February 18, 2016
Presidential candidate and former Secretary of State Hillary Clinton has released a factsheet outlining her intentions for revitalizing the economy. The “Breaking Every Barrier Agenda” also includes ideas for housing reform. See the details of the plan here.
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Mortgage loans took longer to close in January
Posted Date: Thursday, February 18, 2016
Mortgage loans in 2016 are taking longer to close, a new report by Ellie Mae states. According to the report, the average time to close a loan has increased since the implementation of the TILA-RESPA Integrated Disclosure rule. See the details here.
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Adjustments to continue for industry in 2016
Posted Date: Thursday, February 18, 2016
Mortgage servicers and compliance managers found plenty of choppy waters to navigate in 2015, whether it was the TILA-RESPA Integrated Disclosure rule, marketing services agreements, the finalization of the Home Mortgage Disclosure Act rule, or others. In 2016 the industry looks to take the lessons learned in 2015 and adjust to the new regulations and standards in place. Read on to see what RESPRO’s Ken Trepeta, Ballard Spahr’s Richard Andreano and others have to say about the priorities for compliance in 2016.
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CUNA requests CFPB give small creditors more Reg Z flexibility
Posted Date: Thursday, February 18, 2016
The Credit Union National Association (CUNA) wrote to the Consumer Financial Protection Bureau asking the bureau to make regulatory changes based on several provisions signed into law in December 2015. CUNA referenced recent legislation which would allow the bureau to apply more flexibility for small creditors to qualify for Reg Z exemptions. See the details here.
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HUD unveils 2017 proposed budget
Posted Date: Thursday, February 18, 2016
The U.S. Department of Housing and Urban Development released its budget for FY2017, which focuses on affordable housing, ending homelessness, making communities more resilient from natural disasters and protection the public from housing discrimination. See the details of the budget here.
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NY regulations to crack down on housing discrimination
Posted Date: Thursday, February 18, 2016
New York Gov. Andrew Cuomo announced the launch of a new initiative to uncover discrimination in rental and home sale transactions. Additionally, the governor directed the Division of Human Rights and Department of State to propose new regulations to strengthen New York’s housing enforcement efforts. See the details of the new initiatives here.
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Court finds ‘pattern or practice of noncompliance’ in RESPA case
Posted Date: Thursday, February 18, 2016
Although the plethora of defendants named in a California lawsuit argued that the plaintiff’s 45-page pro se complaint made it difficult to “disentangle” his allegations, the court zeroed in on his RESPA claim, which alleged that his loan servicers had failed to respond to his qualified written request within the statutorily proscribed period. According to the Eastern District of California, the servicers’ conduct in this case clearly violated the law.
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NAR lends support to programs aiding veteran homeownership
Posted Date: Thursday, February 18, 2016
The National Association of Realtors announced its strong support of programs that would help veterans to become homeowners. Particularly, the organization lent its support to the Veterans Affairs Department’s Home Loan Guaranty Program and Specially Adapted Housing Grants. See what the vice president of the organization had to say about the programs here.
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