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Sixth Circuit addresses first-time question on TILA
Posted Date: Monday, August 22, 2016
The Sixth Circuit Court of Appeals was presented with the question whether the right of rescission under TILA’s Section 1635 applies to violations of Section 1641(g) – or in other words, whether a bank’s failure to notify a borrower that the deed of trust was assigned to the bank gave the borrower a right of rescission of the loan. This is the first time a federal appellate court has ruled on the issue. Read on to learn more.
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Can classes be decertified after jury trials?
Posted Date: Thursday, August 11, 2016
After a borrower obtained a favorable jury verdict for his class-action breach-of-contract lawsuit, the district court decertified the class prior to the judgment entry. Here, the Second Circuit Court of Appeals examined whether this was appropriate. Read on to learn what the appeals court had to say regarding the plaintiff’s arguments that findings from the district court were incompatible with the Seventh Amendment and that the Rule 23 requirements for class certification had been met.
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Court examines servicing, modification under RESPA
Posted Date: Thursday, August 11, 2016
The U.S. District Court for the Southern District of Florida examined whether plaintiff Thomas Hudgins’ RESPA claim against Seterus Inc. should be dismissed. Seterus argued that Hudgins’ requests in his request for information (RFI) did not relate to the “servicing” of Hudgins’ loan, resulting in Seterus having no obligation to respond under RESPA. Read on to learn how the court responded to this argument.
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Manufactured RESPA claim easily spotted by Florida court
Posted Date: Monday, August 15, 2016
In Meeks v. Ocwen Loan Servicing LLC, the U.S. District Court for the Southern District of Florida examined whether the plaintiff timely received acknowledgment of receipt and substantive responses to a request for information when an agent for Ocwen signed a certified return receipt. The court reasoned that the plaintiff’s “attorney sent a factually incorrect letter to defendant in an effort to create a federal cause of action.” Read on to learn more.
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SDNY: Spokeo does not hinder plaintiffs’ standing
Posted Date: Thursday, July 28, 2016
The U.S. District Court for the Southern District of New York reaffirmed a $6.2 million class-action settlement agreement between Bank of America and plaintiffs. The court was considering whether the U.S. Supreme Court’s findings in Spokeo, Inc. v. Robins had any impact on the plaintiffs’ case. Read on to learn more about the court’s decision and legal analysis.
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Do the SEC’s ALJs withstand a challenge?
Posted Date: Monday, August 15, 2016
In Raymond J. Lucia Companies, Inc. et al. v. Securities and Exchange Commission, the U.S. Court of Appeals for the D.C. Circuit examined the constitutionality of the Security and Exchange Commission’s use of administrative law judges (ALJs). The question pivoted on whether the ALJs were Officers under the Constitution’s Appointments Clause or employees of the SEC.
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Quicken’s employment provisions receive no review
Posted Date: Monday, August 15, 2016
The U.S. Court of Appeals for the D.C. Circuit refused to review a National Labor Relations Board ruling that had found that Quicken Loans’ employment agreements with its mortgage bankers contained provisions that tried to keep employees from publicly criticizing the company and its management, as well as revealing certain “confidential information.” Read on to learn more.
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Court considers damages against mortgage servicer
Posted Date: Monday, August 8, 2016
In Jacobson v. Bayview Loan Servicing, LLC, the Montana Supreme Court considered a trial court’s award against a mortgage servicer after plaintiffs Robin and Kathleen Jacobson alleged that the servicer engaged in deceptive collection practices in violation of the Fair Debt Collection Practices Act and the Montana Consumer Protection Act. Read on to learn more.
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Breaking down the CFPB’s mortgage servicing amendments (Part 1)
Posted Date: Monday, August 8, 2016
The Consumer Financial Protection Bureau issued its final rule, amending certain provisions under RESPA’s servicing provisions as well as prompt crediting and periodic statement requirements under TILA’s servicing provisions. The bureau is tackling nine major topics. This part covers the provisions on successors in interest, delinquency, requests for information, force-placed insurance and early invention. Read on to learn more.
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Breaking down the CFPB’s mortgage servicing amendments (Part 2)
Posted Date: Thursday, August 11, 2016
The Consumer Financial Protection Bureau issued its final mortgage servicing rule, amending certain provisions under RESPA’s servicing provisions as well as prompt crediting and periodic statement requirements under TILA’s servicing provisions. The bureau is tackling nine major topics. This part covers loss mitigation, prompt payment credit, periodic statements and small servicers. Read on to learn more.
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Colorado becomes first state to officially ban MSAs
Posted Date: Thursday, August 18, 2016
The Consumer Financial Protection Bureau is not a fan of marketing services agreements but has taken no steps to issue an outright ban. Such a step might not be necessary. The Colorado Division of Insurance has banned MSAs between title entities and settlement producers. RESPRO President and Executive Director Ken Trepeta, Mayer Brown’s Holly Spencer Bunting and Deputy Commissioner of Consumer and Compliance Services Michael Conway spoke to RESPA News.
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HUD reissues proposed rulemaking
Posted Date: Monday, August 15, 2016
In some cases, the pen really is mightier than the sword. The Department of Housing and Urban Development (HUD) has issued a supplemental notice of proposed rulemaking for its proposed changes to the Federal Housing Administration’s Home Equity Conversion Mortgage (HECM) reverse mortgage program, adding suggestions made by a George Washington University professor. What was recommended and by whom? Read on to find out.
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TRID tip: Itemize recording fees on CD
Posted Date: Monday, August 22, 2016
The Consumer Financial Protection Bureau is proposing amendments to TRID to clarify certain provision regarding recording fees, including how to disclose the total amount of fees for recording deed and security instruments. Be wary if closing agents are charging a single fee and covering the recording fee instead of itemizing it separately. Richard Horn of Richard Horn Legal, PLLC, who led the final TRID rule while an attorney at the CFPB, spoke with RESPA News on that issue.
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CFPB asks court to reconsider attorneys’ individual liability
Posted Date: Monday, August 22, 2016
The Consumer Financial Protection Bureau has asked the U.S. District Court for the Western District of Wisconsin to reconsider its dismissal of individual liability against two attorneys allegedly involved in a foreclosure relief scam. The bureau appears humbled by its “inartful” presentation of the evidence against one of the defendants. Read on to learn more.
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CFPB insists it tailors its regulations
Posted Date: Monday, August 22, 2016
Consumer Financial Protection Bureau Director Richard Cordray sent a letter to Sens. Joe Donnelly (D-Ind.) and Ben Sasse (R-Neb.) explaining the ways in which the bureau has remained committed to achieving tailored and effective regulations. The Government Accountability Office, however, recently issued a report on the bureau’s approach to the Small Business Regulatory Enforcement Fairness Act (SBREFA) process. Read on to learn more.
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HUD faces class action for discriminatory practice
Posted Date: Monday, August 22, 2016
Since the U.S. Department of Housing and Urban Development’s Note Sale Program began in 2010, HUD has sold more than 113,000 mortgages nationwide to private companies. Now, the department is facing a class-action lawsuit alleging that HUD has “sold some 1,000 delinquent Federal Housing Agency mortgages in New York City while ignoring basic due process protections,” resulting in a discriminatory impact on African-American homeowners in the state. Read on to learn more.
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The latest complaints against student loan servicers
Posted Date: Monday, August 22, 2016
The Consumer Financial Protection Bureau Student Loan Ombudsman released its latest update on student loan complaints, finding that borrowers “encounter obstacles when submitting applications for income-drive repayment (IDR) plans.” As the bureau continues to examine loan servicing – recently issuing an amended final rule on mortgage servicing – the bureau determined that student borrowers encountered problems at every step of the IDR lifecycle. What were those issues? Read on to find out.
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CFPB: TRID oversight standards in place 9 months later
Posted Date: Thursday, August 18, 2016
The Consumer Financial Protection Bureau told RESPA News that nine months after implementation of the TILA-RESPA Integrated Disclosure rule, its oversight standards remain the same. How long will it continue? Read on for the latest from the bureau.
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Shotgun pleading will not be remanded
Posted Date: Thursday, August 18, 2016
In a case now before the U.S. District Court for the Southern District of Mississippi, plaintiffs Mitchell Copeland and Terry Potts filed a lawsuit alleging nine causes of actions (including a claim under RESPA) against 16 listed defendants, without specifying who allegedly did what and alleging that they maintained “alter egos” to avoid identification. Read on to learn more about this tale of possible sanctions and dismissal.
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Illinois court upholds RESPA, state-law claims; dismisses IIED charge
Posted Date: Thursday, August 18, 2016
Although some may argue that dealing with an ex-spouse should constitute intentional infliction of emotional distress, the U.S. District Court for the Northern District of Illinois did not believe the plaintiff here met all the elements of this tort. Read on to learn why the court upheld the plaintiff’s claims under RESPA and the Illinois Consumer Fraud and Deceptive Business Practices Act but dismissed the claim for IIED.
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Borrower satisfaction dips slightly in July
Posted Date: Thursday, August 18, 2016
STRATMOR Group – a mortgage industry advisory firm – has released its latest STRATMOR Insights report, detailing findings on underwriter and other back-office personnel compensation and borrower satisfaction. Although borrower satisfaction has dipped in some lending areas, there is still some “low-hanging fruit” to increase satisfaction and marketing and sales opportunities. Read on to learn more.
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Venue change may have saved servicer in QWR claim
Posted Date: Monday, August 15, 2016
The U.S. District Court for the Middle District of Florida, Tampa Division, weighed in on a claim originally filed in County Court, Small Claims Division. Plaintiff Elizabeth Torres had alleged that defendant Select Portfolio Servicing, Inc. failed to timely acknowledge receipt of her qualified written request. Read on to learn more.
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MBA: Delinquency, foreclosure rates show improvement
Posted Date: Monday, August 15, 2016
In its National Delinquency Survey, the Mortgage Bankers Association has reported that the delinquency rate for mortgage loans on one-to-four-unit residential properties decreased 11 basis points in the second quarter of 2016. The association found that several rates improved from historical averages. Read on to learn more.
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CFPB’s proposed TRID amendments may resolve ‘black hole’
Posted Date: Thursday, August 11, 2016
On July 29, the Consumer Financial Protection Bureau (CFPB) issued its anticipated proposed amendments to TRID. Among the suggested amendments are provisions that would address what many within the industry have dubbed the “black hole” – the period of time after the Closing Disclosure has been issued, when a credit may not be able to reset charges subject to the tolerance requirements as needed.
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Payment processor disputes statute of limitations
Posted Date: Thursday, August 11, 2016
Payment processor Intercept has filed a motion to dismiss the Consumer Financial Protection Bureau’s complain that it allowed its merchants to access consumers’ banks accounts without authorization. The processor has made arguments on statute-of-limitation grounds, constitutionality grounds, among other issues with the Dodd-Frank Act’s statutory language. Read on to learn more.
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Florida court dismisses RESPA case against JPMorgan Chase
Posted Date: Monday, August 8, 2016
In a case involving alleged failures to acknowledge and respond to qualified written requests, the U.S. District Court for the Southern District of Florida has granted defendant JPMorgan Chase Bank’s motion to dismiss. What was the bank’s language regarding designated addresses for sending QWRs, and why was this enough? Read on to find out.
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Pa. court revives tort claims against servicer
Posted Date: Monday, August 8, 2016
In a dispute between a real estate company and a loan servicer, the Superior Court of Pennsylvania affirmed the dismissal of the breach of contract claims but reversed the lower court’s dismissal of tort claims. It was found that plaintiff Telwell, Inc. failed to prove the existence of a contractual relationship between it and Grandbridge Real Estate Capital LLC. Read on to learn more.
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CFPB’s loss mitigation principles differ from other agencies
Posted Date: Monday, August 8, 2016
Shortly after the U.S. Treasury, Federal Housing Finance Agency and HUD released a whitepaper on guiding principles for the future of loss mitigation, the Consumer Financial Protection Bureau released guiding principles of its own. They mirror the other departments in terms of addressing accessibility, affordability, sustainability and transparency; but they leave out accountability. Read on to learn more.
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OIG: Lenders need to test the waters
Posted Date: Monday, August 8, 2016
After reports of lead and copper contamination in Flint, Mich., the Office of the Inspector General audited the Department of Housing and Urban Development’s oversight of loans insured by the Federal Housing Administration – which included 144 loans that were endorsed after the health department first declared a public health emergency on Oct. 1, 2015. What did the Inspector General recommend? Read on to find out.
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TRID amendments aim to clarify total of payments, finance charges
Posted Date: Monday, August 1, 2016
On July 29, the Consumer Financial Protection Bureau (CFPB) unveiled its long-awaited proposed amendments for TRID. Among the items within the proposal is a possible change for calculating the “total of payments.” Richard Horn of Richard Horn Legal, PLLC, spoke with RESPA News about why these tweaks are a step in the right direction.
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Plaintiffs: Wells Fargo employs ‘scorched-earth’ tactics against class actions
Posted Date: Monday, August 1, 2016
Wells Fargo has asked the U.S. District Court for the Northern District of California to stay proceedings while it petitions for an appeal of the court’s recent certification of two classes for allegations that the bank violated TILA by failing to credit insurance funds toward plaintiff Latasha McLaughlin’s loan balance on a payoff statement. In response, counsel for McLaughlin argued that Wells had not identified “serious issues” raised within its petition and could not show that would suffer irreparable harm. Read on to learn more.
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Washington Supreme Court: Don’t lock out homeowners in default
Posted Date: Monday, August 1, 2016
In Laura Zamora Jordan v. Nationstar Mortgage, LLC, the Washington Supreme Court was tasked with deciding whether provisions within a deed of trust that allowed loan servicer Nationstar to enter a homeowner’s home upon default without providing any notice conflicted with state law. Read on to find out why.
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CFPB proposes new survey for consumers to give feedback
Posted Date: Monday, August 1, 2016
In an effort to improve its Consumer Complaint Database, the Consumer Financial Protection Bureau (CFPB) announced that it is publishing a notice and request for comment in the Federal Register for a new information collection. The bureau has developed a survey mock-up to give consumers the option to provide feedback on companies’ response to and handling of their complaints. Read on to learn more.
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Connecticut broker subject to NY taxes for commission
Posted Date: Monday, August 1, 2016
The New York Department of Taxation and Finance recently made public an advisory opinion that stated that a real estate broker that moved its New York office to Connecticut in 2011 still is subject to New York taxes for commissions the broker received on the sale of two properties in 2014. Read on to learn what statutes and fact-finding the department relied upon in making its decision.
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Housing Opportunity Through Modernization signed into law
Posted Date: Monday, August 1, 2016
Newly proposed amendments to tweak TRID were not the only thing to surface from Washington the last weekday of July. President Barack Obama signed the Housing Opportunity through Modernization Act on July 29. The law modifies HUD’s rental assistance (including Section 8 vouchers) and other public housing programs, the Federal Housing Administration’s requirements for condominium mortgage insurance and the Department of Agriculture’s single-family housing guaranteed loan program.
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CFPB targets privacy in TRID amendments
Posted Date: Friday, July 29, 2016
The calculation of title insurance on the new TILA-RESPA Integrated Disclosure forms will not change, according to proposed updates from the Consumer Financial Protection Bureau announced Friday morning. However, privacy concerns did make the cut. Read on for details of what how the amendment will address privacy concerns and what other areas of the rule are being amended.
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Preemption question raised in PMI case
Posted Date: Thursday, July 28, 2016
Plaintiff Sue Song alleged that loan servicer Nationstar Mortgage Holdings Inc. failed to honor an automatic termination clause between her and Bank of America regarding her private mortgage insurance payments. Nationstar responded that her breach of contract and unjust enrichment claims failed as a matter of law and should be pre-empted by the Homeowners Protection Act. Read on to find out what the U.S. District Court for the Eastern District of Pennsylvania decided, and why.
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Updated index reveals questions prior to reopened TRID
Posted Date: Thursday, July 28, 2016
The Consumer Financial Protection Bureau (CFPB) announced Wednesday that it has posted an updated index to include various questions it received during webinars held March 1 and April 12, as the bureau prepares to reopen TRID with a notice of proposed rulemaking. For a complete breakdown of the questions and concerns expressed at these webinars, read on.
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Whitepaper provides guiding principles for post-HAMP world
Posted Date: Thursday, July 28, 2016
The U.S. Treasury, Federal Housing Finance Agency and HUD have released a whitepaper titled, “Guiding principles for the future of loss mitigation,” addressing how lessons from the financial crisis may be used to prevent foreclosures in the future. Read on to learn how you – and your clients – can implement the principles of accessibility, affordability, sustainability, transparency and accountability.
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Two affordable, fair housing developments to watch
Posted Date: Thursday, July 28, 2016
With its holding that disparate impact can be applied under the Fair Housing Act, the U.S. Supreme Court’s decision in Texas Dept. of Housing and Community Affairs v. Inclusive Communities Project, Inc. shook up the conversation on fair lending compliance; just as regulators and lawmakers continue their efforts to tackle the affordable housing issue. What have state and local governments been up to? Read on to find out.
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Plaintiff granted leave to amend RESPA complaint
Posted Date: Monday, July 25, 2016
U.S. Magistrate Judge Gregory G. Hollows for the U.S. District Court for the Eastern District of California has decided that pro se plaintiff Frank Malifandro may amend his RESPA complaint against loan servicer Real Time Resolutions. Read on to learn what the plaintiff must show in his amended complaint.
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HUD clarifies stance on downpayment assistance investigation
Posted Date: Monday, July 25, 2016
Clarifying previous opinions and statements made, Department of Housing and Urban Development (HUD) Deputy Secretary Nani Coloretti said that HUD will look into downpayment assistance practices which the HUD Office of the Inspector General reported last year were in error. Read on for details of Coloretti’s clarification.
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Plaintiff claims that HELOC mortgage was invalid
Posted Date: Monday, July 25, 2016
The U.S. District Court for the District of Massachusetts has filed a memorandum and order on Santander Bank, N.A.’s motion to dismiss plaintiff John W. Rice, Jr.’s charges that the bank’s home equity line of credit (HELOC) mortgage with his parents was invalid. Read on to learn whether the court agreed that his parents’ apparent incapacity to contract invalidated the HELOC.
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Attorney pleads guilty to defrauding HUD
Posted Date: Monday, July 25, 2016
A former Alabama attorney pleaded guilty to charges related to defrauding the Department of Housing and Urban Development. The attorney faces a maximum sentence of 30 years in prison, as well as substantial monetary penalties. Read on to learn more.
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Agencies issue threshold adjustments for TILA, CLA
Posted Date: Monday, July 25, 2016
The Consumer Financial Protection Bureau and the Federal Reserve announced they were proposing changes to the thresholds for exempting certain consumer credit and lease transactions from TILA and the Consumer Leasing Act. Read on for details of the proposed changes.
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Regulators enhance student loan servicing protections
Posted Date: Monday, July 25, 2016
Following joint principles issued last fall by the Consumer Financial Protection Bureau, the Department of Education and the Department of Treasury, the agencies announced a series of enhanced protections and customer service standards to guide future federal student loan servicing practices. Read on for more details.
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Class action alleges RESPA violation for fee-splitting in co-op loan
Posted Date: Thursday, July 21, 2016
A New York homebuyer took out a mortgage on her cooperative unit in 2015, and when her lender charged her a tax service fee, she alleged that the fee was split between the lender and a title agency, in violation of RESPA Section 7. Read on for details of the case.
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Homeowner loses at state level, takes US Bank to federal court
Posted Date: Thursday, July 21, 2016
An Ohio homeowner whose house was foreclosed upon by US Bank sued the bank to stop proceedings. He lost his case in a county court, but appealed to the District Court for the Southern District of Ohio. Read on for details of the case and see whether his complaints were upheld upon federal review.
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Report: HUD policies good for HECMs
Posted Date: Thursday, July 21, 2016
The Center for Retirement Research at Boston College recently published a look at the new Department of Housing and Urban Development (HUD) policies for its reverse mortgage program, the Home Equity Conversion Mortgage. The authors of the report looked at four different policy changes and their impact on default and take-up rates. Read on to see why they concluded that HUD’s 2013 policy changes have been good for their program.
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Senators write regulators, ask for Trump U safeguards
Posted Date: Thursday, July 21, 2016
A week before the Republican National Convention met to nominate Donald Trump for president, Democratic senators asked federal agencies to institute safeguards that would protect against “potentially fraudulent” institutions such as Trump University. Read on for more details.
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CFPB field hearing to discuss debt collection
Posted Date: Thursday, July 21, 2016
Since the Consumer Financial Protection Bureau began taking consumer complaints, debt collection regularly has been among the most frequently cited industries in the complaint database. The bureau announced it would host a field hearing at the end of the month on debt collection, and it might unveil proposed rulemaking for the industry. Read on for the details.
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STRATMOR Group releases first Insights report
Posted Date: Monday, July 18, 2016
Mortgage industry consultancy STRATMOR Group has released a new monthly report – called STRATMOR Insights – and a “remarkably high” score was found in the company’s National Borrower Satisfaction Index showed that recent borrower satisfaction levels. Read on to learn more.
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Santander hit with $10 million penalty for telemarketing practices
Posted Date: Monday, July 18, 2016
The Consumer Financial Protection Bureau has ordered Santander Bank, N.A. to pay a $10 million fine for allegedly using deceptive marketing practices for its overdraft services, in violation of the Dodd-Frank Act’s prohibition of unfair, deceptive or abusive acts or practices (UDAAP). The bureau also determined that Santander’s telemarketing vendor signed certain bank customers up for the overdraft service without their consent. Read on to learn more.
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Castro grilled over DASP changes
Posted Date: Monday, July 18, 2016
In the final week before the congressional summer break, the House Financial Services Committee conducted a contentious hearing with Department of Housing and Urban Development (HUD) Secretary Julian Castro over HUD’s recent announcement of changes to its Distressed Asset Stabilization Program. Read on for details of the discussion and Castro’s defense of the new policies.
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Poll shows bipartisan support for regulation, CFPB
Posted Date: Monday, July 18, 2016
A new bipartisan poll conducted by Lake Research Partners and Chesapeake Beach Consulting found that large majorities of Americans across the political spectrum approve of the work of the Consumer Financial Protection Bureau as the agency nears its fifth anniversary. The support of respondents identified as Republican was notable. Read on for more details.
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S.C. Anti-Money Laundering Act leaves out NMLS
Posted Date: Monday, July 18, 2016
South Carolina passed it Anti-Money Laundering Act, which provides a framework for money transmissions and currency exchange regulation. The law is based on the Uniform Services Act, but is different from other states’ anti-money laundering laws. Read on to learn more.
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Fitch cites servicing growth strategies
Posted Date: Monday, July 18, 2016
According to the latest U.S. RMBS servicer handbook from Fitch Ratings, in the first quarter of 2016, many of the largest U.S. bank and non-bank mortgage servicers saw their portfolios decline, which may signal a “tougher period ahead” as borrowers find more opportunities to refinance their mortgages. Read on to learn how some entities managed to grow their portfolios.
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