News By Edition

As part of a monthly feature, RESPA News reached out to RESPA expert Holly Bunting, partner at Mayer Brown, about the state of enforcement today, the relevancy of the statute and the current litigation risks.

The Consumer Federation of America and the National Urban League conducted a survey to investigate how first-time homebuyers have been affected by the National Association of Realtors settlement, which rewrote commission standards for the industry. “The worrisome growth in pocket listings indicates the need for a broader cultural shift in how real estate agents work with consumers,” the report stated.

A panel of tech and affiliated business arrangements (AfBAs) experts discussed the operational essentials for the first 90 days of a new AfBA, including workflow and technology.

In a recent filing in Zillow’s antitrust against Midwest Real Estate Data (MRED) and Compass, Zillow argued that the MRED-Compass agreement to block Zillow’s access to MRED’s listing feeds would cause “irreparable harm.”

Department of Housing and Urban Development (HUD) Secretary Scott Turner presented a statement on May 14 before the Committee on Appropriations, Subcommittee on Transportation, Housing and Urban Development, and Related Agencies regarding the president’s fiscal year 2027 budget. Turner addressed the end of the Community Development Block Grant program, the funds secured to aid aged-out foster youths and the reasoning for HUD’s relocation.

Attendees at this year’s National Settlement Services Summit (NS3) had the opportunity to bring comfort to Kansas City area children in the family court system through the annual Make a Child Smile community outreach event, sponsored by Qualia.

The National Association of Real Estate Brokers (NAREB) issued a call to action urging the Federal Housing Administration (FHA) to eliminate outdated underwriting rules that can penalize married borrowers. NAREB President Ashley Thomas III is urging the FHA to stop requiring lenders to include a non-borrowing spouse’s debt on mortgage applications unless that spouse is legally obligated to repay the loan.

The Department of Housing and Urban Development announced a proposed rule that would revise its equal access regulations to better align with the executive order titled “Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government,” including the removal of references to “gender” and “gender identity” from regulations.

Rep. Maxine Waters (D-Calif.), ranking member of the House Financial Services Committee, announced a long list of Congressional Review Act resolutions introduced by the committee to restore critical Consumer Financial Protection Bureau guidance designed to protect consumers that were rescinded by the bureau’s acting director.

Rocket Mortgage LLC, doing business as Mr. Cooper, filed a lawsuit against United Wholesale Mortgage, LLC (UWM), alleging that UWM breached a non-solicitation agreement and cost Rocket millions of dollars through implementing initiatives “designed to … solicit mortgagors for refinances.”

More than 40 speakers will take the stage over three days this week at the National Settlement Services Summit (NS3) at the Kansas City Marriott Downtown in Kansas City, Mo.

Consumer Financial Protection Bureau acting director Russel Vought submitted a notice of appeal to the U.S. Ninth Circuit Court of Appeals on May 11, challenging a lower court’s summary judgment in the case of Rise Economy, et al. v. Russell Vought, et al., which concerns agency funding. A few days later, lawmakers voted on several joint resolutions of disapproval seeking to roll back changes to the bureau’s regulatory guidance.

Rep. Maxine Waters (D-Calif.), ranking member of the House Financial Services Committee, announced that she and Chairman French Hill (R-Ariz.) reached a new bipartisan agreement to pass an improved version of the 21st Century ROAD to Housing Act to the Senate.

Zillow Group, Inc. filed an antitrust and anticompetitive lawsuit against Midwest Real Estate Data LLC and Compass Illinois, Inc., alleging that the parties conspired to use MRED’s monopoly power in Chicagoland residential real estate listing creation and distribution to protect their private listing networks (PLNs) from competition and to compel Zillow to display their PLN listings.

Optimal Blue released its April 2026 Market Advantage mortgage data report found that mortgage declined from the first quarter but increased year-over-year.

The housing industry has weathered plenty of turbulence in recent years, and no one feels it more than industry professionals and consumers trying to navigate affordability pressures, inventory shortages and an ever-shifting rate environment. A session at the 2026 National Settlement Services Summit in Kansas City, Mo., May 19-21, titled “The Referral Equation: What Lenders, Homebuilders and Consumers Expect Today,” will put that consumer experience front and center.

A Pennsylvania-based national mortgage services provider was sent a formal warning letter on May 8 by Federal Trade Commission Chairman Andrew Ferguson asking the company to ensure compliance with laws banning noncompete agreements for employees.

Gov. Gavin Newsom (D-Calif.) announced on May 12 that Rohit Chopra will serve as secretary of California’s new Business and Consumer Services Agency , bringing one of the nation’s most prominent consumer protection leaders to California state government. Chopra previously served as director of the Consumer Financial Protection Bureau and as a commissioner of the Federal Trade Commission.

On May 4, veterans filed an amended class action complaint in their antitrust suit against Veterans United Home Loans, which introduced testimony from real estate agents and loan officers and alleged three new violations of state consumer protection laws. Veterans United told RESPA News the amended complaint “adds volume and hyperbole, not substance.”

Two borrowers filed civil action against Rushmore Loan Management Services LLC and Nationstar Mortgage LLC, doing business as Rushmore Servicing, alleging that Rushmore violated a 2021 settlement agreement by charging fees that should have been extinguished under the agreement.

The Department of Justice announced on April 27 that a Kentucky owner and manager of residential rental properties agreed to pay $510,000 to resolve allegations that he sexually harassed female tenants in violation of the Fair Housing Act.

The National Low Income Housing Coalition sent a comment letter to the Department of Housing and Urban Development (HUD) regarding its recent notice of proposed rulemaking” which would require proof of U.S. citizenship or eligible status for every resident in HUD-funded housing, including mixed-status households. 

Carrington Mortgage Services, LLC, a specialist in Ginnie Mae servicing, and Valon Technologies, Inc., which has built an artificial intelligence-native operating system for mortgage servicing, announced a strategic partnership on May 7 to advance the next generation of Ginnie Mae servicing technology.

The Department of Housing and Urban Development (HUD) declared on May 5 that the Housing Authority of the city of Little Rock, Ark., was in substantial default for failing to meet the terms of its federally-mandated recovery agreement. As a result, HUD took possession of the housing authority’s programs, operations and assets and dissolved its locally appointed governing board of commissioners.

A borrower filed a civil complaint for damages against Nationstar Mortgage LLC, doing business as Mr. Cooper, for allegedly violating RESPA by failing to respond to several qualified written requests in a timely manner and failing to properly disburse tax payments from an escrow account.

The Department of Housing and Urban Development announced on April 30 that homelessness-related service providers across the nation can expect the 2026 Continuum of Care Notice of Funding Opportunity to be published by June 1, with awards being made by Dec. 1. Proposed reforms to the program faced opposition in lawsuits filed by over 20 states and by nonprofit organizations.

The Department of Justice announced on April 30 that it secured the “second-largest [settlement] ever obtained by the department in an individual housing discrimination case.” The $750,000 settlement resolves allegations that Georgia apartment owners and managers violated the Fair Housing Act by refusing to grant a reasonable accommodation to a family who requested to move to a ground-floor unit.

A U.S. district court granted the Department of Justice-Colony Ridge’s joint motion for dismissal, emphasizing that the terms of their settlement agreement “addressed issues not pled and provides relief not sought.”

New Jersey Attorney General Jennifer Davenport announced on April 28 that her office and the Division on Civil Rights were renewing their enforcement focus on protecting residents from housing discrimination and announced an amendment to the 2022 redlining settlement with Trident Mortgage LP.

Department of Housing and Urban Development Secretary Scott Turner and Department of Agriculture Secretary Brooke Rollins announced the recission of building code requirements that added “at least $20,000 to the cost of home construction.” The Mortgage Bankers Association and the National Association of Realtors expressed their support for the effort to promote new construction and increase the housing supply.

A borrower sued his mortgage servicer, accusing it of failing to provide a complete accounting of his loan upon request and to conduct a reasonable investigation. The borrower alleged RESPA, Regulation X and Fair Debt Collection Practices Act violations. The servicer filed a motion to dismiss, arguing that it was not a debt collector and that the borrower did not submit a valid qualified written request.

Sen. Elizabeth Warren (D-Mass.), ranking member of the Senate Banking, Housing, and Urban Affairs Committee, led 31 senators in a comment letter to Department of Housing and Urban Development Secretary Scott Turner opposing the rollback of a civil rights regulation implementing the disparate impact standard in housing.

RESPA experts will be joining us at the National Settlement Services Summit on May 19-21 in Kansas City, Mo., to share insights on the regulatory changes that are reshaping the industry in a session entitled “The Federal Shift.”

The Consumer Financial Protection Bureau issued a final rule that made amendments to the Equal Credit Opportunity Act regarding disparate impact, discouragement of applicants or prospective applicants and the special purpose credit programs under Regulation B.

The U.S. Department of Housing and Urban Development issued guidance to real estate professionals on April 24, clarifying that providing neighborhood crime rates and school quality data to prospective homebuyers is not a violation of the Fair Housing Act.

In a recent filing, the plaintiffs of Taylor v. Zillow sought to add EXP Realty LLC as a real estate defendant, as well as add another plaintiff to their case. The plaintiffs alleged in the class action that Zillow and the companies engaged in practices that rewarded agents for steering consumers toward certain loan products.

Freddie Mac and Fannie Mae announced on April 22 that it is implementing new credit score models as part of a joint effort to create a “modernized and more competitive” framework for mortgage underwriting. Mortgage Bankers Association President and CEO Bob Broeksmit said that “expanding the set of acceptable credit scoring models … will help foster a more transparent and dynamic market.”

Sen. Adam Schiff (D-Calif.) led a group of Congress members in sending a letter requesting answers on the Consumer Financial Protection Bureau’s cancellation of a $25 million settlement with Citibank which addressed alleged discrimination against Armenian American consumers.

Twenty-three state attorneys general signed a comment letter sent to the Consumer Financial Protection Bureau (CFPB) regarding its strategic plan draft for fiscal year 2026 through 2030, raising concerns about the bureau’s ability to perform its statutory duties with a reduction in staff. The Mortgage Bankers Association also sent a letter, offering recommendations to further the CFPB’s goal to provide regulatory relief.

Pending home sales in March increased by 1.5 percent from February and declined 1.1 percent year-over-year, according to the National Association of Realtors (NAR) Pending Home Sales report. “Demand sensitivity to mortgage rates is greatest among first-time buyers, particularly younger buyers,” NAR Chief Economist Lawrence Yun said. “As a result, boosting supply and new-home construction should focus on smaller, more affordable homes.”

The National Association of Realtors released on April 21 its first quarterly update on the 2026-2028 strategic plan, highlighting its affordable housing efforts and collaborations with multiple listing services.