This topic consolidates everything you need to know to stay informed including prominent industry advocacy movements, current regulatory enforcement actions, and judicial rulings impacting mortgage banking.
Ballard Spahr LLP--Stefanie Jackman & Rene T. McNulty
New Jersey debt buyer, RAB Performance Recoveries, LLC will pay a civil money penalty of $204,000 and will suspend current and future collection activities; vacate those judgments and notify consumers with payment agreements that the debts have been satisfied after allegedly threatening and suing consumers to collect debts in states where it did not have a legally required license.
The SEC has filed an emergency action and obtained an order imposing an asset freeze and other emergency relief against Virgil Capital LLC and its affiliated companies allegedly relating to securities fraud in their flagship cryptocurrency trading fund,
Search our Compliance Calendar for current regulatory changes & updates.
Ballard Spahr LLP--Reid F. Herlihy
The CFPB has announced a consent order with Seterus, Inc. and its successor-in-interest, Kyanite Services, Inc. alleging mortgage servicing violations including unfair practices regarding their loss mitigation applications as well as violations relating to loss mitigation rules in Regulation X (12 C.F.R. § 1024.41).
The CFPB issued a consent order against an auto-lender in connection with providing erroneous consumer loan data to consumer reporting agencies (CRAs) between January 2016 and August 2019 which contained many systemic errors that in many instances, could have negatively impacted consumers’ credit scores and access to credit, resulting in a $4,750,000 civil money penalty.
The CFPB issued a consent order against student loan servicers for violations of a prior Bureau order, the Electronic Fund Transfer Act (EFTA), and the Consumer Financial Protection Act of 2010 (CFPA), resulting in at least $10 million in consumer redress and a $25 million civil money penalty.
The CFPB announced a settlement with a remittance transfer provider for violations of the Electronic Fund Transfer Act (EFTA) and the Remittance Transfer Rule, which implements EFTA by failing to honor cancellation requests, failing to refund certain fees and taxes when funds were not available on time, and failing to maintain appropriate error resolution policies and procedures, to adhere to error resolution requirements, and to provide consumers with reports of investigation findings.
"We are already ahead of the game and without having to add additional FTEs."
- Julie Baril, QC Manager at Norcom Mortgage
The CFPB issued a consent order against a mortgage servicer for violations of the Consumer Financial Protection Act of 2010 (CFPA) and RESPA (Regulation X), resulted in delaying or depriving some borrowers of a reasonable opportunity to get their loss mitigation applications completed and evaluated and in some borrowers failing to timely receive protections against prohibited foreclosure activities to which they were legally entitled.
Troutman Pepper Hamilton Sanders LLP--John C. Lynch; Michael E. Lacy; Jon S. Hubbard; Kathleen M. Knudsen; Jason T. Kutcher
Maryland Court of Special Appeals upheld that in Maryland, foreclosures are equitable proceedings, distinct from actions at law, and are not, nor have they ever been, subject to a statute of limitations.
OCC released new enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations during the month of November 2020.
Housingwire--James Kleimann
Smart Mortgage, a mortgage broker, has filed suit against Brian Noe a former loan officer and Nexa Mortgage alleging Noe stole a database containing client names and information and took it to his new employment with at NEXA Mortgage.
"ACES has shined a light on our productivity and empowered us to hold our teams accountable."
- Emilee Rada, Director of Lending Operations at Georgia's Own Credit Union
Inside ARM--Christopher Willis
The FTC has its first enforcement action settlement targeting the practice of “debt parking” also known as “passive debt collection.”
OFAC has published the names of additional persons that have been added to the Specially Designated Nationals and Blocked Persons List.
The CFPB and Arkansas Attorney General announced a settlement with a home alarm provider, resulting from allegations that the company failed to provide proper notices under the Fair Credit Reporting Act (FCRA).
The CFPB has filed a lawsuit against a debt collector for allegedly engaging in deceptive and otherwise unlawful debt collection acts or practices, and violation of the Fair Debt Collection Practices Act (FDCPA) and the Consumer Financial Protection Act of 2010 (CFPA).
