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.
DSNews--Adam Diaz, Litigation Partner at Diaz Anselmo Lindberg, P.A.
The United States Court of Appeals for the Fourth Circuit ruled in favor of Bank of America on a case, stating that the borrowers’ cease and desist letter “…was a clear expression that…[they] would not cooperate with the Bank to conduct a face to face meeting…” and therefore such a meeting was not required under 24 C.F.R. § 203.604(c)(3).
The OCC has recently appealed a district court’s final judgment in an NYDFS lawsuit challenging the agency’s decision to allow non-depository fintech companies to apply for Special Purpose National Bank charters.
Search our Compliance Calendar for current regulatory changes & updates.
Guarantee Rate will pay $15.06 million to settle allegations of FHA and VA lending rules, including “knowingly violating material program requirements when it originated and underwrote mortgages”.
Black, Mann & Graham
The Supreme Court of Texas has upheld the lender’s right to equitable subrogation in connection with an invalid Texas home equity loan.
MBA Newslink--Bill Killmer; Pete Mills
Last week's advocacy efforts include the industry's COVID-19 Response; the $484 Billion Interim Coronavirus Aid Package; Democrat's Letter to Federal Regulators Advocating for a Liquidity Facility for Mortgage Servicers; VAs New Reporting Requirements for Noncompliant IRRRLs; State Governments Act to Increase the Number of States with RON; D.C. Council Passes Bill that Amends 90-Day Loan Deferment Plan in the COVID-19 Emergency Law; and more.
Ballard Spahr LLP--John L. Culhane, Jr.
The Ninth Circuit U.S. Court of Appeals made a ruling in the Gilliam v. Levine case deciding that that a loan made to an individual trustee to financing repairs for a residential property owned by the said trust is a consumer credit transaction for purposes of TILA, RESPA and the California Rosenthal Act.
Automated compliance tests to ensure compliance on more loans in less time
FDIC released a list of 13 orders of administrative enforcement actions taken against banks and individuals in March 2020.
The Hill--Marty Johnson
Close to 8,000 small businesses have had their personal identifiable information exposed to other applicants that also applied for the SBA Economic Injury Disaster Loan program on the agencies website.
The Consumer Bankers Association (CBA) issued a comment letter to FDIC in response to the request for information regarding sign and advertising requirements in deposit-based financial institutions.
Banking Exchange--Banking Exchange Staff
JP Morgan in California has received notice of a class action lawsuit alleging unfair business practices by prioritizing borrowers who were seeking larger loan amounts rather than a good faith effort to take business on a first come first serve basis in the federal small business Paycheck Protection Program.
Presented by ACES Quality Management's EVP of Compliance, Amanda Phillips, and Ballard Spahr's Reid Herlihy, Richard Andreano, Jr., and Matthew Morr.
FHA published a notice of all completed administrative actions taken by the HUDs Mortgagee Review Board during the period from October 1, 2018, through September 30, 2019, including a description of, and the cause for, the Mortgagee Review Board’s administrative actions against HUD-approved mortgagees in 47 fact-based cases and 59 annual recertification violations.
MBA Newslink--Bill Killmer; Pete Mills
Last week's advocacy efforts include Continued Progress on Rapid Response to COVID-19; FHFA, GSEs Announce Extended URLA Implementation Timeline; CFPB Increases HMDA Reporting Threshold from 25 to 100 Loans; Pennsylvania Coalition Responds to Department of State Order that Would Limit Real Estate Finance Transactions; MBA and State Associations Submit Letter to the District of Columbia Department of Insurance, Securities and Banking Regarding 90-Day Loan Deferment Plan; and more.
DSNews--
Wells Fargo is preparing a potential $18.5 million settlement in a lawsuit regarding the alleged computer error that let to the denial of loan modifications to some homeowners who proceeded to lose their homes to foreclosure.
Ballard Spahr LLP--Kim Phan & Stefanie Jackman
Attorney generals from 21 states, the District of Columbia, and Puerto Rico are requesting that CFPB Director Kraninger withdraw its COVID-19 guidance regarding credit reporting and resume oversight and enforcement of the FCRA.
