On August 16, the Federal Housing Finance Agency issued a final rule on validation and approval of third-party credit score models that Fannie Mae and Freddie Mac use in deciding whether to purchase residential mortgage loans. The FHFA is the GSEs’ prudential regulator and, since 2008, has served as their conservator. In doing so, the… Read More
At the direction of the Federal Housing Finance Agency (FHFA), government sponsored enterprises Fannie Mae and Freddie Mac (the GSEs) announced in June 2019 that the optional use period for the redesigned Uniform Residential Loan Application (URLA) and automated underwriting system (AUS) implementations would be postponed. FHFA has now directed the GSEs to make specific… Read More
On July 25, 2019, the CFPB issued an Advance Notice of Proposed Rulemaking on the definition of a “qualified mortgage” under its ability-to-repay/qualified mortgage rule. The ANPR states that the Bureau does not intend to extend the temporary qualified mortgage (QM) classification for loans eligible to be purchased or guaranteed by Fannie Mae or Freddie… Read More
On July 11, Fannie Mae and Freddie Mac (the GSEs) announced their plans to develop new adjustable rate mortgage products that would rely on the Secured Overnight Financing Rate (SOFR) instead of LIBOR. Given the GSEs’ dominance in the mortgage market, their re-designed ARMs will undoubtedly have a significant impact on hybrid ARMs of the future…. Read More
On March 20, 2019, the Supreme Court unanimously ruled in Obduskey v. McCarthy & Holthus LLP that a business engaged in non-judicial foreclosure is not subject to all of the requirements and prohibitions applicable to “debt collectors” under the Fair Debt Collections Practices Act. We discuss The Supreme Court’s decision and how this ruling is… Read More
The D.C. Circuit’s long-awaited en banc decision in PHH v. CFPB upheld the constitutionality of the CFPB’s single-director structure in the face of a constitutional attack. But don’t be fooled by the headlines: under-the-radar parts of the decision were big wins for the mortgage industry and the rule of law. Read our client alert.
The CFPB announced on Wednesday, September 20th, 2017, proposed guidance to limit the Home Mortgage Disclosure Act (HMDA) data it shares publicly. The Bureau’s 2015 HMDA amendments (discussed in our alerts here and here) revamped HMDA’s coverage and processes, including requiring lenders to report vast swaths of new data about mortgage applicants and their loans…. Read More
As we have previously reported, in October 2015, the CFPB issued a sweeping final rule (“2015 Final Rule”) to amend Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). The bulk of the 2015 Final Rule will become effective on January 1, 2018. With the effective date drawing nearer, the CFPB has proposed an… Read More
InterContinental Miami 100 Chopin Plaza Miami, FL 33131 Join Morrison & Foerster at MBA’s Legal Issues & Regulatory Compliance Conference. Partner Don Lampe will be speaking on the following panels: RESPA and PHH Tuesday, May 9, 2017 1:00 p.m. – 2:15 p.m. RESPA Section 8 in a New World Tuesday, May 9, 2017 4:00 p.m…. Read More
Hope you survived all of those awkward Thanksgiving holiday conversations—amazing how divided people are on whether the court got it right in the PHH case, isn’t it? So on we go into the holiday season, while visions of Dodd-Frank repeal dance in our heads. No long winter’s nap for the CFPB, not with the inauguration… Read More
The potentially explosive combination of the D.C. Circuit’s October decision in PHH v. CFPB and the outcome of the presidential election has spurred a host of questions about how the PHH litigation may proceed and about the future of the CFPB under the leadership of CFPB Director Richard Cordray. After providing some background, this alert… Read More
Given the outcome of the presidential election, the focus is now on President-Elect Trump’s campaign promises to scale back the Dodd-Frank Act and pursue deregulation of financial services. As of now, little is known about specific actions the new administration will pursue after inauguration. There is, however, a template for reform, namely, the Financial Creating… Read More
In a decision eagerly awaited by the financial services industry, the D.C. Circuit this week handed the CFPB a major defeat, throwing out a mortgage lender’s $109 million disgorgement remedy on constitutional, statutory, and administrative-law grounds. See PHH Corp. v. CFPB. This may not be the last chapter in the story, however, as it is… Read More
The D.C. Circuit held today that the single-director structure of the CFPB violates Article II of the United States Constitution, and added important substantive rulings on the Real Estate Settlement Procedures Act (RESPA). The issue presented in PHH Corp. v. Consumer Financial Protection Bureau, Case No. 15-1177 (Oct. 11, 2016), was “Whether, under Article II… Read More
On September 15, 2016, the U.S. Department of Housing and Urban Development issued guidance on how the nondiscrimination provisions in the Fair Housing Act apply to persons who consider an individual’s “Limited English Proficiency,” or limited ability to speak, read, write, or understand English, in housing transactions. The “Office of General Counsel Guidance on Fair Housing… Read More
Grand Hyatt Washington 1000 H St. NW Washington, DC 20001 September 18-20, 2016 Join Morrison & Foerster at the Mortgage Bankers Association’s Regulatory Compliance Conference as partners Joe Palmore and Don Lampe speak on the following topics: Major Litigation Affecting Compliance Officers September 19th, 12:45pm Eastern Joe Palmore Planning for CFPB TRID and Servicing Exams… Read More
In August 2016, the CFPB, the OCC, and the Board of Governors of the Federal Reserve System (together, the “Agencies”) jointly published in the Federal Register a notice of proposed rulemaking (NPR) to amend the Agencies’ respective regulations exempting certain small loans from the special appraisal requirements that apply to lenders in connection with making… Read More
On August 2, 2016, the CFPB published a new guidance document titled CFPB’s Principles for the Future of Loss Mitigation (the “Guidance”), which outlines a recommended framework for new, industry-driven foreclosure relief programs. The Guidance largely follows the July 25, 2016, white paper jointly issued by the U.S. Department of the Treasury (“Treasury”), the U.S…. Read More
CFPB “mystery shoppers,” along with secret recordings, were part of the CFPB’s factual allegations in a recent mortgage discrimination settlement. The DOJ and CFPB announced a settlement with BancorpSouth Bank to resolve alleged violations of the Fair Housing Act and Equal Credit Opportunity Act (ECOA). The complaint alleges that from at least 2011 to 2013,… Read More
In an April 28, 2016, letter to mortgage industry trade groups, the Director of the Consumer Financial Protection Bureau, Richard Cordray, signaled that the agency plans to propose amendments to the TILA-RESPA Integrated Disclosure (“TRID”) rule, also known as the “Know Before You Owe” rule, this July. Read our client alert.
On April 21, 2016, the CFPB reopened the comment period on a narrow portion of its December 15, 2014 notice of proposed rulemaking (the “NPR”), which would amend the mortgage servicing rules in Regulation X and Regulation Z. Specifically, the CFPB is requesting public comment on a February 2016 report summarizing the results of consumer… Read More
On March 22, 2016, the CFPB issued an Interim Final Rule (the “IFR”) amending the ability-to-repay (“ATR”) and qualified mortgage (“QM”) provisions of Regulation Z. The IFR, which implements a portion of the Helping Expand Lending Practices in Rural Communities (“HELP”) Act, became effective on March 31, 2016. Before the IFR became effective, certain special… Read More
On April 14, 2016, the Federal Housing Finance Agency (“FHFA”) announced the launch of a principal reduction program for first-lien mortgages that are owned or guaranteed by Fannie Mae and Freddie Mac. According to the announcement, this program is a “last chance” for some borrowers to avoid foreclosure by allowing them to obtain a loan… Read More
On Tuesday, April 12 at 2:00 p.m. Eastern the CFPB will conduct a one-hour webinar to answer frequently asked questions about the Know Before You Owe (TRID) mortgage disclosure rule, focusing on new questions and guidance received after the rule’s October 2015 effective date. Click here to register.