News & Analysis as of

Mortgage Lenders Consumer Financial Products

Sheppard Mullin Richter & Hampton LLP

CFPB Sues Mortgage Lender for Predatory Lending Practices in Manufacture Homes Loans

On January 6, 2025, the CFPB filed a lawsuit against a non-bank manufactured home financing company for violations of the Truth in Lending Act and Regulation Z. The lawsuit alleges that the mortgage lender engaged in...more

Saul Ewing LLP

Consumer Financial Protection Bureau Pursues Action to Stop Kickback to Brokerages for Steering Consumers to Rocket Mortgage

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The Consumer Financial Protection Bureau (“CFPB”) filed an action on December 23, 2024, against Rocket Home Real Estate LLC (“Rocket Homes”), a real estate brokerage and affiliates (“Defendant Brokerage”) and an individual...more

Orrick, Herrington & Sutcliffe LLP

FHA seeks comments on the proposed establishment of the optional reimbursement claim alternative mortgagee letter

Recently, FHA’s Office of Single Family Housing included on its “Drafting Table” a request for stakeholder feedback on both a draft Mortgagee Letter establishing the Optional Reimbursement Claim Alternative Option (“ORCA”)...more

Troutman Pepper Locke

Federal Court Allows FCRA Claim to Proceed Over Alleged Unauthorized Credit Pulls

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Recently, the Eastern District of Kentucky denied a motion to dismiss under the Fair Credit Reporting Act (FCRA) after finding the plaintiffs alleged sufficient facts to support a reasonable inference that credit reports were...more

Ballard Spahr LLP

CFPB Adjusts HMDA Asset Exemption Threshold

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The CFPB recently issued a final rule increasing the asset exemption threshold under the Home Mortgage Disclosure Act (HMDA)....more

Orrick, Herrington & Sutcliffe LLP

CFPB highlights challenges faced by successor homeowners in assuming mortgages

On December 17, the CFPB released an Issue Spotlight reporting on challenges that homeowners often face with mortgage servicing companies after a divorce or the death of a loved one which may cause them to become homeowners....more

Orrick, Herrington & Sutcliffe LLP

New York State amends banking laws to require provision of pamphlet of mortgage applicant’s rights

On December 13, the Governor of New York signed into law AB 9686, which amends the New York State banking law by requiring the Superintendent of Financial Services to develop an informational pamphlet titled “What Mortgage...more

Orrick, Herrington & Sutcliffe LLP

FHA publishes revised cyber incident reporting requirements

On December 2, the FHA issued Mortgagee Letter 2024-23, outlining revised requirements for reporting cyber incidents by FHA-approved mortgagees. According to the letter, the revisions aim to align FHA reporting requirements...more

Orrick, Herrington & Sutcliffe LLP

Maryland implements updates to shared appreciation agreements

On November 25, new regulations in Maryland addressing shared appreciation agreements became effective. This action implements Ch. 568 (H.B. 1150) from 2023, which codified that shared appreciation agreements are mortgage...more

Orrick, Herrington & Sutcliffe LLP

RegFi Episode 51: Streamlining Mortgage Origination Through Digitization

The Majority Group Partner Anne Canfield joins Sasha Leonhardt and Jerry Buckley to explore legislative changes that could facilitate digital mortgages and cut thousands of dollars from the cost of mortgage origination. Anne,...more

Ballard Spahr LLP

CFPB seeks approval of Townstone Financial order

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Following lengthy litigation, the CFPB is attempting to close the books on its case against Townstone Financial alleging discriminatory lending practices and redlining African American neighborhoods in Chicago....more

Troutman Pepper Locke

CFPB Reaches Settlement with Townstone Financial, Inc.

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In a significant development, the Consumer Financial Protection Bureau (CFPB or Bureau) has finally reached a settlement with Townstone Financial, Inc. (Townstone) in the first redlining case brought against a nonbank...more

Troutman Pepper Locke

New Jersey Attorney General Releases Report on Republic First Bank’s Unlawful Redlining Practices

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On October 29, New Jersey Attorney General Matthew Platkin and the state’s Division on Civil Rights (DCR) released a report detailing the findings of a multi-year investigation into Republic First Bank (Republic) and its...more

Hogan Lovells

English High Court rules on transferee mortgage lender's entitlement to maintain prevailing SVR

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The High Court in London has given judgment on three key preliminary issues in a claim brought by former customers of Northern Rock, whose mortgages and loans were acquired by TSB Bank. The Court found in favour of TSB on...more

Troutman Pepper Locke

DOJ and CFPB Announce Landmark Redlining Settlement With Fairway Independent Mortgage Corporation

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On October 15, the Consumer Financial Protection Bureau (CFPB or Bureau) and the Department of Justice (DOJ) announced that they reached a settlement with Fairway Independent Mortgage Corporation (Fairway). This settlement...more

McGlinchey Stafford

FCRA Claims Fail as Mortgagor Could Not Satisfy His Repayment Obligations by Tendering Another Promise to Pay

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On September 19, 2024, the District Court for the Eastern District of New York dismissed claims against the mortgage lender, its mortgage servicer, and credit reporting agencies under the Fair Credit Reporting Act (FCRA), 15...more

Troutman Pepper Locke

Proposed Mortgage Assistance Rule: Tips for Servicers

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On July 10, the Consumer Financial Protection Bureau issued a proposed rule that would alter the current Regulation X mortgage servicing procedures in favor of a system that broadly construes requests for assistance, and...more

Ballard Spahr LLP

CFPB’s Chopra: government must tackle spiraling refinance, homeowners’ insurance costs

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As interest rates drop, the CFPB is exploring ways to streamline mortgage rules to make the refinancing process easier and closing costs less expensive, Director Rohit Chopra said at a housing conference sponsored by the...more

Steptoe & Johnson PLLC

HELOC Funds Accessed With a Credit Card: No Right To Offset Absent Express Agreement

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The idea of borrowing against equity in a residential home through a second mortgage has been around for almost a century. However, the popularity of a home equity line of credit (HELOC) increased in the 1980s following the...more

Orrick, Herrington & Sutcliffe LLP

RegFi Episode 45: Challenges and Opportunities in Banking Today: An Economist’s Perspective

NYU economics professor Larry White joins RegFi co-hosts Jerry Buckley and Caroline Stapleton to discuss a range of current issues facing the financial services industry. Professor White provides data on the significant...more

Saul Ewing LLP

CFPB Takes Action Against Fay Servicing for Alleged Violations of Mortgage Servicing Laws and Prior Enforcement Orders

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On August 21, 2024, the Consumer Financial Protection Bureau (CFPB) announced an enforcement action against Fay Servicing, a nonbank mortgage servicer, for alleged violations of federal mortgage servicing laws and...more

Mayer Brown

MSR Deal Points Q&A

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In this episode of Financial Services Focus, Eric Edwardson, Lauren Pryor and Chris Smith discuss selected key terms of purchase and sale agreements for residential mortgage servicing rights, exploring the typical...more

Troutman Pepper Locke

CFPB Orders Mortgage Lender to Pay $2.25 Million for Allegedly Deceiving Servicemembers and Veterans

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Last week, the Consumer Financial Protection Bureau (CFPB or Bureau) announced it had entered into a consent order with NewDay USA, a Florida-based non-bank direct mortgage lender, over allegations that the lender misled...more

GeoDataVision

Is Fair Lending Enforcement Fair Today? Part II

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Previously, I have written about regulatory enforcement of anti-redlining regulations. I pointed out the problems and potentially misleading statistical conclusions caused by the application of what is called a “REMA” or...more

Sheppard Mullin Richter & Hampton LLP

CFPB Announces Advisory Opinion on Applicability of TILA and Regulation Z To Contracts for Deed

On August 13, the CFPB announced an advisory opinion on the applicability of the Truth in Lending Act (TILA) and Regulation Z to “contracts for deed.” A contract for deed is an arrangement in which a consumer purchases a home...more

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