Separate lawsuits against major banks were dismissed last week, providing some insight on how lenders and servicers can defend against claims brought by consumer advocates under the False Claims Act and allegations of redlining and reverse redlining. In 2013, Advocates for Basic Legal Equality alleged that U.S. Bank’s servicing practices violated the FCA. U.S. District Court Judge Jack Zouhary dismissed the lawsuit, noting that the claims were barred by the “public disclosure doctrine.” Larry Platt, a partner at the law firm of K&L Gates, said...

The first-time homebuyer share of home purchases in April hit its highest level in more than four years, according to the Campbell/Inside Mortgage Finance’s HousingPulse Tracking Survey. The purchases have been boosted by a reduction in the FHA’s mortgage insurance premiums and help rebut concerns about the demise of the first-time homebuyer. First-time homebuyers accounted for 37.6 percent of home purchases in April, up from a 34.3 percent share a year ago, based on three-month moving averages. The last time the first-time homebuyer share of home purchases was above 37.6 percent was in August 2010 at a 40.0 percent share. Tom Popik, research director of Campbell Surveys, said...

In a ruling that may impact future fair-lending class actions, a federal district court judge in Manhattan has denied class certification in a lawsuit brought by the American Civil Liberties Union and National Consumer Law Center against global investment bank Morgan Stanley. Filed in October 2012, the suit was brought on behalf of African American borrowers in Detroit who obtained subprime loans from New Century Mortgage, a now-defunct originator that sold the loans to secondary-market purchasers, including Morgan Stanley, which then securitized them. New Century originated...

One source said the CFPB is even reaching out to former MI officials to assist it in its review.

Mortgages with uncured TRID violations will have higher losses if they default, owing to the potential for increased legal costs and damages, said Moody's.

Investors have been unhappy with Nationstar’s stock performance the past year and want a clearer picture of where the firm is headed.

In response to its anxiety, the Inspector General plans a series of audits that will study the risks posed by an increasing volume of nonbank loan sales.

“The process of dealing with RHS is a nightmare,” said Rep. Blaine Luetkemeyer, R-MO, vice chairman of the committee.

Among those nonbanks not losing too much sleep over the FHFA proposal is Nationstar Mortgage.

First Guaranty Mortgage Corp., Frederick, MD, originated $940 million of home mortgages in the first quarter, a 48 percent jump from the same period a year earlier.