The Supreme Court of the United States this week ruled in favor of Miami in a case involving losses the city claimed were related to “predatory mortgages.” The ultimate impact of the ruling remains unclear, as the lawsuits will proceed in a lower court, potentially fizzling out or leading to a plethora of similar claims. In Bank of America v. City of Miami, BofA and Wells Fargo challenged lawsuits brought under the Fair Housing Act. The city alleged that discriminatory conduct by the banks in their origination of predatory mortgages before the financial crisis led to a disproportionate number of foreclosures and vacancies in majority-minority neighborhoods. Miami said the loans and foreclosures impaired the city’s effort to assure racial integration, diminished its property-tax revenue and increased demand for police, fire and other municipal services. In a 5-3 ruling supported by the Supreme Court’s more liberal-leaning justices, the court determined...
The House Financial Services Committee this week began marking up the Republican majority’s alternative to the Dodd-Frank Act, H.R. 10, the Financial CHOICE Act, introduced late last month by committee Chairman Jeb Hensarling, R-TX. As previously reported, the bill would make numerous changes to the mortgage lending regulatory landscape, and eliminate the Consumer Financial Protection Bureau’s rulemaking, supervisory and enforcement authority, among other significant changes. As Inside Mortgage Finance went to press, lawmakers of both parties were squabbling...
Denmar Dixon, who stepped down as CEO of Walter Investment Management Corp. last year, received $6.62 million in total compensation for 2016 while the company posted a net loss of $529 million.
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