The trade groups argued that the interpretation that employees have a right under the NLRA to engage in class or collective litigation is “dubious at best.”
The Mortgage Bankers Association is calling for a moratorium on future claims against FHA lenders under the False Claims Act to give the Department of Housing and Urban Development sufficient time to streamline its defect taxonomy and revise its loan-level certification requirements. In letters to HUD and the Department of Justice, the MBA said the FHA has yet to issue clear standards identifying specific errors that could trigger an FCA claim and those that do not. FCA enforcement actions can result in very significant damage to a lender’s reputation and bottom line, warned Dave Stevens, MBA president and chief executive officer. Although FHA lenders work hard to ensure compliance with strict underwriting and documentation standards, origination, insurance and servicing depend heavily on human efforts, which could easily result in technical errors, he added. While lenders process ...
Industry comments on the Department of Housing and Urban Development’s plan to streamline and clarify agency regulations and discard those that have outlived their usefulness reflect mixed priorities.The Mortgage Bankers Association and the American Bankers Association chose to focus on a single issue, while the National Association of Realtors, the Community Home Lenders Association and the Consumer Mortgage Coalition called for changes on multiple issues. A HUD task force is sifting through department regulations to identify those for repeal, replacement, clarification or amendment. The regulatory review is in response to President Trump’s directive to reduce regulatory burden and control regulatory costs. While the MBA called for a freeze on all future False Claims Act enforcement actions against lenders (see story on p. 6), the ABA raised concerns about ...
The chair of the Senate Judiciary Committee is looking into whether monies from mortgage-settlement funds were channeled to partisan advocacy and community organizations that Congress had previously defunded. In a recent letter to Attorney General Jeff Sessions, Chairman Chuck Grassley, R-IA, revived a long-standing request by the committee for a list of all settlement agreements reached during the Obama administration that involved alleged payments to community groups. Grassley’s request came in the wake of Session’s June 7 directive prohibiting the DOJ from entering into any settlement agreements that provide for payment to third parties that were not directly harmed by the alleged misconduct. Sessions said the directive ends the previous administration’s practice of requiring or encouraging defendants to make payments to third parties as a condition of settlement. The directive would ...
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