JPMorgan Chase Bank last week agreed to a $53 million settlement with the U.S. Attorney for the Southern District of New York, bringing to a close allegations of discriminatory lending against minority borrowers through its wholesale-broker channel in violation of the Equal Credit Opportunity Act and the Fair Housing Act. According to the consent order, prior to January 2006 and continuing until early 2009, Chase originated and funded residential mortgage loans through a wholesale channel. “Applications for these loans were brought to Chase by thousands of independent mortgage brokers throughout the United States who had entered into contracts with Chase for the purpose of bringing mortgage loan applications to it for origination and funding.” Also, from 2006 to 2009, approximately ...
Putting in place a successor-in-interest confirmation process that complies with the CFPB’s updated mortgage servicing rules is going to be a big hurdle for mortgage servicers to overcome, according to attorneys with the Bradley law firm. “Arguably the most significant element of the recent amendments to the existing mortgage servicing regulatory framework by the CFPB is the new structure that has been laid out for dealing with potential and confirmed successors in interest,” the attorneys said in a recent online blog post.As they see it, fully complying with the new rule is going to require a significant amount of institutional exertion, no matter a servicer’s size. “One of the more time-intensive – and therefore costly – aspects of the rule is ...
Republicans Again Introduce Legislation to Change CFPB Leadership Structure to a Board. Republican Sens. Deb Fischer (NE), Ron Johnson (WI) and John Barrasso (WY), recently introduced S. 105, legislation that would replace the CFPB’s single-director leadership structure with a bipartisan, five-member board. ... Cordray Assures CFPB Staff Re: PHH Dispute in October Email. In an Oct. 17, 2016, email to “all hands” at the CFPB, a copy of which was obtained by Inside the CFPB, the agency’s director, Richard Cordray, offered some words of reassurance in light of the decision by the three-judge panel of the District of Columbia Circuit Court of Appeals that found the bureau’s leadership structure was unconstitutional. ...
OCC Revises CRA Asset Thresholds for Small and Intermediate Small Banks and Savings Associations. Earlier this month, the Office of the Comptroller of the Currency revised the asset-size threshold amounts used to define “small bank,” “small savings association,” “intermediate small bank,” and “intermediate small savings association” under the Community Reinvestment Act. ... OCC Adjusts Civil Money Penalties for Inflation. Late last week, the Office of the Comptroller of the Currency announced it was adjusting the maximum amount of each civil money penalty within its jurisdiction. ...
This source continued: “If only Castro had put the MIP cut through right after the actuarial report came out, we probably wouldn’t be talking about this right now.”
The CFPB Office of Inspector General recently initiated an evaluation of the bureau’s use of vendors to support its analysis of fair lending compliance, the OIG indicated in its latest work plan. The OIG begins by noting, among other responsibilities, the CFPB is charged with providing oversight and enforcement of federal laws intended to ensure the fair, equitable and nondiscriminatory access to credit. But what may surprise many in the industry is to learn that the agency relies on external vendors to help fulfill this responsibility. “Our objective is to assess whether the CFPB effectively mitigates the risk associated with the use of vendors to support fair lending analysis, particularly with respect to potential conflicts of interest,” said the OIG ...
Treasury Secretary nominee Steven Mnuchin’s recent comments that he’s not a fan of recapitalizing and releasing Fannie Mae and Freddie Mac and wants to find a “bipartisan solution” to GSE reform has caused speculation about what reform will look like under the Trump administration.The comments, made during his Senate confirmation hearing last week, presented a softer take on housing reform than his earlier comments suggested. Shortly after being ...
A federal court ruled that GSE shareholders can no longer sue Fannie Mae’s accounting firm, Deloitte & Touche, and that the Federal Housing Finance Agency will take over as plaintiff in the Edwards et al v. Deloitte & Touche case. The ruling, handed down last week in the U.S. District Court of Florida, distanced shareholders from the case, and said any claims against Deloitte are the sole responsibility of ...
The Supreme Court of the United States ruled last week that Fannie Mae does not have the right to automatically transfer a case from state court to federal court under the “sue-and-be-sued” clause. In the ruling from the Lightfoot v. Cendant Mortgage Corp. case, the court rejected an argument stating that the GSE’s federal charter creates federal jurisdiction. The case was argued in November. The ruling by Justice Sonia Sotomayor reversed an earlier Ninth Circuit Court decision which stated that Fannie’s sue-and-be-sued clause in the charter enabled it to transfer state-filed lawsuits against it to federal court. But that’s not the case anymore. “Fannie Mae’s sue-and-be-sued clause is most naturally read not to grant...
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