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Inside the CFPB

August 31, 2009

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Ruling Creates Doubt for Servicer Safe Harbor

A New York federal court has remanded to state court a class action filed by mortgage-backed securities investors against Countrywide Financial Corp., but left open the question of whether federal safe harbor provisions immunize servicers from investor lawsuits. In an Aug. 14 ruling, the U.S. District Court for the Southern District of New York held that a breach-of-contract... Read More

States to Create Multi-State Audit Team

Multi-state mortgage companies that engage in highly risky lending practices will be facing tougher oversight under a new multi-state examination regime agreed to by all 50 states. A committee of mortgage regulators from 10 select states will soon establish a team of examiners to audit multi-state mortgage companies on behalf of the participating states... Read More

No Extensions for RESPA Rule, Implementation as Scheduled

The Department of Housing and Urban Development last week said it is committed to implementing new disclosure requirements under the Real Estate Settlement Procedures Act as scheduled and has no intention to delay the new rule. In a statement issued to Inside Regulatory Strategies, HUD Assistant Housing Secretary and FHA Commissioner David Stevens indicated that nothing from his recent... Read More

Court Rules Emotional Distress Compensable Under RESPA, FDCPA

Citing precedents, a Virginia magistrate judge has ruled that actual damages claims under the Real Estate Settlement Procedures Act and the Federal Debt Collection Practices Act include possible recovery for plaintiffs’ emotional distress. Rejecting Countrywide Home Loan’s partial motion for summary judgment, U.S. Magistrate Judge Dennis Dohnal said that the actual damages provision in both... Read More

Agencies Mull Use of Fair Lending Testers in Pre-Application Phase

Federal regulatory and enforcement agencies are considering the use of testers or other means to better assess the risk of discriminatory practices even before a consumer officially applies for a mortgage loan. The Government Accountability Office recommended using testers for early detection of potential fair lending violations in a recent report on fair lending oversight and... Read More

Regulators Seek Annual Data on Reverse Mortgages in Call Reports

Federal banking regulators are seeking comment on a proposal to require the annual reporting of reverse mortgage data in bank call reports to facilitate the development of regulatory policies and the management of risk associated with such type of lending. The proposed action is aimed at monitoring and mitigating risk associated with reverse mortgages as lenders originate... Read More

Brokers Assured FHA Won’t Adopt GSE Appraiser Code of Conduct

The Federal Housing Administration is not considering adopting the Home Valuation Code of Conduct appraisal system now in place at Fannie Mae and Freddie Mac. Coming from a recent meeting with FHA executives, top officials of the National Association of Mortgage Brokers said they were assured by FHA Commissioner Dave Stevens that the HVCC is not in the agency’s plans... Read More

State Regulators Favor AML, SAR Rules for Non-Bank Originators

State regulators are backing a proposal by the Treasury Department’s Financial Crimes Enforcement Network to extend anti-money laundering and suspicious activity report regulations to non-bank mortgage lenders and originators. Saying the move is long overdue, the Conference of State Bank Supervisors said requiring mortgage lenders and originators to meet FinCEN’s reporting requirements would help... Read More

State Roundup

Ohio: Ohio Attorney General Richard Cordray and Cuyahoga County Prosecutor Bill Mason last week announced indictments against 41 people and four companies for... New York: NY Attorney General Andrew Cuomo announced a lawsuit against American Modification Agency and its owner Aug. 13 for allegedly misleading consumers... Read More

Federal Roundup

Federal Financial Institutions Exam Council: 2008 CRA Data. Federal banking agency members of the FFIEC have... Federal Housing Administration: FHA Roster Appraisers. According to Mortgagee Letter 2008-39, all appraisers currently applying... Securities and Exchange Commission: Reassessing ALLL. In a recent letter to CFOs of certain public companies, the SEC cautioned that it would... Read More

Worth Noting …

Bipartisan legislation was introduced by Sens. Olympia Snowe, R-ME, and Ben Cardin, D-MD, which would... Before going on its August break, the House of Representatives adopted by voice vote H.R. 2529... The Treasury Department and the Federal Reserve Board extended the Term Asset-Backed Securities Loan.... Joseph Murin has stepped down as president of Ginnie Mae to head a newly formed consultancy... Read More

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