Legal Issues

Browse articles from all of our Newsletters related to Legal Issues.

February 15, 2019 - Inside FHA/VA Lending

Wells Fargo, Sierra Agree to Resolve FHA-Related Claims

The U.S. District Court for the Northern District of California has approved a class-action settlement between borrowers and a large bank to resolve allegations of illegal and unfair collection of post-payment interest on FHA-insured mortgages.


February 14, 2019 - Inside Mortgage Finance

Ocwen Escalates Charges in Lawsuit Against FIS

Ocwen Loan Servicing on Wednesday filed an amended complaint in its lawsuit againstFidelity National Information Services. The complaint, filed in California’s Superior Court in Sacramento, dramatically escalates accusations of misconduct Ocwen first leveled against FIS in a 2017 lawsuit.


February 14, 2019 - Inside Mortgage Finance

CA Court Certifies LOs’ Class Action Against Wells

A federal district court has certified a class-action lawsuit against Wells Fargo brought on behalf of loan officers for alleged clawback of commissions and overtime wages.


February 11, 2019 - Inside the CFPB

Other News in Brief

CFPB Updates Reference Chart for 2019 HMDA Data Collection; CFPB Sued for Withholding Records on its Decision to Stop Military Lending Act Supervision; CFPB Clarifies Participation in ‘Disclosure Sandbox.’


January 18, 2019 - Inside FHA/VA Lending

Plan Afoot to Reintroduce VA ‘Orphan Loan’ Measure

Congress reportedly plans to reintroduce legislation that would restore Ginnie Mae eligibility for $100 million dollars’ worth of so-called orphan VA streamline refinance loans.


January 17, 2019 - Inside Mortgage Finance

Supreme Court Rejects CFPB Constitutionality Case

The U.S. Supreme Court Monday refused to hear a case challenging the constitutionality of the Consumer Financial Protection Bureau, turning away a legal challenge that could have led to more presidential power over the consumer watchdog.


January 14, 2019 - Inside the CFPB

Judges Skeptical About CFPB For-Cause Removal

The CFPB defended its constitutionality in an oral argument last week before the U.S. Court of Appeals for the Ninth Circuit, but judges took issue with the for-cause removal provision.


January 10, 2019 - Inside Mortgage Finance

Lender Not Liable for Servicer’s RESPA Violation

Lenders are not liable for a servicer’s failure to comply with the Real Estate Settlement Procedures Act, according to a recent ruling by the U.S. Court of Appeals for the Fifth Circuit. Such claims by borrowers have seen some success in district courts and this was the first time an appeals court considered the issue.


Poll

Do mortgage lenders really need a new credit-scoring model or is the current FICO system adequate?

It’s fine. Stick with what works.

53%

Time for a change. Borrowers are different today.

35%

Undecided, still assessing the situation.

12%