In its first No-Action Letter under the new revised policy, the CFPB addresses a long-standing issue under the Real Estate Settlement Procedures Act regarding certain payment arrangements between mortgage lenders and housing counseling agencies. We previously reported on the CFPB issuing its final No-Action Letter policy and other innovation policies. (The CFPB issued just one No-Action Letter under its policy prior to its revision.)… Continue Reading
HUD
CFPB finalizes product sandbox proposal and changes to trial disclosure, no-action letter policies; discloses plans to propose interpretive letter program
By Alan S. Kaplinsky on
Posted in HUD, Regulatory and Enforcement
The CFPB has finalized its proposed revisions to its Policy to Encourage Trial Disclosure Programs” (TDP Policy) and policy on “no-action” letters (NAL Policy) and has also finalized its proposal to create a new “product sandbox” policy. In addition, the CFPB has announced the creation of the American Financial Innovation Network (ACFIN) to facilitate coordination between the CFPB, other federal regulators, and state regulators and the CFPB’s issuance of the first NAL under the revised NAL Policy. … Continue Reading
Treatment of models under HUD’s proposed disparate impact rule: our thoughts
By Ballard CFS Group on
In its proposed disparate impact rule published in today’s Federal Register, HUD sets forth a framework for making (and defending against) claims of disparate impact under the Fair Housing Act. In this blog post, we take a closer look at a new and unique aspect of the proposed rule: its treatment of mathematical models (like risk-scoring models used in the credit industry).… Continue Reading
HUD publishes proposed revisions to disparate impact rule
HUD’s proposed revisions to its disparate impact rule were published in today’s Federal Register. Comments on the proposal are due on or before October 18, 2019.
Originally adopted in 2013, the rule sets forth the requirements for HUD or a private plaintiff to establish liability under the Fair Housing Act for discriminatory practices based on disparate impact even if there is no discriminatory intent. … Continue Reading
HUD Throws in the Towel on Down Payment Assistance Revisions
By Richard J. Andreano, Jr. on
We have reported on the attempt by the U.S. Department of Housing and Urban Development (HUD) to impose new documentation requirements for down payment assistance provided by government entities to be used in connection with Federal Housing Administration (FHA) insured mortgage loans. For now, those efforts have come to an end.… Continue Reading
Proposed changes to HUD disparate impact rule would create new burden-shifting framework to reflect Inclusive Communities
By Richard J. Andreano, Jr. on
The Department of Housing and Urban Development is expected to soon release proposed revisions to its 2013 rule under which HUD or a private plaintiff can establish liability under the Fair Housing Act (FHA) for discriminatory practices based on disparate impact even if there is no discriminatory intent (Rule). The proposal has been submitted to Congress for review pursuant to the Congressional Review Act. … Continue Reading
HUD Reduces Maximum LTV for FHA Cash-Out Refinance Loans
By Richard J. Andreano, Jr. on
In Mortgagee Letter 2019-11, the U.S. Department of Housing and Urban Development (HUD) announced that it is reducing the maximum loan-to-value ratio and combined maximum loan-to-value ratio on cash-out refinance mortgages from 85% to 80%. The change is effective for case numbers assigned on or after September 1, 2019. The limitation will apply to the property’s adjusted value, as determined under HUD guidelines.… Continue Reading
HUD Announces Suspension of Effective Date for New Down Payment Assistance Requirements
By Richard J. Andreano, Jr. on
As previously reported, recently a US District Court granted a preliminary injunction preventing the US Department of Housing and Urban Development (HUD) from implementing new requirements for government-provided down payment assistance in connection with FHA insured loans. The requirements were announced in Mortgagee Letter 2019-06 and originally were scheduled to go into effect for case numbers assigned on or after April 18, 2019.… Continue Reading
Court Enjoins HUD Attempt to Impose New Down Payment Assistance Requirements
By Richard J. Andreano, Jr. on
As previously reported, the U.S. Department of Housing and Urban Development issued Mortgagee Letter 2019-06 in April of 2019 to impose new documentation requirements for down payment assistance provided by government entities to be used in connection with Federal Housing Administration (FHA) insured loans. CBC Mortgage Agency, which is an instrumentality of the Cedar Band of Paiutes Indian American tribe and operates the Chenoa Fund down payment assistance program, challenged HUD’s action the in the U.S.… Continue Reading
HUD says “no” to DACA recipients
By Richard J. Andreano, Jr. on
For some time the mortgage industry, without success, has asked the US Department of Housing and Urban Development to provide a clear answer to the question of whether Deferred Action for Childhood Arrival (DACA) recipients are eligible for FHA loans. HUD finally provided a clear answer in responding to an inquiry from Representative Pete Aguilar (D-CA): “DACA recipients remain ineligible for FHA loans.”… Continue Reading