In Mortgagee Letter 2022-09 dated July 7, 2022, the U.S. Department of Housing and Urban Development (HUD) sets forth new flexibility in underwriting guidelines for calculating effective income for Federal Housing Administration (FHA) insured loan applicants who incurred a reduction or loss in income as a result of a COVID-19 Economic Event. The guidance in
Mortgages
2021 HMDA Data Released
By Richard J. Andreano, Jr. on
The Federal Financial Institutions Examination Council (FFIEC) recently announced the public availability of Home Mortgage Disclosure Act data for 2021. The CFPB also released a summary of the data. The data include information on 23.8 million home loan applications, with 21.1 million being identified as closed-end loan applications. A total of 15 million applications resulted…
Divided Eleventh Circuit panel rules TILA-required monthly mortgage statements can constitute debt collection communications subject to FDCPA and Florida law
By Reid F. Herlihy on
A divided panel of the U.S. Court of Appeals for the Eleventh Circuit in Daniels v. Select Portfolio Servicing, Inc. held last week that monthly mortgage statements required under the Truth in Lending Act and Regulation Z can constitute communications in connection with the collection of a debt under the Fair Debt Collection Practices Act…
CFPB Spring 2022 Supervisory Highlights looks at auto servicing, credit reporting, credit card account management, debt collection, deposits, mortgage origination, prepaid accounts, remittance transfers, and student loan servicing
The CFPB has released the Spring 2022 edition of its Supervisory Highlights. The report discusses the Bureau’s examinations in the areas of auto servicing, consumer reporting, credit card account management, debt collection, deposits, mortgage origination, prepaid accounts, remittance transfers, and student loan servicing that were completed between July 2021 and December 2021. Accordingly, many…
URLA Preferred Language Question Requirement Is Back
By Richard J. Andreano, Jr. on
Posted in Limited English Proficiency, Mortgages
The Federal Housing Finance Agency (FHFA) recently announced that for residential mortgage loans to be sold to Fannie Mae or Freddie Mac with application dates on or after March 1, 2023, the lender must present a Supplemental Consumer Information Form (SCIF) to collect information on the applicant’s language preference. Previous plans to include a language…
Connecticut federal court allows CFPB claims to proceed against mortgage company and principals for alleged licensing and other violations
By Richard J. Andreano, Jr. on
A Connecticut federal district court has refused to dismiss claims filed by the CFPB against a mortgage company and three of its principals for alleged Truth in Lending Act (TILA), Mortgage Act and Practice (MAP) Rule, and Consumer Financial Protection Act (CFPA) violations.
The CFPB’s lawsuit names as defendants 1st Alliance Lending LLC and three…
Fannie and Freddie issue guidance implementing foreclosure hold for HAF applicants
By Reid F. Herlihy on
Posted in Mortgages
As previously reported, the Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac will require servicers to suspend foreclosure activities for up to 60 days if the servicer has been notified that a borrower has applied for assistance from the Treasury Department’s Homeowner Assistance Fund (HAF).
Fannie Mae and Freddie Mac have…
FHFA announces foreclosure hold for HAF applicants
By Reid F. Herlihy on
Posted in Mortgages
The Federal Housing Finance Agency announced yesterday that Fannie Mae and Freddie Mac will require servicers to suspend foreclosure activities for up to 60 days if the servicer has been notified that a borrower has applied for assistance from the Treasury Department’s Homeowner Assistance Fund (HAF).
HAF is a federal program that provides money to…
CFPB encourages mortgage servicer participation in HAF programs
By Reid F. Herlihy on
Last week, the CFPB published a blog post, stating that it “strongly encourages” mortgage servicers to participate in Homeowner Assistance Fund (HAF) programs. The Bureau asserts that it “remains focused on preventing avoidable foreclosures to the maximum extent possible and expects mortgage servicers to do the same.”
By way of background, HAF is a…
CFPB Issues Factsheet Addressing Prepaid Interest for Certain QM Loan APR Calculations
By Richard J. Andreano, Jr. on
The CFPB recently issued a factsheet addressing how prepaid interest, also referred to as per diem interest, factors into the calculation of the annual percentage rate (APR) for certain adjustable rate mortgage (ARM) loans and step-rate loans for purposes of assessing qualified mortgage (QM) loan status under the revised general QM rule. The advice provided…