Last week, the CFPB simultaneously filed a lawsuit against American Advisors Group (AAG) in a California federal district court and a proposed stipulated final judgment and order to settle the lawsuit. The lawsuit alleged that AAG inflated estimated home values in marketing its reverse mortgage product and made false representations about AAG’s effort to ensure
Mortgages
CFPB Releases 2020 HMDA Data Report
By Richard J. Andreano, Jr. on
The CFPB recently released a report entitled Data Point 2020: Mortgage Market Activity and Trends addressing 2020 Home Mortgage Disclosure Act (HMDA) data.
Among various highlights, the Report provides that 4,472 financial institutions reported at least one closed-end loan in 2020, which is down by 18.8 percent from 5,505 financial institutions that reported in 2019.…
Fannie Mae to consider rental payment history in underwriting decisions
By Christopher J. Willis on
Posted in Federal Agencies, Mortgages
The Federal Housing Finance Agency announced this week that Fannie Mae will consider a loan applicant’s rental payment history in making underwriting decisions. According to the FHFA, the change was made as a means of expanding credit access.
The FHFA’s announcement is yet another example of the growing use of alternative data by creditors in…
This week’s podcast: The CFPB’s Summer 2021 Supervisory Highlights: A close look at credit reporting, debt collection, fair lending and mortgage loan origination and servicing issues
By Barbara S. Mishkin on
We look at the practices found to be unlawful by CFPB examiners in these markets, discuss what the findings signal for future scrutiny of these markets by the “new CFPB”, and share practical takeaways for companies operating in these markets. Issues highlighted in our conversation include the CFPB’s findings regarding “unreliable furnishers,” furnisher handling of…
CFPB Issues TILA Guidance on Juneteenth Federal Holiday
By Richard J. Andreano, Jr. on
As previously reported, the creation on June 17, 2021 of the Juneteenth National Independence Day resulted in an important change under the Truth in Lending Act (TILA) and Regulation Z. The CFPB recently issued an interpretive rule to address certain issues based on the change.
There is a specific definition of “business day” under…
FHFA, HUD, VA, and USDA extend eviction moratoria
By Richard J. Andreano, Jr. on
The Centers for Disease Control and Prevention’s (CDC) eviction moratorium expired on July 31, 2021. Meanwhile, at President Biden’s request, the Acting Director of the Federal Housing Finance Agency, and the Secretaries of the U.S. Department of Agriculture (USDA), U.S. Department of Housing and Urban Development (HUD), U.S. Department of Treasury, and U.S.
FHFA Eliminates Adverse Market Refinance Fee
By Richard J. Andreano, Jr. on
Posted in Mortgages, Regulatory and Enforcement
The Federal Housing Financing Agency (FHFA) announced on July 16, 2021 that effective August 1, 2021 it is eliminating the 50 basis point Adverse Market Refinance Fee for refinance mortgage loans. The FHFA notes that the fee imposed on lenders originally was designed to cover losses projected as a result of the COVID-19 pandemic. However,…
CFPB Issues Report Addressing Asian American and Pacific Islanders in the Mortgage Market
By Richard J. Andreano, Jr. on
The CFPB recently issued a report entitled Data Point: Asian American and Pacific Islanders in the Mortgage Market. The report briefly examines differences among subgroups of Asian American and Pacific Islanders (AAPI) based on the 2020 Home Mortgage Disclosure Act (HMDA) data. In issuing the report the CFPB stated that “[e]xisting studies often portray…
Fannie Mae and Freddie Mac Announce New Uniform Instruments
By Richard J. Andreano, Jr. on
Posted in Mortgages
On July 7, 2021 Fannie Mae and Freddie Mac announced new uniform notes, security instruments and riders. Lenders may begin using the new instruments immediately (Fannie Mae) or for loans originated on or after July 8, 2021 (Freddie Mac), and the new instruments must be used for loans with note dates on or after January…
CFPB issues final COVID-19 mortgage servicing rules
By Reid F. Herlihy on
On June 28, 2021, the CFPB issued its Mortgage Servicing COVID-19 Final Rule (the “Final Rule”). The Final Rule, which amends Regulation X, is effective August 31, 2021, and comes at the same time as certain related updates from other Federal agencies. We discuss those topics, along with an overview of the Final Rule, below.…