Regulatory and Enforcement

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The District of Columbia (DC) Office of the Attorney General (OAG) recently entered into settlements with four title companies in connection with title company joint ventures that included the companies and real estate agents as owners. The basic allegation of the OAG is that real estate agents were offered the opportunity to purchase interests in title company joint ventures, and that the referral of consumers to the ventures by the agents for title and escrow business violated the DC anti-inducement provision applicable to title insurance, and also the unfair and deceptive trade practice prohibition under the DC Consumer Protection Procedures Act (CCPA).… Continue Reading

As previously reported, in June 2024 the CFPB issued a final rule creating a Nonbank Enforcement Order Registry. The rule is effective on September 16, 2024, with registrations available beginning on October 16, 2024 pursuant to a tiered implementation approach.

The CFPB has now released the initial version of a Filing Instructions Guide (FIG) that provides details on how to submit information to the Nonbank Registry Portal (Portal).… Continue Reading

In connection with its guaranteed home loan program, the Department of Veterans Affairs (VA) announced in Circular 26-24-17 requirements when a party assuming a VA guaranteed loan in connection with the purchase of a home also obtains a secondary mortgage to help finance the purchase.  The VA notes that a VA guaranteed home loan, other than for repairs, alterations, or improvements, must be secured by a first lien and that when a party assuming an existing VA loan also obtains secondary financing, if the secondary loan is not processed correctly it can jeopardize the VA guaranteed home loan’s first lien position.… Continue Reading

We have recently blogged about two other actions in which this issue has been raised (one being a declaratory judgment action filed against the CFPB on July 23, 2024 in the E.D. Tex. and the other being an enforcement action filed in the N.D. Tex. in which a motion to dismiss was filed on July 31, 2024).… Continue Reading

We have previously blogged about an enforcement action brought on July 12, 2022 by the CFPB against Populus Financial Group, Inc., d/b/a ACE Cash Express, Inc. in Federal District Court for the Northern District of Texas (Judge James E. Kinkeade). CFPB alleges in its lawsuit that Populus engaged in unfair, deceptive, and abusive acts or practices by concealing the option of a free repayment plan to consumers and making unauthorized debit-card withdrawals.… Continue Reading

Previously, in connection with the home loan program of the Department of Veterans Affairs (VA) we reported on the VA’s adoption of a temporary local variance allowing veterans to pay the commission of the real estate broker or agent assisting them (a “buyer-broker”). We also reported on a related enhancement made to the Issue Guaranty screen in VA’s WebLGY system.… Continue Reading

The Department of Housing and Urban Development (HUD) recently charged multiple entities with housing discrimination based on an asserted biased appraisal and denial of a mortgage refinance loan application based on the appraisal. Charges were brought against the appraisal company, Maverick Appraisal Group; the appraisal management company, Solidifi U.S. Inc.; the lender, Rocket Mortgage, LLC; and the individual appraiser.… Continue Reading

Federal banking regulators are asking the Fifth Circuit Court of Appeals to lift a Texas court injunction barring implementation of new Community Reinvestment Act (CRA) rules.

In asking the court to lift the injunction, the FDIC, OCC and Federal Reserve Board contend that U.S. District Judge Matthew Kacsmaryk erred by finding that only the geographic area around a bank’s physical facilities should be taken into account when assessing the financial institution’s record of meeting community needs under the CRA.… Continue Reading

Congress must adjust to the demise of the Chevron Deference doctrine by drastically improving its regulatory expertise, witnesses told a House Committee on July 23.

“Congress must reclaim its lawmaking and rule-writing authority from the executive branch by marshaling appropriate resources and full-time personnel to perform regulatory oversight, including cost-benefit analysis and disclosures often neglected by the executive branch, sometimes in violation of law,” Clyde Wayne Crews Jr.,… Continue Reading

As previously reported, in connection with its guaranteed home loan program, in June 2024 the Department of Veterans Affairs (VA) adopted a temporary local variance allowing veterans to pay the commission of the real estate broker or agent assisting them (a “buyer-broker”) in the purchase of a home.  In Circular 26-24-15, the VA announced an enhancement made to the Issue Guaranty screen in VA’s WebLGY system related to veteran-paid buyer-broker charges.… Continue Reading