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,
fhfa
President Biden replaces FHFA Director based on Supreme Court decision—Now what happens?
By Richard J. Andreano, Jr. on
Posted in Mortgages, Regulatory and Enforcement
On June 23, 2021, President Biden replaced the Federal Housing Finance Agency (FHFA) Director Mark Calabria with Acting Director Sandra L. Thompson.
The move was made possible by the decision of the U.S. Supreme Court earlier in the day holding that the FHFA structure is unconstitutional because the Director could be removed by the…
SCOTUS decision on FHFA’s constitutionality could provide support for validity of pre-Seila Law CFPB actions
By Ballard CFS Group on
Posted in CFPB, Regulatory and Enforcement
In its decision earlier this week in Collins v. Yellin (previously captioned Collins v. Mnuchin), the U.S. Supreme Court, relying on its decision in Seila Law, held that the Federal Housing Finance Agency’s structure is unconstitutional because the Housing and Economic Recovery Act of 2008 only allows the President to remove the…
SCOTUS agrees to hear case on FHFA’s constitutionality with implications for CFPB’s pre-Seila Law actions
By Alan S. Kaplinsky on
Posted in Litigation and Court Decisions
On July 9, the U.S. Supreme Court granted the two petitions for certiorari in Collins v. Mnuchin, the en banc Fifth Circuit decision which held that the FHFA’s structure is unconstitutional because the Housing and Economic Recovery Act of 2008 (HERA) only allows the President to remove the FHFA’s Director “for cause.” In addition…
CFPB and FHFA announce launch of Borrower Protection Program
By Barbara S. Mishkin on
The CFPB and the Federal Housing Finance Agency (FHFA) have announced a new joint initiative, the “Borrower Protection Program.” The initiative is intended to enable the agencies to share mortgage servicing information during the COVID-19 pandemic.
According to the CFPB’s press release, the CFPB will make complaint information and analytical tools available to the…
No action from SCOTUS on Collins cert petitions
By Alan S. Kaplinsky on
Posted in Regulatory and Enforcement
The orders released today by the U.S. Supreme Court from its January 10 conference did not include any orders regarding the petition for a writ of certiorari filed by the plaintiffs in Collins v. Mnuchin or the petition filed by the FHFA and Treasury Department. The case dockets indicated that briefing on the petitions was…
SCOTUS to consider Collins cert petitions on Jan. 10
By Alan S. Kaplinsky on
Posted in Regulatory and Enforcement
At its conference this Friday, January 10, the U.S. Supreme Court is expected to consider the petition for a writ of certiorari filed by the plaintiffs in Collins v. Mnuchin and the petition filed by the FHFA and Treasury Department. The case dockets indicate that briefing on the petitions was submitted for Friday’s conference.
In…
Fifth Circuit panel in All American Check Cashing asks parties to brief impact of en banc Fifth Circuit decision holding FHFA structure unconstitutional
By Alan S. Kaplinsky on
Posted in Regulatory and Enforcement
The issue of the CFPB’s constitutionality is currently before the Fifth Circuit in the interlocutory appeal of All American Check Cashing from the district court’s ruling upholding the CFPB’s constitutionality. Oral argument was held in March 2019 and no decision has yet been issued.
At oral argument, the panel asked the parties whether it should…
En banc Fifth Circuit decision holding FHFA structure unconstitutional could presage similar fate for CFPB and circuit split
By Alan S. Kaplinsky on
Posted in Regulatory and Enforcement
The en banc Fifth Circuit has ruled in Collins v. Mnuchin that the FHFA is unconstitutionally structured because it is excessively insulated from Executive Branch oversight and that the appropriate remedy for the constitutional violation is to sever the provision of the Housing and Economic Recovery Act of 2008 (HERA) that only allows the President…
FHFA reverses position (again) on its constitutionality
By Alan S. Kaplinsky on
Posted in Federal Agencies, Regulatory and Enforcement
In an interesting twist, the FHFA has informed the Fifth Circuit in Collins v. Mnuchin, that despite having previously advised the en banc court that it would not defend the FHFA’s constitutionality, it has reconsidered its position under the leadership of its new Director and will take the position going forward that the agency’s…