CFPB, Federal Agencies, State Agencies, and Attorneys General
In the latest edition of its Consumer Compliance Outlook, the Federal Reserve (Fed) identified the four most significant fair lending violations that it found in examining state member banks in 2022. These are violations that were typically identified in examinations as matters requiring attention or as matters requiring immediate attention.
Fair Lending Risk Assessment.… Continue Reading
The CFPB has taken action against the Draper & Kramer Mortgage Corp. (DKMC) based on allegations of discriminatory lending activities that, according to the CFPB, discouraged homebuyers from applying to the company for home mortgage loans in majority-Black and Hispanic neighborhoods in the Chicago and Boston areas.
The CFPB alleged that from 2019 through 2021, DKMC, a non-bank mortgage lender based in Downers Grove, Illinois, engaged in redlining, and that this resulted in the company significantly underperforming its peers in lending activity in the Chicago and Boston areas.… Continue Reading
Led by the California Mortgage Bankers Association, five lenders have made commitments to provide mortgage relief for the victims of the California wildfires.
The five institutions are Bank of America, Citibank, JPMorgan Chase, U.S. Bank, and Wells Fargo.
The banks will offer up to a 90-day grace period on mortgage payments, 90-day waiver of late fees, and 60- to 90-day moratorium on new foreclosures for property owners whose structures were damaged or destroyed.… Continue Reading
The National Flood Insurance Program’s authorization to write new policies will expire December 20, unless Congress acts to extend it.
An extension had been included in the Continuing Resolution that the House and Senate were poised to consider this week. That legislation would have funded many federal programs until March 14.… Continue Reading
As previously reported, this summer the U.S. Department of Housing and Urban Development (HUD) filed a housing discrimination charge under the Fair Housing Act against an appraisal company, individual appraiser, appraisal management company and lender based on an asserted biased appraisal and denial of a mortgage refinance loan application based on the appraisal.… Continue Reading
The U.S. Department of Housing and Urban Development (HUD) has extended from January 1, 2025 until July 1, 2025, the compliance date for certain provisions of the department’s rule entitled “Modernization of Engagement with Mortgagors in Default.’’
That rule requires mortgagees to conduct meetings with all mortgagors in default.
As revised by the Modernization of Engagement with Mortgagors in Default final rule, 24 CFR 203.604(a)(3) the HUD rule will require that ‘‘[a] reasonable effort to arrange a meeting with the mortgagor shall consist of, at a minimum, two verifiable attempts to contact the mortgagor utilizing methods determined by the Secretary.’’… Continue Reading
The U.S. Department of Veterans Affairs (VA) recently proposed rules to modify the requirements for the reporting of VA guaranteed mortgage loans, and the rules regarding when the VA would assert a defense for a partial or total loss of a guaranty for a VA guaranteed mortgage loan. Comments on the proposal are due by January 21, 2025.… Continue Reading
The Federal Housing Finance Agency (FHFA) recently announced the conforming loan limits for residential mortgage loans acquired by Fannie Mae and Freddie Mac in 2025. Fannie Mae addresses the limits in Lender Letter 2024-03.
As was expected based on the continuing increase in housing prices, the limits increased significantly. The standard loan limit for a one-unit home increased from $766,550 in 2024 to $806,500 for 2025. … Continue Reading
The U.S. Department of Housing and Urban Development (HUD) recently announced the 2025 loan limits for FHA insured forward mortgage loans and FHA insured Home Equity Conversion Mortgages (HECMs). The announcements were made in Mortgagee Letter 2024-21 and Mortgagee Letter 2024-22, respectively.
For forward mortgage loans in non-high cost areas, the amount for a single unit home increased from $498,257 in 2024 to $524,225 in 2025. … Continue Reading
The Federal Emergency Management Agency (FEMA) has announced it will allow National Flood Insurance Program (NFIP) premiums to be paid on an installment basis. The final rule implements an installment payment option that was mandated by Congress in the Biggert-Waters Flood Insurance Reform Act, adopted in 2012, for policyholders who are not required to pay into escrow for flood insurance premiums. … Continue Reading
