Since its creation in 2009, the Home Equity Conversion Mortgage (“HECM”) reverse mortgage program created by the Federal Housing Authority has helped numerous senior citizens stay in their homes by allowing them to convert the equity in their home into useable funds instead of having to sell their homes to supplement their retirement income or
CFPB Introduces Mortgage Interest ‘Rate Checker’ Tool
On January 13, 2015, the Consumer Financial Protection Bureau (CFPB) released a report on consumers’ mortgage shopping experiences. The CFPB found that almost half of consumers who take out a mortgage fail to shop prior to application and that consumers seriously consider only a single lender or mortgage broker before choosing where to apply. The
CFPB Names Four to Senior Leadership Positions
Last week, the Consumer Financial Protection Bureau (CFPB) announced four appointments to its leadership team.
In addition to naming Anthony Alexis as assistant director of enforcement, the CFPB also announced the hiring of Leandra English as deputy chief operating officer, Agnes Bundy Scanlan as the regional director of supervision examination, and Jeffrey Sumberg as chief
Freddie Mac Auctioning $410 Million of Delinquent Mortgages as Market for Such Mortgages Is Heating Up and Prices Are Surging
Freddie Mac is selling three pools of deeply delinquent loans with the combined unpaid principal balance of $410 million. According to Freddie Mac’s spokesman, the loans involved in the sale include “a large share that are more than two years delinquent,” which is consistent with Freddie Mac’s “continued goal of reducing illiquid assets from its
FCC Creates Portal for TCPA Complaints and Beyond
On January 5, the Federal Communications Commission announced that it was creating a new complaint portal. As shown on the FCC form for complaints, which can be found here (Word format) and here (.pdf), this portal is very much designed to capture complaints arising from the Telephone Consumer Protection Act (TCPA) and, specifically, automatic telephone
CFPB Sets Example for Mortgage Servicers in First Loss Mitigation Enforcement Action
The Consumer Financial Protection Bureau recently announced its first enforcement action for alleged violations of the new requirements imposed upon mortgage servicers regarding loss mitigation applications submitted by borrowers. According to the CFPB, Michigan-based Flagstar Bank took too long to process borrowers’ applications for relief from foreclosure, improperly denied loss mitigation applications, and made
CFPB Urged to Require Written Communications in Multiple Languages
Last year, on January 10, 2014, extensive amendments by the Consumer Financial Protection Bureau Regulation X, which implements the Real Estate Settlement Procedures Act (“RESPA”) and Regulation Z, which implements the Truth in Lending Act (“TILA”), went into effect. Among the numerous new requirements imposed upon mortgage lenders and servicers were significant changes to written
Supreme Court Hears Disparate Impact Case
On January 21, the U.S. Supreme Court held oral argument in Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc., a case in which, as we previously reported here and here, the Petitioner has challenged the applicability of a so-called “disparate impact” theory of liability under the Fair Housing
CFPB Accepting Applications for Three Advisory Groups
On January 16, the CFPB announced it is accepting applications for membership on the Consumer Advisory Board (CAB), Community Bank Advisory Council, and Credit Union Advisory Council.
Members of the CAB and the Advisory Councils include representatives of consumers, communities, and the financial services industry, as well as academics. Membership on the CAB lasts three
Supreme Court Clarifies Borrowers’ Right to Rescind Under TILA
In a major, unanimous decision on the Truth in Lending Act, the Supreme Court resolved a circuit split and clarified borrowers’ rescission rights under TILA, potentially making rescission of a loan transaction easier for borrowers. Under TILA, the time period governing the right to rescind a loan transaction depends on whether all required disclosures have