Legal Issues

Browse articles from all of our Newsletters related to Legal Issues.

January 18, 2019 - Inside FHA/VA Lending

Plan Afoot to Reintroduce VA ‘Orphan Loan’ Measure

Congress reportedly plans to reintroduce legislation that would restore Ginnie Mae eligibility for hundred-million dollars’ worth of so-called orphan VA streamline refinance loans. H.R. 6737, Protect Affordable Mortgages for Veterans Act of 2018, was passed by the House by voice vote on Sept. 26 last year and was sent to the Senate, where it was stalled on a technicality. The bill aimed to clarify new seasoning requirements in the Dodd-Frank Wall Street Reform and Consumer Protection Act (S. 2155) that specifically applied to VA’s Interest Rate Reduction Refinance Loans and which became effective upon enactment. The requirements were designed to curb churning of VA loans that were triggering unusually fast prepayments in Ginnie Mae mortgage-backed securities. Some lenders and brokers were soliciting homeowners to refinance their VA mortgages more than once to ...


January 17, 2019 - Inside Mortgage Finance

Supreme Court Rejects CFPB Constitutionality Case

The U.S. Supreme Court Monday refused to hear a case challenging the constitutionality of the Consumer Financial Protection Bureau, turning away a legal challenge that could have led to more presidential power over the consumer watchdog.


January 14, 2019 - Inside the CFPB

Judges Skeptical About CFPB For-Cause Removal

The CFPB defended its constitutionality in an oral argument last week before the U.S. Court of Appeals for the Ninth Circuit, but judges took issue with the for-cause removal provision.


January 10, 2019 - Inside Mortgage Finance

Lender Not Liable for Servicer’s RESPA Violation

Lenders are not liable for a servicer’s failure to comply with the Real Estate Settlement Procedures Act, according to a recent ruling by the U.S. Court of Appeals for the Fifth Circuit. Such claims by borrowers have seen some success in district courts and this was the first time an appeals court considered the issue.


December 21, 2018 - Inside the CFPB

DOJ Argues CFPB Unconstitutional, Waiting for Kraninger’s Comment

The U.S. Department of Justice in December filed a brief with the U.S. Supreme Court arguing that the CFPB’s leadership structure is unconstitutional.


December 14, 2018 - Inside FHA/VA Lending

CFPB Hammers VA Lender for Deceiving Borrowers on IRRRLs

The Consumer Financial Protection Bureau has filed a complaint and a proposed settlement against a Nevada lender for misleading borrowers on the benefits of VA streamline refinancing.


December 14, 2018 - Inside FHA/VA Lending

FoA Agrees to FCA Settlement; DOJ, IGs Resolve Billing Fraud Case

Finance of America – a Blackstone Group portfolio company – has agreed to pay $14.5 million to the government to resolve allegations that its operating subsidiary, Gateway Funding Diversified Mortgage Services, knowingly endorsed ineligible loans, resulting in losses to the FHA insurance fund.


December 14, 2018 - Inside MBS & ABS

Deutsche Bank, Investors Agree to Settle RMBS Cases in NY and CA; Wells Fargo Settles Dispute with Illinois

Deutsche Bank, asset managers and investors have agreed to settle their long-running dispute over the bank’s alleged failure to fulfill its obligations as trustee to more than 500 trusts backed by legacy residential MBS valued at more than $570 billion.


December 13, 2018 - Inside Mortgage Finance

California Judge Tosses Class-Action Lawsuit Against Caliber Home Loans over Data Breach

A California court last month dismissed a borrower’s attempt to bring a class-action lawsuit against Caliber Home Loans over a security breach at the nonbank lender in early 2017.


December 13, 2018 - Inside Mortgage Finance

An Adverse Court Ruling in Closely Watched Case Could Increase Servicer Liability Under FDCPA

Mortgage servicers are waiting anxiously for a U.S. Supreme Court ruling on whether the Fair Debt Collection Practices Act applies to non-judicial foreclosures.


December 10, 2018 - Inside the CFPB

VA Lender Sued for Deceiving Veterans Regarding IRRRLs

The CFPB last week sued Village Capital & Investment for deceiving veterans regarding the Interest Rate Reduction Refinance Loans program.


December 7, 2018 - Inside The GSEs

NY Law Firm to Pay $6.1 Million to Settle Fannie, VA Fraud Charges

Law firm Rosicki, Rosicki & Associates, along with two affiliates, has agreed to settle a civil lawsuit alleging the companies systematically defrauded Fannie Mae and the Veterans Administration by routinely overcharging them and submitting false bills for foreclosure and eviction-related expenses.


December 7, 2018 - Inside MBS & ABS

Court Delays Fee Action Against U.S. Bank Until After Primary RMBS Case is Resolved

A federal district court in Manhattan agreed to halt legal proceedings in an investment compa-ny’s challenge of U.S. Bank’s billing practices until the primary residential MBS case involving the two parties is resolved.


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