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Supreme Court Considers Whether FDCPA Applies to Nonjudicial Foreclosure

The U.S. Supreme Court is currently considering an important question affecting the mortgage industry: whether entities conducting nonjudicial foreclosure proceedings are subject to the requirements of the Fair Debt Collection Practices Act (the “FDCPA”), 15 U.S.C. §§ 1692 et seq. [1] Whether entities conducting nonjudicial foreclosure proceedings are subject to the requirements of the FDCPA has divided [..]

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CFPB Issues Final Policy on HMDA Data Addressing Privacy Concerns

On December 21, 2018, the CFPB issued final policy guidance concerning data collected under the HMDA rule that will be made publicly available in 2019. For background purposes, the CFPB comprehensively revised HMDA data collection/reporting requirements in 2015. These new data collection requirements became effective in 2018, with a reporting deadline of March 2019. The CFPB issued [..]

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Fannie and Freddie Issue Temporary Guidance on Government Shutdown

As you are probably aware, the US Government has been partially shutdown for over two weeks. On December 26, Fannie Mae issued temporary guidance related to loan origination and loan servicing during the government shut down in Lender Letter LL-2018-06, available here. On January 3, Freddie Mac also released guidance regarding loan origination and loan [..]

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MBA Members and Industry Groups Request Changes to Loan Originator Compensation Rule

Beginning the Conversation, but No Imminent Changes. On October 17, 2018, nearly 250 member companies of the Mortgage Banker’s Association (MBA) submitted a letter (the “Letter”)[1] to the Bureau of Consumer Financial Protection (the “Bureau”) urging “the Bureau. . . to make changes to its Loan Originator Compensation (LO Comp) rule necessary to help consumers [..]

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CFPB Publishes Annual High Cost Mortgage and QM Adjustments

The CFPB recently published a final rule regarding several annual adjustments it is required to make pursuant to Regulation Z. In relevant part, the adjustments reflect changes to the high cost mortgage thresholds under HOEPA, and the Qualified Mortgage (“QM”) points and fees limits under the ability to repay/QM provisions of Dodd-Frank. These changes will [..]

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Supreme Court Holds Class Action Waivers in Arbitration Agreements Are Enforceable

In Epic Systems Corp. v. Lewis the United States Supreme Court reviewed three circuit court cases involving employer-employee arbitration agreements.[1] In each case, the main issue was whether employees and employers should be allowed to agree that any dispute between them will be resolved through arbitration, or whether employees should be permitted to bring class actions no [..]

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Dodd-Frank Reform Highlights for Mortgage Bankers

Congress recently passed the Economic Growth, Regulatory Relief, and Consumer Protection Act (the “Act”), and on May 24, 2018, President Trump signed the Act into law. The Act is not a widespread repeal of Dodd-Frank, but it does provide some welcome regulatory relief to financial institutions and changes to federal law concerning consumer mortgages. Below [..]

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CFPB Finalizes Rule to Eliminate the “Black Hole” Issue

On Thursday, April 26, 2018, the Consumer Financial Protection Bureau (“CFPB”) announced its long-awaited final amendments to the TILA/RESPA Integrated Disclosure Rule (“TRID”) that aim to eliminate the “black hole” issue.[1] Currently, the “black hole” issue limits a creditor’s ability to reset fee tolerances with a revised Closing Disclosure more than four business days before [..]

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Amendments to Texas Home Equity Lending Interpretations

Effective March 29, 2018, the Finance Commission of Texas and the Texas Credit Union Commission (the “Commissions”) adopted amendments to their home equity lending interpretations (the “Amended Interpretations”).[1] As a reminder, Section 50(u) of the Texas Constitution authorizes the legislature to delegate authority to interpret its home equity lending provisions to state agencies, and provides [..]

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