Legal News

This topic consolidates everything you need to know to stay informed including prominent industry advocacy movements, current regulatory enforcement actions, and judicial rulings impacting mortgage banking.




October 15, 2018

MBA President & CEO Bob Broeksmit: ‘We are Working for You'

MBA Newslink--Mike Sorohan

WASHINGTON, D.C.--Mortgage Bankers Association President and CEO Robert Broeksmit, CMB, got right to the point.

"Mortgage market regulations are raising costs and limiting your ability to serve your customers," Broeksmit said here this morning during the Opening General Session of the MBA Annual Convention & Expo. "I've gotten so much valuable input from members my first eight...

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October 15, 2018

MBA Advocacy Update

MBA Newslink--Steve O'Connor, Bill Killmer

Both the House and Senate have now adjourned until after the midterm elections, with senators having achieved a bipartisan agreement to confirm 15 judicial nominations before leaving town last week. Both chambers will reconvene for a "lame duck," post-election session on Tuesday, November 13.  

The MBA 2018 Annual Convention & Expo is underway here...

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October 12, 2018

NYDFS orders United Arab Emirates-based bank to pay $40 million for BSA/AML violations

Buckley Sandler

On October 10, NYDFS entered into a consent order with a United Arab Emirates-based bank and its New York branch to resolve alleged violations of the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) laws related to the branch’s U.S. dollar clearing operations for foreign customers located in high risk jurisdictions. The alleged violations were discovered during examinations conducted in 201...

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Surviving an Onsite Audit

October 11, 2018

Connecticut Bank Sued for Alleged Discriminatory Mortgage Lending

Ballard Sparh, LLP--Alan S. Kaplinsky

Last week, the Connecticut Fair Housing Center, Inc. filed a complaintagainst Liberty Bank in Connecticut federal district court alleging that the Bank engaged in discriminatory mortgage lending in violation of the federal Fair Housing Act. The complaint describes the Bank as “the eighth-largest conventional home purchase lender and eleventh-largest refinancer in Connecticut.”

The complaint alleges that...

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October 10, 2018

Zillow Successful in Lawsuit Triggered by CFPB Investigation

Ballard Sparh, LLP--Richard J. Andreano, Jr.

As we reported previously, in June 2018 Zillow Group (Zillow) announced that it is no longer under investigation by the CFPB for Real Estate Settlement Procedures Act (RESPA) and UDAAP compliance with regard to its co-marketing program. The CFPB investigation triggered a securities lawsuit filed in the United States District Court for the...

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October 10, 2018

MBA ‘Call to Action' Urges Senate Approval of Non-Traditional Mortgage Access

MBA NewsLink--MBA NewsLink Staff

The Mortgage Bankers Association's grassroots advocacy arm, the Mortgage Action Alliance, issued a Call to Action yesterday urging support for a Senate bill that would increase mortgage access for non-traditional borrowers.

S. 3401, the Self-Employed Mortgage Access Act (https://www.warner.senate.gov/public/index.cfm/2018/8/warner-rounds-introduce-legislation-to-expand-mortgage-access-for-self-employed-workers), addresses challenges in documenting ability to repay for borrowers with non-traditional forms of income. Introduced by...

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October 10, 2018

Texas Real Estate Commission, Appraiser Board accused of ignoring customer service “crisis”

Housingwire--Ben Lane

The agencies that license real estate agents and appraisers in the state of Texas are ignoring a customer service “crisis” while hoarding money that could be used to address a laundry list of problems, a Texas government watchdog recently said.

The Texas Sunset Commission, a state government watchdog agency that advises the state’s legislature on the effectiveness of state agencies, said...

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ARMCO Mortgage QC Industry Trends Report

October 10, 2018

HSBC Looks Ahead After Resolving Legacy RMBS Matter

DS News--Radhika Ojha

On Tuesday, HSBC announced that it had reached a definitive agreement with the US Department of Justice (DOJ) to resolve its multi-year investigation of its legacy securitization, issuance and underwriting of the bank's residential mortgage-backed securities (RMBS) that were issued before the financial crisis between 2005 and 2007.

The DOJ has said that through this settlement, HSBC...

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October 10, 2018

Man Sentenced for Failing to Disclose Deeds of Trust

Mortgage Fraud Blog--Rachel Dollar

David Tipton, 52, Alexandria, Virginia, was sentenced today to a year and a day in prison for defrauding lenders who provided him with nearly $710,000 towards the purchase and renovation of a residential property in Northeast Washington.

According to the government’s evidence, Tipton owned a company that was created to purchase, renovate, and sell residential real...

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October 09, 2018

Connecticut bank sued for alleged discriminatory mortgage lending

Ballard Spahr LLP--Alan S. Kaplinsky 

Last week, the Connecticut Fair Housing Center, Inc. filed a complaint against Liberty Bank in Connecticut federal district court alleging that the Bank engaged in discriminatory mortgage lending in violation of the federal Fair Housing Act.  The complaint describes the Bank as “the eighth-largest conventional home purchase lender and eleventh-largest refinancer in Connecticut.”

The complaint alleges...

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