Mortgages, FIRREA

CFPB and Other Federal Agencies Finally Adopt AVM Rule

Alston & Bird on 7/1/2024

What Happened? On June 20, 2024, a group of federal regulators published a rule addressing for the use of automated valuation models (AVMs) in mortgage origination and secondary market transactions....more

Agencies Propose Quality Control Standards for AVMs

McGlinchey Stafford on 8/29/2023

Mortgage originators and secondary market issuers use automated valuation models (AVMs) in determining the worth of collateral securing mortgages on consumers’ principal dwellings. As part of the Dodd-Frank Wall Street Reform...more

Real Property, Financial Services, & Title Insurance Update: Week Ending January 3, 2020

Carlton Fields on 1/23/2020

Real Property Update - Quiet Title: Trial court abused discretion by entering final judgment quieting title when jury did not determine (1) whether plaintiffs were entitled to legal or equitable title or (2) which deed was...more

Agencies Raise Appraisal Threshold Exemption

Alston & Bird on 10/4/2019

A&B ABstract: A new rule from the federal banking regulators reduces the number of residential mortgage transactions for which an appraisal is required. ...more

Federal Banking Agencies Increase Transaction Value Appraisal Exemption

Ballard Spahr LLP on 10/1/2019

As we previously reported, last November the FDIC, Federal Reserve Board and Comptroller of the Currency (the federal banking agencies) proposed a rule to implement a rural residential property appraisal exemption under the...more

Structured Finance Spectrum - February 2019

Alston & Bird on 2/25/2019

SECURITIZATION SIDE NOTES – EU Risk Retention: Did This Come with a Gift Receipt? We’d Like to Return It - A new year brings new laws and regulations into effect, in this case a complicated and confusing gift from our...more

Banking Agencies Propose Rule To Increase Appraisal Exemption Transaction Value

Ballard Spahr LLP on 11/21/2018

The FDIC, Federal Reserve Board and Comptroller of the Currency are proposing a rule to implement a rural property appraisal exemption under the Economic Growth, Regulatory Relief, and Consumer Protection Act (the Act) and...more

Treasury Recommends Sweeping Industry Changes for Mortgage Lenders and Servicers

Ballard Spahr LLP on 8/17/2018

As covered earlier this week in a legal alert, the U.S. Department of the Treasury issued a report recommending sweeping regulatory changes for consumer financial services. Within the report, the Treasury also recommended a...more

Senate Passes Banking Bill Providing Dodd-Frank Relief

Ballard Spahr LLP on 3/16/2018

The U.S. Senate on March 14 passed S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act (the Act), by a vote of 67 to 31. Although the Act would not make the sweeping changes to the Dodd-Frank Act found...more

What Can Be Expected in Structured Finance and Securitization for 2018?

Alston & Bird on 2/7/2018

A continuation of the market trends from last year can be expected in 2018. Structured finance and securitization markets had a period of relative calm in 2017 as new regulations were incorporated into transactions. While no...more

Would the 7th Circuit Have Changed Its FCA Standard but for Peer Pressure?

Bradley Arant Boult Cummings LLP on 11/1/2017

The Seventh Circuit finally abandoned its “but-for” causation standard for False Claims Act (FCA) damages. The decision comes 25 years after the Seventh Circuit first adopted its controversial standard requiring only a...more

Court Awards Nearly $280 Million in Treble Damages Against Former FHA Lender

Goodwin on 9/19/2017

On September 14, 2017, the U.S. District Court for the Southern District of Texas issued an opinion and order against two former mortgage companies and their former president and CEO. The order, which followed a previous jury...more

Financial institution agencies provide guidance to help alleviate appraiser shortage

Ballard Spahr LLP on 6/1/2017

The federal banking agencies together with the National Credit Union Administration (the “Agencies”) issued an Interagency Advisory on the Availability of Appraisers that is intended to help address the real estate appraiser...more

Bank of America Wins Reversal of FIRREA $1.27B Penalty

Manatt, Phelps & Phillips, LLP on 6/28/2016

A breach of contract is insufficient to also support a claim for fraud, the Second Circuit Court of Appeals has ruled, reversing a $1.2 billion verdict against Countrywide Home Loans in the process. What happened - ...more

Reversal of Countrywide Fraud Verdict a Reminder of Government’s Heavy Burden of Proof

BakerHostetler on 6/1/2016

On May 23, 2016, the U.S. Court of Appeals for the Second Circuit reversed a jury’s finding of civil fraud against Countrywide Home Loans and other lenders, finding that the government had failed to prove fraud in...more

I Meant it at the Time: Second Circuit Reverses $1.2BN FIRREA Judgment

Burr & Forman on 5/26/2016

It’s hornbook law that a later intentional breach of contract, alone, doesn’t equal promissory fraud. Holding it therefore cannot establish mail or wire fraud, the Second Circuit reversed the Government’s $1.2 Billion FIRREA...more

The TRID Rule: Impact and Consequences on the Residential Mortgage Lending Market

Carlton Fields on 4/21/2016

Introduction and Background - Residential mortgage lenders have long been required to disclose to their borrowers (i) the cost of credit to the consumer and (ii) the cost to the consumer of closing the loan transaction....more

Financial Services Report - Spring 2015

Morrison & Foerster LLP on 3/10/2015

In This Issue: - Beltway Report - Bureau Report - Mobile & Emerging Payments Report - Mortgage & Fair Lending Report - Operations Report - Preemption Report - Privacy Report ...more

Citigroup To Pay $7 Billion To Settle Mortgage Claims

Manatt, Phelps & Phillips, LLP on 8/5/2014

To settle charges related to the packaging, marketing, sale, and issuance of residential mortgage-backed securities (RMBS), Citigroup will pay a total of $7 billion, including a record $4 billion fine to the Department of...more

Banking Bulletin: New Year Brings New Mortgage Regulations

Adams and Reese LLP on 1/13/2014

The Higher-Priced Mortgage Loans (HPML) Appraisal Rule, part of Regulation Z, goes into effect on January 18th of this year. At that time, many lenders will begin using the exemption relating to “certain streamlined...more

Rakoff Decision Supports Feds’ Broad Application of FIRREA

Bradley Arant Boult Cummings LLP on 8/28/2013

On August 16, 2013, Judge Jed S. Rakoff of the Southern District of New York issued a ruling in in United States v. Countrywide Financial Corp., No. 12 Civ. 1422, that will likely be relevant to any financial institution...more

Civil Investigative Demands, Subpoenas and More: How to Prepare for the Government's Renewed Focus on Financial Services

Troutman Pepper on 11/13/2012

The U.S. government continues to ramp up investigations and enforcement actions against banks, mortgage companies and other financial services companies, including using tools such as the False Claims Act and its power to...more

U.S. Sues Bank of America for Alleged Mortgage Fraud Against GSEs

Orrick - Finance 20/20 on 11/7/2012

On October 24, the U.S. Attorney for the Southern District of New York filed suit against Bank of America and Countrywide seeking damages for over $1 billion in alleged losses suffered by Fannie Mae and Freddie Mac....more

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