CFPB - St Louis Real Estate News

CFPB Sues Rocket Homes Over Alleged Kickback Scheme

By Dennis Norman, on December 26th, 2024

Consumer Finance Protection Bureau (CFPB)

The Consumer Financial Protection Bureau (CFPB) has filed a federal lawsuit against Rocket Homes Real Estate LLC and the Jason Mitchell Group, alleging violations of the Real Estate Settlement Procedures Act (RESPA). The complaint, filed in the Eastern District of Michigan, accuses the defendants of participating in a scheme involving kickbacks and steering practices that compromised the trust consumers place in their real estate agents.

According to the CFPB’s allegations, Rocket Homes pressured real estate agents and brokers to steer clients toward its affiliate, Rocket Mortgage, and other related services, often at the expense of offering clients competitive alternatives. Continue Reading →

DOJ, CFPB Secure $8 Million Settlement with Fairway Mortgage Over Lending Discrimination

By Dennis Norman, on October 17th, 2024

On October 15, 2024, the Department of Justice (DOJ) and the Consumer Financial Protection Bureau (CFPB) announced a settlement with Fairway Independent Mortgage Corporation following allegations of discriminatory lending practices, or redlining, in predominantly Black neighborhoods in Birmingham, Alabama. As part of the resolution, Fairway agreed to pay $8 million in relief and a $1.9 million civil penalty to address claims that it avoided providing credit services in these communities due to residents’ race and national origin.

The settlement contributes to the DOJ’s broader efforts through the Combating Redlining Initiative, which has secured over $150 million in relief since its Continue Reading →

Hidden Dangers of Contract for Deed: CFPB Report Highlights Predatory Practices

By Dennis Norman, on August 13th, 2024

CFPB Report Exposes the Dangers of Contracts for Deed: A Warning for St. Louis Homebuyers

The Consumer Financial Protection Bureau (CFPB) has released a comprehensive report highlighting the risks and challenges associated with “contracts for deed,” a form of seller financing often used as an alternative to traditional mortgages. While these contracts can provide a pathway to homeownership for some, the report underscores the significant dangers they pose, particularly to vulnerable populations, including low-income, Black, Hispanic, and immigrant communities.

Contracts for deed are often characterized by substandard housing, inflated prices, and a lack of consumer protections. Buyers assume all responsibilities of homeownership, yet they do not gain legal title until all payments are completed, Continue Reading →

Mortgage Loan Fees Increased Thirty-Six Percent in two years: CFPB Launches Inquiry

By Dennis Norman, on May 30th, 2024

The Consumer Financial Protection Bureau (CFPB) has issued a Request for Information (RFI) regarding fees imposed in residential mortgage transactions. This initiative aims to gather insights and comments from the public about the escalating costs associated with obtaining a mortgage. As homeowners and prospective buyers, this is an opportunity for you to voice your experiences and concerns regarding these fees.

From 2021 to 2023, the median total loan costs for home purchase loans surged by over 36%, with the median dollar amount paid by borrowers in 2022 nearing $6,000. These rising costs, coupled with increased home prices and interest rates, Continue Reading →

Beware of Unjust Fees: Insights from the Latest CFPB Mortgage Report

By Dennis Norman, on April 24th, 2024

The Consumer Financial Protection Bureau’s (CFPB) Spring 2024 report on mortgage servicing reveals critical issues that prospective and current homeowners should be aware of. The report highlights a troubling trend of unauthorized charges and deceptive practices in mortgage servicing, which could impact a homeowner’s financial stability and property rights. For instance, some services were found to be charging illegal property inspection fees, particularly on Fannie Mae loans, despite guidelines clearly prohibiting such fees when certain conditions are met. These unjust fees, ranging from $10 to $50, were imposed even when borrowers were actively engaging with their servicers, highlighting a significant Continue Reading →

CFPB Orders Wells Fargo To Pay $3.7 Billion…Includes more than $2 B in redress to consumers

By Dennis Norman, on December 20th, 2022

Today, the Consumer Financial Protection Bureau (CFPB) released details of a Consent Order they reached with Wells Fargo Bank, N.A. in which Wells Fargo is ordered to pay “more than $2 billion in redress to consumers and a $1.7 billion civil penalty for legal violations across several of its largest product lines.” According to a press release issued by the CFPB, Wells Fargo’s “..illegal conduct led to billions of dollars in financial harm to its customers and, for thousands of customers, the loss of their vehicles and homes.” Rohit Chopra, the Director of the Consumer Financial Protection Bureau, stated “Wells Continue Reading →

CFPB Proposes Banning Foreclosures Through The End Of This Year

By Dennis Norman, on April 7th, 2021

The Consumer Financial Protection Bureau (CFPB) earlier this week proposed rule changes that would help prevent “avoidable foreclosures” that will come about when the current foreclosure ban expires June 30th. According to the CFPB, nearly 3 million homeowners are delinquent on their mortgages as a result of the COVID-19 pandemic as well as the economic issues that have come about as a result.

The CFPB’s proposed rule changes include:

Require a pre-foreclosure review period that would generally prohibit loan servicers from starting foreclosure until after December 31, 2021 on loans secured by a borrower’s principal residence. Permit loan servicers to Continue Reading →

COVID-19 Pandemic Driven Serious Mortgage Delinquencies To Highest Levels Since The Great Recession

By Dennis Norman, on March 4th, 2021

According to a report just released by the Consumer Financial Protection Bureau (CFPB), titled “Housing insecurity and the COVID-19 pandemic“, there are over 2 million homeowners that have fallen behind at least three months on their mortgage payments. This represents a 250% increase from pre-Covid-19 levels and is now at a level we haven’t seen since the height of the Great Recession in 2010.

Homeowners with an FHA mortgage delinquency rates double rate for all loans:

As the chart below shows, homeowners with an FHA mortgage hit a serious mortgage delinquency rate of 10.8% during the 3rd quarter of 2020, Continue Reading →

How Mortgage Forbearance Works Under CARES ACT (Video)

By Dennis Norman, on April 3rd, 2020

Yesterday, I shared information about forbearance options available to borrowers with an FHA loan that has been impacted by the COVID-19 pandemic. Today, the Consumer Finance Protection Bureau released a very informative video titled “CARES Act Mortgage Forbearance: What You Need to Know” which is below. This video contains a great explanation of what forbearance is, how it works and how to request it on your mortgage.

[xyz-ips snippet=”Homes-For-Sale”]

Home Mortgage Lending In Low and Moderate Income Areas On The Rise

By Dennis Norman, on November 3rd, 2017

There is little doubt that lower-income individuals and, subsequently, lower-income neighborhoods, were impacted more negatively by the housing market bubble burst in 2008 than other areas. This resulted in extremely high mortgage delinquency rates, high foreclosure rates, and declining home values. Afterward, citing “loose” lending standards, sub-prime mortgages, etc, the mortgage market tightened the reins on mortgage lending making it more difficult for everyone to get a loan, but particularly, those folks in the lower income brackets.

As time has passed, home loan requirements have eased and it is now easier to obtain a home loan. Some of the requirements Continue Reading →

Home Buyers; Do You Know What You’re Worth?

By Dennis Norman, on September 15th, 2017

Home buyers for sale! Buy one get one free!

Ok, it’s not quite like that but, if you are a home buyer, odds are you have been bought and sold whether you know it or not! Does this sound surprising to you? I’m guessing it probably does as I don’t think most home buyers realize that, just like the homes they are shopping for, there is a market for home buyers (and sellers, of course) as well. I’m talking about “real estate leads”.

How home buyers are bought and sold…

Before I go further, or, especially if you are a Continue Reading →

What To Look Out For In Credit Repair Companies

By Dennis Norman, on June 29th, 2017

The housing bubble that led to the housing bubble burst in 2008 started a decline in the value of homes, including those in St Louis, for the following 3 to 4 years. This resulted in much larger number of homeowners facing financial struggles including late payments, foreclosures, short sales, bankruptcy and the like, than was the historic norm. As a result, while maybe not a new concept but certainly one that had been more obscure in the past, credit repair, became a lucrative and growing business as consumers sought to repair the damage done and position themselves to buy a home. Continue Reading →

Zillow Under Investigation By CFPB Over Co-Marketing Program With Real Estate Agents

By Dennis Norman, on May 12th, 2017

Zillow, the behemoth real estate search site, revealed in it’s Form 10-Q filed with the Securities and Exchange Commission earlier this month for first quarter 2017, that the Consumer Finance Protection Bureau (CFPB) is investigating some practices by Zillow, apparently specifically their co-marketing program, and, according to Zillow’s filing, is alleging that Zillow violated parts of both RESPA as well as the Consumer Financial Protection Act. The complete Form 10-Q can be viewed here. On page 40 (outlined in red by me) is the section where Zillow makes this disclosure, and I have pasted that section of the report below as well (the emphasis and color have been done by me). Continue Reading →

How Will Implementation of Dodd-Frank Affect The Real Estate Market?

By Dennis Norman, on August 12th, 2015

In case you are concerned the real estate industry is not subject to enough regulation, do not let your heart be troubled as new regulations imposed by the Dodd–Frank Wall Street Reform and Consumer Protection Act, which was signed into law back in 2010, affecting home mortgages go into effect October 3, 2015. Continue Reading →

New QM Rules Going To Put Home Loans Out of Reach For Some Buyers Come January

By Dennis Norman, on October 15th, 2013

January 10, 2014 new QM rules (qualified mortgage) will go into effect and will most likely negatively impact the ability of some home buyers to obtain a mortgage. In terms of how many borrowers the new rules will affect, it is hard to say. There have been several analysis’ done of the percentage of home loans originated in 2012 would not have met the QM rules and the estimates vary from 12 percent to more than half. Personally, I think the lower estimates are probably closer to accurate, but it is still a significant number…potentially somewhere around 1 of every Continue Reading →

Free Credit Scores As A Result of New Act

By Tyler Frank NMLS # 942420, on March 29th, 2013

Tyler Frank,Paramount MortgageNMLS ID 942420

Free Credit Scores are Not Part of the Free Annual Credit Report Consumers Currently Receive

Consumers currently have the right to request their free credit report once a year, but a credit report does not include free credit scores. These two items are often confused to be the same, which they are not.

You generally must pay to see your credit score. It’s a three-digit grade that predicts how risky you are to a lender.

Earlier this month, bills were introduced in the House and Senate to allow all consumers Continue Reading →

Forty-one percent of survey respondents think home prices will increase; up from thirty percent a year ago

By Dennis Norman, on February 7th, 2013

Forty-one percent of the respondents to the Fannie Mae National Housing Survey for January 2013 said they expect home prices to rise in the next 12 months which is down slightly from 43 percent last month but up significantly from a year ago when only 30 percent felt home prices would rise. Continue Reading →

Bank of America, J.P. MOrgan Chase, Wells Fargo, Citigroup and Ally Financial reach $25 Billion Agreement with Fed & State Government over Foreclosure Abuses

By News Desk, on March 12th, 2012

The Justice Department, the Department of Housing and Urban Development (HUD) and 49 state attorneys general announced today the filing of their landmark $25 billion agreement with the nation’s five largest mortgage servicers to address mortgage loan servicing and foreclosure abuses. Continue Reading →

Shadow Inventory Continues to Decline; Good news for the housing market

By Dennis Norman, on September 27th, 2011

A report released this morning by CoreLogic shows that the current residential “shadow” inventory as of July 2011 declined slightly from 1.7 million units in April to 1.6 million units, and was down from 1.9 million units a year ago. This current shadow inventory represents a 5 month supply. CoreLogic includes in it’s shadow inventory numbers properties that are either 90+ days delinquent on mortgages, in some stage of foreclosure, or an REO but not presently for sale in an MLS.

Continue Reading →

Consumer organization blasts House Appropriations Committee on recent vote; fear return to policies that allowed predatory lending

By Dennis Norman, on June 27th, 2011

This week, in response to the House Appropriations committee voting to slash funding for the newly formed Consumer Financial Protection Bureau (CFPB) and to subject the new agency to a “politically-charged” funding process, Mike Calhoun, President of the Center for Responsible Lending, made the following comment: “the House Appropriations Committee yesterday voted for a return to policies that allowed predatory financial products to plunder our economy. Clearly some lawmakers have forgotten the lesson of today’s financial crisis, which continues at great cost to taxpayers, shareholders, retirees and, of course, tens of millions of families who have needlessly lost their Continue Reading →

New disclosure form aims to make home mortgage terms easier to understand

By Dennis Norman, on May 24th, 2011

The newly formed Consumer Financial Protection Bureau (CFPB), one of the newest agencies under the Federal Government, created “to make markets for consumer financial products and services work for Americans”. Hmm, sounds good, but as usual, I was skeptical. However, thus far, I’m pretty impressed with the CFPB’s approach to changing mortgage disclosure statements in an effort to make it easier for consumers to understand the terms of the home mortgage they have been offered as well as to shop “apples to apples” for the best home mortgage.

Continue Reading →

H.R. 4173; The Dodd-Frank Wall Street Reform and what it means to appraisers

By Frank Gregoire, on September 13th, 2010

Frank Gregoire

My world was much different in the late 1980’s. Although I was in the real estate business and the real estate appraisal profession for a decade, political activity did not interest me. Here at Gregoire & Gregoire, we had already been using a networked mini-computer for appraisal reporting since 1983, but I did not have an email account or address. I did not surf the web. Our clients were savings and loan associations, FHA lenders, loan discount companies (purchasers of privately originated first and second mortgages), real estate brokers, and several lawyers. All our research was Continue Reading →

Five Indicted in Foreclosure Rescue and Mortgage Fraud Scheme

By News Desk, on December 12th, 2009

Department of Justice Press Release

Scam Involved Lawyers, Mortgage Brokers, and More Than $14.6 Million in Loans

PHILADELPHIA—A 15-count indictment was filed today against five defendants charged in a $14.6 million mortgage fraud scheme that resulted in at least 35 fraudulent mortgage loans, announced United States Attorney Michael L. Levy, Special Agent-in-Charge of the FBI Janice K. Fedarcyk, and Pennsylvania Secretary of Banking Steven Kaplan. Charged are Edward G. McCusker and John Alford Bariana, owners of Axxium Mortgage, Inc., McCusker’s wife, Jacqueline, and Jeffrey A. Bennett and Stephen G. Doherty, owners of the Doylestown law firm Bennett & Doherty, Continue Reading →

Title Insurance 101 from a St. Louis Title Professional – Final post in the series

By Dennis Norman, on September 5th, 2009

Dennis Norman

By: Dennis Norman

Over the past two days I published the first part and second part of my E-View TMwith Wendy Cromer, Vice-President of Marketing for Security Title Insurance Agency, LLC about title insurance, the new laws affecting it and things consumers should know.

Wendy Cromer, Vice-President of Marketing, Security Title Insurance Agency LLC

Today were going to do the final part of our E-View TM with Wendy:

Dennis-Wendy, title insurance seems to be one of those things that is a mystery to most homeowners. Can you please explain what title insurance is and Continue Reading →

Avoid mortgage modification and foreclosure rescue scams

By Dennis Norman, on July 16th, 2009

By: Dennis Norman

Recently the The Office of the Comptroller of the Currency issued a Consumer Advisory. The Advisory contains consumer tips for avoiding mortgage modification scams and foreclosure rescue scams.

The advisory states; “Scams that promise to “rescue” you from foreclosure are popping up at an alarming rate nationwide, and you need to protect yourself and your home. If you’re falling behind on your mortgage, others may know it too – including con artists and scam artists. They know that people in this situations are vulnerable and often desperate.”

The OCC suggests that before you do business with someone Continue Reading →