Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32For more information, please visit or 7 key Trends The DOJ launched investigations and initiated civil fraud actions against national banks and regional mortgage lenders under the FCA, alleging that lenders failed to un- derwrite Fair Housing Act (FHA) insured mortgage loans in compliance with applicable Department of Housing and Urban Development (HUD) guidelines, resulting in insurance claims being paid by the government. There were at least five noteworthy U.S. Department of Justice (DOJ) settlements in 2015 ranging in amounts from $400,000 to over $210 million. The DOJ also secured settlements with three lenders, resolving FHA discriminatory lending claims based on discretionary pricing policies. The CFPB focused on reinsurance premiums being paid by primary mortgage insurers to lender-affiliated reinsur- ance companies, alleging that the premium payments were “kickbacks” that violated RESPA. In an administra- tive enforcement action, CFPB Director Richard Cordray issued a decision in the first ever administrative appeal of a CFPB enforcement action, and significantly altered the traditional application of RESPA to mortgage lenders in finding that a lender had violated RESPA. The lender has filed a petition for review in the D.C. Circuit on the grounds that the CFPB’s decision is arbitrary, capricious, and an abuse of discretion, is inconsistent with RESPA, and is unconstitutional. The D.C. Circuit has issued a stay of the CFPB’s disgorgement order. Meanwhile, the CFPB and the Maryland Attorney General resolved similar allegations of kickbacks involving title insurance companies rather than mortgage insurers. The CFPB also continued to focus on deceptive adver- tising—entering into consent orders with a mortgage ser- vicer and payment processor for unsubstantiated mar- keting claims involving consumer savings, and targeting deceptive advertising used by foreclosure relief services, especially where the service providers falsely implied an affiliation with government loan guarantors. State attorneys general, often in conjunction with fed- eral enforcement agencies, targeted individuals and companies allegedly running mortgage modification and foreclosure relief scams. A trend among both state and federal agencies was an increased focus on obtaining direct consumer relief, rather than merely securing civil money penalties or fines. Enforcement Actions by Statute Implementation of TRID. The TILA-RESPA Integrated Disclosure rule (TRID) took effect on October 3, 2015. Fannie Mae, Freddie Mac, and the FHA have agreed not to conduct post-purchase file reviews for technical TRID compliance in the near future, although the FHA has an- nounced that its grace period will end on April 16, 2016. Changes in HMDA Reporting. The CFPB issued a final rule, to be effective in January 2018, amending Regu- lation C, changing key portions of the Home Mortgage Disclosure Act (HMDA), including: (i) which institutions have reporting obligations, (ii) what transactions are sub- ject to the HMDA rule, (iii) greatly expanding the infor- mation that must be collected, recorded, and reported, and (iv) the process for reporting and disclosing data. MORTGAGE SERVICING 0 5 10 15 20 State Law CFPA Other FCA RESPA ECOA FTCA FHA TILA FIRREA FCRA FDCPA 2015 AMOUNTS SECURED BY AGENCY IN DEBT COLLECTION & DEBT SERVICING ENFORCEMENT ACTIONS CFPB $134,736,166 Other State Attorneys General $106,934,673 California Attorney General $100,000,000 OCC $60,000,000 FTC $33,382,137 2015 Enforcement Actions by Statute FEBRUARY 4, 2015: NYDFS Superintendent Lawsky sends letter urging “strong national rules” MARCH 26, 2015: Director Cordray APRIL 29, 2015: Small Business Regulatory Enforcement Fairness Act Panel meets regarding proposals MAY 22, 2015: CFPB Rulemaking JUNE 4, 2015: Thirty-two Senate Democrats write letter urging “strongest possible rules” SEPTEMBER 29, 2015: Director Cordray testifies before House NOVEMBER 20, 2015: CFPB Rulemaking Agenda notes NPR to be issued in first quarter of 2016 CFPB PAYDAY LENDING