PNC pays $12M to settle MLO rest break lawsuit

It's Wednesday, welcome back! We hope you had a nice Memorial Day weekend. Today’s newsletter is 639 words, a 2.5-minute read.

1. PNC pays $12M to settle MLO rest break lawsuit

PNC Bank has agreed to pay $11.85 million to settle a class action lawsuit alleging unpaid rest breaks and inaccurate wage statements for its mortgage loan officers in California. The settlement covers MLOs employed between June 28, 2014, and June 30, 2019.

The lawsuit claimed that PNC's compensation plan, which involved deducting base pay from incentive compensation, failed to properly compensate MLOs for rest breaks as required by California law. Despite denying these allegations, PNC agreed to the settlement as a negotiated compromise. The Northern District Court of California has granted preliminary approval of the settlement.

2. HUD announces relief for Texas disaster victims

The HUD has extended a 90-day foreclosure moratorium for Federal Housing Administration (FHA)-insured mortgages in Texas due to severe weather, tornadoes, and flooding that began on April 26.

This relief also covers Section 184 Indian Home Loan Guarantee program and Home Equity Conversion Mortgages (HECMs). Homeowners should contact their loan servicers for assistance.

The moratorium applies to the initially declared federal disaster counties: Harris, Liberty, Montgomery, Polk, San Jacinto, Trinity, and Walker. Additional counties declared by Governor Greg Abbott—Calhoun, Delta, Jones, and Lamar—await federal inclusion.

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3. More Nuggets

🏚️ Real estate agents are fleeing the field. Is that good for homebuyers? (the Post)

✌️ Homes.com President Dave Mele to part ways with CoStar. (VendorAlley)

🏡 At 2022 Rates, 10 million more households could afford a new home. (NAHB)

📰 All about Freddie Mac’s proposal to start buying home equity loans. (TheHill)

4. HUD releases $26M to fight housing discrimination

On Friday, HUD announced the availability of $26 million in funding to be distributed to state and local housing agencies to enforce fair housing practices and combat discrimination.

• The money will be distributed via noncompetitive funding for HUD’s state and local fair housing enforcement agencies nationwide under the Fair Housing Assistance Program (FHAP).

The funding round will support fair housing complaint investigations and education and outreach to “inform the public, housing providers, and local governments about their rights and responsibilities under both the Fair Housing Act and state and local fair housing laws.”

5. New FHA’s 12-hour cyber incident notification rule

The Federal Housing Administration (FHA) on May 23rd published Mortgagee Letter (ML) 2024-10, outlining reporting requirements that lenders must follow if they detect a cybersecurity intrusion.

Effective immediately and applicable to all FHA-insured mortgage programs, the letter states that all lenders “that experience a potential or actual cyber incident must notify HUD via the FHA Resource Center at [email protected] and HUD’s Security Operations Center at [email protected] within 12 hours of detection with the required information as outlined in the ML,” the letter said.

“Once notified of an incident, representatives from HUD will contact the designated representative from the institution reporting the incident to determine the appropriate mitigation steps based on the nature of the incident,” the letter added.

☀️ You’re all caught up. See you on Friday!

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