Two mortgage servicers shut down by CFPB

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1. Two mortgage servicers shut down by CFPB

The Consumer Financial Protection Bureau (CFPB) has permanently banned nonbanks Sutherland Global and one of its subsidiaries, Sutherland Government Solutions, from reverse mortgage servicing.

This decision comes after the CFPB found that the companies failed to communicate effectively with reverse mortgage borrowers, causing many older consumers to fear losing their homes.

“Sutherland and NOVAD were unprepared to support the hundreds of thousands of older homeowners whose reverse mortgages the defendants were responsible for,” said CFPB director Rohit Chopra. “The defendants ignored complaints and calls for help, and they let problems snowball into disasters.”

2. DOJ calls for retrial involving REX, Zillow and NAR

DOJ is backing REX’s push to revive a lawsuit alleging an anti-competitive business arrangement between NAR and Zillow.

DOJ says a district court made a mistake when it dismissed a claim that NAR made an illegal deal with Zillow to push down listings from independent brokers on its website.

The dispute is about the NAR's optional "no-commingling" rule, which tells its members to keep "multiple service listings" separate from other brokers' listings.

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3. More Nuggets

📝 The OCC and FDIC approved a final rule to implement quality control standards for automated valuation models used by mortgage originators. (ABA)

🏠 The typical new home is shrinking. Here's what that means for buyers. (CNBC)

⚖️ Rocket Mortgage hit with race bias, FMLA suit. (Law360)

⬆️ Home prices set a new record high, but growth is slowing. (Calculated Risk)

4. UWM challenges racketeering lawsuit in court

A class action lawsuit against United Wholesale Mortgage (UWM) is described by the company as "an unprecedented and coordinated effort to smear" it.

The lawsuit alleges violations of the RESPA and RICO Acts, among other claims. UWM has filed a motion to dismiss the case, arguing that the claims are flawed and that its All-In Initiative is optional for brokers.

A UWM spokesperson stated, "Every single claim made in this lawsuit is meritless and riddled with flaws," expressing confidence in the case's dismissal and the company's continued defense of its practices.

5. Share of new mortgages issued by age

Gen Z and young millennial homebuyers dominated the share of new mortgages issued last year, with nearly 40% going to people under 35, making them the largest group of borrowers despite rising home prices and record-low housing affordability

POLL OF THE WEEK

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

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