FTC

Apache is functioning normally

Townstone Financial filed a response to the Consumer Financial Protection Bureau appealing the dismissal of a redlining suit it brought against the mortgage lender in 2020.

In a brief filed Aug. 14, the Chicago mortgage lender argued the Seventh Circuit Court of Appeals should affirm the U.S. District Court for the Northern District of Illinois decision, which granted the lender a victory and rejected the bureau’s argument that an anti-discrimination law protects prospective borrowers.

At the time, the District Court ruled that government watchdog’s suit was invalid because the Equal Credit Opportunity Act applies only to home loan applicants, not to potential applicants. 

Richard Horn, co-managing partner at Garris Horn LLP and legal counsel for Townstone, called the CFPB’s appeal “an uphill battle” for the bureau and its “arguments weak.”

He noted he was not fully surprised the agency appealed the case because of the “level of hubris internally.”

“The [CFPB] may have some blinders to their legal risks because it doesn’t affect any of the staff there internally…everyone is getting paid and no one is getting fired,” he said. “If the CFPB loses, which we firmly believe they will, they could also appeal to the Supreme Court, so this could go on for a while.” 

The CFPB declined to comment.

The Federal Trade Commission, however, did provide input in early June. An amicus brief authored by James Doty, an attorney for the FTC, said the “Congress’s aim of equal access to credit would be a nullity if creditors could blatantly broadcast to protected classes that their applications were not welcome.”

“In upending almost fifty years of law, the district court ignored Congress’s plain language directing regulators to further ECOA’s “purpose” and prevent its “evasion,” Doty’s letter reads.

The suit, launched by the government watchdog almost half a decade ago, accused Townstone of engaging in illegal redlining by discouraging prospective Black applicants from applying for home loans.

The bureau’s complaint alleged that from 2014 through 2017, the company’s CEO and president made statements that “discouraged prospective applicants living in African-American neighborhoods in the Chicago MSA from applying to Townstone for mortgage loans.”

Such alleged remarks included the company’s CEO describing the South Side of Chicago between Friday and Monday as “hoodlum weekend” and that the police are “the only ones between that turning into a real war zone and keeping it where it’s kind of at.”

In February, Judge Franklin Valderrama of the Illinois federal court gave Townstone a victory. 

The case was dismissed with prejudice, which meant the CFPB could not refile the complaint. However, the Bureau still maintained a right to appeal. On April 3, it filed a notice with the Seventh Circuit Court of Appeals stating it would do that. The filing did not go into the specific reasons it elected to challenge Judge Valderrama’s ruling.

Source: nationalmortgagenews.com

Apache is functioning normally

There were several reports floating around today that Zillow is in talks to buy its smaller rival Trulia for a whole lot of money, despite spokespeople for both companies declining to comment.  But these rumors generally turn out to be true.

Yesterday, Trulia was valued at about $1.5 billion. Today, after the rumors surfaced, the stock climbed from around $40 to nearly $54 a pop, valuing it closer to $2 billion.

This would be a pretty quick exit strategy for the company, which only went public back in late 2012.

At the time, its shares traded in the high teens before climbing as high as about $50 a year later thanks to a broader stock market rally (and I suppose renewed interest in housing).

Zillow also got a boost on the news, with its shares rising more than 15%, or $19.29, to $145.76. Shares actually climbed as high as $157.61 on the merger rumors, but settled back down after an initial pop.

The company is now valued at about $5.8 billion, which in the world of tech stocks is nothing…

Possibly a $2 Billion Price Tag

Bloomberg reported that Trulia could fetch as much as $2 billion from Zillow, which wouldn’t give the stock much upside after it rocketed 32% higher today.

But based on the astronomical prices being paid to acquire companies today, I wouldn’t be surprised if it’s sold for even more.

It would create quite the real estate juggernaut, seeing that Zillow is already partnered with Yahoo! Homes. And Trulia purchased ActiveRain last year, which brings with it over three million blog posts about real estate, mortgage, and so on.

Additionally, Zillow acquired real estate software company Retsly earlier this month and NYC real estate portal StreetEasy last year.

Together, the two companies would hold a huge chunk of online real estate traffic, with the only real rivals Redfin and Move remaining.

Last month, Trulia CFO Sean Aggarwal called the online real estate realm a “very large category,” and noted that real estate pros spend a collective $28 billion annually on marketing.

And Zillow and Trulia are only doing about $500 to $600 million in annual revenue, so there’s plenty of room to grow.

Trulia’s 2014 revenue is expected to climb to $253 million this year, up 76% from a year earlier. It doubled the year before that. Its June traffic totaled about 31.6 million unique visitors, per ComScore.

Meanwhile, Zillow is expected to bring in $311 million, a 58% increase from last year. It apparently had 53.8 million unique visitors in June, thanks in part to its popular Zestimate.

Together, the pair accounted for roughly 89% of all traffic to real estate websites, which kind of screams monopoly.

But with other competitors still out there, the merger shouldn’t face any hurdles in that respect.

Why Is Zillow Buying Trulia?

My guess is simply to take out the competition now while it’s still relatively cheap. Trulia and Zillow are very similar websites, though Zillow has a much larger mortgage footprint.

But their real estate listing pages are pretty much indistinguishable, especially given the fact that Trulia has its own “Trulia Estimates,” which are just like Zestimates.

And they actually appear to be even more accurate than Zestimates, which isn’t good for a company that is known for them.

Additionally, both companies would be able to streamline operations and save lots of money by reducing redundancies and improving efficiency, all while creating a force to be reckoned with.

The timing is also ripe for a merger because investors are going bonkers for both stocks at the moment and housing is en vogue again, so the market supports a high-priced, dare I say frothy, merger.

The only question now is what the name will be? A Bloomberg editor jokingly asked if it should be named Zulia or Trillow?

Update: The rumors were true. This morning Zillow issued a press release revealing its $3.5 billion acquisition of Trulia. The company will fund the purchase with stock, and is expected to close the transaction in 2015.

Trulia shareholders will receive 0.444 shares of Zillow stock for each share of Trulia.

Both brand names will be maintained, and both CEOs will remain at their respective companies. As for why they’re buying Trulia to begin with, they mentioned faster innovation, greater access to free real estate market data, broader distribution, better value for advertisers, and finally, corporate cost savings.

Update II: The FTC has approved the proposed merger between Zillow and Trulia, and Zillow now expects to close the deal as early as February 17th, 2015. However, because both stocks have decreased significantly since the announcement last year, the actual value of the acquisition could be considerably lower.

(photo: Allan Ferguson)

Source: thetruthaboutmortgage.com

Apache is functioning normally

If you or someone you know has dealt with a collection agency, you know how trying it can be. Debt collection agencies have a long history of harassment and illegal practices. Can a collection agency report to a credit bureau without notifying you? The answer might not be that simple. Knowing illegal debt collection practices can help identify when you’re being treated unfairly.

The Law Protects You

The Fair Debt Collection Practices Act is a federal law that protects consumers against certain unfair collection practices. It applies to only external or third-party debt collectors and only for personal debts. It does not come into play for creditors collecting their own debts. State laws may provide additional protection.

In its annual report to Congress about debt collection complaints, the Consumer Financial Protection Bureau described collection complaints received by the Federal Trade Commission (FTC).

In 2019, the FTC received 75,200 complaints about debt collectors—down from 84,500 in 2018. A complaint does not mean a law has been broken, and some complaints may result from overseas debt collection scammers who harass consumers.

If the FTC finds the complaint to be valid, the agency can ban parties from participating in debt collection. The FTC keeps an up-to-date list of all prohibited parties.

A collection account can significantly affect credit score. If you’ve been contacted by a collector and are worried your credit is being hurt, it might be a good idea to check your credit scores to see if anything has changed.

FTC 2019 Annual Report: Types of Debt Collection Complaints Reported by Consumers

Every year the FTC releases a report discussing the six main types of debt collection complaints from consumers. Understanding these complaints gives you a better idea of your rights as a consumer. If you’ve experienced any of these types of actions from a debt collection agency, you can report them to the FTC. 

Before we delve in, a quick note: keep in mind that state laws can vary. So whenever we mention the law, we’re specifically referring to the Fair Debt Collection Practices Act (FDCPA).

1. Attempts to Collect a Debt Not Owed

Percentage of complaints: 45% in 2019

The law: If you don’t think the debt belongs to you, you can send a request in writing within 30 days of receiving the initial notice that you want verification of the debt. You can also request that the debt collector no longer contact you. You may consider making the request in writing so you have proof of the request

Often, this issue arises after identity theft occurs. That’s why it’s essential to keep an eye on your credit report, so you can spot these issues early.

2. Failure to Provide Written Notification of Debt

Percentage of complaints: 18% in 2019

The law: Within five days of initially contacting you, the collector must send written notice of the debt and include:

  • The amount of the debt
  • The name of the original creditor to whom the debt is owed
  • A statement describing your right to dispute the debt

You can file a complaint with the FTC if you believe the debt collector never sent written notice. Most individuals complaining about written notifications (65%) say they didn’t receive adequate information to identify and confirm their ownership of the debt. Additionally, some individuals (30%) complain that their written notice never included their right to dispute the debt.

3. Communication Tactics

Percentage of complaints: 12% in 2019

The law: Collectors are not allowed to call repeatedly just to harass you. However, there is no specific number of calls specified in the FDCPA limiting calls they can make within a given period. That’s for the courts to decide. If you think a debt collector is calling too often, start keeping a record of the time of the call and any messages left. Collectors also may not call before 8 a.m. or after 9 p.m. unless you’ve given them permission or at times you’ve told them are inconvenient.

The majority of complaints surrounding communication tactics are about repeated phone calls (55%), foul or abusive language (12%) or calls outside of the allotted times (5%).

4. Negative or Legal Action, or Threats of It

Percentage of complaints: 12% in 2019

The law: Collectors can’t threaten a lawsuit, criminal prosecution, wage garnishment, jail time, or a poor credit rating unless they have the legal authority to do so and intend to do so.

The most common complaints in this category in 2019were:

  • Threats or suggestions that a consumer’s credit history would be damaged (34%)
  • Threats to sue on old debt (28%)
  • Threats to arrest or jail consumers for not paying the debt (14%)
  • Lawsuits without proper notification (9%)
  • Attempts or successful seizures of property (8%)
  • Attempts or successful collection of exempt funds, such as unemployment benefits or child support (5%)
  • Lawsuits filed in a different state from where the consumer signed the contract or currently lives (2%)
  • Threats of turning the consumer in to immigration officials or of deportation (0.2%)

These threats are often in violation of the FDCPA. Usually, collectors must take you to court and win before they can take these kinds of actions—if they even have the right in the first place.

5. False Statements or Representations

Percentage of complaints: 11% in 2019

The law: Collectors can’t use false statements or representations to try to force consumers to cooperate, including:

  • Claiming to be affiliated with the U.S. government or any state
  • Purporting to be a law enforcement official or an attorney
  • Stating that failure to pay will result in imprisonment, seizure of property, garnishment of wages, or other false claims
  • Implying the consumer committed a crime

These claims are in violation of the FDCPA to make if they are untrue. Sometimes, collectors may be allowed to make a claim if they have taken the consumer to court and received a court-approved judgment.

In 2019, the majority of complaints in this category were for:

  • Attempts to collect the wrong amount (74%)
  • Impersonations of an attorney, law enforcement official, or government official (17%)
  • False statements that the consumer committed a crime by not paying the debt (6%)
  • Suggestions that the consumer should not respond to a lawsuit (3%)

6. Threats to Contact Someone or Share Information Improperly

Percentage of complaints: 3% in 2019

The law: Collectors can call third parties such as family members, neighbors, friends, or co-workers only once to locate the debtor. When they do, they are not allowed to reveal the debt.. They can only make contact again under specific circumstances.

In 2019, the majority of complaints in this category were for debt collectors who contacted:

  • A third party about the debt (53%)
  • An employer (28%)
  • The consumer after being asked not to do so (18%)
  • The consumer directly when they were informed to speak with only the consumer’s attorney (2%)

Debt Collection Laws

The federal Fair Debt Collection Practices Act (FDCPA) limits what debt collectors can do and say when attempting to collect a debt. This law covers mortgages, credit cards, medical debts, and any other debt for personal, family, or household purposes.

Unfortunately, the FDCPA doesn’t cover business debt or debt that is owed to the original creditor rather than a collection agency.

As stated earlier, time and place, harassment, and representation are all factored into this federal act. Debt collectors cannot contact you in an unusual place or at a time they know is inconvenient.

Additionally, if collectors are aware you have sought legal representation for the matter, they must immediately stop direct communication with you and, instead, contact your attorney, except for a few exceptions.

Can a Debt Transfer Hands?

Many people ask, “If a debt is sold to another company do I have to pay?” Once your debt is transferred, you owe the money to the current company rather than the original creditor. However, the new collector must still adhere to all the regular debt collection laws. In addition, the company cannot add interest you didn’t agree to or change any other terms of your original contract.

So, when does this happen? Can collection agencies buy from other collection agencies? Yes. Once your debt crosses a threshold that indicates it’s less likely to be paid, your original creditor will send it to a collection agency. After some time, the collection agency might sell your debt to a debt buyer.

If you do choose to pay off your debt, always make sure you pay the party currently holding your debt.

The Fair Credit Reporting Act

Another federal law is the Fair Credit Reporting Act. It covers certain financial aspects, including debt being collected and reported on your credit report.

This law protects consumers from unfair, deceptive, or abusive acts or practices by collection agencies or creditors.

How to Get Help

If you think a debt collector or collection agency has broken the law while trying to collect a debt, you can:

  • Complain to the Consumer Financial Protection Bureau and your state attorney general
  • Contact a consumer law attorney — you might be entitled to damages and/or attorney’s fees

Whenever you’re dealing with debt, it’s smart to review your credit reports for accuracy, because errors can unnecessarily damage your credit standing. Should the worst case happen, there are ways to dispute credit report errors.

If you’re ready to improve your credit score, you can begin the process of credit repair. Debt sent to a collections agency doesn’t have to ruin your financial life—you can work to fix your credit report with credit repair. ExtraCredit is offering an exclusive discount to one of the leaders in credit repair, so sign up today.

Source: credit.com

Apache is functioning normally

Credit scores are a measure of your overall financial health and how responsibly you manage debt. If you’re curious about which entries on a credit report will decrease your credit score, the biggest culprits are late payments, missed payments, collection accounts, foreclosure proceedings, and bankruptcy filings.

Are those the only things that can negatively impact your credit scores? Not necessarily. Can you do anything about entries on your credit that decrease your score? Perhaps, if you’re able to dispute them. Filing a credit report dispute may help to add points back to your score.

Credit Report Basics

A credit report dispute allows you to challenge information that you believe is inaccurate. If you’d like to initiate a dispute, you’ll first need to know how to read a credit report.

Credit reports include four categories of information:

•   Personal information. This section of your credit report includes your name and any other names that you’re known by, your date of birth, Social Security number, addresses you’ve lived at, and employment history. Your personal information does not affect your credit scores in any way.

•   Credit accounts. Information about your credit accounts is used to calculate your credit scores. Here, the most relevant details include what types of credit you’re using, when your accounts were opened, your available credit limit and current balance, the monthly minimum payment, and your payment history.

•   Credit inquiries. A credit inquiry can show up on your credit reports when you apply for a loan or line of credit if it’s a “hard” credit pull. The difference between a soft credit inquiry vs. hard credit inquiry is that hard inquiries can affect your credit scores, while soft inquiries do not.

•   Public records. Information that’s included in the public record about your credit accounts goes here. The types of things that can be listed include collection accounts, judgments from creditor lawsuits, and bankruptcy filings.

There are three major credit bureaus that compile credit reports: Equifax®, Experian®, and TransUnion®. Thus, you can have multiple credit reports. A tri-merge credit report compiles information from all three bureaus into a single report. As far as which credit bureau is used most, there’s no single answer as it depends on the lender.
💡 Quick Tip: Check your credit report at least once a year to ensure there are no errors that can damage your credit score.

Check your score with SoFi Insights

Track your credit score for free. Sign up and get $10.*

When Can I Dispute Credit Report Information?

Under the Fair Credit Reporting Act (FCRA), you have the right to dispute inaccuracies on your credit reports with the credit bureau that’s reporting the information. You can file a dispute at any time.

Examples of errors you can dispute include:

•   Credit accounts listed that don’t belong to you

•   Inaccurate payment history or balances

•   Current accounts that are erroneously reported as past due

•   Duplicated entries for the same account

Why would someone want to dispute a credit report? In short, doing so can help your credit score if you’re able to get inaccurate information corrected or removed.

Information from your credit reports is used to calculate your credit scores. FICO® scores are the most widely used credit scoring model. Simply put, it’s a three-digit credit score ranging from 300 to 850 that reflects your credit health. The higher your score, the less risky you appear to lenders.

A middling or “fair” credit score is anything between 580 and 669. Fair credit can get you approved for loans, but you’ll need a good to excellent score to qualify for the lowest interest rates.

Does Filing a Dispute Hurt Your Credit?

Disputing credit reporting errors won’t hurt your credit. Depending on the outcome of the dispute, it could even help your score. During the dispute process, the credit bureau is legally required to investigate your claim to determine if your reason for the dispute is valid.

Keep in mind that disputing credit report errors isn’t necessarily an instant fix for bad credit. If you have multiple negative items on your report, then getting just one of them corrected or removed may do little to improve your score. Disputing information could hurt your credit if a correction negatively affects your credit file.

It’s also important to know that disputing credit report information doesn’t guarantee its removal or correction. If there’s negative information on your credit reports but it’s accurate, you can’t dispute it. The upside is that most negative information falls off your reports after seven years, though it can take up to 10 years for a Chapter 7 bankruptcy filing to disappear.
💡 Quick Tip: An easy way to build your credit score? Pay your bills on time. Setting up autopay can help you keep your account in good standing.

Possible Outcomes of Disputes

When you file a credit report dispute, the credit bureau has 30 days to investigate it. That involves reaching out to the business that reported the information initially to confirm whether it’s correct. The business must review your account history and report back to the credit bureau that’s handling the dispute.

There are several ways your dispute might be resolved.

•   Scenario #1: Your dispute is deemed to be frivolous by the credit bureau. The investigation will stop and you’ll be notified as to why. You may be given an opportunity to provide additional information to support your claim.

•   Scenario #2: The business that reported the information acknowledges an error. It must send written notice to all three credit bureaus to have the information corrected. The credit bureau must send a correction notice to anyone who received your credit report in the previous six months. Notices must also be sent to anyone who ran a credit check for employment for you in the past two years.

•   Scenario #3: The business verifies that the information is accurate. No change is made to your credit report.

When your dispute is upheld, the credit bureau must correct or remove the inaccurate information. If a dispute is not resolved in your favor, you can ask the credit bureau to include a statement of the claim in your credit file. You can also ask the credit bureau to send a copy of the dispute statement to anyone who’s received your credit report but you might pay a fee for that.

Note that you can also add or update personal information to your credit file. For instance, you might choose to add a recent address or a job to your employment history. Changes to personal information won’t affect your credit scores.

Disputes Related to Accounts, Inquiries, and Bankruptcy

Disputes involving credit accounts, inquiries for credit, and bankruptcy cases can have the same outcomes as described above. Depending on what the investigation finds, your account may be:

•   Updated to reflect accurate information

•   Deleted entirely from your credit report

•   Unchanged, if the information is deemed correct

The outcome can determine what changes you might expect, if any, to your credit score. Having negative information corrected or removed can help your score, though the extent of the improvement depends on whether you have other negative items on your report.

If you’re interested in how to find out your credit score free, there are a few ways to do it. First, you might be able to get your credit score for free from one of your credit card companies. Many issuers offer free FICO scores as a cardmember benefit.

Signing up for free credit score monitoring is another option. In terms of what qualifies as credit monitoring, it generally refers to any service that automatically tracks changes to your credit reports that affect your credit scores. For example, that might include opening or closing credit accounts, late or missed payments, or paid-off accounts.

Recommended: Do Banks Run a Credit Check for Checking Accounts?

How Long Will Information Stay on My Credit Report?

Generally, negative information can stay on your credit report for seven years. That includes things like:

•   Late payments

•   Missed payments

•   Charge-offs

•   Collection accounts

•   Creditor judgments

•   Foreclosure proceedings

As mentioned, a Chapter 7 bankruptcy filing can stay on your credit report for up to 10 years. A Chapter 13 bankruptcy can linger for up to seven years. As long as information on your report is accurate, it can’t be removed prematurely, even if that information is negative. Once the time is up for reporting of a negative item, it will fall off naturally; you shouldn’t have to request its removal.

Credit inquiries can stick around for 24 months, while positive information about your credit accounts can remain indefinitely. If you close any credit accounts in good standing, they can stay on your credit reports for up to 10 years.

What Are Some Ways to Avoid a Credit Score Drop?

Practicing good financial habits is the easiest way to avoid a credit score drop. You can do that by:

•   Paying credit accounts on time

•   Keeping credit card balances low relative to your credit limits

•   Limiting how often you apply for new credit

•   Using a mix of credit types, including loans and credit cards

•   Keeping older accounts open

Reviewing your credit reports regularly for errors or inaccuracies is another way to prevent credit score hits. You can dispute those errors to have them removed or corrected, which can help your score recover if it’s dropped temporarily.

How to Dispute Accurate Information in Your Credit Report

Accurate information on a credit report usually isn’t up for dispute, unless the same account is being reported multiple times. In that case, you dispute the “extra” entries on your report to have them removed.

If there’s negative but accurate information on your credit report, then you might try writing a goodwill letter to the creditor asking them to remove it. However, they have no obligation to honor your request. If the account is past due and they’ve been trying to collect what’s owed, they may also ask you to pay before they delete the item.

Credit repair companies charge you to remove negative items from your report. However, the tactics they use are ones that are already available to you, including disputing negative information, goodwill letters, and paying for deletion. It’s important to weigh whether paying a fee to repair credit is worth it, especially if the company’s promises seem too good to be true.

The Takeaway

Keeping up with credit scores is important if you plan to borrow money. The better your score, the easier it is to get approved for loans and qualify for the lowest rates.

Take control of your finances with the SoFi Insights money tracker app. Connect all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

SoFi Insights helps you get your money right.

FAQ

What factor causes your credit score to decrease the most?

Negative payment history has the biggest impact on credit scoring under the FICO model. Late payments, missed payments, charge-offs, collections, foreclosure proceedings, and bankruptcies can all hurt your credit score more so than things like new credit inquiries or closing credit accounts.

What are negative entries on a credit report?

A negative entry on a credit report is anything that’s harmful to your credit score. That can include late payments, missed payments, collection accounts, and judgments. A high credit utilization ratio can also negatively affect your credit scores.

What are 3 ways to decrease your credit score?

Three things that can hurt your credit score are paying late, not paying at all, and running up high balances on credit cards relative to your credit limits. Letting accounts slip into collections, being sued by creditors for debt, and filing bankruptcy can also cost you major credit score points.

Photo credit: iStock/Daniel de la Hoz

SoFi’s Insights tool offers users the ability to connect both in-house accounts and external accounts using Plaid, Inc’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score provided to you is a Vantage Score® based on TransUnion™ (the “Processing Agent”) data.

*Terms and conditions apply. (Must click on the link to be eligible.) This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the Rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed into SoFi accounts such as cash in SoFi Checking and Savings or loan balances, Stock Bits, fractional shares and cryptocurrency subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SORL0523009

Source: sofi.com

Apache is functioning normally

HELOC, Servicing, PPE, Relationship, DPA Products; Events and Webinars This Week

<meta name="smartbanner:author" content="We now have a native iPhone
and Android app.
Download the NEW APP”>


This website requires Javascrip to run properly.

HELOC, Servicing, PPE, Relationship, DPA Products; Events and Webinars This Week

By:
Rob Chrisman

Tue, Aug 8 2023, 10:41 AM

Lending continues to be intertwined with legal and compliance issues. Here’s a story from overnight that is catching a lot of attention: “Equifax stock falls after saying it received a CID from the CFPB.” The Federal Trade Commission (FTC) agreed to drop its challenge to Intercontinental Exchange Inc.’s (ICE) proposed deal with Black Knight Inc. in a joint stipulation that allows them to work toward a settlement. Lender ToolKit is suing Celebrity Home Loans and MLD. and Meanwhile, lenders and vendors are doing what they can to increase business and tap into new markets, and with that in mind National MI is sponsoring a weekly podcast beginning today focused on offering mortgages to people in their 20s and 30s (Mortgages with Millennials). (Today’s podcast can be found here and is sponsored by SimpleNexus, an nCino Company, developer of mortgage technology uniting the people, systems, and stages of the mortgage process into one seamless, end-to-end solution. Listen to an interview with Bank of Oklahoma’s Chris Maloney on volatility and spreads, the money supply, and bond over/underperformance.)

Lender and Broker Software, Products, and Services

Everyday expenses are rising for millions, including many prospective homebuyers saving for a down payment. Mosi Gatling, a top producer at loanDepot, leaves no homeowner behind in the Las Vegas market as she assists mainly first-time, military and low-income buyers moving forward with mortgages supported with down payment assistance. Down Payment Resource shares her story and how her team of six does nine figure volume by working closely with Diane Arvizo of the Nevada Rural Housing Authority in Doing Well While Doing Good. We think this is a great example of one thing happening in Vegas that shouldn’t stay there. Read the full story here.

Work Hard Easier. Here’s how to work less and win more in this tough market. Your first instinct may be to work even harder than you have been. But instead, you should focus your energy on the essential tasks: making one-to-one phone calls, having face-to-face meetings, and personalizing your marketing with video content. Automate tasks like prospect follow-up, loan in-process updates, Realtor, and past customer outreach, thank you cards and closing gifts, etc. Set up automated social media posts also. A truly easy SmartCRM system will do all this and more. Take a look at Usherpa’s Relationship Engagement Platform, ranked number one in customer service and client loyalty in the mortgage business. Download this free Field Guide to Success and 3 Habits of Top Producers eguide to see how easy delegation can be.

In continuing to provide ways to grow happiness for our customers, TMS will become the Master Servicer for the Golden State Finance Authority’s (GSFA) Golden Opportunities “GO” a down payment assistance program. As of July 17, 2023, it is open for reservations. The Golden Opportunities DPA make mortgages more accessible for homeowners in CA by providing first mortgage financing, down payment, and closing costs assistance. The guideline eligibility under TMS will include FICO scores down to 620, DTIs up to 55% with AUS approval, and manual underwrites on VA and USDA loans. If you’re not an approved TMS lender, contact TMS. To become a participating lender of the GSFA Golden Opportunities DPA click here.

ICE Mortgage Technology’s VP of Product Strategy, Nancy Alley, was recently named one of HousingWire’s 2023 Women of Influence for her strategic execution and advancement of the Encompass® lending platform. Nancy’s profile spotlights how her unwavering customer focus has led her team to deliver the technology today’s mortgage lenders need to operate more efficiently and deliver a better borrower experience. Curious how Encompass customers are maximizing their technology investment and creating a future-proof business strategy? Click here to hear industry leaders share their key to success for staying at the forefront of innovation.

Big news! The Optimal Blue® PPE is now integrated with Encompass Partner Connect. Current clients can convert to the platform via the Encompass Partner Connect API. This new integration offers many features and benefits, including: a refreshed, modern Optimal Blue user interface; a single sign-on experience; users no longer needing to exit the loan on auto-accept transactions; the ability to view rates across all lock periods on one screen; an enhanced push queue view for secondary users; faster access to updates and new releases; and more! Complete your conversion to start taking advantage of these integration benefits today. Not using the Optimal Blue PPE yet? Learn how it can help you win more business by providing borrowers the right product at the best price for any mortgage financing scenario.

As lenders adapt to volatile mortgage rates, many are stopping to reconsider their servicing strategy. Do inconsistent mortgage origination volumes have you questioning what makes more sense: retaining servicing or selling servicing released? Seth Sprague, CMB, Richey May’s Director of Mortgage Banking Consulting Services (aka, resident servicing expert), outlines the 13 key trends and strategies in servicing including recommendations on how to make the right decisions for your business. Want more help defining the optimal strategy? You know where to find us.

TPO Programs for Brokers and Correspondents

Rising interest rates and inflation causing a dip in originations? Maximize your portfolio reach with HELOC options designed to help your customers tap into their home value to remodel kitchens, fund education, and more. LoanCare has a comprehensive understanding of the special nuances involved in servicing HELOCs such as knowing what’s required to appear on monthly statements, ensuring that interest calculations are accurate, and setting up the HELOCs correctly when the loans are on-boarded. We can accommodate segmented, fully amortized, and interest only HELOCs. Contact LoanCare today!

Events and Webinars

Back in 2016, Netflix reported that the machine learning algorithms behind its personal recommendation engine were saving the company $1 billion in content spending a year. AI and intelligent automation aren’t just technologies of the future, they’re tools you can and should be using to reach borrowers with the right message at the right time. Join Partners Mortgage’s Katie Pastor Trinidad and Joe Wilson of Social Coach alongside Dave Savage of TrustEngine on Thursday, August 10 at 2 pm ET for a free webinar on how AI can help you increase borrower engagement and loan conversions. Register today.

Lenders, want to save you and your borrower time and money? Appraisal waiver programs like Fannie Mae’s Value Acceptance + Property Data allow lenders to skip a traditional appraisal, saving the time and cost associated with it. Watch a free webinar recording featuring Lyle Radke, Senior Director of Collateral Policy at Fannie Mae. Learn the benefits of this program, use cases, and find answers to common lender questions. Plus, discover how to quickly get started with the program.

Modern financial institutions rely on their technology ecosystem to support the needs of increasingly diverse customer bases. But without a connected solution, financial institutions can’t provide seamless, personalized experiences that build lifelong relationships. Total Expert is purpose-built to help you deliver the perfect mix of digital and human-led engagements as modern consumers flow between digital channels, SMS, and in-person interactions. That’s why leading lenders like Guaranteed Rate, Atlantic Bay Mortgage, and PRMG trust Total Expert as the hub that connects their technology ecosystems and helps them deliver the perfect financial journey. Join us for a fireside chat with these industry trailblazers on Wednesday, Aug. 16 when they’ll present: Strategies for defining your tech ecosystem and goals, priorities for evaluating and procuring the tech that meets your goals, methods for generating and measuring ROI from your tech investments, and a live Total Expert platform demo. Register for the webinar.

Are you wondering what today’s Fed decision means for rates and the mortgage market? Register for a new webinar on August 9th at 11AM PT hosted by Agile Trading Technologies.

In this webinar, Phil Kukafka of Towne Mortgage, Ryan Ferderer of Multi-Bank Securities, and Andrew Rhodes of MCT will give an overview of MBS pooling, discuss the current market, share strategies for efficiently pooling and selling mortgage-backed securities, as well as the process for MBS pooling using Agile’s technology.

Join Optimal Blue for the next session in its Hedging 301 series on Wednesday, Aug. 9th, Noon ET, take a deeper dive into more advanced capital market strategies and how they naturally interplay with technological advances. This session will address the many ways Optimal Blue helps clients streamline daily processes to achieve success and optimal best execution – including mandatory price discovery and dissemination, saving basis points while delivering representative mix, solving for numerous execution iterations, and integrating to the MSR broker community for live, loan-level servicing valuations.

Join AGENT U on August 8th at 12:30-1:30pm EST for the next installment of their free monthly webinar. This month, the hosts are speaking with credit repair expert Janna Fox, CEO of ReScore, to learn about credit misconceptions. Learn how collection companies affect consumers’ credit scores, how to spot errors on credit reports, and gain insight into the hidden damage caused by pulling credit. Plus, learn expert methods to rapidly improve credit scores. Janna will be answering your questions during the live Q&A session. Visit www.agentulive.com for more details.

Looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup with Robbie and Rob Chrisman” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT starting August 9th, Robbie and Rob will dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. Robbie and Rob will bring a unique mix of age perspective, expertise, and charisma to the screen, ensuring that the information is not only educational but also entertaining. Register for the first show on August 9th with Lenders One’s Justin Demola, CMB, as a featured guest discussing chatter from his hundreds of members.

“AFR Wholesale® (AFR) is teaming up with financing experts from Fannie Mae for the next session of our Why Wait Live Webinar Series! Please join us Wednesday, August 9th at 2 PM EST, where we will be highlighting what you need to know about manufactured home financing. Over this series, AFR has been discussing affordable financing solutions that together will help us provide homeownership opportunities to more families. Register Today! This is a live webinar, and a recording will not be provided.”

Friday the 11th at 3PM ET is the next edition of The Mortgage Collaborative’s Rundown with Melissa Langdale and me. We’ll will be covering current events in the mortgage market for 30 minutes starting at noon PT in “The Rundown”. Special guest co-host Skylar Olsen, Zillow’s Chief Economist.

James Brody, who was named Senior Litigation Partner in the wake of his merger with Garris Horn, LLP, will be co-hosting a webinar with The Mortgage Collaborative (“TMC”) at 10:00 AM PST, on August 17, titled: “Repurchase Defense Roundup: Proven Strategies to Help Lenders Fight Repurchase Demands and Pursue Culpable Third Parties.” Both Mr. Brody and his colleague, Ingrid Petersen, look forward to educating attendees on a number of invaluable strategies that will help them more effectively fight repurchase demands and improve their chances of being made whole whenever a lender is not able to successfully dispute a claim because of bad facts and/or needs to preserve a business relationship.

Capital Markets

Bond yields push higher to open the week following hawkish comments from Federal Reserve officials. New York Fed President Williams sees Federal Reserve policy remaining restrictive “for some time” and Fed Governor Bowman said that additional rate hikes will likely be needed. Rates have also been pushed higher following last week’s double-whammy of Fitch’s ratings downgrade and the heavy supply announcement from the U.S. Treasury. And don’t forget non-farm payrolls from Friday, which showed that despite missing the headline number and the previous month’s observations being revised lower, wage growth increased more than anticipated.

July marked the second consecutive month of job growth below 200k, signaling the labor market continues to cool. However, wages held firm, adding to arguments the Federal Reserve has gotten the upper hand on inflation without triggering a recession or major job losses. The unemployment rate declined to 3.50 percent, which is slightly above the 53-year low set back in January. The ISM manufacturing index improved but remained in contractionary territory for the ninth straight month in July. Price paid eased for the fifth time over the last seven months. Meanwhile, service data showed moderate expansion once again as consumers shift spending from goods to services. The most recent Senior Loan Officer Opinion Survey shows credit conditions for commercial and industrial loans remain tight and 40 percent expect further tightening. This could create a drag on growth as projects become delayed or abandoned due to lack of financing.

Though this week will be dominated by the Consumer Price Index report on Thursday and the Producer Price Index on Friday, as well as consumer sentiment, small business optimism, and mortgage earnings from United Wholesale, Loan Depot, and Guild, today’s economic calendar kicked off with NFIB small business optimism for July (hitting an 8-month high). We’ve also received the June trade deficit ($65.5 billion). Later today brings the beginning of Treasury’s quarterly refunding when it auctions $42 billion 3-year notes. Two Fed speakers are scheduled, Philadelphia President Harker and Richmond President Barkin. After the yield curve extended its recent steepening move yesterday, we begin the day with Agency MBS prices better by .125-.250 and the 10-year yielding 3.98 after closing yesterday at 4.08 percent, bonds rallying in part due to some slow-growth news out of China.

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

The Intercontinental Exchange purchase of Black Knight took one giant step closer to completion this morning as both companies joined the Federal Trade Commission in a motion to dissolve the temporary restraining order.

Any agreement is not likely to satisfy deal opponents like the Community Home Lenders of America, who are worried about the breadth of the market ICE Mortgage Technology could possess unless certain conditions are applied.

The filing in the Federal District Court for the Northern District of California was made without prejudice, meaning that the restraining order request can be brought back before the court if settlement negotiations are unsuccessful. Without this motion, the court had been set to hold a hearing between Aug. 14 and Aug. 16.

Several observers have noted the FTC might be out to save face following some big losses in antitrust litigation, including Microsoft-Activision Blizzard.

On ICE’s Aug. 3 second quarter earnings call, Chairman and CEO Jeffrey Sprecher said his company was in discussions with the federal agency.

Besides removing the restraining order, ICE and Black Knight agreed to not close the transaction for 10 calendar days following signing an “Agreement Containing Consent Orders” for submission to the FTC. That related agreement is indicative of how close the parties might be to a settlement, a note from Ryan Tomasello of Keefe, Bruyette & Woods said.

If an agreement is not reached by Aug. 25, the 10-day hold pact can be dissolved with three days’ notice by any of the parties. 

On Aug. 4, before this latest wrangle, the Community Home Lenders of America, which has been outspoken in its opposition, sent a letter to both the FTC and the Consumer Financial Protection Bureau, demanding “If… this purchase is approved, there must be a process to monitor and curtail ICE anti-competitive actions, either as a part of an agreement with the FTC or through CFPB monitoring and use of statutory authorities to prevent anti-consumer actions.”

The divestitures of the Empower loan origination system and Optimal Blue product and pricing engine (both are being sold to Constellation Software in separate transactions) will not prevent the combination from using its pricing power against independent mortgage bankers, the letter said.

ICE already engages in such practices as “one-way pricing mechanisms for user seats, vendor access click fees that are simply junk fees tying and bundling, and unfair treatment of lenders,” the letter said.

As for alternatives to Empower, most independent mortgage bankers can’t create their own LOS so the realistic alternative of switching is difficult because it is not compatible with other systems and ICE is unwilling to facilitate system switches, CHLA said.

“ICE’s determination to move forward with the purchase, even being willing to divest Empower and Optimal Blue, implies that they see significant vertical integration pricing advantages of becoming the dominant player in software services for both mortgage origination and servicing,” the letter said.

CHLA wrote the letter as talk about a possible settlement began to gain steam. The group is looking for the FTC to add stipulations to any settlement agreement to address those concerns, said Scott Olson, its executive director. It also wants the CFPB to monitor and take action for any anti-consumer impacts.

“These issues and concerns are not going to go away,” Olson said in a follow up interview.

ICE had not responded to a request for comment by press time.

But the markets are now betting that the deal will close. The revised terms following the Empower agreement brought the purchase price down to around $75 per Black Knight share to be paid in ICE stock and cash.

In recent weeks Black Knight has been hanging around $70 per share since the Optimal Blue sale was announced. On Monday morning it opened at $74.75 per share after closing on Friday at $71.50.

“If the deal does not go through for some reason (which seems unlikely at this point), Black Knight would still receive a $725 million break-up fee before tax and also has remaining equity ownership in Dun & Bradstreet to factor into the valuation (over $200 million after tax),” William Blair analyst Stephen Sheldon in a note this morning. “In aggregate, we estimate the after-tax value from these two items would be just over $5 per Black Knight share.”

KBW gives the deal a $75.64 per share current valuation, while William Blair puts it at “just under” $76 per share.

Source: nationalmortgagenews.com

Apache is functioning normally

The Federal Trade Commission and the Florida Attorney General are sending refunds totaling more than $540,000 to consumers nationwide who were defrauded by Life Management Services of Orange County, LLC, and related companies who tricked them into paying for worthless credit card interest rate reduction and debt elimination programs. The average check amount is $117.

The FTC is sending checks to more than 4,600 consumers. Recipients should cash their checks within 90 days, as indicated on the check. Consumers who have questions about their refunds should contact the refund administrator, JND Legal Administration, at 1-877-381-0342, or visit the FTC website to view frequently asked questions about the refund process. The Commission never requires people to pay money or provide account information to get a refund.

According to the FTC’s June 2016 complaint, brought jointly with the Florida Attorney General, the Life Management defendants bombarded consumers with illegal robocalls trying to sell them bogus credit card interest rate reduction services. The defendants made phony guarantees about lowering consumers’ credit card interest rates and saving them thousands of dollars in interest payments. Customers made up-front payments but rarely, if ever, got the promised services.  The defendants also pitched a bogus credit card debt elimination service, falsely claiming that they could access funds from the government or from a lawsuit against the credit card industry to pay off consumers’ credit card debt.

A court order announced in June 2019 as part of a law enforcement effort to halt illegal robocalls  partially settled the Commission’s complaint by permanently barring 17 Life Management defendants from engaging in telemarketing and debt relief services and requiring them to pay money to provide refunds to defrauded consumers. The district court awarded the FTC and Florida summary judgment against the scheme’s ringleader, Kevin Guice, in December 2018, and the United States Court of Appeals for the Eleventh Circuit affirmed the district court’s judgment in March 2022.

.ue3528255784c92bd13cb011433b05698padding:0;margin:0;padding-top:1em!important;padding-bottom:1em!important;width:100%;display:block;font-weight:700;background-color:#fff;border:0!important;border-left:4px solid #fff!important;box-shadow:0 1px 2px rgba(0,0,0,.17);-moz-box-shadow:0 1px 2px rgba(0,0,0,.17);-o-box-shadow:0 1px 2px rgba(0,0,0,.17);-webkit-box-shadow:0 1px 2px rgba(0,0,0,.17);text-decoration:none.ue3528255784c92bd13cb011433b05698:active,.ue3528255784c92bd13cb011433b05698:hoveropacity:1;transition:opacity 250ms;webkit-transition:opacity 250ms;text-decoration:none.ue3528255784c92bd13cb011433b05698transition:background-color 250ms;webkit-transition:background-color 250ms;opacity:1;transition:opacity 250ms;webkit-transition:opacity 250ms.ue3528255784c92bd13cb011433b05698 .ctaTextfont-weight:700;color:#141414;text-decoration:none;font-size:16px.ue3528255784c92bd13cb011433b05698 .postTitlecolor:#c0392b;text-decoration:underline!important;font-size:16px.ue3528255784c92bd13cb011433b05698:hover .postTitletext-decoration:underline!importantSee also  Court Orders Kevin Guice, Ringleader of Debt-Relief Scam, to Pay $23 Million and Mini Yacht

The Commission’s interactive dashboards for refund data provide a state-by-state breakdown of refunds in FTC cases. In 2022, Commission actions led to more than $392 million in refunds to consumers across the country.

The refunds being sent today are the result of a settlement resolved before the U.S. Supreme Court ruled in 2021 that the Commission lacks authority under Section 13(b) to seek monetary relief in federal court. Because of that ruling, the Commission no longer has its strongest tool to return money to consumers, and it will become harder to provide refunds to consumers harmed by deceptive and unfair conduct. The Commission has urged Congress to restore the Commission’s ability to get money back for consumers.

Source

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
Latest posts by Steve Rhode (see all)

Source: getoutofdebt.org