Category Archives: HUD

Subscribe to HUD RSS Feed

DOJ Continues Fair Housing Act Enforcement Actions

The United States Department of Justice (DOJ) recently filed a civil action in the United States District Court for the Western District of Tennessee against an apartment development and its property management company alleging violations of sections 3604(a) and 3604(b) of the Fair Housing Act (FHA). Specifically, the complaint challenges the management company’s policy of … Continue Reading

Eleventh Circuit Rules Reverse Mortgage Companies Not Prohibited from Foreclosing on Non-Borrowing Spouses

Mortgagees of Home Equity Conversion Mortgages (“HECMs,” more commonly known as reverse mortgages) obtained a significant victory in an important federal appellate court, which ruled last month that non-borrowing spouses are not protected from foreclosure by the statute authorizing the HECM program. In Estate of Jones v. Live Well Financial, Inc., the United States Court … Continue Reading

HUD OIG Report Could be Precursor to Increased Partial Claim Reimbursement Demands

On September 21, 2018, the Department of Housing and Urban Development (“HUD”)’s Office of Inspector General (“OIG”) completed a review of HUD’s partial claims program. In many ways, the title of the OIG audit report, “HUD Did Not Have Adequate Controls To Ensure That Partial Claim Notes for FHA Loans Were Properly Tracked for Future … Continue Reading

Federal Appeals Court Holds that Landlord May Be Liable for Deliberate Indifference to Tenant-on-Tenant Discrimination

The United States Court of Appeals for the Seventh Circuit recently addressed a matter of first impression regarding landlord liability under the Fair Housing Act (FHA): whether a landlord may be liable under the FHA for failing to address tenant-on-tenant discrimination. The court answered with a resounding “yes,” holding that the FHA creates liability where … Continue Reading

HUD and DOJ Challenge Facebook’s Advertising Platforms under the Fair Housing Act

The U.S. Department of Housing and Urban Development (HUD) has filed an administrative complaint against Facebook alleging discriminatory advertising in violation of the Fair Housing Act (FHA). HUD alleges that housing advertisers can use Facebook’s advertising tools and algorithms to exclude applicants based on protected categories such as race, sex, or national origin. Four days … Continue Reading

Bradley Partner Paul Compton Nominated to Serve as HUD General Counsel

Bradley’s Banking and Financial Services Practice Group is pleased to announce that President Donald Trump has nominated Paul Compton to serve as General Counsel of the U.S. Department of Housing and Urban Development (HUD). Paul leads the firm’s Affordable Housing and Community Development practice and serves as counsel for the Alabama Bankers Association, Inc., counsel … Continue Reading

HUD Publishes Final HECM Rule

Last year, the Federal Housing Administration (FHA) released a set of proposed rules affecting Home Equity Conversion Mortgages (HECMs) for notice and comment. After receiving 83 comments and responses, the Department of Housing and Urban Development (HUD) released its final rule on January 19, 2017. The final rule, entitled “Strengthening the Home Equity Conversion Mortgage … Continue Reading

How HUD Secretary Carson Might Affect Mortgage Lenders

President-elect Donald Trump’s recent decision to nominate Dr. Ben Carson as Secretary of the Department of Housing and Urban Development (HUD) carries potential implications for mortgage lenders. In accord with Trump’s stated preference for broad deregulation, there is much for the industry to look forward to. Mortgage lenders can expect to see a reduction in … Continue Reading

D.C. Circuit Court Finds the CFPB Misinterpreted Section 8 of RESPA and Violated Due Process with Retroactive Application

The D.C. Circuit Court issued its long-awaited opinion in PHH Corporation v. Consumer Financial Protection Bureau, No. 15-1177 (D.C. Cir., filed 2015) regarding the constitutionality of the Consumer Financial Protection Bureau’s (CFPB) single-director structure, and the CFPB’s attempted enforcement action against PHH Corp. (PHH) for alleged violations of the Real Estate Settlement Procedures Act (RESPA). … Continue Reading

Preparing for FHA PACE: What Mortgagees Need To Know Before September 17

The U.S. Department of Housing and Urban Development (HUD) and Federal Housing Administration (FHA) issued Mortgagee Letter 2016-11, which specifically permits properties encumbered with a Property Assessed Clean Energy (PACE) obligation to be eligible for FHA-insured mortgage financing, whether for new purchases or refinancing. The guidance goes into effect this week on September 17, 2016. … Continue Reading

HUD Proposes Mandatory Assignment of HECMs

As part of a broader push to update its regulations regarding Home Equity Conversion Mortgages (HECMs, more commonly known as reverse mortgages), the Department of Housing and Urban Development (HUD) published a Supplemental Notice of Proposed Rulemaking on August 11, 2016. HUD is seeking comments on a regulatory change that would require mortgagees to assign HECMs … Continue Reading

HUD Announces Another Delay in Implementation of Property Charge Default Rules

On January 12, 2016, the U.S. Department of Housing and Urban Development (HUD) published its first Mortgagee Letter of the year, in which it again delayed the implementation of the sweeping changes related to Home Equity Conversion Mortgage (HECM) borrowers in default for failing to pay taxes and insurance (together, “property charges”) that it first … Continue Reading

HUD Reverses Course (Again) on Non-Borrowing Spouses

The Department of Housing and Urban Development (HUD) continues to grapple with how mortgagees and servicers of Home Equity Conversion Mortgages (HECMs), commonly known as reverse mortgages, should proceed where a spouse that is not a party to the loan agreement or mortgage (a “Non-Borrowing Spouse”) survives a recently deceased borrower. In an August 24, … Continue Reading

S. 682 Offers Possible Relief for Consumers Stranded by CFPB

Recent history has shown that the regulations designed to implement the Dodd-Frank Act thresholds for High-Cost Mortgages under the Home Ownership and Equity Protections Act (HOEPA) for personal property loans are having a severe negative impact on the sale and finance of Manufactured Home Construction and Safety Standards (HUD Code) manufactured homes. New and used … Continue Reading

U.S. Supreme Court Upholds Use of Disparate Impact Claims in Fair Lending Enforcement

The US Supreme Court finally weighed in today on whether the disparate impact theory may be used to prove housing discrimination and ruled that such claims are viable under the Fair Housing Act (FHA), 42 U.S.C. §§ 3601 et seq. This means plaintiffs only need to show the discriminatory effect of a particular business practice without … Continue Reading
LexBlog