Lender groups are making a last-ditch effort to stop the Department of Housing and Urban Development from issuing a final rule that would make lenders accountable for inaccurate appraisals on Federal Housing Administration loans.In a letter to the Office of Management and Budget, six trade groups contend that the FHA does not have the legal authority to hold lenders responsible for the property value estimates made by independent appraisers. The letter includes a legal opinion commissioned by the Mortgage Bankers Association. "The legal opinion indicates that the FHA has no specific authority to create a rule of 'no-fault' liability for appraisals and that HUD may not challenge the validity of FHA insurance on a loan or impose penalties absent lender knowledge of any loan deficiencies," the joint letter says. "We believe the rule, as proposed, violates both of these standards." The American Bankers Association, the American Financial Services Association, America's Community Bankers, the Consumer Bankers Association, and the MBA signed the Feb. 4 letter.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
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Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
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The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
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Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
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The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
July 11