Links in “HUD”

HUD's Office of Inspector General alleges misconduct in hiring practices, including the hiring of a former registered lobbyist who used her position to further an agenda favorable to her former employer and to hire employees without proper vetting. There were also efforts to obstruct the OIG's investigation, including threats to charge investigators for their "inappropriate actions." [2/5/15]

Former loan guarantee specialist for HUD had a prior criminal record that spanned more than two decades. He was just sentenced to 26 months for defrauding the government of $843,000. [1/13/15]

New York-based Golden First Mortgage's authority to originate, underwrite and certify mortgages for FHA insurance was abused on more than 1,000 mortgage loans. The company has settled for $36 million. [1/5/15]

The Home Affordable Mortgage Program allowed participating homeowners the ability to combine lower interest rates and modified loan terms to reduce monthly payments. Homeowners who remained current after the modification were eligible to earn up to $5,000 to be applied to the loan's principal over the first five years of the modification. HUD and the Treasury have just announced revisions that will allow these homeowners to earn an additional $5,000 in the sixth year for a total of a $10,000 credit to principal. [12/8/14]

In an effort to maximize the withdrawal of proceeds on a reverse mortgage, some lenders began leaving younger spouses off the title. However, when the named spouse dies, the unnamed spouse can face foreclosure. HUD's move to suspend foreclosure of one such unnamed spouse may signal the agency's willingness to protect consumers in similar situations. [12/8/14]

Nani Coloretti, who served as COO in the CFPB's early years, has been confirmed by the Senate to serve as deputy secretary of HUD. [12/3/14]

The finalized risk retention rule from the FDIC, FRB, OCC, SEC, HUD, and FHFA reduces the risk retention requirements for ABS collaterlized by commercial, commercial real estate, or auto loans and includes a prohibition of hedging and the transfer of risk retention. [11/20/14]

The United States District Court for the District of Columbia removed support of HUD’s Disparate Impact Rule under the Fair Housing Act (FHA). Although the ruling does not affect ECOA (Regulation B), it potentially weakens the use of the rule which allowed liability under FHA based on a practice’s discriminatory effect even if the practice was not motivated by a discriminatory intent. The ruling emphasizes that FHA "unambiguously prohibits only intentional discrimination." [11/5/14]

While a similar case before the Supreme Court could change things, a federal judge has ruled that HUD overreached its authority by going after companies for practices that had a discriminatory effect, even if they weren't discriminatory at face value. The judged called it "yet another example of an administrative agency trying desperately to write into law that which Congress never intended to sanction." [11/4/14]

HUD has released an Initial Decision and Consent Order against American bank for discrimination against a South Dakota couple based on disability. American Bank must pay the couple $25,000, as well as implement pertinent policies and employee training in order to prevent further discrimination. [11/4/14]