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CFPB warns consumers about home equity contracts, comparing their features to reverse mortgages

Housing Wire

The Consumer Financial Protection Bureau (CFPB) this month published an issue spotlight that takes a closer look at home equity contracts, or what the industry refers to as home equity investments (HEIs) that offer a lump sum payment to clients in exchange for a stake in their home equity.

Contracts 370
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CFPB Cracks Down on Deceptive Contract Terms

Appraisal Buzz

The Consumer Financial Protection Bureau (CFPB) has issued “ CFPB Circular 2024-03: Unlawful and Unenforceable Contract Terms and Conditions ,” warning against the use of unlawful or unenforceable terms and conditions in contracts for consumer financial products or services.

Contracts 390
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LeadingRE promotes Reisinger to COO, Edgerton to Chief Legal Officer

Housing Wire

Leading Real Estate Companies of the World (LeadingRE) has promoted Jessica Edgerton to chief legal officer/executive vice president of industry and learning and Kate Reisinger to chief operating officer. Edgerton will now oversee the company’s legal affairs, such as regulatory compliance, trademark protection, and contract management.

Legal 418
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PennyMac pays $158M to Black Knight in servicing platform dispute

Housing Wire

million to Black Knight Servicing Technologies , concluding a five-year legal battle over allegations of trade secret theft involving two of the biggest companies in the housing industry. million in damages related to a breach of contract claim, plus interest and attorneys fees. PennyMac Financial Services has paid $158.4

Legal 448
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Opinion: Two legal issues relevant to FHFA’s review of FHLB system

Housing Wire

This article addresses two legal issues relevant to the review: FHFA’s statutory authority to reduce the number of Federal Home Loan Banks, and The application of the FHLBank statutory “super lien”. This provision may be challenged by the affected FHLBank under legal process. Short-term advances are not so restricted.

Legal 370
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Black Knight awarded $155M in trade secrets theft lawsuit against Pennymac

Housing Wire

An arbitrator conclusion issued last week caps a four-year legal battle over allegations of trade secret theft involving two of the biggest companies in the housing industry, Black Knight Servicing Technologies and PennyMac Financial Services. 28, an arbitrator awarded Black Knight $155.2 In March 2020, the companies entered arbitration.

Contracts 448
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Ginnie Mae fires back at TCB over venue claims in reverse mortgage case

Housing Wire

They say that the bank’s own filing on the matter avoids the key issues that the government sought to raise regarding the original clause that specifies where any related legal actions should take place. The litigation is taking place in the midst of the development of a new HMBS program by Ginnie Mae.