FHFA Announces Update for Housing Loan Servicers to Maintain Fair Lending Data

The Federal Housing Finance Agency (FHFA) has announced that Fannie Mae and Freddie Mac (the Enterprises) will require loan servicers to obtain and maintain fair lending data on their loans, and for this data to transfer with servicing throughout the mortgage term.

FHFA Director Sandra L. Thompson commented: “The need for collection and maintenance of quality fair lending data is a lesson learned from the foreclosure crisis and COVID-19 response,” said  “Having fair lending data travel with servicing will help servicers do the important work of providing assistance to borrowers in need, helping to further a sustainable and equitable housing finance system.”​

The fair lending data to be maintained includes borrowers’ age, race, ethnicity, gender, and preferred language. Servicers will be required to implement this change starting on March 1, 2023. This update follows a May 2022 announcement, which requires lenders to collect borrowers’ language preference data.

Specifically, that announcement require lenders to use the Supplemental Consumer Information Form (SCIF) as part of the application process for loans that will be sold to the Enterprises. The SCIF collects info regarding the borrower's language preference, if any, and on any homebuyer education or housing counseling the borrower received, so lenders can better understand borrower needs during the home buying process. Lenders are required to adopt these changes and reporting requirements for loans with application dates on or after March 1, 2023. Response by borrowers to the preferred language question in the SCIF will continue to be voluntary.

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $7.5 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter, @FHFA, YouTube, Facebook, and LinkedIn.

For more information, contact: ​Adam Russell - Adam.Russell@FHFA.gov

Read the August 10, 2022 FHFA release.

Federal Advisory Committee on Affordable, Equitable and Sustainable Housing Formed

The Federal Housing Finance Agency (FHFA) has announced that it will establish a Federal Advisory Committee on Affordable, Equitable and Sustainable Housing to provide guidance to the government about regulatory or policy changes needed to improve those housing issues. The committee's main activities will be the role of FHFA’s regulated entities, including Fannie Mae, Freddie Mac, and the Federal Home Loan Banks (the Government-Sponsored Enterprises, or GSEs) in supporting liquidity and funding in the single-family and multifamily housing markets.

FHFA Director Sandra L. Thompson commented: “The formation of an advisory committee will better position FHFA to fulfill its strategic goal of supporting access to affordable, equitable, and sustainable housing. Today’s announcement exemplifies our commitment to transparency, ongoing dialogue with stakeholders and the public, and thoughtful policymaking that connects equitable access with safety and soundness.”

Following publication in the Federal Register, the FHFA will be seeking applications and nominations for members, prioritizing relevant expertise related to the GSEs. To ensure diversity in the views represented by members, experience in at least one of the following areas will be required: fair housing, fair lending, or civil rights; single-family lending, servicing, development, mortgages, or capital markets; multifamily lending, servicing, development, mortgages, capital markets, or investments (i.e. Low-Income Housing Tax Credits); consumer, tenant, or community advocacy; market technology; state, local, or tribal government housing policies and programs; and academic or non-academic affiliated housing research.

Contact: Ada​m Russell​ - Adam.R​ussell@FHFA.gov

Read the full Federal Register notice for further details.

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $7.9 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is at www.FHFA.gov, on Twitter, @FHFA, YouTube, Facebook, and LinkedIn.

Read the August 23, 2022 FHFA news release.

 Mariner Finance Accused of Predatory Lending Practices by Five States & D.C.

Mariner Finance, a loan company controlled by a large private-equity firm, is engaged in a nationwide scheme that takes advantage of low- and moderate-income consumers, according to a lawsuit filed by the attorney generals of five states: Pennsylvania, New Jersey, Utah, Washington, Oregon, and the District of Columbia. The lawsuit alleges that the company: (1) adds expensive insurance policies and other products to loans without the borrowers' knowledge, and (2) deceptively gets them to refinance their debts to produce even more fees for the company. Mariner Finance is owned by an investment fund managed by Warburg Pincus, a Wall Street private-equity firm. Its president is Timothy F. Geithner, who, as President Obama's treasury secretary, condemned predatory lenders. Executives at Warburg Pincus and the lender denied any wrongdoing. Mariner has over 480 branches in 27 states and manages $2 billion in loans every year, according to the lawsuit.

State officials began investigating Mariner Finance after the Washington Post published a 2018 story on the company and private-equity firms' roles in consumer lending. The article detailed the company’s practice of mass-mailing live checks to consumers who, if they cashed them, were obligated to repay the money at interest rates of over 30%. The lawsuit said that Mariner’s targets “are often in financial crisis, decidedly unfamiliar with receiving unsolicited checks in the mail, and in desperate need of economic relief.” “Mariner uses live checks as an entrée to the most vulnerable portion of the targeted population.”

According to a 2018 Washington Post article, the company "enables some of the nation’s wealthiest investors and investment funds to make money offering high-interest loans to cash-strapped Americans."

Read the August 17, 2022, Washington Post article.

Read a July 18, 2018 Washington Post article on how equity firms exploit desperate households.

 Johns Hopkins Professors Sue Real Estate Appraisal Company over Low Valuation of Homeland Property

Two Black Johns Hopkins University professors took down family photos and replaced them with pictures of white faces in an effort to increase the value of their home after an initial appraisal fell short of expectation, an outcome they believed was due to race and not the property’s condition. A different appraisal company valued the house at nearly 60% more when the home appeared to be owned by white people.

Hopkins professors Nathan Connolly and Shani Mott are suing for damages citing racial discrimination. They have filed a suit against loanDepot (Foothill Ranch, California), and 20/20 Valuations and Shane Lanham, the owner of 20/20 Valuations who conducted the first appraisal. The complaint alleges that all of the first appraiser's selected comparable homes were of lower quality than their home, and the appraisal wrongly said that their home had not been updated for 15 years. The complaint stated the appraiser “cherry-picked low value homes as comps,” and by doing so, he “ignored legitimately comparable homes with much higher sales prices.”

It is ironic that Connolly, a history professor at Johns Hopkins University, is an expert on redlining and the legacy of white supremacy in cities, with a lot of his research on the role of race in the housing market.

Over 97% of home appraisers are white, according to the Bureau of Labor Statistics. Since summer, 2020, after George Floyd's murder, dozens of Black homeowners have alleged discrimination in their home valuations. Some have filed lawsuits. The Biden administration in March, 2022, proposed reforms to overhaul the appraisal industry and try to dismantle systemic bias.

Sources: Read the August 19, 2022 Baltimore Sun article. Read the August 18, 2022, New York Times article. Read the August 19, 2022 CNN article.

 

Antisemitic Flyers Distributed in Virginia Beach on July 24th

The Anti-Defamation League says the flyers came from a loose network of people connected by their antisemitic beliefs.

Some Virginia Beach residents on Sunday morning found flyers with antisemitic rhetoric in their front yards. They had names and pictures of Disney executives and political figures with antisemitic messages and images on it.

Meredith Weisel with the Anti-Defamation League said the flyers came from a group called the Goyim Defense League, "a loose network of individuals connected by their antisemitism" that has done "campaigns like this on and off over the last few years." Weisel said the group did 74 anti-Semitic propaganda incidents in 2021 in 17 states. In the past weekend, flyers like the ones in Virginia Beach were distributed in Richmond and other states.

Rabbi Roz Mandelberg with Ohef Sholom Temple said some of her congregants received the flyer and were very upset. Virginia Beach Mayor Bobby Dyer said the government was aware of the flyers and the Virginia Beach Police Department is trying to find who dropped the flyers off.

If you receive one of the antisemitic flyers or any other hateful flyers, Weisel said you can report it anonymously to the Anti-Defamation League.

Source: Read the July 26th Channel 13 Now (WVEC-TV Norfolk) news article.

 LARGEST ANNUAL SUMMIT ON ANTISEMITISM AND HATE WILL BE HELD ON NOVEMBER 10TH

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ADL TO HOLD CONCERT AGAINST HATE

Kennedy Center Evening of Music, Community and Celebration This November, the Anti-Defamation League (ADL) will hold an ADL In Concert Against Hate at the John F. Kennedy Center for the Performing Arts in Washington, DC. It will be an in-person night of music, community and celebration packed with spectacular, can’t-miss performances from acclaimed stars and featuring the internationally renowned National Symphony Orchestra. Through storytelling and song, the audience will be introduced to real-life heroes and celebrate their extraordinary acts of courage and compassion in the face of bigotry and hate. LEARN MORE AND BUY TICKETS