Consumer Financial Services Law Blog
Dykema Gossett PLLC
Dykema Gossett PLLC

Consumer Financial Services Law Blog

Consumer Financial Services Law Blog

News and analysis regarding Consumer Financial Services litigation and regulation, and activities of the Consumer Financial Protection Bureau

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Showing 6 posts in Fair Housing Act.

DOJ Strikes Back, Accuses Quicken of Breaking HUD Rules to Approve Ineligible FHA Loans

Just days after Quicken Loans, Inc. filed suit against the Department of Housing and Urban Development (“HUD”), HUD’s Office of Inspector General (“HUD OIG”) and the Department of Justice (“DOJ”) in Detroit claiming it was wrongly targeted for minor FHA violations, the DOJ responded by filing its own suit in the U.S. District Court for the District of Columbia. While Quicken’s April 17, 2015 complaint claims the DOJ attempted to strong-arm Quicken into settling potential False Claims Act violations for millions over minor FHA non-compliance issues, the DOJ’s April 23, 2015 complaint alleges that Quicken routinely broke HUD rules to approve ineligible loans on a grand scale, knowing that those loans would be insured by the FHA and therefore cause no loss to Quicken.   Read More ›

Its Own Medicine: Quicken Loans Alleges Wrongdoing in DOJ and HUD OIG Investigation of FHA Loans

On April 17, 2015, Detroit-based mortgage provider Quicken Loans, Inc. filed suit in the United States District Court of the Eastern District of Michigan against the United States, the Department of Housing and Urban Development (“HUD”), HUD’s Office of Inspector General (“HUD OIG”) and the Department of Justice (“DOJ”). Quicken’s lawsuit represents a unique offensive move, challenging the fundamental fairness of federal investigative techniques which Quicken argues amount to abuse of governmental authority.  Read More ›

New FHA Guidelines Could Lead to Postponement of Reverse Mortgage Foreclosures

Late January, the Federal Housing Administration (FHA) issued new policy guidelines under its Home Equity Conversion Mortgage (HECM) program that allows FHA-approved lenders to postpone foreclosure proceedings against non-borrowing spouses in the event of the death of the last surviving borrower. This latest guidance is similar to policy changes announced by the FHA last year, but those changes only impacted HECM loans that were created on or after August 4, 2014. Read More ›

HUD Exceeded its Authority By Creating a Disparate Impact Rule for Homeowners Insurance

The U.S. District Court for the District of Columbia ruled this month that the Department of Housing and Urban Development (HUD) exceeded its authority under the Administrative Procedure Act by creating a disparate impact rule beyond the scope of the language in the Fair Housing Act (FHA). The case, American Insurance Association v. HUD, Case No. 13- cv-966, U.S. District Court, District of Columbia, addresses a HUD-created rule that prevented the pricing of homeowners insurance that has a disparate impact on minorities. Although the FHA bars disparate treatment and intentional discrimination toward minorities in housing practices, the FHA does not address disparate impact. In the housing context, the doctrine of disparate impact holds that practices in housing may be considered discriminatory and unlawful if they have a disproportionate adverse impact on individuals of a protected trait. Read More ›

FHFA Director Mel Watt Previews Upcoming Changes to GSEs' Lending Standards

Federal Housing Finance Agency (FHFA) Director Mel Watt recently gave a speech at the Mortgage Bankers Association’s Annual Convention.  In his remarks, Director Watt previewed forthcoming revisions to GSEs’ lending standards.  These revisions have been long advocated by the mortgage banking industry which has complained that the threat of repurchases by Fannie Mae and Freddie Mac caused lenders to impose restrictive credit standards, which in turn has caused tight credit conditions.  Director Watt highlighted the following upcoming revisions to the GSE lending standards: Read More ›

Disparate Impact On The Chopping Block? Supreme Court to Hear Mt. Holly Disparate Impact Fair Housing Act Case

On June 17, 2013, the Supreme Court agreed to hear Township of Mount Holly v. Mount Holly Gardens Citizens in Action, a case that could drastically change the legal landscape regarding “disparate impact” liability under the Fair Housing Act (FHA) and, by analogy, the federal Equal Credit Opportunity Act (ECOA). The threshold issue on appeal is whether plaintiffs may use disparate impact to allege a violation under the FHA rather than proving liability by demonstrating an actual intent to discriminate, also known as “disparate treatment.” The “disparate impact” theory allows liability to be imposed even where there was no intent to discriminate, but where practices had a discriminatory effect. In the underlying appeal, the Third Circuit agreed with plaintiffs that disparate impact claims are cognizable under the FHA, but now the Supreme Court will review that ruling in what will likely be one of the more anticipated decisions of the Court’s 2013-2014 term.  Read More ›