Federal Judge Tosses CDC Eviction Ban

A federal court on Wednesday tossed the Centers for Disease Control and Prevention’s ban on evicting tenants who do not pay their rent during the Covid-19 pandemic, saying the health agency lacks the authority to issue such a moratorium. The U.S. Department of Justice announced it would appeal the decision. In a suit filed by the Alabama and Georgia Associations of Realtors and others, the U.S. District Court for the District of Columbia found that “the plain language of the Public Health Service Act … unambiguously forecloses the nationwide eviction moratorium.” “The Court recognizes that the COVID-19 pandemic is a serious public health crisis that has presented unprecedented challenges for public health officials and the nation as a whole,” Judge…

Feds Remind Landlords Of Eviction Ban

By Jim Perskie The federal government on Monday sent letters to the nation’s largest apartment landlords warning them to honor federal rules preventing renters from being evicted for non-payment of rent during the pandemic. The Consumer Financial Protection Bureau and Federal Trade Commission reminded landlords that the temporary moratorium on evictions is in place through the end of June. “Landlords should ensure that FDCPA-covered debt collectors working on their behalf, which may include attorneys, notify tenants of their rights under federal law. Nearly nine million households are at risk of eviction due to the economic effects of COVID-19, but no one should lose their home without understanding their rights,” CFPB Acting Director Dave Uejio said. “We will hold accountable debt…

Refinance Option Available To Low-Income Borrowers

The Federal Housing Finance Agency announced a new refinance option that will provide low-income borrowers with reduced interest rates and lower monthly payments. The new option is available to borrowers with Freddie Mac and Fannie Mae backed loans. It includes: A requirement that the lender provides a savings of at least $50 in the borrower’s monthly mortgage payment, and at least a 50-basis point reduction in the borrower’s interest rate.A maximum $500 credit from the lender for an appraisal if the borrower is not eligible for an appraisal waiver (the Enterprises will provide the lender a credit of $500 upon the loan’​s sale to an Enterprise).A waiver of the 50 basis point up-front adverse market refinance fee for borrowers with loan balances…

Loan Origination Flexibilities Set To End

The Federal Housing Finance Agency announced Wednesday that Fannie Mae and Freddie Mac will extend some temporary loan origination flexibilities through May 31, while allowing some to expire at the end of April. Originally enacted early in the Covid-19 pandemic, alternative appraisals on purchase and rate-term refinance loans are among the flexibilities that will now be extended through May 31, FHFA said. Flexibilities related to employment verification, condominium project reviews, and expanded power of attorney are being allowed to expire as scheduled on April 30. Additionally, FHFA expects to retire all temporary selling flexibilities on May 31, 2021. …

Mondale, Author Of Fair Housing Act, Dies At 93

Former Vice President Walter Mondale died Monday at the age of 93, and his family noted his role in passing the Fair Housing Act as a senator from Minnesota. “As proud as we were of him leading the presidential ticket for Democrats in 1984, we know that our father’s public policy legacy is so much more than that,” the Mondale family said in a statement. “The Fair Housing Act of 1968 was one of his proudest – and hardest fought – achievements.” Mondale served in the U.S. Senate from 1964 to 1976, when he was elected vice president under President Jimmy Carter. He was the Democratic nominee for president in 1984, losing 49 states to Ronald Reagan. Mondale was the…

Green New Deal Housing Act Introduced

Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez introduced a “Green New Deal for Public Housing Act” on Monday that would invest $172 billion in “green retrofits” that they say would eliminate all carbon emissions and update all needed repairs in public housing. “At this time of unprecedented crisis, we must move forward to boldly address the systemic and existential threats facing us today and that includes combating climate change and making sure that every American has a safe and decent place to live,” Sanders said. In addition to the $172 billion investment, Sanders and Ocasio-Cortez say their bill would: Create up to 240,000 jobs per year across the county.Reduce annual carbon emissions by 5.6 million metric tons.Reduce public housing water bills…

CFPB: Evictions Could ‘Literally Be A Death Sentence’

The Consumer Financial Protection Bureau on Monday moved to beef up the federal eviction moratorium by requiring debt collectors to provide written notice to renters of their rights – and bars debt collectors from misrepresenting tenants’ protection from eviction. The Centers for Disease Control issued the eviction moratorium in an effort to reduce the spread of Covid-19 during the pandemic. Debt collectors who evict tenants could be prosecuted and be exposed to lawsuits by those they evicted, the CFPB said. “With COVID-19 killing hundreds of Americans every day, kicking families out into the street during this pandemic may literally be a death sentence,” CFPB Acting Director Dave Uejio said. “No one should be evicted from their home without understanding their…

CFPB Seeks To Avoid Foreclosure Glut

With 2.5 million Americans still in mortgage forbearance plans, the Consumer Financial Protection Bureau is proposing rule changes designed to prevent people from losing their homes when the foreclosure bans expire. The CFPB issued a proposal Monday that would: Prohibit lenders from starting foreclosure proceedings until after December 31 to give borrowers time to get caught up.Provide options to lenders to offer streamlined loan modification options to borrowers with Covid-19-related issues.Require lenders to communicate with borrowers in a timely way to ensure they are aware of their options. “The nation has endured more than a year of a deadly pandemic and a punishing economic crisis.  We must not lose sight of the dangers so many consumers still face,” CFPB Acting…

Fudge: No Change To FHA Mortgage Insurance Rates

Housing and Urban Development Secretary Marcia L. Fudge announced that mortgage insurance on Federal Housing Administration loans will remain the same for the foreseeable future. “Given the current FHA delinquency crisis and our duty to manage risks and the overall health of the fund, we have no near-term plans to change FHA’s mortgage insurance premium pricing,” HUD Secretary Marcia L. Fudge said. “We will continue to rigorously evaluate our strategy and work transparently with Congress. Our number one priority is helping families keep their homes and remain safe as we work toward an equitable recovery.” What is FHA mortgage insurance? Bankrate explains: All FHA loans require the borrower to pay two mortgage insurance premiums: Upfront mortgage insurance premium: 1.75 percent of the loan amount,…

CDC Extends Eviction Ban As Feds Warn Landlords

The Consumer Financial Protection Bureau and the Federal Trade Commission on Monday issued a warning to landlords to “stop illegal evictions” during the Covid-19 pandemic. The statement was issued as the Centers for Disease Control and Prevention extended its eviction moratorium, banning landlords from kicking tenants out for being unable to make their rental payments. “Staff at both agencies will be monitoring and investigating eviction practices, particularly by major multistate landlords, eviction management services, and private equity firms, to ensure that they are complying with the law,” CFPB Acting Director Dave Uejio and FTC Acting Chairwoman Rebecca Slaughter said. “Evicting tenants in violation of the CDC, state, or local moratoria, or evicting or threatening to evict them without apprising them of…