Emery Celli Brinckerhoff & Abady (ECBA) and MFY Legal Services recently filed a federal class action challenging the legality of a Department of Housing and Urban Development (HUD) program that sells government-insured FHA home mortgages to private equity funds, leaving these borrowers without insurance-program benefits they are entitled to and putting them at heightened risk of foreclosure

Earlier in August, 65 House Democrats wrote a letter to the CFPB urging them to pass their proposal to ban the use of arbitration clauses in business contracts. Now several state attorneys general are behind the proposal.

Despite the 30-year, fixed mortgage’s desirable and stable conditions, it has been shown to evolve with the change of market forces, demographics and demand.

The national credit picture took a nine basis point dip in July from the year prior, as mortgage and consumer credit default rates overall stay steady on a month-over-month basis.

Statutes of limitations have been a hot topic in the mortgage servicing industry but there has previously been no need for Maryland to be included in that discussion. Now, however, due to a couple of statutes passed by the Maryland General Assembly, it is important for the industry to be aware of these statutory changes and to consider the implications on the time in which a servicer has to institute a foreclosure action regarding owner occupied properties. The author’s opinion is that the applicable statute of limitations is lengthy and unchanged. Nonetheless, for no other purpose than the avoidance of litigation, servicers should act as if a three year statute of limitations is in place.

Statutes of limitations have been a hot topic in the mortgage servicing industry but there has previously been no need for Maryland to be included in that discussion. Now, however, due to a couple of statutes passed by the Maryland General Assembly, it is important for the industry to be aware of these statutory changes and to consider the implications on the time in which a servicer has to institute a foreclosure action regarding owner occupied properties. The author’s opinion is that the applicable statute of limitations is lengthy and unchanged. Nonetheless, for no other purpose than the avoidance of litigation, servicers should act as if a three year statute of limitations is in place.

In an abrupt move to beat the summer recess, the Ohio House and Senate agreed to revisions to the Ohio foreclosure process, and passed Ohio H.B. 390. Governor John Kasich signed the bill into law on June 26, 2016, and the law becomes effective 90 days thereafter.

On April 26, 2016 the Connecticut Supreme Court issued a decision in The Neighborhood Association, Inc. v. Jill M Limberger, et al, 321 Conn. 29, which held that pursuant to Conn. Gen. Stat. §47-258(m)(1)(C), prior to any foreclosure action of an homeowners’ association (HOA) commenced on or after July 1, 2010, the HOA must have either (1) had a vote to authorize the individual foreclosure; or (2) had a collection policy adopted as a rule, with notice to unit owners and a minimum ten day comment period as required under the Conn. Gen. Stat. §47-261(b). If neither one of these two criteria are met, the HOA lacks subject matter jurisdiction in its foreclosure action. In Limberger, the HOA’s foreclosure action was dismissed for lack of subject matter jurisdiction despite the HOA having adopted a “standard collection policy” because the HOA’s Executive Board had not provided notice to the unit owners prior to adopting the policy pursuant to Conn. Gen. Stat. §47-261(b).

Oakland County, the second largest county in the State, has launched a free new online program designed to mitigate the mortgage and deed fraud. The system, called Property Records Notification, or PRN, will inform property owners of recorded activity against their property. PRN is an effort by Oakland County to combat mortgage and property fraud. The unveiling of PRN is the first of its kind in the country, according to Lisa Brown, the Oakland County Register of Deeds. Oakland County was the second in the country to launch Super Index in 2014, an online searchable database within millions of recorded documents maintained by the County.

The state of Washington amended its statutes addressing the mandatory fees related to foreclosure of deeds of trust, repealing the Revised Code of Washington section 61.24.174 that required certain beneficiaries to remit based on the number of notices of default issued, and including a new section that requires certain beneficiaries to remit based on the number of recorded notices of trustee’s sale. These provisions were effective on July 1, 2016, and the first quarterly report following this effective date was due on or before August 14, 2016.