Federal Housing Administration (FHA)

According to the Eleventh Circuit, a municipalities’ lawsuit alleging lost tax revenue and increased costs for services case proceed against several large lenders. In City of Miami v. Wells Fargo & Co., 2019 WL 1966943 (11th Cir. 2019), Miami alleged that several large banks violated the Fair Housing Act by engaging in predatory lending that targeted racial minorities. These practices allegedly led to a higher rate of home foreclosures, which directly caused lost tax revenue and increased costs for services.

Continue Reading Eleventh Circuit allows Miami’s predatory lending suit for lost tax revenues to proceed

A class action filed last week in the Northern District of Georgia disputes the ability of a lender to charge post-payment interest for certain home mortgage loans when the lender has not provided a very specific disclosure form. In Felix v. SunTrust Mortgage, Inc., No. 16-66, Sarah Felix alleges the she took out an FHA-insured loan in in 2009. When she sold her home in 2015, she requested a payoff statement from the lender. According to Ms. Felix, the lender sent the payoff statement on April 6 and included interest for the entire month of April in the total payoff amount. Though Ms. Felix paid off the loan on April 8, she alleges that she was still charged interest for the entire month of April.

Continue Reading New class action complaint alleges that post-payment interest charges for certain home mortgages are invalid because of insufficient disclosures under 24 C.F.R. § 203.558