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Texas Home Equity and Equitable Subrogation

4/28/2020

With the recent decision in Federal Home Loan Mortgage Corporation v. Zepeda, No19-0712, the Texas Supreme Court issued a significant decision in favor of home equity lenders in, answering the question, “Is a lender entitled to equitable subrogation, where it failed to correct a curable constitutional defect in the loan documents under §50 of the Texas Constitution?” Or more specifically, “If the party seeking equitable subrogation could have satisfied the requirements of §50(a)(6)(Q)(ix) but failed to do so, does that failure preclude it from invoking equitable subrogation?”

Definition of Branch Office- F2F Requirements

4/27/2020

On April 20, 2020, the United States Court of Appeals for the Fourth Circuit in the Western District of Virginia, in Stepp v. U.S. Bank Trust National Association, Case No. 19-1067 held that “a bank office that conducts no mortgage related business does not qualify as a branch office of a mortgagee under the regulatory exception.

“According to Stepp, U.S. Bank improperly initiated foreclosure without first offering her a face to face meeting as required by 24 CFR 203.604(b). U.S. Bank argued that it was exempt from the face to face meeting requirement under 24 CFR 203.604(c)(2) which excuses the meeting when the mortgaged property is not within 200 miles of the mortgagee, its servicer, or a branch office of either.” Because U.S. Bank’s Richmond office, the only one within 200 miles of Stepp’s home, conducted no mortgage related business and was not open to the public, U.S. Bank contended it did not qualify as a branch office of a mortgagee and so the exception applied.

The Fourth District Court of Appeal held that the text of 24 CFR 203.604(c)(2) cannot be read to encompass an office at which no mortgage related business is conducted. An office that does not mortgage related business at all, even if within 200 miles of a mortgagor’s home, will be poorly positioned to discuss the mortgage specific loss mitigation options. Note: this is a decision out of the Western District of Virginia and is not binding in all jurisdictions.

ProChamps Registration Updates

4/16/2020

Servicers operating in Ohio and Florida should consider these recent property registration updates from ProChamps:

In Ohio, effective immediately, PROCHAMPS will be administering the property registration program on behalf of the City of Forest Park. You should immediately begin registering your properties with www.prochamps.com.

In the Foreclosure sector that includes:

Mortgagee or Trustee (plaintiff on initial foreclosure filing – i.e. LP)
All occupied and vacant property types with a public notice of foreclosure that has been filed and all REO properties.
Registration must take place within 10 days from event.
Exclusions: Governmental Agencies.

For more details on the ordinance click here.

In Florida, the Village of Royal Palm Beach has a new Annual Foreclosure Registration Fee. The annual registration fee for real property subject to foreclosure pursuant to section 6-197 is now $200.00. This went into effect in December 2019. For the full fees report click here.

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Texas Home Equity and Equitable Subrogation

Definition of Branch Office- F2F Requirements

ProChamps Registration Updates