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» Grand Rapids, Michigan; and Milwaukee, Wisconsin. And NFHA says it will release more evidence in early 2014. NFHA cited 39 types of maintenance violations, including trash on properties, overgrown lawns, broken windows, unsecured doors, mold, and water damage. In Toledo, NFHA found 71 percent of Bank of America's foreclosed and REO properties located in minority neighborhoods have unsecured windows and 25 percent have broken doors. "Bank of America is seriously hurting the people of Toledo by not properly maintaining these homes," said Michael Marsh, president and CEO of the Toledo Fair Housing Center, one of NFHA's member organizations. NFHA president and CEO Shanna L. Smith reiterated community health and safety concerns, saying, "Having properly secured doors on bank-owned properties is essential to keeping the entire community safe." Smith added, "Bank of America's failure to secure properties endangers the residents of these communities." In Baltimore, NFHA claims 90 percent of homes owned by Bank of America and located in minority neighborhoods have more than five maintenance or marketing problems. While Smith insisted, "Bank of America has known about these problems for more than four years," Bank of America discounts NFHA's claims. When first NFHA expanded its complaint against the bank in September, Bank of America SVP Dan Frahm told DS News, "Bank of America applies uniform practices to the management and marketing of vacant bank-owned properties across the U.S., regardless of their location. Any suggestion to the contrary is simply untrue." A spokesperson for Bank of America reiterated this point with the most recent news of NFHA's expanded complaint while also identifying several flaws in the nonprofit's research methodology. "NFHA expressly declined to consider properties under repair and faulted the bank for properties it had agreed to donate to local groups in their existing condition," said the bank's spokesperson. In addition to maintenance problems, NFHA says many Bank America-owned properties in minority neighborhoods do not have "for sale" signs in the yards. For example, in Baltimore, 76 percent of Bank of America's homes in minority neighborhoods lack "for sale" signs, according to NFHA. "Without a 'for sale' sign, potential homebuyers are unlikely to know a property is for sale and neighbors are unlikely to know whom to call to in an emergency or how to report unauthorized occupants or damage," NFHA said in its press statement. The Bank of America spokesperson countered that point, saying it "is in the best interest of the bank investor and community for the property to be marketed and sold to new homeowners" and pointed out that the bank's REO inventory has declined by nearly 70 percent over the past year. Prior to its latest announcement, NFHA claimed discrimination in REO upkeep by BofA in the following cities: Phoenix and Tucson, Arizona; Oakland and Richmond, California; Denver and Aurora, Colorado; Orlando and Miami, Florida; Atlanta, Georgia; Indianapolis, Indiana; Las Vegas, Nevada; Dayton, Ohio; Philadelphia, Pennsylvania; Charleston, South Carolina; Memphis, Tennessee; Dallas, Texas; Washington, D.C.; and Prince George's County, Maryland. These cities remain part of NFHA's amended complaint against the bank. Bank of America and Freddie Mac Settle Repurchase Claims Bank of America (BofA) and Freddie Mac jointly announced an agreement that resolves all remaining rep and warranty claims on loans the North Carolina-based bank sold to the GSE through the end of 2009. Under the terms of the agreement, BofA will pay Freddie Mac a total of $404 million (minus $13 million in credits on repurchases already made) in order to be released from existing and future repurchase claims on approximately 716,000 loans originated in the 2000s. The payment also compensates Freddie Mac for past and potential future losses relating to denials, rescissions, and cancellations of mortgage insurance on the loans. The agreement doesn't cover loan servicing obligations, loans contained in private label securitizations, or securities and disclosure claims. "We are pleased to have reached this agreement with Bank of America, which now allows both companies to move forward," said Freddie Mac CEO Donald H. Layton. "We continue to make very good progress in recovering funds that are due to the American taxpayer, as well as resolving Freddie Mac's legacy repurchase issues." VISIT US ONLINE @ DSNEWS.COM The payments are fully covered by BofA's existing reserves at the end of the third quarter, the bank said in its statement. The arrangement furthers BofA's efforts to clean up issues stemming from its own legacy loan dealings and those it inherited with the Countrywide acquisition. Previous agreements resolved claims on loans sold to Fannie Mae and Freddie Mac through 2008. CFPB Hits Private Insurer with $100K Fine Republic Mortgage Insurance Corporation (RMIC), headquartered in WinstonSalem, North Carolina, faces a $100,000 fine and enhanced supervision by the Consumer Financial Protection Bureau (CFPB) for allegedly offering illegal kickbacks to lenders in return for business referrals. "The CFPB believes that RMIC provided kickbacks to mortgage lenders by purchasing captive reinsurance that was essentially worthless but was designed to make a profit for the lenders," the CFPB stated. In return for the kickbacks, the bureau says lenders provided RMIC with referrals for private mortgage insurance business. RMIC has allegedly engaged in these activities, which violate federal consumer laws, for 10 years, according to the CFPB. RMIC could not be reached for comment at the time of publication. "Kickbacks for mortgage insurance referrals are illegal, and can drive up costs for consumers seeking to buy a home," said Richard Cordray, director of the CFPB. "The order announced today will put an end to this practice and require RMIC to pay a $100,000 penalty for violating the law." RMIC agreed to pay the $100,000 fine, end its illegal kickback activities, and report regularly to the CFPB regarding compliance, according to the bureau's announcement. The CFPB says it will also be monitoring RMIC to ensure compliance with the terms of the agreement. The CFPB explained in its announcement that the penalty amount was influenced by the fact that RMIC is "currently under administrative supervision with the North Carolina Department of Insurance due to its inability to honor its payment obligations in full." The federal agency filed similar actions against several other private insurers—Genworth U.S. Mortgage Insurance Corporation, Mortgage Guaranty Insurance Corporation, Radian Guaranty Inc., and United Guaranty 129

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