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Navigating the black hole: Attorneys weigh in on when you can re-baseline
Posted Date: Tuesday, November 24, 2015
Don’t get lost in space! At the Mortgage Bankers Association’s annual convention and expo in San Diego, several attendees expressed concerns about the “black hole” – what happens when events cause closing delays under the TILA-RESPA Integrated Disclosure (TRID) rules – and asked representatives from the Consumer Financial Protection Bureau to issue more formal written guidance on the issue. Two former bureau attorneys spoke with Dodd Frank Update. Read on to hear what they had to say.
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OCC releases guidance on TRID exams
Posted Date: Thursday, November 12, 2015
The Office of the Comptroller of the Currency has provided guidance on its initial examinations of OCC-supervised institutions for compliance with the TILA-RESPA Integrated Disclosure (TRID) rules that went into effect Oct. 3. Read on to see what the regulator wants supervised banks to know about its examination process.
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FDIC adopts final rules related to FCRA
Posted Date: Tuesday, November 10, 2015
The Federal Deposit Insurance Corporation is adopting a final rule that makes several amendments to its regulations concerning the Fair Credit Reporting Act, as part of the review it is required to conduct every 10 years to address outdated or redundant regulations.
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Cordray to ABA: CFPB ‘has heard you’ on small-dollar loans
Posted Date: Tuesday, November 17, 2015
During a question-and-answer session at the American Bankers Association’s annual convention with ABA President and CEO Frank Keating, Consumer Financial Protection Bureau Director Richard Cordray said the bureau “has heard you” on the issue of small-dollar loans. Such loans have been swept up by the bureau’s initiative to begin regulating the payday loan industry. Read on for more details.
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CFPB releases retirement planning toolkit
Posted Date: Tuesday, November 17, 2015
At an event with the Social Security Administration hosted at the Brookings Institution, the Consumer Financial Protection Bureau announced the release of a bureau toolkit – “Planning for Retirement” – designed to help consumers decide when to claim their Social Security retirement benefits. Read on for more details.
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DOE to limit campus bank accounts
Posted Date: Tuesday, November 3, 2015
The Department of Education announced that it has finalized two “regulatory packages that will protect students in the rapidly expanding college debit and prepaid card marketplace and add a new income-based repayment plan so more borrowers can limit the amount of their payments to 10 percent of their income.” The rules will restrict fees institutions can charge under certain accounts, including a prohibition on overdraft charges. Read on to see how they will affect lenders in the market.
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Five agencies finalize capital and margins rule for swaps
Posted Date: Tuesday, November 3, 2015
The Farm Credit Administration, the Federal Deposit Insurance Corp., the Federal Housing Finance Agency, the Federal Reserve and the Office of the Comptroller of the Currency issued a final rule establishing capital and margin requirements for swap dealers, major swap participants, security-based swap dealers and major security-based swap participants. Read on for more details.
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FDIC revises Securitization Safe Harbor Rule
Posted Date: Friday, October 30, 2015
FDIC staff on Oct. 8 recommended that the board approve and authorize two notices for publication in the Federal Register for notice and comment: One notice of a final rulemaking concerning credit-risk retention requirements, and another notice of proposed rulemaking to bring the rule in line with Regulation X. Read on for details of the proposed rulemaking.
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Calyx: LOS works, investors wary of CFPB-HUD issue
Posted Date: Tuesday, November 3, 2015
Calyx Software Vice President of Business Development Dennis Boggs told Dodd Frank Update that problems with the TILA-RESPA Integrated Disclosure (TRID) forms that its loan origination system (LOS) produces are a result of differences between the Consumer Financial Protection Bureau and the Department of Housing and Urban Development and not because of Calyx technology issues. Read on to find out what the issue is and why it’s keeping investors from buying certain TRID loans.
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Whistleblowers a likely threat to those who remain in MSAs
Posted Date: Friday, October 30, 2015
At the Mortgage Bankers Association Annual Convention & Expo, attorney and compliance officers discussed the Consumer Financial Protection Bureau’s recent guidance bulletin on RESPA compliance risks surrounding marketing service agreements. However, the bulletin does more than reiterate the bureau’s stance; it is inviting people to blow the whistle, one speaker said.
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Industry to the CFPB: More formal guidance please
Posted Date: Tuesday, November 3, 2015
Like Oliver stepping to the food table, attendees at the Mortgage Bankers Association’s annual convention are approaching the Consumer Financial Protection Bureau with one plea: “More, please!” Attendees said formal regulatory guidance from the bureau would help the industry in its compliance efforts. Read on for the details.
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Top banks join together to lead real-time payments network
Posted Date: Friday, October 30, 2015
The CEOs of Bank of America, BB&T, Capital One, JPMorgan Chase, U.S. Bank and Wells Fargo issued a joint statement announcing their plans to lead a secure, real-time payments network. The network is anticipated to meet the expectations of the Federal Reserve Bank’s Payment System Improvement Initiative and the Consumer Financial Protection Bureau’s vision for consumer protection. Read on for more details.
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D.C. District: Plaintiffs to maintain confidentiality in CFPB investigations
Posted Date: Tuesday, November 3, 2015
In a lawsuit against the Consumer Financial Protection Bureau, the U.S. District Court for the District of Columbia has ruled that the names of the plaintiffs (“businesses and an individual who provide services related to consumer credit counseling”) will be redacted from all documents filed.
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College accreditor, lawmakers challenge CFPB’s reach
Posted Date: Friday, October 30, 2015
The Consumer Financial Protection Bureau is not only investigating private student lending and for-profit colleges, it also has set its eyes on a national college accreditor. However, the Accrediting Council for Independent Colleges and Schools and the chairmen of the House and Senate’s education committees are fighting back. Read on for more details and for an update on the bureau’s case against Corinthian Colleges.
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First criminal conviction handed down for spoofing
Posted Date: Tuesday, November 17, 2015
In United States v. Coscia, a commodities trader was found guilty of six counts of commodities fraud and six counts of spoofing, a form of market manipulation that uses trading strategies to rapidly place, and then quickly cancel, orders before execution with the intent that the original order be cancelled for non-bona fide purposes.
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Prepaid card use likely to rise among debt-averse consumers
Posted Date: Tuesday, November 10, 2015
Debt-averse consumers such as millennials and Gen Xers are driving the push for more prepaid card demand. A report on prepaid card use has recently been released from Business Insider. Read on for more details on the report’s findings.
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Survey: One-stop shopping among homebuyers has increased substantially
Posted Date: Tuesday, November 10, 2015
One-stop shopping has experienced a substantial increase according to the third wave of a survey commissioned by the National Association of Realtors. The survey previously tracked perceptions of one-stop shopping in 2008 and 2010. Read on for more details.
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Credit card complaints reflect wider range of undefined issues
Posted Date: Friday, October 30, 2015
In its fourth consumer complaint snapshot, the Consumer Financial Protection Bureau directed its focus on credit cards and complaints from the Chicago metro area. Credit card complaints represented about 11 percent of the 726,000 complaints that the bureau has handled as of Oct. 1. There may, however, be a much wider range of issues faced by consumers. Read on for more details.
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Warren, Cummings estimate $10 trillion swaps on the books
Posted Date: Thursday, November 12, 2015
Sen. Elizabeth Warren (D-Mass.) and Rep. Elijah E. Cummings (D-Md.) stated that a December 2014 amendment to Section 716 of the Dodd-Frank Act has allowed banks to keep $10 trillion of risky trades on their books. Read on for more details.
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Credit reporter sees record amount borrowed to purchase automobiles
Posted Date: Tuesday, November 24, 2015
The credit reporting company, TransUnion, has reported that U.S. consumers have borrowed a record $1 trillion to purchase automobiles. Read on to learn more about what the company has found regarding car loan and credit card balances, and more.
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NAFCU requests ‘express exemption’ from CFPB’s payday rulemaking
Posted Date: Tuesday, November 24, 2015
In a letter to the Consumer Financial Protection Bureau’s Office of Financial Institutions, the National Association of Federal Credit Unions asked for an express exemption for lenders that follow the National Credit Union Administration’s Payday Alternative Loan program and offered recommendations for how the bureau could avoid restricting borrower access to short-term, small-amount loans. Read on for more details.
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CFTC brings in record monetary penalties
Posted Date: Tuesday, November 24, 2015
The Commodity Futures Trading Commission released its annual enforcement results for fiscal year 2015. The CFTC had filed 69 enforcement cases – focusing on manipulation, spoofing and fraud, and whether market participants met their regulatory requirements – and achieved a record amount in civil monetary penalties. Read on for more details.
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CFPB’s 2015 penalties top first three years combined
Posted Date: Friday, November 20, 2015
In its annual financial report, the Consumer Financial Protection Bureau reported that it collected more civil penalties in fiscal 2015 than it did in its first three years of operations. And yet the bureau has distributed only 6.8 percent of all money collected to victims. Read on for details of how much the bureau has secured in penalties, and what it plans to do with it.
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CFPB begins administrative proceeding against online, short-term lender
Posted Date: Friday, November 20, 2015
The Consumer Financial Protection Bureau filed a Notice of Charges on Nov. 18 against Integrity Advance, LLC, and its CEO, James R. Carnes, alleging that the online lender committed unfair and deceptive acts or practices by failing to disclose certain contract terms and using remotely created checks to debit consumers’ bank accounts despite the consumers’ revoking authorization for automatic withdrawals. Read on for more information about the bureau’s previous administrative proceedings.
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FDIC issues risk management advisory, third-party guidance
Posted Date: Friday, November 20, 2015
The Federal Deposit Insurance Corp. (FDIC) issued an advisory on effective risk management practices for purchased loans and purchased loan participants. In it the FDIC provided recommendations for developing an effective loan policy for purchased loans and participations, along with guidance on third parties involved in loan transactions. Read on for the details.
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CFPB report: Mobile banking is on the rise and in demand
Posted Date: Friday, November 20, 2015
A recent Consumer Financial Protection Bureau report shines a light on how consumers, particularly underserved ones, are using mobile technology to access and conduct financial transactions. The report also identifies many ways that mobile financial services can be improved to better serve consumer needs.
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Federal banking agencies give Shared National Credits portfolio a poor grade
Posted Date: Friday, November 20, 2015
According to an annual review by the Board of Governors of the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, underwriting standards and risk management of leveraged loans are a serious concern. Read on to find out what the agencies said warrant “continued attention.”
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SEC awards whistleblower $325,000, could have been more
Posted Date: Friday, November 20, 2015
The U.S. Securities and Exchange Commission recently awarded more than $325,000 to a former investment firm employee who tipped the agency off to fraudulent activity at his company — but the whistleblower may have received more had he come forward with information about the wrongdoing sooner. Find out how the whistleblower’s claim fell short in the eyes of the commission.
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FDIC updates FAQs on brokered deposits
Posted Date: Tuesday, November 17, 2015
The Federal Deposit Insurance Corp. updated its Frequently Asked Questions on identifying, accepting and reporting brokered deposits. The corporation originally issued FAQs on brokered deposits in January to provide answers to questions on previously issued staff interpretations, advisory opinions and other documents, adding that it would provide updates to the FAQs as necessary. The corporation updated the document in response to further inquiries and comments. Read on to see what the corporation added.
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Agencies set final EGRPRA outreach meeting
Posted Date: Tuesday, November 17, 2015
The Federal Reserve Board, Federal Deposit Insurance Corp. (FDIC) and the Office of the Comptroller of the Currency announced that they will hold the final Economic Growth and Regulatory Paperwork Reduction Act outreach meeting Dec. 2 at the FDIC in Arlington, Va. Read on for more details.
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Cordray to ABA: Educate the young, protect the old
Posted Date: Thursday, November 12, 2015
Appearing at the American Bankers Association (ABA) annual convention, Consumer Financial Protection Bureau Director Richard Cordray called upon attendees to assist with financial education initiatives within schools and the workplace and to protect elder consumers from financial fraud. Cordray also stated that the bureau will be releasing an advisory on how to spot elder financial abuse. Read on for more details.
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NYDFS to tackle financial institutions’ cybersecurity
Posted Date: Thursday, November 12, 2015
The New York Department of Financial Services announced that it is considering new cybersecurity regulations for financial institutions. The regulations would include policies and procedures that incorporate third-party service provider management. Read on for details under consideration.
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D+H Corp. receives ABA endorsement
Posted Date: Thursday, November 12, 2015
The mortgage loan origination system, MortgagebotLOS, from D+H Corp. has been endorsed by the American Bankers Association. To earn the endorsement, D+H had to undergo a comprehensive due-diligence process that considered the company’s financial soundness, management strength, training and support, and customer service. Read on for more details.
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Republican debate focuses on economic policy, Too Big to Fail
Posted Date: Thursday, November 12, 2015
Dodd Frank Update will be keeping its eye on the presidential candidates and what they say concerning economic policy and banking regulations. At the latest Republican debate, hosted by Fox Business Network and The Wall Street Journal, economics took the center of the stage. Read on for more details about what the candidates said about “Too Big to Fail” and breaking up the big banks.
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Employment background screeners to pay $13 million for inaccurate reports
Posted Date: Tuesday, November 10, 2015
Finding a job in this market is hard enough without inaccurate background checks. The Consumer Financial Protection Bureau issued a consent order against two of the largest employment background screening report providers for violations of the Fair Credit Reporting Act. Read on for more details.
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Committee passes bill to eliminate automatic SIFI designations based on asset size
Posted Date: Tuesday, November 10, 2015
In a 39 to 16 vote, the House Financial Services Committee approved the Systemic Risk Designation Improvement Act of 2015, a bill that would amend the Financial Stability Oversight Council’s process for designating bank holding companies as systemically important financial institutions. If passed, designations would no longer be based solely on asset size. Read on for more details.
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CFPB highlights furnishers in latest supervisory report
Posted Date: Friday, November 6, 2015
As the Consumer Financial Protection Bureau (CFPB) has continued to dig into potentially harmful practices in the debt collection and loan servicing industries, the bureau’s spotlight has intensified on companies that furnish information to consumer reporting agencies. In the latest version of its Supervisory Highlights report, the CFPB discussed some of the findings from examiners and what lessons furnishers – and other third-party vendors – can take from their observations. Read on for the details.
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ABA: CFPB’s overdraft survey plan evades transparency
Posted Date: Friday, November 6, 2015
In response to the Consumer Financial Protection Bureau’s notice and request for comment on its request for approval from the Office of Management and Budget to conduct a survey on overdraft protections, several trade associations took issue with the fact that the bureau did not include the actual survey for public review. Read on to learn what the American Bankers Association, the Credit Union National Association and the Financial Services Roundtable had to say.
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FTC, states crack down on debt collectors
Posted Date: Friday, November 6, 2015
A nationwide sweep dubbed Operation Collection Protection has collected 30 new enforcement actions against debt collection companies for allegations of deceptive and abusive practices. The Federal Trade Commission led the joint announcement for an operation that includes more than 70 law enforcement partners at the federal, state and local levels. Read on for more details on the commission’s five new enforcement actions against debt collectors.
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Shareholder: AIG remains ‘Too Big to Succeed’
Posted Date: Friday, November 6, 2015
After the financial crisis, AIG was one of the first non-banks to be designated a systemically important financial institution by the Financial Stability Oversight Council. In response to increasing regulatory burdens, one shareholder has written to AIG’s chief executive officer that it is time the company broke up into small companies. Read on for more details.
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CFPB files complaint against alleged financial aid scam
Posted Date: Friday, November 6, 2015
Citing deceptive acts or practices under the Dodd-Frank Act’s UDAAP provisions, the Consumer Financial Protection Bureau has filed complaint against Global Financial Support and its CEO for an alleged scam in which consumers were led to believe they would receive individualized federal financial student aid services. Read on for more details.
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NCUA adds to recovered funds with settlements
Posted Date: Friday, November 6, 2015
The National Credit Union Administration (NCUA) recently announced a pair of settlement actions that will allow the agency to recover nearly $400 million for member credit unions. Read on to see which institutions have settled and what NCUA plans to do with the funds.
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TRID Exclusive, Part 3: Vendors, technology issues in the spotlight
Posted Date: Thursday, November 5, 2015
When the Consumer Financial Protection Bureau (CFPB) finalized the TILA-RESPA Integrated Disclosure (TRID) rules, it ushered in a new way of handling the mortgage process, one that would become heavily reliant on technology. One month into TRID, the CFPB has acknowledged that the process isn’t running as smoothly as hoped. Are the problems with vendors and systems? Interpretations of the rules? How are mortgage lenders handling potential challenges? Read on for the details.
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Bureau hosts retirement planning event
Posted Date: Monday, November 2, 2015
The Consumer Financial Protection Bureau (CFPB) will host a joint event with the Social Security Administration (SSA) to discuss retirement planning, the CFPB announced. Read on for the details.
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