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New Congress will see changes to key committees
Posted Date: Friday, November 18, 2022
Weeks after the midterm election, there is finally a clear indication as to which party will be in control of each of the chambers of Congress. Even with Democrats maintaining control of the Senate, there are going to be significant changes to major committees in both chambers that will affect the consumer financial services industry.
Read on for more details.
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TCH analyzes the legal authority for banks engaging in stablecoin activities
Posted Date: Friday, November 18, 2022
The Clearing House recently released a research paper that analyzes the legal authority and policy considerations for banks’ engagement in stablecoin-related activities. It primarily examines a series of letters issued by the Office of the Comptroller of the Currency, which address the legal authority of insured depository institutions to engage in stablecoin-related activities.
Read on for more details.
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GSE shareholder suit ends in mistrial
Posted Date: Friday, November 18, 2022
Shareholders of Fannie Mae and Freddie Mac (the GSEs) are preparing for next steps following a D.C. federal judge’s decision to grant a mistrial in their suit against the Federal Housing Finance Agency. This lawsuit is one of several in which shareholders are attempting to achieve some remedy to the 2008 conservatorship of the GSEs which saw them lose the control and compensation shareholders normally maintain.
Read on for more details.
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Goldman Sachs economist still sees path to a ‘soft landing’
Posted Date: Friday, November 18, 2022
Goldman Sachs’ top economist said in a recent research note there is a “very plausible” path for the U.S. economy to avoid a recession despite the current economic climate.
Read on for more details.
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House Financial Services Committee to investigate FTX collapse
Posted Date: Friday, November 18, 2022
House Committee on Financial Services Chair Rep. Maxine Waters (D-Calif.) and ranking member Rep. Patrick McHenry (R-N.C.) announced plans for a bipartisan hearing into the collapse of FTX.
Read on for more details.
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$32B crypto exchange FTX collapses in days
Posted Date: Tuesday, November 15, 2022
Bahamas-based cryptocurrency exchange FTX was valued at approximately $32 billion at the start of November. On Nov. 11, following a failed effort to be bought by competitor Binance, FTX began bankruptcy proceedings in US federal court. California’s Department of Financial Protection and Innovation announced plans to investigate the failed crypto exchange company immediately after the bankruptcy proceedings were announced.
Read on for more details.
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CFPB begins Section 1033 rulemaking
Posted Date: Tuesday, November 15, 2022
The Consumer Financial Protection Bureau (CFPB) has begun the rulemaking process to implement section 1033 of the Dodd-Frank Act. Under section 1033, a consumer financial service provider must make available to a consumer all information in the control or possession of the provider concerning the consumer financial products and services that the consumer obtained from the provider.
The beginning of this new rulemaking process is part of the CFPB’s long-term plan to enhance consumers’ personal financial data rights.
Read on for more details.
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CFPB publishes bulletin analyzing rise in crypto-asset complaints
Posted Date: Tuesday, November 15, 2022
The Consumer Financial Protection Bureau (CFPB) released a new bulletin highlighting complaints the CFPB has received relating to crypto assets. Consumers reported being victimized by fraud, theft, hacking, and scams, as well as issues with executing transactions and transferring assets between exchanges.
The CFPB is advising consumers on how to avoid being scammed and what to do when issues arise.
Read on for more details.
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FINRA requests comment on its machine-readable rulebook initiative
Posted Date: Tuesday, November 15, 2022
FINRA is developing a machine-readable rulebook to assist users to more readily analyze and search FINRA’s rules. It is also creating a prototype rulebook search tool – the FINRA Rulebook Search Tool (FIRST) – to allow users to explore the FINRA rulebook more easily.
Read on for more details.
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Mortgage M&As up in 2022
Posted Date: Tuesday, November 15, 2022
Mergers and acquisitions in the mortgage industry are on the rise in 2022, and it’s expected to continue into 2023, according to STRATMOR Group’s October 2022 Insights Report.
Read on for more details.
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NCUA’s Harper urges Credit Unions to embrace fair lending, DEI
Posted Date: Tuesday, November 15, 2022
The National Credit Union Administration (NCUA) Chair Todd Harper, in his address at NCUA’s 2022 DEI & ACCESS Summit, said federally insured credit unions must be “all in” on diversity, equity, and inclusion.
Read on for more details.
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Warren presses CFPB on alleged Zelle fraud
Posted Date: Friday, November 11, 2022
Sen. Elizabeth Warren (D-Mass.) sent a letter to the Consumer Financial Protection Bureau (CFPB) summarizing the findings of her investigation revealing high rates of fraud and scams on the bank-owned peer-to-peer platform Zelle.
The American Bankers Association, however, is pressing the CFPB to not shift liability on Zelle’s alleged issues with fraud.
Read on for more details.
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Marketing compliance remains hot topic as economy slows
Posted Date: Friday, November 11, 2022
During periods of economic downturn – which most experts agree is what the U.S. will be facing for the next year or two – good marketing strategies become critical to maintaining business. While there are a number of strategies a lender can adopt, it is important to make sure lenders’ marketing efforts remain compliant with all laws and regulations.
Read on to learn more about current marketing compliance topics.
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Record number of households were banked in 2021
Posted Date: Friday, November 11, 2022
According to the latest survey data from the Federal Deposit Insurance Corp., a record level of households had at least one person with a checking or savings account at a bank or credit union in 2021 despite the economic challenges of COVID-19.
Read on for more details.
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Mortgage, real estate companies go through more layoffs
Posted Date: Friday, November 11, 2022
As companies continue to release their third quarter financial reports, a number of them are initiating new rounds of layoffs that will affect thousands in the mortgage and real estate industry alone.
Among the largest recently announced layoffs was real estate brokerage firm Redfin, which announced a 13 percent reduction in its workforce as its shutters part of its business.
Read on for more details.
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CFPB continues its fight against ‘junk fees’
Posted Date: Friday, November 11, 2022
The Consumer Financial Protection Bureau (CFPB) is continuing its fight against what it refers to as “illegal junk fees” in its latest Consumer Financial Protection Circular and a compliance bulletin. The circular and bulletin contain guidance on two junk fee practices that the CFPB characterizes as likely being “unfair and unlawful under existing law.”
Read on for more details.
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OCC announces fintech office
Posted Date: Friday, November 11, 2022
The Office of the Comptroller of the Currency announced plans to establish the Office of Financial Technology (OFT) in early 2023. The OFT will be designed to bolster the agency’s expertise and ability to adapt to the rapidly changing banking landscape.
Read on for more details.
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Dems press regulators on ‘revolving door’ ethics lapses
Posted Date: Tuesday, November 8, 2022
Democrat senators and representatives sent letters to federal financial regulators pressing them for answers regarding each agency’s ethics guidelines as they relate to the “revolving door” of government employees becoming lobbyists or consultants as a result of their employment with the government.
The specific concern relates to the number of ex-government employees that have left the public sector for crypto and fintech firms.
Read on for more details.
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Defendants in CFPB enforcement actions seek dismissal following Fifth Circuit decision
Posted Date: Tuesday, November 8, 2022
At least three major enforcement actions from the Consumer Financial Protection Bureau (CFPB) are facing motions to dismiss based on the Fifth Circuit Court of Appeals decision that found the funding structure of the CFPB to be in violation of the Appropriations Clause.
None of these cases seeking dismissal are in the Fifth Circuit, which means a circuit split is likely.
Read on for more details.
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SEC wins major crypto case against LBRY
Posted Date: Tuesday, November 8, 2022
The Securities and Exchange Commission won its case against LBRY Inc. in New Hampshire federal district court. The contention between the two parties was whether the digital currency offered by LBRY should be considered a security under the Securities Act of 1933; and whether LBRY’s action of selling the digital currency was an unlawful sale of unregistered securities under the Act.
Read on for more details.
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FTC explores rulemaking to combat fake reviews, deceptive endorsements
Posted Date: Tuesday, November 8, 2022
The Federal Trade Commission (FTC) is exploring potential rules to combat deceptive or unfair review and endorsement practices. The FTC issued an advance notice of proposed rulemaking seeking public comment on potential harms stemming from deceptive or unfair review and endorsement practices.
Read on for more details.
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UWM becomes top overall mortgage lender
Posted Date: Tuesday, November 8, 2022
United Wholesale Mortgage, the top wholesale and purchase lender in the U.S., officially surpassed Rocket Mortgage to become the top overall mortgage lender in the country.
Read on for more details.
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FHFA announces new credit model for Fannie, Freddie
Posted Date: Tuesday, November 8, 2022
The Federal Housing Finance Agency announced approval of the FICO 10T and VantageScore 4.0 credit score models for use by Fannie Mae and Freddie Mac.
Read on for more details.
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Trade groups respond to FHFA RFI on fintech in housing finance
Posted Date: Friday, November 4, 2022
In July, the Federal Housing Finance Agency (FHFA) issued a request for information (RFI) regarding the future role of fintech in housing finance. Through the RFI, FHFA sought information relating to how industry participants understood and utilized fintech.
The RFI garnered responses from a variety of trade groups offering information and suggestions on the matter.
Read on for more details.
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Chopra offers insight into CFPB activity for 2023
Posted Date: Friday, November 4, 2022
During his speech at Money 20/20, Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra offered insight into some of the bureau’s anticipated plans for 2023. This included plans to begin the rulemaking process to address financial data rights as well as larger changes to the approach to financial services regulations.
Read on for more details.
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FTC explores rule cracking down on junk fees
Posted Date: Friday, November 4, 2022
The Federal Trade Commission (FTC) has begun exploring a rule to crack down on “junk fees,” which the commission characterized as “unnecessary, unavoidable, or surprise charges that inflate costs while adding little to no value.” Commissioner Christine Wilson, the lone dissenter, expressed concern that the FTC was moving to quickly and that the proposal was too broad.
Read on for more details.
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Housing market stalls, say Zillow and Redfin reports
Posted Date: Friday, November 4, 2022
Reports from both Zillow and Redfin indicate that the housing market continues to be in a stalled position as pending listings, in-progress deals, and starts all continue to decline.
Read on for more details.
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Fed raises rates another 75 basis points
Posted Date: Friday, November 4, 2022
The Federal Reserve’s Federal Open Market Committee voted to increase federal fund rates by an additional 75 basis points during its Nov. 1-2, 2022, meeting.
Read on for more details.
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FTC approves final order against Opendoor Labs
Posted Date: Friday, November 4, 2022
The Federal Trade Commission finalized a consent order against Opendoor Labs designed to prevent the online real estate business from deceiving consumers about how much money they could save by selling their home to Opendoor, as opposed to selling on the open market.
Read on for more details.
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PennyMac files suit against law firm for breach in mortgage deal
Posted Date: Tuesday, November 1, 2022
PennyMac Loan Services filed suit in Massachusetts federal court against the law firm Connor & Morneau, alleging malpractice and breach of contract when it failed to inform its client about a potential conflict of interest, and failed to inform a borrower that parts of a mortgage violated state law.
Read on for more details.
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Senate Dem criticizes SEC’s Gensler on approach to crypto
Posted Date: Tuesday, November 1, 2022
Senator John Hickenlooper (D-Colo.) publicly criticized the slow approach to crypto being taken by Gary Gensler, chair of the Securities and Exchange Commission. Hickenlooper said in his letter to Gensler the current lack of coordinated regulatory framework has led to “uneven enforcement” and hinders clear understanding of investor protection.
Read on for more details.
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DOJ announces settlement of redlining lawsuit
Posted Date: Tuesday, November 1, 2022
The Department of Justice (DOJ) announced another settlement agreement and consent order to resolve allegations of lending discrimination (“redlining”) by Newark, N.J.-based Lakeland Bank. This resolution is part of DOJ’s nationwide “Combating Redlining Initiative” and is its third-largest redlining settlement in history.
Read on for more details.
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Regulators announce increase in Regs Z and M thresholds
Posted Date: Tuesday, November 1, 2022
The Consumer Financial Protection Bureau, the Federal Reserve, and the Office of the Comptroller of the Currency jointly announced an increase in the dollar thresholds used to determine whether certain consumer credit and lease transactions in 2023 are exempt from Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing).
Read on for more details.
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FDIC raises deposit insurance assessment rates for 2023
Posted Date: Tuesday, November 1, 2022
The Federal Deposit Insurance Corp. board of directors has voted to increase the initial base deposit insurance assessment rate schedules uniformly by 2 basis points beginning first quarter 2023.
Read on for more details.
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SEC awards more than $10M to whistleblower
Posted Date: Tuesday, November 1, 2022
The Securities and Exchange Commission has announced an award of more than $10 million to a whistleblower who “provided information and assistance that significantly contributed to a successful SEC enforcement action.”
Read on for more details.
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Fed preparing for banks to fail
Posted Date: Tuesday, October 25, 2022
The Federal Reserve Board has begun a public comment period on an advanced notice of proposed rulemaking designed to enhance regulator’s ability to resolve large banks in an orderly way should they fail.
The Fed is seeking response to specific questions regarding potential policy changes.
Read on for more details.
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Eleventh Circuit holds outsourcing not actionable under FDCPA
Posted Date: Tuesday, October 25, 2022
In a recent en banc decision from the Eleventh Circuit, the court held that a debt collector’s discloser of a consumer’s debt to a third-party mail vendor was not actionable under the Fair Debt Collection Practices Act.
According to the court, the consumer did not show he suffered the type of injury that bears a “close relationship” to one traditionally recognized at common law.
Read on for more details.
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Fed governor skeptical of CBDC’s necessity for dollar supremacy
Posted Date: Tuesday, October 25, 2022
In a speech during an event hosted by Harvard National Security Journal, Federal Reserve Governor Christopher Waller spoke on the topic of central bank digital currency (CBDC) and its potential international role relating to the U.S. dollar.
Waller stated that he was “highly skeptical” of whether there was a compelling need for the Fed to create a CBDC.
Read on for more details.
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Share of mortgages in forbearance decreases
Posted Date: Tuesday, October 25, 2022
The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance decreased to 0.69 percent as of Sept. 30, 2022.
Read on for more details.
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DOJ announces consent order on lending-discrimination case
Posted Date: Tuesday, October 25, 2022
The Department of Justice has announced a proposed consent order with Evolve Bank and Trust to resolve allegations of lending discrimination on the basis of race, sex and national origin in the pricing of residential mortgage loans.
Read on for more details.
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FHFA announces pricing changes to Fannie, Freddie pricing framework
Posted Date: Tuesday, October 25, 2022
The Federal Housing Finance Agency has announced targeted changes to Fannie Mae and Freddie Mac’s guaranteed fee pricing by eliminating upfront fees for certain borrowers and affordable mortgage products.
Read on for more details.
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