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Bankers to regulators: This time, make regulatory burden review count
Posted Date: Friday, September 5, 2014
Groups representing financial services industry participants from community banks to the largest Wall Street mega firms urged regulators to pursue substantive regulatory burden reduction as the government works to identify outdated, unnecessary or unduly burdensome regulations under the Economic Growth and Regulatory Paperwork Reduction Act. Read on to learn about specific regulatory requirements the groups said the banking agencies should reconsider.
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Could QRM final rule come by year end?
Posted Date: Tuesday, September 16, 2014
Six regulatory agencies are working on rules that would implement Dodd-Frank’s risk-retention provisions, including establishing criteria for qualified residential mortgages. The agencies released a QRM proposal more than a year ago. When will a final rule emerge? Read on to learn what top regulators had to say during a recent House Financial Services Committee hearing.
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House bill would nullify CFPB auto lending guidance
Posted Date: Tuesday, September 16, 2014
A bipartisan group of U.S. House lawmakers is backing legislation that would wipe out a debated Consumer Financial Protection Bureau bulletin on indirect auto lending. Read on to learn about the bill.
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Maloney presses CFPB on overdraft
Posted Date: Friday, September 12, 2014
A lawmaker who has backed legislation that would beef up restrictions on banks’ overdraft practices called on the Consumer Financial Protection Bureau to act immediately to curb “unfair and abusive fees.” Read on to learn what policy steps Rep. Carolyn Maloney, D-N.Y., urged the bureau to take.
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Reg. Z compliance not enough to avoid potential UDAAP violations, CFPB warns credit card issuers
Posted Date: Friday, September 5, 2014
The Consumer Financial Protection Bureau warned credit card issuers that even if they comply with the disclosure requirements of Regulation Z, they still may run the risk of violating Dodd-Frank’s ban on deceptive and abusive acts or practices when marketing interest-rate promotions. Read on to learn what the CFPB had to say about the issue in a recent bulletin.
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Bureau finalizes rule for larger nonbank international money transfer providers
Posted Date: Tuesday, September 16, 2014
The Consumer Financial Protection Bureau finalized a rule that allows it to supervise large nonbank international remittance providers for the first time. Some banking groups and consumer advocates had urged the agency to widen the scope of the rule as a means of ensuring that bank and nonbank international money transfer providers face comparable federal oversight. Read on to learn how the bureau responded.
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CFPB uses ‘chokepoint’ strategy in debt-relief market
Posted Date: Wednesday, September 3, 2014
The Consumer Financial Protection Bureau targeted a payment processor the agency said made it possible for debt-relief companies to collect illegal fees from consumers in violation of the Federal Trade Commission’s telemarketing sales rule. The action marks the second time the bureau has used such a chokepoint strategy to address issues in the debt-settlement market. Read on to learn what the CFPB has said about the applicability of this strategy in other consumer financial markets.
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OCC finalizes ‘heightened expectations’ guidelines
Posted Date: Friday, September 5, 2014
The Office of the Comptroller of the Currency finalized a set of heightened risk governance standards for big banks. Community bankers had worried that the guidelines, as proposed, ultimately could apply to smaller institutions as well. Read on to learn what the OCC had to say about the applicability of the standards to institutions with less than $50 billion in total consolidated assets.
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Agencies stand pat on MBS treatment in final liquidity rule
Posted Date: Tuesday, September 9, 2014
Federal banking regulators finalized a rule aimed at promoting the short-term resilience of internationally active banks. The liquidity coverage ratio rule will require large banks to hold an amount of unencumbered high quality liquid assets to facilitate their ability to meet unexpected funding demands in times of financial distress. Read on to learn about the rule and its treatment of certain mortgage-related assets.
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Divided SEC approves Dodd-Frank rules for credit rating agencies
Posted Date: Wednesday, September 3, 2014
The Securities and Exchange Commission narrowly approved long expected rules for credit rating agencies. The rules, approved by a 3-2 vote of the five-member panel Aug. 27, implement 14 rulemaking requirements under the Dodd-Frank Act. Read on to learn about the rules and why one commissioner could not support them.
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Credit union group wants more time to consider FHLB eligibility proposal
Posted Date: Tuesday, September 9, 2014
The National Association of Federal Credit Unions wants additional time to consider proposed revisions to the eligibility requirements for Federal Home Loan Bank membership. Read on to learn about the proposed rule and the importance of FHLB membership to community institutions.
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Group calls for restoration of pre-reform bailout flexibility
Posted Date: Friday, September 12, 2014
Although Dodd-Frank has helped make the U.S. financial system safer, Congress went too far by restricting the government’s ability to make emergency loans to individual nonbanks, according to a paper released by the Bipartisan Policy Center. The BPC called on policymakers to restore certain tools the group believes would give regulators needed flexibility in the event of another financial crisis.
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Financially healthy employees good for business, bureau says
Posted Date: Friday, September 5, 2014
The Consumer Financial Protection Bureau said financial distress is rampant in the American workforce, and this distress can negatively impact productivity and employee health. The bureau published a report to promote financial wellness in the workplace and urged companies to establish programs to support the financial health of their employees.
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CSBS presses for ‘proper state regulatory representation’ on FDIC board
Posted Date: Friday, September 26, 2014
The Conference of State Bank Supervisors backed federal legislation the group said would ensure “proper state regulatory representation” on the board of the Federal Deposit Insurance Corp. The CSBS said the measure is needed because the current composition of the board “does not reflect the letter or the spirit of the law.” Read on to learn about the bill.
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SEC touts international reach with largest whistleblower award
Posted Date: Friday, September 26, 2014
The Securities and Exchange Commission announced an expected award of more than $30 million to a whistleblower living in a foreign country. The award — the largest made by the SEC’s whistleblower program to date — comes just weeks after the 2nd U.S. Circuit Court of Appeals issued a key ruling regarding the cross border application of Dodd-Frank’s whistleblower anti-retaliation provisions.
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Community bankers have ‘mixed view’ of non-QM lending
Posted Date: Friday, September 26, 2014
Community bankers have a wide range of opinions regarding whether to make loans that do not fit within the Consumer Financial Protection Bureau’s qualified mortgage provisions, according to survey results released by the Federal Reserve and Conference of State Bank Supervisors. What percentage of community bankers said they are making non-QM loans this year? Read on for the details and to learn about other top issues facing industry participants across the nation.
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New-look CFTC tweaks Dodd-Frank swaps rules
Posted Date: Friday, September 26, 2014
The Commodity Futures Trading Commission recently held its first public meeting since Timothy Massad took the reins at the agency. The CFTC finalized a rule altering controversial requirements impacting the counterparties of public power utilities. The commission also proposed its version of margin rules for uncleared swaps. Read on for the details.
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CFPB complaint narrative plan should be scrapped, industry groups say
Posted Date: Friday, September 26, 2014
The Consumer Financial Protection Bureau should abandon plans to add complaint narratives to its public database of consumer gripes, according to major trade groups representing the banking and mortgage industry participants. Meanwhile, consumer advocates urged the CFPB to finalize its proposed policy on public consumer complaint narratives. Read on to learn what groups on both sides of the issue are saying.
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Mergers, failures drive continued decline in institutions reporting HMDA data
Posted Date: Tuesday, September 23, 2014
The Federal Financial Institutions Examination Council released Home Mortgage Disclosure Act data covering 2013 lending activity. The data, which represent the most comprehensive publicly available information on mortgage market activity, show that the number of institutions that report under HMDA continued to decline. Read on to learn about mortgage trends identified by the FFIEC.
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Georgia debt collection firm seeks dismissal of CFPB lawsuit
Posted Date: Tuesday, September 23, 2014
A Georgia-based debt collection law firm that the Consumer Financial Protection Bureau claimed operates like a “lawsuit mill” asked a federal court to dismiss the agency’s case against it. The firm, Frederick J. Hanna & Associates, said the case should be tossed for several reasons, including that Dodd-Frank precludes the bureau from bringing certain claims against an attorney practicing law. The firm also contended that the bureau’s claims fail as a matter of law. Read on for the firm’s arguments.
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Transaction volume expanding for exempt issuers under debit card swipe fee caps
Posted Date: Tuesday, September 23, 2014
The volume of debit card transactions processed by issuers that are exempt from Dodd-Frank’s debit card swipe fee caps outpaced the growth experienced by covered issuers, according to survey numbers released by the Federal Reserve. Read on for the details and for more highlights from the Fed’s 2013 interchange fee revenue report.
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GAO reveals scope of CFPB data gathering effort
Posted Date: Tuesday, September 23, 2014
The Government Accountability Office released a highly anticipated report on the Consumer Financial Protection Bureau’s data gathering efforts. According to the report, the CFPB undertook 12 large-scale data collections since January 2012 spanning products including mortgages, student loans and credit cards. Although the CFPB has taken steps to secure these data collections, additional efforts are needed to reduce the risk of improper collection, use or release of consumer financial data, the GAO determined. Read on to learn about the CFPB’s data collection program and how the bureau responded to issues identified by the GAO.
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CFPB to oversee large nonbank auto lenders
Posted Date: Monday, September 22, 2014
The Consumer Financial Protection Bureau would oversee larger nonbank auto lenders under a proposed rule released for comment Sept. 17. In addition, the bureau unveiled a report detailing alleged auto lending discrimination at supervised banks and released a long-awaited whitepaper on the methodology it uses to evaluate auto lending for compliance with fair lending laws. The CFPB released the rulemaking proposal and the reports one day before it hosted a field hearing on auto lending in Indianapolis.
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CFPB sues online payday lender
Posted Date: Monday, September 22, 2014
The Consumer Financial Protection Bureau filed a lawsuit targeting an online payday lender the agency said illegally tapped into consumers’ checking accounts. The bureau said the lender, Hydra Group, put money into consumers’ checking accounts without their knowledge and then extracted unauthorized fees. The CFPB also said Hydra Group produced bogus documentation when banks and credit unions contacted the lender to inquire about the fees. Read on for the details.
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Bureau says for-profit college violated CFPA, FDCPA
Posted Date: Monday, September 22, 2014
The Consumer Financial Protection Bureau sued California-based Corinthian Colleges Inc., claiming the operator of for-profit schools lured thousands of economically disadvantaged students into taking out private loans. The bureau also said the company used illegal tactics when students had trouble repaying their debts. Specifically, the bureau alleged violations of Dodd-Frank’s ban on unfair and deceptive acts or practices, as well as violations of the Fair Debt Collection Practices Act. Read on for an in-depth look at the CFPB’s action.
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Written guidance a must for mortgage disclosure implementation, industry says
Posted Date: Thursday, September 18, 2014
A coalition of major trade associations urged the Consumer Financial Protection Bureau to work with stakeholders to craft uniform written guidance as industry participants implement the agency’s new mortgage disclosures rule. In a joint letter to the bureau, 16 groups representing the real estate, mortgage and settlement services industries suggested several steps the bureau should take to address the “steady stream of questions and issues” that will likely require bureau guidance.
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House passes Volcker Rule, mortgage points and fees bills again
Posted Date: Thursday, September 18, 2014
The U.S. House approved two bills that include a collection of measures to amend certain Dodd-Frank provisions. A number of the legislative proposals in the bills were previously approved by the House, including a measure regarding the treatment of points and fees under the Consumer Financial Protection Bureau’s qualified mortgage rules. House Republicans said they passed the proposals again in an effort to spur Senate Democrats to take action on them. Read on for the details.
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Global derivatives regulators update cross-border progress
Posted Date: Tuesday, September 16, 2014
A panel of international regulatory agencies released a progress report on efforts to resolve over-the-counter derivatives cross-border implementation issues. The report, which provides an update to the G20, also identified a cross-border issue the panel said may call for legislative changes. Read on for the details.
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Former TierOne Bank exec pleads guilty to fraud charges
Posted Date: Tuesday, September 16, 2014
A former senior vice president and chief credit officer at a now defunct $2.8 billion Nebraska-based bank pleaded guilty for his role in an alleged scheme to defraud shareholders and regulators. Investigators said Don Langford worked with others to cover up losses at TierOne Bank as the real estate market imploded in the wake of the financial crisis.
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Know your regulator: SEC names first ombudsman
Posted Date: Friday, September 12, 2014
The Securities and Exchange Commission announced its first ombudsman for the agency. As required by Dodd-Frank, the ombudsman will act as a liaison in resolving problems that retail investors may have with the commission or a self-regulatory organization. Read on to learn about the new SEC ombudsman.
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Lawmakers push for regulatory burden relief
Posted Date: Friday, September 12, 2014
Congress concluded its month-long summer break, and members of the U.S. Senate Banking Committee marked their return to Washington, D.C., with a hearing on Dodd-Frank implementation. Much of the discussion focused on reducing regulatory and compliance burdens. Read on to learn what one top regulator said agencies can do now to help provide relief to smaller institutions.
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CFPB preps for consumer advisory meeting, auto finance hearing
Posted Date: Tuesday, September 9, 2014
The Consumer Financial Protection Bureau has some important meetings planned. Later this week, the bureau’s Consumer Advisory Board will assemble for the first time since new board members were announced in August. On Sept. 18, bureau leaders will head to Indianapolis for a field hearing on auto lending. Read on for a preview of the meetings.
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FHFA proposes to update affordable housing goals
Posted Date: Tuesday, September 9, 2014
The Federal Housing Finance Agency proposed a rule that would update its affordable housing goals for government-sponsored enterprises Fannie Mae and Freddie Mac for 2015-17. The Housing and Economic Recovery Act of 2008 requires FHFA to establish annual housing goals for both GSEs, and FHFA’s current housing goals rule is effective through the end of this year. Read on to learn about the proposal.
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CFPB updates compliance guides for disclosure rule implementation
Posted Date: Tuesday, September 9, 2014
The Consumer Financial Protection Bureau updated a pair of guides intended to help smaller entities implement new mortgage disclosure forms and rules that take effect next summer. Read on to learn about the guides and other resources the bureau recently made available to help companies comply with the new requirements.
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Regulators re-propose Dodd-Frank swap margin requirements
Posted Date: Friday, September 5, 2014
Five federal agencies re-proposed a rule to establish margin requirements for swaps entities as required by the Dodd-Frank Act. The re-proposal responds to industry feedback on a previous proposal, as well as international standards finalized last year. Read on to learn how regulators addressed concerns that their initial proposal would burden commercial end-users.
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SEC awards whistleblowing compliance employee
Posted Date: Friday, September 5, 2014
The Securities and Exchange Commission announced its first award for a whistleblower with an audit or compliance function at a company. The commission said the unnamed whistleblower reported wrongdoing to the government after the company failed to take action. Read on for the details.
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SEC finalizes ABS rules
Posted Date: Wednesday, September 3, 2014
The Securities and Exchange Commission adopted revisions to rules governing the disclosure, reporting and offering process for asset-backed securities. The Dodd-Frank-mandated changes are aimed at enhancing transparency, better protecting investors and facilitating capital formation in the securitization market. Read on to learn about the final rules.
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Group backs NCUA appraisal proposals
Posted Date: Wednesday, September 3, 2014
A trade group representing federal credit unions backed the National Credit Union Administration’s plan to amend certain rules regarding appraisals in light of new Consumer Financial Protection Bureau requirements. Read on to learn about the proposed changes.
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HUD finalizes post payment interest charge rule
Posted Date: Wednesday, September 3, 2014
Borrowers who prepay their Federal Housing Administration-insured mortgages will not have to make interest payments beyond the date their mortgage is paid in full under a rule finalized by the Department of Housing and Urban Development. Industry participants had applauded the proposal, but urged HUD, FHA, Ginnie Mae and the Consumer Financial Protection Bureau to harmonize requirements related to the issue to ensure certain costs are not passed on to borrowers. Read on to learn how HUD responded to the industry’s concerns.
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