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How will UDAAP continue to shape the regulatory landscape?
Posted Date: Monday, October 26, 2015
Just weeks after the TILA-RESPA Integrated Disclosures became effective, the Consumer Financial Protection Bureau issued its final rule regarding its Dodd-Frank-mandated changes to the Home Mortgage Disclosure Act. As if industry participants did not have enough of their plates, there is still the continuing confusion and massive regulatory reach provided by the bureau’s ability to enforce against “unfair, deceptive or abusive acts or practices” (UDAAP). Read on to hear what a top industry attorney had to say about compliance and key takeaways from recent enforcements.
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CFPB issues finalized rule for HMDA
Posted Date: Friday, October 16, 2015
Nearly a full year after the comment period closed on the Consumer Financial Protection Bureau’s proposed rule on the Home Mortgage Disclosure Act, the bureau issued the final rule. Dodd Frank Update has your first look at what the final HMDA rule says, when it takes effect, what institutions will fall under its requirements, what they will be required to collect, and some of the changes between the proposed and final rules. We also have reaction from industry experts.
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CFPB: MSAs are likely not worth the risk
Posted Date: Friday, October 9, 2015
The Consumer Financial Protection Bureau issued a bulletin Oct. 8 to provide guidance to the mortgage industry regarding marketing services agreements (MSAs), which have been a major topic of concern considering the CFPB’s recent enforcement actions against alleged kickback schemes for settlement service referrals. Read on for more details.
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Live: Cordray targets vendors in MBA speech
Posted Date: Wednesday, October 21, 2015
Consumer Financial Protection Bureau Director Richard Cordray pulled no punches in a speech at the Mortgage Bankers Association annual convention in San Diego. In addition to issuing warnings about marketing services agreements, Cordray set his sights squarely on the shortcomings of technology vendors in preparation for the TILA-RESPA Integrated Disclosure rules implementation. Read on to see what the director wants done to those vendors.
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CFPB releases proposal for regulating arbitration clauses
Posted Date: Friday, October 9, 2015
The Consumer Financial Protection Bureau announced its plans at a recent field hearing to start the rulemaking process for regulating pre-dispute arbitration clauses. Under its proposal, the bureau is seeking to eliminate class-action waivers in arbitration clauses and to require companies to submit data on their arbitration disputes for further monitoring. Read on to hear what the pioneer of pre-dispute arbitration had to say about the bureau’s findings and proposals.
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OCC spells out supervisory focus for 2016
Posted Date: Friday, October 9, 2015
The Office of the Comptroller of the Currency released its bank supervision operating plan for fiscal year 2016 and cited areas of focus for each of its supervision units, with compliance and credit risk among its top priorities. Read on to see what else the agency will keep its eye on in the coming year.
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CFPB’s proxy methodology for detecting discrimination comes under fire
Posted Date: Tuesday, October 6, 2015
Consumer Financial Protection Bureau Director Richard Cordray appeared before the House Financial Service Committee to discuss the bureau’s semi-annual report. Cordray fielded questions about the bureau’s proxy methodology for measuring disparate impact in indirect auto lending. There have been reports that the method is leading to an overestimation of discrimination on the basis of race and national origin.
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SEC proposes amendments to hearings, but are new rules fair enough?
Posted Date: Wednesday, October 21, 2015
In response to growing allegations that its administrative proceedings are unconstitutional and run afoul of the powers bestowed by the Dodd-Frank Act, the Securities and Exchange Commission has proposed two amendments to its Rules of Practice: One that addresses the common criticism of the commission’s “rocket docket,” and another that allows respondents to file documents electronically. So far, the legal realm has condemned the proposed amendments as “miserly” and failing to take the steps needed to make the administrative hearing process fairer. Read on for details of the proposed amendments and to find out how to voice your own opinions on them.
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MBA to members: Re-evaluate your MSAs now
Posted Date: Friday, October 16, 2015
After the Consumer Financial Protection Bureau issued a guidance bulletin on marketing services agreements, the Mortgage Bankers Association (MBA) had its own message for membership: Beware. Read on for details of what MBA is telling its lenders to do in light of the bureau’s announcement.
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Associations join in support of PHH in case
Posted Date: Friday, October 9, 2015
Four industry associations have collectively filed an amicus brief in support of PHH Corp. in its appeal against the Consumer Financial Protection Bureau’s ruling that PHH violated RESPA in its captive reinsurance program. Read on to see what the associations had to say on the issue.
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More than a quarter of student loans in default; what’s to blame?
Posted Date: Wednesday, October 21, 2015
Releasing its annual Student Loan Ombudsman report, the Consumer Financial Protection Bureau found that distressed borrowers are struggling to set up repayment plans and get their loan servicers to cooperate. Read on to find out where servicers are falling short, and what the CFPB recommends stakeholders do about it.
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Caller ID fraud leads to $48 million penalty against debt collectors
Posted Date: Tuesday, October 13, 2015
Skip Tracy sounds like the name of a cartoon character, but it is actually a Caller ID service that the Consumer Financial Protection Bureau found was used by an indirect auto lender and its subsidiary to mislead borrowers into making debt payments and giving information about their vehicles to debt collectors. Read on for more details about the bureau’s consent order against Westlake Services and Wilshire Consumer Credit for violations of UDAAP and the FDCPA.
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Cybersecurity is top challenge for CFPB, Fed, report finds
Posted Date: Tuesday, October 13, 2015
The Office of Inspector General has released its management priorities for the Consumer Financial Protection Bureau and the Federal Reserve Board. Cybersecurity was at the top of the office’s recommendations. Read on to find out what the other priorities are and what the office has found in its audits of the two agencies.
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Presidential hopefuls show attitudes toward ‘big banks’ in debate
Posted Date: Friday, October 16, 2015
Dodd Frank Update will be following the presidential campaigning and tracking what the candidates say regarding economic and banking policy. Hear what presidential hopefuls Former-Maryland Gov. Martin O-Malley, Secretary of State Hillary Clinton and Sen. Bernie Sanders (I-Vt.) – the top Democratic candidates – had to say about the Glass-Steagall Act and breaking up the “big banks.”
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Lenders could get reps, warrants on appraisals
Posted Date: Monday, October 26, 2015
Could Fannie Mae and Freddie Mac soon have protections for lenders for the appraisals that are submitted to the agencies when they sell loans on the secondary market? Federal Housing Finance Agency Director Melvin Watt addressed the issue when he spoke in front of lenders at the Mortgage Bankers Association annual convention in San Diego. Read on to see what he had to say.
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Five years into Dodd-Frank, the SEC still sees ‘cracks’ in private funds operation
Posted Date: Monday, October 26, 2015
With a few years’ worth of registration and reporting on thousands of private funds offering insight into size, geographic distribution and investment concentrations in the private funds industry, the Securities & Exchange Commission has a better handle on some ongoing operational and systemic risks. Find out which risks rank highest on the SEC’s radar.
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Consumer groups want federal probe of Experian data breach
Posted Date: Monday, October 26, 2015
A group of 29 consumer advocate groups is urging the Consumer Financial Protection Bureau and the Federal Trade Commission to investigate a recent Experian security breach that compromised the personal financial information of millions of T-Mobile customers. The letter may garner the CFPB’s attention, as the bureau already has its eye on Experian for having the second largest number of complaints in its consumer complaint portal.
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Know Your Regulator: FDIC picks Gross as CIO
Posted Date: Monday, October 26, 2015
Lawrence Gross Jr., a 25-year veteran of several federal government and military agencies’ information technology offices, will lead the FDIC’s IT initiatives as its new chief information officer. Read on for details about the hire.
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Most banks set to pay less to FDIC
Posted Date: Thursday, October 22, 2015
At a meeting of the Federal Deposit Insurance Corp. (FDIC) board, staff informed the board that the Deposit Insurance Fund reserve ratio was projected to reach its minimum standards as soon as the end of the year. With that would come huge savings to community banks whose assessments have helped raise the DIF since 2009. However, the FDIC also issued a proposed rule to improve the DIF further, meaning some banks might not see as big of a reduction in their assessment as others. Read on to see what your assessment soon may look like.
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MBA announces new board; Emerson sworn in as chairman
Posted Date: Wednesday, October 21, 2015
The Mortgage Bankers Association swore in its new chairman, along with new board of director members, during its annual convention in San Diego. Read on to see what the Quicken Loans CEO had to say about taking over a leadership role at MBA.
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NCUA chairwoman schedules open forum
Posted Date: Wednesday, October 21, 2015
National Credit Union Administration (NCUA ) Board Chairman Debbie Matz announced that the agency will host an open forum for credit union stakeholders at the end of the month. The forum will solicit discussion on any topic related to NCUA, Matz said. Read on for all the details.
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NCUA approves RBC final rule; Call Report changes coming
Posted Date: Friday, October 16, 2015
In a move that it says could affect as few as 16 credit unions nationwide, the National Credit Union Administration (NCUA) Board approved a final rule for risk-based capital (RBC) standards in the credit union system. The standards will apply to large credit unions, and an updated Call Report will automatically calculate RBC. Read on for the details.
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Fifth Third settles fraud charges for $85 million
Posted Date: Friday, October 16, 2015
According to the Special Inspector General for the Troubles Asset Relief Program (SIGTARP), the bank failed to self-report defective mortgage loans insured by the Federal Housing Administration, both before and after its $3.4 billion bailout in 2008.
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Agent uses fight and humor to survive cancer
Posted Date: Thursday, October 15, 2015
For the fourth year, October Research, LLC, sets aside two weeks to support the Stefanie Spielman Fund for Breast Cancer Research during Breast Cancer Awareness Month. The disease has affected many in the settlement services, financial and real estate industries, and we bring you one such story from cancer survivor Michelle Kynkor of Gateway Title. Read on for her story.
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Agencies detail principles on student loan servicing
Posted Date: Tuesday, October 13, 2015
The U.S. Department of Education, the Treasury Department and the Consumer Financial Protection Bureau have released a joint statement on student loan servicing principles. The goal, they said, is to improve student loan servicing practices, promote borrower success and minimize defaults. Read on to find out the principles they outlined.
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Lawmakers express concerns regarding proposed prepaid rulemaking
Posted Date: Tuesday, October 13, 2015
Several members of Congress signed a letter to the Consumer Financial Protection Bureau, expressing their concerns with the agency’s notice of proposed rulemaking for prepaid accounts. The letter had 43 signatures. Read on to learn more about the proposal, and the lawmakers’ concerns.
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Lawmakers seek to reform OFR
Posted Date: Tuesday, October 13, 2015
A bipartisan bill to reform the Office of Financial Research was introduced to the House Financial Services Committee. The bill will aim to improve the transparency, accountability, governance and operations of the office, among other things. The office was created by Title I of the Dodd-Frank Act to assist the Financial Stability Oversight Council with creating a more stable financial system through research. Read on for more details.
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Veto threat not enough to keep TRID bill from passage
Posted Date: Friday, October 9, 2015
The White House issued a veto threat of a House bill that would provide a temporary safe harbor for companies working in good faith to comply with the TILA-RESPA Integrated Disclosure (TRID) rules. That did not stop the bill, however, as the House passed it 303-121 and moved it on to the Senate. Read on for details of the debate and a look at what is next for the legislation.
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Report: Compliance costs make up 22 percent of community bank net income
Posted Date: Friday, October 9, 2015
The Federal Reserve and the Conference of State Bank Supervisors (CSBS) released the results of their second National Survey of Community Banks, reporting that compliance costs for community banks represented 22 percent of their net income. Despite stating that it was too soon to weigh these costs against their benefits, the agencies recognized that these costs “are sufficient to frustrate bankers.” Read on for more details.
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Payday lenders’ case against agencies has standing
Posted Date: Tuesday, October 6, 2015
A U.S. district court judge has ruled that a case brought by the Community Financial Services Association of America Ltd. against the Federal Deposit Insurance Corp., Federal Reserve Board and the Office of the Comptroller of the Currency can move forward. The plaintiffs are seeking injunctive relief from what they argue is agency involvement in the Department of Justice’s Operation Chokepoint initiative against payday lending. Read on for more details.
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Fifth Third gets ‘one-two’ actions from CFPB
Posted Date: Tuesday, October 6, 2015
The Consumer Financial Protection Bureau issued two enforcement actions, one along with the Department of Justice, against Fifth Third Bank for alleged fair lending practices with indirect auto lending and for alleged deceptive advertisements regarding credit card add-ons. Read on for more details of what Fifth Third did and why the bureau found those actions to violate the Dodd-Frank Act’s prohibition of deceptive acts or practices.
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ABA experiences data security breach
Posted Date: Tuesday, October 6, 2015
The American Bankers Association has announced that the Shopping Cart feature on its website has been breached. At least 6,400 records user names and passwords have been posted online. For more information on how to protect yourself, read on.
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House expected to vote on TRID hold-harmless bill
Posted Date: Tuesday, October 6, 2015
This week the U.S. House of Representatives is expected to vote on the Homebuyers Assistance Act, or H.R. 3192. The bill would provide an enforcement hold-harmless period for those who make good-faith efforts to comply with the TILA-RESPA Integrated Disclosure (TRID) rules. Read on to learn more about the bill and what bills to reform the Consumer Financial Protection Bureau recently have passed the House Financial Services Committee.
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Cordray discusses possible TRID hold-harmless
Posted Date: Tuesday, September 29, 2015
The House Financial Services Committee held a hearing Sept. 29, hosting Consumer Financial Protection Bureau Director Richard Cordray to discuss the bureau’s Semi-Annual Report. Among the topics explored were the differences between auto lenders and auto dealers and whether there may be a hold-harmless enforcement period for the TILA-REPSA Integrated Disclosure rules.
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FTC reaches settlement against alleged payday debt collection scheme
Posted Date: Tuesday, September 29, 2015
The Federal Trade Commission reached a settlement with Broadway Global Master Inc., In-Arabia Solutions Inc. and Kirit Patel over allegations that the defendants engaged in a scheme to defraud consumers who took out payday loans for phantom debts, or debts that are not actually owed. Read on to learn more about the commission’s case and its other activities in tackling such practices.
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CFPB takes next rulemaking step for arbitration
Posted Date: Tuesday, September 29, 2015
The Consumer Financial Protection Bureau will host a field hearing about arbitration at 11 a.m. MDT Oct. 7, in Denver. Read on for more details about the bureau’s arbitration study and the next possible steps in its rulemaking process.
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Attorneys discuss LO Comp pitfalls, enforcements
Posted Date: Tuesday, September 29, 2015
Attorneys David Stein of Bricker & Eckler and Donald Lampe of Morrison & Foerster spoke with Dodd Frank Update about the loan originator compensation rule (LO Comp rule) in October Research, LLC’s webinar titled, “LO Comp: Are Your Arrangements Compliant?” Read on to find out more about the rule and the Consumer Financial Protection Bureau’s recent enforcement trends.
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Agencies announce fifth EGRPRA meeting
Posted Date: Tuesday, September 29, 2015
The Federal Deposit Insurance Corp. (FDIC), the Federal Reserve Board (the Fed), and the Office of the Comptroller of the Currency (OCC) will be holding an outreach meeting Oct. 19 at the Federal Reserve Bank of Chicago as part of their regulatory review requirements under the Economic Growth and Regulatory Paperwork Reduction Act. Read on to find out how to register and access the meeting agenda.
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Thousands of lenders unsure of TRID enforcement practices
Posted Date: Friday, September 25, 2015
Lenders and financial institutions who are supervised by the Federal Deposit Insurance Corp. (FDIC) and the Office of the Comptroller of the Currency (OCC) do not have the kind of enforcement guidance for the new TILA-RESPA Integrated Disclosure (TRID) rules that others in the industry have received from the Consumer Financial Protection Bureau. Dodd Frank Update asked the FDIC and OCC how they planned to supervise and enforce TRID after Oct. 3. Read on to see what they said.
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Mortgage originations fell by a third in 2014, but don’t blame the regulatory climate
Posted Date: Friday, September 25, 2015
Mortgage originations dropped by nearly a third, as low mortgage interest rates caused refinances to drop off by more than half last year compared with 2013, according to the Federal Financial Institutions Examination Council’s 2014 Home Mortgage Disclosure Act data. Some of the trends reflected in the 2014 HMDA data may be the product of regulatory changes that took effect last year. Find out what the FFIEC had to say about the data and how new regulations may have — or may not have — influenced it.
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CFPB, DOJ obtain largest redlining settlement in history
Posted Date: Friday, September 25, 2015
The Consumer Financial Protection Bureau and the Department of Justice announced a joint action against Hudson City Savings Bank for alleged discriminatory redlining practices that denied residents in majority-Black-and-Hispanic neighborhoods fair access to mortgage loans. The penalties would be the highest levied in such an enforcement, and would require the bank to open branches in majority-Black-and-Hispanic neighborhoods. Read on for the details.
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Report: Bill to change CFPB governance may move forward
Posted Date: Friday, September 25, 2015
A bill that would replace the Consumer Financial Protection Bureau’s single-director leadership model to a bipartisan, five-member commission may start to move forward, according to a report from Credit Union Times.
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Mortgages remain the most-complained-about product
Posted Date: Friday, September 25, 2015
The Consumer Financial Protection Bureau released its third monthly consumer complaint snapshot, this time highlighting mortgage complaints. As of Sept. 1, 2015, the CFPB has handled approximately 702,900 complaints. Of those complaints, approximately 192,500 were mortgage-related. This has made mortgages the most-complained-about product. Read on to find out what areas of the mortgage industry may start to receive more regulatory scrutiny.
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Senators reintroduce bill to reform GSEs
Posted Date: Friday, September 25, 2015
With topics such as Planned Parenthood, the Iran nuclear deal and the Import-Export bank heating up Congress, who would have thought Republicans and Democrats could agree on anything? It seems there is a topic of interest for both parties: Reforming the government-sponsored enterprises. Sen. Bob Corker (R-Tenn.) and bill co-sponsors Sens. Elizabeth Warren (D-Mass.), David Vitter (R-La.) and Mark Warner (D-Va.) have reintroduced the Jumpstart GSE Reform Act (S. 2038). Read on to learn more.
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Whistleblower issue may be headed to Supreme Court
Posted Date: Tuesday, September 22, 2015
Do employees obtain whistleblower protection under the Dodd-Frank Act if they only make reports of alleged violations to their employers, and not the Securities and Exchange Commission? This question has been circulating through multiple courts with different conclusions. Is the U.S. Supreme Court the next stop?
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CFPB finals rule on rural and underserved areas
Posted Date: Tuesday, September 22, 2015
To help borrowers in rural and underserved areas gain access to mortgage credit, the Consumer Financial Protection Bureau has finalized several changes to its mortgage rules. The changes will allow more financial institutions become classified as “small creditors” and take advantage of certain small-creditor provisions and exemptions from the CFPB’s qualified mortgage and ability-to-repay rules.
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CFPB updates dollar amount thresholds for QM
Posted Date: Tuesday, September 22, 2015
The Consumer Financial Protection Bureau has updated the dollar amounts for various thresholds under Regulation Z, which implements the Truth in Lending Act. The thresholds are adjusted annually based on the annual percentage change in the Consumer Price Index. Read on to find out the thresholds for qualified mortgages, effective Jan. 1, 2016.
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NCUA raises asset ceiling for small entities
Posted Date: Tuesday, September 22, 2015
The National Credit Union Administration Board unanimously approved a final rule and policy statement raising the asset ceiling of a “small entity” to $100 million. The decision makes an additional 733 federally insured credit unions eligible for special consideration for regulatory relief in future rulemakings. Read on to find out more about the final rule and other decisions made by the board.
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