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CFPB may be bending on ‘rural’ definition
Posted Date: Tuesday, April 30, 2013
When the Federal Reserve first released a proposal intended to implement Dodd-Frank’s ability-to-repay/qualified mortgage provisions, the mortgage industry was quick to highlight major issues such as the scope of the QM definition. However, other key provisions received a burst of public attention after the CFPB issued its final ATR/QM rule in January. Read on to learn about the continuing debate over an important exemption for institutions in rural and underserved areas.
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Sens. Brown, Vitter unveil legislation intended to end ‘too-big-to-fail’
Posted Date: Friday, April 26, 2013
Two Senators on opposite ends of the political spectrum released the details of a long-awaited bill they said would prevent any single financial institution from becoming so large that its failure could imperil the U.S economy or trigger the need for a government bailout. The bill would see the United States “walk away” from Basel III and would establish a minimum 15 percent capital requirement for megabanks. The bill also includes provisions intended to provide regulatory relief for community institutions. Read on for the details.
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New CFPB office to foster dialog with industry participants
Posted Date: Friday, April 26, 2013
The Consumer Financial Protection Bureau established an office intended to connect the bureau with trade associations, financial institutions and businesses. The CFPB also named a leader for the office and announced numerous additional key hires. Read on for the details.
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FSOC report outlines risks to U.S. financial stability
Posted Date: Friday, April 26, 2013
The federal panel tasked under the Dodd-Frank Act with identifying and addressing threats to U.S. financial stability released its third annual report. The comprehensive report from the Financial Stability Oversight Council provides an update on financial reform efforts and addresses a range of topics from the wholesale funding markets, to mortgage and housing finance reform, to the dangers posed by interest rate and operational risks. Read on to learn about the report and the risks identified by the FSOC.
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Basel III study bill garners industry support
Posted Date: Friday, April 26, 2013
The American Bankers Association is backing legislation that would require federal banking regulators to study the impact of their Basel III proposals on community institutions. The Basel III Commonsense Approach for Small Entities Act was introduced on April 16. Read on for the details.
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Banking regulators propose guidance on deposit advance products
Posted Date: Friday, April 26, 2013
The Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency unveiled proposed guidance on deposit advance loans. The proposal came just one day after the Consumer Financial Protection Bureau released a report likening the products to payday loans and outlining the potential consumer risks associated with these short-term, small-dollar offerings. Read on to learn about the guidance.
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Republicans raise the stakes in battle over CFPB nomination
Posted Date: Friday, April 26, 2013
Outspoken Republicans in the House and Senate show no sign of backing down from a debate over the legitimacy of the 2012 recess appointment that placed Richard Cordray at the head of the Consumer Financial Protection Bureau. The leader of the Republican-controlled House Financial Services Committee banned Cordray from testifying before the committee on the agency’s semi-annual report. A Senate Republican lawmaker also refused to show when Cordray testified before the Banking Committee. Read on for the details.
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CFPB releases escrow rule compliance guide
Posted Date: Wednesday, April 24, 2013
The Consumer Financial Protection Bureau released the latest in a series of promised compliance guides intended to help smaller institutions comply with the agency’s new mortgage rules. The most recent guide, released by the CFPB on April 19, addresses the escrow rule set to take effect in June. Read on to learn about the guide.
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International finance ministers pressure U.S. regulators on derivatives reforms
Posted Date: Wednesday, April 24, 2013
Finance ministers from around the globe wrote Treasury Secretary Jacob Lew to express concern over the “lack of progress in developing workable cross-border rules” as part of the ongoing effort to reform the over-the-counter derivatives market. The letter — signed by the finance ministers of France, Germany, Italy, Japan and others — indicated that a lack of regulatory coordination is already resulting in market fragmentation. Read on for the details.
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CFPB plans to take action on payday, deposit advance lending
Posted Date: Wednesday, April 24, 2013
While they may work for some borrowers, payday and deposit advance loans all too often lead consumers into a cycle of debt, a new whitepaper from the Consumer Financial Protection Bureau finds. The bureau also signaled it is weighing policy steps intended to address risks these products pose to consumers. Read on for the details.
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Senator challenges CFPB leader on agency’s data collection activities
Posted Date: Wednesday, April 24, 2013
The Senate Banking Committee’s top Republican wants the Consumer Financial Protection Bureau to review how it collects and handles consumer data to determine whether the bureau’s data collection efforts could possibly violate the Dodd-Frank Act. Committee ranking member Mike Crapo, R-Idaho, voiced concern that information collected by the bureau could be pieced together to identify individual consumers. Read on for the details.
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Government report identifies numerous internal supervisory control deficiencies at SEC
Posted Date: Wednesday, April 24, 2013
The Government Accountability Office is urging the Securities and Exchange Commission to beef up its internal supervisory controls after the GAO identified numerous deficiencies in controls it tested. Read on to learn about the deficiencies and what the GAO said the SEC should do to address the issues it found.
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Agencies update ‘living will’ instructions for biggest banks
Posted Date: Monday, April 22, 2013
Some of the largest megabanks required to file annual resolution plans under the Dodd-Frank Act will need to provide additional information this year under guidance released by the Federal Reserve and the Federal Deposit Insurance Corp. Read on to learn about the new requirements.
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CFPB plans to amend QM, servicing final rules
Posted Date: Monday, April 22, 2013
The Consumer Financial Protection Bureau plans to make changes to two major mortgage rulemakings finalized earlier this year. Proposed amendments, released by the bureau on April 19, seek to address questions related to the mortgage servicing rules and the ability-to-repay/qualified mortgage rule. The bureau also said it plans to amend other final rules. Read on for the details.
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CFTC leaders square off in budget fight
Posted Date: Monday, April 22, 2013
The leader of the nation’s futures and swaps regulator wants a big budget boost for his agency. The Commodity Futures Trading Commission’s recent budget request seeks an FY 2014 appropriation of $315 million, a 52 percent increase from FY 2013’s projected funding level. CFTC chairman Gary Gensler said the increase is needed to carry out his agency’s expanded mission under Dodd-Frank. However, a Republican CFTC commissioner said the agency’s appeal for a massive budget increase is “unsubstantiated.” Read on for the details.
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CFPB exams to become more efficient, Antonakes says
Posted Date: Monday, April 22, 2013
The Consumer Financial Protection Bureau has not been in the supervision business long, but the bureau’s early efforts to scrutinize certain banks and nonbanks quickly earned the young regulator a negative reputation in some quarters. Acting CFPB Deputy Director Steve Antonakes addressed industry participants’ concerns during a speech before the American Bankers Association Government Relations Summit. Read on to learn what Antonakes had to say about the role enforcement attorneys play in CFPB examinations.
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QM tops list of bankers’ compliance concerns during U.S. House hearing
Posted Date: Monday, April 22, 2013
Democrats, Republicans and community bankers alike are expressing concern over the potential impact of the Consumer Financial Protection Bureau’s new ability-to-repay/qualified mortgage rule. Lawmakers on both sides of the aisle also acknowledged the importance of community banks and supported efforts to reduce the regulatory burdens such institutions face during a recent hearing before the U.S. House Financial Institutions and Consumer Credit Subcommittee. Read on to learn what some community bankers had to say about their plans to implement the ability-to-repay rule’s requirements.
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Webinar to drill down on RESPA compliance
Posted Date: Tuesday, April 16, 2013
RESPA News, Dodd Frank Update’s sister publication, will host a 90-minute webinar next week to educate mortgage and settlement services professionals and others on current Real Estate Settlement Procedures Act regulations and the top areas where compliance issues lurk. The webinar will feature top-rated RESPA compliance trainers Phil Schulman and Holly Spencer Bunting, both partners in the Washington, D.C., office of K&L Gates. Read on for the details.
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Understanding QM: LO comp and the concurrent proposal
Posted Date: Tuesday, April 16, 2013
The ultimate impact of the ability-to-repay/qualified mortgage rule is not clear, in part because the Consumer Financial Protection Bureau proposed a number of important rule revisions when it released the final rule. The proposal seeks comment on certain outstanding issues related to loan originator compensation under the ATR rule’s QM points and fees provisions. Read on to learn what a top compliance attorney had to say about the alternatives the bureau set forth for determining what loan originator compensation must be counted toward points and fees
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Report weighs impact of court decision on Cordray appointment, CFPB activities
Posted Date: Tuesday, April 16, 2013
A new report from the Congressional Research Service indicates a court ruling that invalidated three recess appointments to the National Labor Relations Board could have a serious impact on actions the Consumer Financial Protection Bureau has taken since Richard Cordray was appointed director. Read on for the details.
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CFPB expects to grow but spend less in 2014, budget reveals
Posted Date: Tuesday, April 16, 2013
The Consumer Financial Protection Bureau will continue to grow in FY 2014, according to budget estimates released by the bureau. Even though the CFPB will be adding employees, the agency plans to spend less money in 2014 than it will in 2013. Read on to learn about the budget and the bureau’s goals for the next several years.
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CFPB proposes amendments to escrow rule’s ‘rural’ and ‘underserved’ provisions
Posted Date: Tuesday, April 16, 2013
The Consumer Financial Protection Bureau proposed “clarifying and technical amendments” to its new escrow rule that is currently scheduled to take effect in June. The modifications would ensure that certain ability-to-repay provisions related to higher priced mortgage loans remain in effect until the CFPB’s new ability-to-repay/qualified mortgage final rule becomes effective next year. The proposal also clarifies the determination method for the bureau’s “rural” and “underserved” designations. Read on for the details.
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New FDIC video series to assist bank leaders, employees
Posted Date: Tuesday, April 16, 2013
The Federal Deposit Insurance Corp. recently released the first in a series of technical assistance videos intended to provide useful information to bank directors, officers and employees on areas of supervisory focus and proposed regulatory changes. Read on to learn about the series and to view the FDIC’s videos.
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CFPB releases ability-to-repay plain language compliance guide
Posted Date: Sunday, April 14, 2013
The Consumer Financial Protection Bureau released the first in a series of promised plain language guides intended to help smaller industry participants comply with the regulator’s new mortgage rules. The first guide to be released pertains to the bureau’s ability-to repay/qualified mortgage rule. Read on for the details.
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Banks that paid to stabilize the DIF will get FDIC refunds
Posted Date: Sunday, April 14, 2013
The Deposit Insurance Fund continues to strengthen and remains on track to meet statutory targets established under the Dodd-Frank Act, according to new numbers from the Federal Deposit Insurance Corp. The agency also announced plans to refund roughly $6 billion to some banks that prepaid into the DIF during the financial crisis. Read on for the details.
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Swaps data reporting delay doesn’t go far enough for end users, O’Malia says
Posted Date: Sunday, April 14, 2013
The Commodity Futures Trading Commission issued a no-action letter providing certain swap counterparties that are not swap dealers or major swap participants with additional time to comply with the agency’s Dodd-Frank swap data reporting rules. Read on to learn why CFTC Commissioner Scott O’Malia said the relief could pose compliance difficulties for non-financial end users.
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Understanding QM: What the CFPB really means by ‘total loan amount’
Posted Date: Sunday, April 14, 2013
The Consumer Financial Protection Bureau’s new ability-to-repay/qualified mortgage rule provides that a loan cannot be a QM if the points and fees paid by the consumer exceed certain thresholds based on the total loan amount. However, determining the total loan amount may be more difficult than it first appears. Read on to learn what a top compliance attorney had to say about the calculations involved in making this determination.
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FDIC updates policy on developing regulations
Posted Date: Friday, April 12, 2013
The Federal Deposit Insurance Corp. board adopted amendments to the agency’s policy for developing and reviewing regulations. The revisions are intended to clarify and expand upon policy-setting matters such as rulemaking transparency and ensuring interagency coordination. The policy revisions also discuss the need to focus on the impact regulations have on smaller institutions. Read on for the details.
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CFTC, SEC finalize ID theft prevention rules
Posted Date: Friday, April 12, 2013
Financial institutions and creditors under the enforcement jurisdiction of the Commodity Futures Trading Commission and the Securities and Exchange Commission will be required to develop written identity theft prevention programs under joint rules and guidance released by the agencies on April 10. Read on to learn about the rule.
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Are you ready to implement the LO compensation rule?
Posted Date: Tuesday, April 9, 2013
Parts of the CFPB’s new loan originator compensation rule take effect as early as June of this year. Mortgage professionals are encouraged to get the training they need now in order to ensure compliance by its effective date. Dodd Frank Update is offering a 90-minute training webinar on the rule and how to comply with its various parts. Read on to learn more about this educational opportunity.
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U.S. Chamber launches bid to reform the reform
Posted Date: Tuesday, April 9, 2013
Overhauling the Consumer Financial Protection Bureau’s leadership structure, improving regulatory coordination and repealing the Volcker Rule are among the items included in a broad package of Dodd-Frank tweaks suggested by the U.S. Chamber of Commerce. Read on to learn about the chamber’s new “Fix, Add, Replace Agenda” for financial reform.
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Understanding the ability-to-repay rule’s temporary QM category
Posted Date: Tuesday, April 9, 2013
The Consumer Financial Protection Bureau’s new ability-to-repay/qualified mortgage rule provides that a loan generally cannot be a QM if the borrower’s debt-to-income ratio is over 43 percent. However, the final rule also established temporary provisions that will allow loans over 43 DTI to qualify as QMs subject to certain conditions. Read on to learn what Jed Mayk, a Partner at Hudson Cook LLP, had to say about the CFPB’s temporary QM provisions during a recent October Research LLC webinar.
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CFPB now collecting money transfer gripes
Posted Date: Tuesday, April 9, 2013
Consumers can now lodge official complaints regarding money transfers with the Consumer Financial Protection Bureau. The bureau’s complaint system began accepting money transfer complaints on April 4, and the CFPB said the complaints will complement the CFPB’s work in this area. Read on for the details.
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Fed finalizes retail forex rule
Posted Date: Tuesday, April 9, 2013
The Federal Reserve Board finalized standards for banking organizations that engage in certain types of foreign exchange transactions with retail customers. The rule, issued under the Dodd-Frank Act, establishes requirements for risk disclosures to customers, recordkeeping, business conduct and documentation for retail foreign exchange transactions. Read on for the details.
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CFPB to release plain language guides for new mortgage rules this week
Posted Date: Tuesday, April 9, 2013
The Consumer Financial Protection Bureau plans to release promised plain language guides to its new mortgage rules sometime this week. The rules take effect in January, and the bureau said it is taking steps to ensure that lenders are able to comply. Read on for the details.
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CFPB to fine mortgage insurers $15 million for alleged captive reinsurance kickbacks
Posted Date: Friday, April 5, 2013
Four mortgage insurance companies will pay a combined $15.4 million for engaging in captive reinsurance arrangements that the Consumer Financial Protection Bureau said facilitated the payment of illegal kickbacks to lenders in violation of the Real Estate Settlement Procedures Act. The bureau also said it continues to look into lenders’ roles in such arrangements. Read on for the details.
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Curry to take FFIEC reins
Posted Date: Friday, April 5, 2013
Thomas Curry, Comptroller of the Currency, has been named chairman of the Federal Financial Institutions Examination Council for a two-year term. Read on for the details and to learn more about Curry’s background.
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Understanding QM’s safe harbor and rebuttable presumption
Posted Date: Friday, April 5, 2013
The Dodd-Frank Act provided that qualified mortgages are entitled to a presumption that the creditor making the loan satisfied the act’s ability-to-repay requirements. However, the act did not specify whether the presumption of compliance is conclusive or is rebuttable. The CFPB’s final rule employs both approaches. Jed Mayk, a partner at Hudson Cook LLP, discussed the QM safe harbor and rebuttable presumption during a recent October Research LLC webinar. Read on for the details.
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Fed OIG urges CFPB to beef up information security
Posted Date: Friday, April 5, 2013
The Federal Reserve’s Office of Inspector General wants the Consumer Financial Protection Bureau to strengthen security controls for the system the bureau uses to handle consumer complaints. The OIG also urged the bureau to beef up policies related procurement and contract solicitation. Read on to learn about the OIG’s concerns.
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Decision time: What you must know about the CFPB’s new mortgage rules
Posted Date: Friday, April 5, 2013
The Consumer Financial Protection Bureau released several important rules in January, and these rules will fundamentally change the mortgage industry when they go into effect early next year. What should smaller institutions be doing now to prepare for the regulatory onslaught? Read on to learn what advice John Redding, a partner with Buckley Sandler LLP, had for lenders at the recent Independent Community Bankers of America Convention and Techworld in Las Vegas.
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Rule underlying Fed nonbank supervision provisions finalized
Posted Date: Friday, April 5, 2013
The Federal Reserve approved a final rule establishing the requirements for determining when a company is “predominantly engaged in financial activities.” The requirements will be used by the Financial Stability Oversight Council when it considers the potential designation of a nonbank financial company for consolidated supervision by the Federal Reserve as authorized under the Dodd-Frank Act. Read on for the details.
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Agencies finalize leveraged lending guidance
Posted Date: Tuesday, April 2, 2013
Federal banking regulators finalized new guidelines regarding lending to leveraged borrowers. The guidelines revise the regulators’ interagency leveraged finance guidance issued in 2001. Read on to learn about the guidance and how the regulators responded to concerns that the revisions could negatively impact community banks.
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Reg. X servicing takeaways: What you must know about the CFPB’s new mortgage rules
Posted Date: Tuesday, April 2, 2013
The Consumer Financial Protection Bureau released several important rules in January, including a pair of rules mandating significant changes for firms engaged in mortgage servicing. During the recent Independent Community Bankers of America Convention and Techworld in Las Vegas, John Redding, a partner with Buckley Sandler LLP, discussed aspects of the rules that lenders should be aware of. Read on to learn what Redding had to say about the CFPB’s amendments to Regulation X.
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Inter-affiliate clearing exemption finalized by CFTC
Posted Date: Tuesday, April 2, 2013
The Commodity Futures Trading Commission released a final rule exempting swaps between certain affiliated entities within a corporate group from Dodd-Frank’s clearing requirement subject to a number of conditions. Read on to learn how the CFTC will view inter-affiliate swaps during the period before the exemption becomes effective.
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What’s my liability under the CFPB’s ability-to-repay rule?
Posted Date: Tuesday, April 2, 2013
The Consumer Financial Protection Bureau finalized what is arguably the new regulator’s most consequential rule on Jan. 10. As required by the Dodd-Frank Act, the CFPB’s ability-to-repay/qualified mortgage rule amended Regulation Z, which implements the Truth in Lending Act, to generally require creditors to “make a reasonable, good faith determination of a consumer’s ability to repay any consumer credit transaction secured by a dwelling.”
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CFPB’s upcoming priorities revealed in latest report to Congress
Posted Date: Tuesday, April 2, 2013
The Consumer Financial Protection Bureau discussed its recent accomplishments in a new report to Congress. The report details the bureau’s activities, as well as its growth and spending. Read on to learn what regulations and other policy initiatives the bureau plans to address this year.
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Sen. Sanders wants to break up big banks, nonbanks
Posted Date: Friday, March 29, 2013
U.S. Sen. Bernie Sanders, I-Vt., plans to introduce legislation that would see the government break apart bank and nonbank financial companies identified as too big to fail. The legislation comes after U.S. Attorney General Eric Holder expressed concern that prosecuting some mega-firms could jeopardize U.S. and global financial stability. Read on to learn about the legislation.
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Mortgage performance improving, OCC report finds
Posted Date: Friday, March 29, 2013
The overall quality of first-lien mortgages serviced by large national and federal savings banks improved from the prior quarter and from the same period a year ago, according to a report released by the Office of the Comptroller of the Currency. Read on for the details.
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CFPB finalizes Card Act, ATM fee disclosure rules
Posted Date: Friday, March 29, 2013
Fee notices will no longer need to be placed on or at automated teller machines under a rule finalized by the Consumer Financial Protection Bureau. The CFPB also finalized revisions to a debated Federal Reserve rule related to credit card fees. Read on to learn about both CFPB rulemakings.
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CFPB expands complaint database, releases new report on consumer gripes
Posted Date: Friday, March 29, 2013
The Consumer Financial Protection Bureau greatly increased the size and scope of its consumer complaints database under a final policy statement released by the agency on March 28. The bureau also provided the public with its latest snapshot of consumer complaints. Read on to learn how CFPB director Richard Cordray responded to concerns that the publication of the complaint data could harm industry participants.
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Reg. Z servicing takeaways: What you must know about the CFPB’s new mortgage rules
Posted Date: Friday, March 29, 2013
The Consumer Financial Protection Bureau released several important rules in January, including a pair of rules mandating significant changes for firms engaged in mortgage servicing. During the recent Independent Community Bankers of America Convention and Techworld in Las Vegas, John Redding, a partner with Buckley Sandler LLP, discussed aspects of the rules that lenders should be aware of. Read on to learn what Redding had to say about the CFPB’s amendments to Regulation Z.
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