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Consumer complaints, the CFPB and you (Part 1)
Posted Date: Friday, May 16, 2014
Consumer complaints are important to the Consumer Financial Protection Bureau, and that means they’re important to supervised industry participants. In part one of this series on handling consumer complaints, you will learn about the CFPB’s interest in this area and about steps smaller firms should consider as they work to keep complaints from escalating to the bureau.
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Senate Banking Committee advances housing finance reform bill
Posted Date: Friday, May 16, 2014
The U.S. Senate Banking Committee approved a bipartisan housing finance reform bill despite concerns from lawmakers on both sides of the aisle. The committee approved S. 1217, the Housing Finance Reform and Taxpayer Protection Act of 2013, by a vote of 13-9. Sen. Tim Johnson, D-S.D., the committee’s chairman, said he had hoped the bill would garner more support. However, he said he will continue to work with committee members before the bill comes to the Senate floor.
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Affiliate points and fees bill approved by House committee
Posted Date: Friday, May 9, 2014
Fees paid to affiliated title companies would not be included in the qualified mortgage points and fees calculation under a bill advanced by the U.S. House Financial Services Committee. The legislation was one of many mortgage-related measures lawmakers considered during a May 7 markup hearing. Read on to learn about the bills.
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‘Rural’ petition bill approved by U.S. House
Posted Date: Tuesday, May 13, 2014
The U.S. House unanimously approved a bill that would amend the Dodd-Frank Act to establish a public petition process for challenging whether an area is non-rural for the purposes of the Consumer Financial Protection Bureau’s mortgage rules. Rep. Andy Barr, the bill’s sponsor, said the measure would help relieve community banks from burdensome regulations that limit their ability to lend and help create jobs in their communities. Read on to learn about the bill.
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Watt alters FHFA policy focus
Posted Date: Friday, May 16, 2014
The new leader of the Federal Housing Finance Agency announced that his agency will change course on some key agency policy initiatives. Mel Watt, the former democratic congressman from North Carolina who was sworn in as FHFA director in January, discussed the agency’s most recent plan for the conservatorships of Fannie Mae and Freddie Mac during a May 13 forum hosted by the Brookings Institution. Read on to learn about the changes Watt discussed.
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CFPB seeks feedback on first-lien originations limit for small creditors
Posted Date: Friday, May 9, 2014
The Consumer Financial Protection Bureau’s new mortgage rules include several provisions intended to preserve borrowers’ ability to access loans from small creditors, and the CFPB is currently seeking feedback on aspects of the small creditor definition. The bureau wants to hear from smaller institutions, particularly those that would have qualified as small creditors under the bureau’s rules but for a key 500 loan cap on total annual first-lien originations.
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VA releases ability-to-repay interim final rule
Posted Date: Friday, May 16, 2014
The Department of Veterans Affairs issued an interim final rule providing safe harbor qualified mortgage status to almost all VA loans that meet the department’s current underwriting requirements. The rule took effect May 9. The department said the rule is intended to quell concerns regarding the potential impact of the Consumer Financial Protection Bureau’s ability-to-repay rule revisions on requirements for VA loans.
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CFPB advances privacy disclosure rulemaking
Posted Date: Friday, May 9, 2014
The Consumer Financial Protection Bureau proposed a rule that would allow companies that limit their consumer data-sharing and meet other requirements to post their annual privacy notices online rather than delivering them individually. The CFPB previously indicated it would consider amending its annual privacy notice requirements after industry participants asked the bureau to reduce the regulatory burden for institutions that limit the sharing of information with third parties.
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OCC begins to merge rules for national banks, thrifts
Posted Date: Tuesday, May 20, 2014
With a few exceptions, the Office of the Comptroller of the Currency currently has one set of rules applicable to national banks and another set applicable to federal savings associations or, where appropriate, to all savings associations. The OCC is now working to determine whether to merge those rules into a single set of rules. Read on to learn about the OCC’s first integration rulemaking.
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Fed proposes Dodd-Frank concentration limit rule
Posted Date: Tuesday, May 13, 2014
The Federal Reserve is seeking comment on a proposal that would implement Section 622 of the Dodd-Frank Act, which prohibits a financial company from combining with another company if the ratio of the resulting financial company’s liabilities exceeds 10 percent of the aggregate consolidated liabilities of all financial companies. Read on to learn about the proposal.
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CFTC establishes trade execution phase-in timeline for package transactions
Posted Date: Wednesday, May 7, 2014
The Commodity Futures Trading Commission announced further implementation of Dodd-Frank’s trade execution requirement for certain interest rate and credit default swaps. Beginning May 16, market participants executing swaps subject to the trade execution requirement that are part of a so-called “package transaction” must be traded on a swap execution facility or designated contract market under a phased compliance timeline. The agency had previously provided no-action relief for certain swaps that otherwise were required to be traded on a SEF or DCM if those swaps were part of a package transaction.
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CFTC expands electronic submissions portal
Posted Date: Friday, May 9, 2014
The Commodity Futures Trading Commission rolled out new features for the portal it uses to accept electronic submissions. The agency said the changes will make it easier for market participants to submit event-specific reports. The new features also improve the CFTC’s ability to process submissions, the regulator said.
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Mortgage lead generator will pay $225,000 to settle FTC deceptive advertising claim
Posted Date: Tuesday, May 13, 2014
An online mortgage lead generator will pay a $225,000 civil penalty to settle Federal Trade Commission charges that it deceived consumers about mortgage terms. The FTC said GoLoansOnline.com, a Houston-based lead generator that operates several websites that advertise mortgages, advertised low interest-rate loans as fixed-rate mortgages when those loans were really adjustable-rate mortgages. The FTC said the company violated the Mortgage Acts and Practices Advertising Rule, as well as the Truth in Lending Act.
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CFPB unveils user-friendly electronic version of Reg. Z
Posted Date: Tuesday, May 13, 2014
The Consumer Financial Protection Bureau launched an electronic version of Regulation Z that is intended to be easier for industry participants to navigate than regulatory sources that are currently in use. The Regulation Z tool is part of the bureau’s eRegulations initiative. Read on to learn about the new user-friendly Reg. Z.
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Too many borrowers with lower credit scores shut out of mortgage market, FHA says
Posted Date: Friday, May 16, 2014
The Federal Housing Administration says too many creditworthy borrowers with lower credit scores are currently locked out of the mortgage market, and the agency plans to launch a pilot program to address the issue. The proposed Homeowners Armed with Knowledge Program would provide incentives for FHA borrowers who commit to housing counseling. Read on for the details.
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GAO identifies ‘significant deficiencies’ in CFPB’s financial reporting controls
Posted Date: Friday, May 9, 2014
The Government Accountability Office provided details on two significant internal control deficiencies it identified during an audit of the Consumer Financial Protection Bureau’s financial statements. The GAO found issues with the bureau’s year-end accrual process that resulted in a net understatement of accounts payable, assets and expenses for fiscal year 2013. The bureau also failed to design controls to ensure accurate and complete recording of its property and equipment transactions, the GAO said. Read on to learn what the GAO said the CFPB should do to address these issues and how the bureau responded.
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Compliance management expectations highlighted in CFPB fair lending report
Posted Date: Wednesday, May 7, 2014
Fair lending has emerged as a major priority for the Consumer Financial Protection Bureau over the last two years, and the agency released a new report outlining its fair lending efforts. The CFPB also reminded firms what it’s looking for when it reviews fair lending compliance management systems. Read on for a review of the CFPB’s compliance management expectations.
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Fed leaders discuss tiered regulation, supervision
Posted Date: Friday, May 9, 2014
Small institutions that do not engage in the types of activities that led to the financial crisis have nonetheless found themselves facing a mountain of new requirements in recent years. Many industry participants have called for tiered regulation and supervision that acknowledges the differences between these firms and their megabank brethren. It appears that message is resonating with leaders at the Federal Reserve.
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CFPB bends on advisory committee closed-door meeting policy
Posted Date: Tuesday, May 27, 2014
The Consumer Financial Protection Bureau said it will open its Consumer Advisory Board and industry council meetings to the public. The move comes as Republicans on the U.S. House Financial Services Committee call for more transparency at the bureau.
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Groups call for more coordination on FHA interest charge issue
Posted Date: Tuesday, May 27, 2014
A group of trade associations called on government regulators and Ginnie Mae to coordinate efforts to revise requirements governing interest payments on Federal Housing Administration loans. The groups said a recent FHA proposal on the issue is helpful, but more needs to be done to make FHA lending practices consistent with the Consumer Financial Protection Bureau’s ability-to-repay rule.
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House committee considers more CFPB legislation
Posted Date: Tuesday, May 27, 2014
The U.S. House Financial Institutions and Consumer Credit Subcommittee held a hearing to examine 11 legislative proposals some lawmakers and industry advocates said would improve transparency and accountability at the Consumer Financial Protection Bureau. However, a representative from the U.S. Public Interest Research Group urged lawmakers to reject all of the bills, arguing that the proposals would make it harder for the CFPB to do its job.
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Senators press CFPB for tough small-dollar lending rules
Posted Date: Tuesday, May 20, 2014
A group of Senate Democrats urged the Consumer Financial Protection Bureau to swiftly propose rules for the small-dollar lending market. Earlier this year, CFPB Director Richard Cordray said his agency is in the late stages of considering how it will craft rules to reform payday lending. Sen. Jeff Merkley, D-Ore., and five other lawmakers wrote a letter to Cordray with some suggestions they said the CFPB should consider as it moves forward.
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U.S. House proposal would allow consumers to opt-out of CFPB data collection
Posted Date: Tuesday, May 20, 2014
Legislation recently introduced into the U.S. House would require the Consumer Financial Protection Bureau to create an opt-out list for consumers who do not want the bureau to collect their personally identifiable information. The bill, HR 4604, would also limit the length of time the CFPB can retain certain data. Read on to learn more about the bill.
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Consumer complaints, the CFPB and you (Part 2)
Posted Date: Tuesday, May 20, 2014
Consumers are becoming increasingly comfortable with submitting complaints to the Consumer Financial Protection Bureau, and while industry participants may take steps to keep issues from escalating to the bureau, CFPB complaints are a fact of life for many midsize and large institutions. In part two of this series, you will get an inside view of complaint handling at two firms, as well as best practices for structuring a complaint policy aimed at identifying and correcting issues.
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Dodd-Frank financial stability panel makes housing finance recommendations
Posted Date: Tuesday, May 13, 2014
The federal panel tasked under the Dodd-Frank Act with identifying and addressing threats to U.S. financial stability released its fourth annual report. The report from the Financial Stability Oversight Council highlights numerous milestones in financial reform implementation and makes recommendations on a number of issues ranging from the short-term wholesale funding markets to housing finance reform. Read on to learn what steps the FSOC said the government is taking to help bring private capital back into the mortgage market.
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Dodd Frank Update to offer tech training surrounding QM/ATR – Free Article
Posted Date: Tuesday, May 13, 2014
With the recent implementation of the Consumer Financial Protection Bureau’s Ability-to-Repay/Qualified Mortgage Final Rule, the lending community faces many challenges. Join your colleagues, the staff of Dodd Frank Update and sponsor Medallion Analytics for a May 21 webinar focused on technology’s role in this new regulatory landscape. Industry experts will discuss strategies for avoiding common mistakes with technology integrations, platforms and tools. They will also provide tips for ensuring you have the right platform for your business. Read on to learn about the webinar.
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NS3 Preview: Keynote to stress changing expectations for third-party vendors
Posted Date: Tuesday, May 13, 2014
The Consumer Financial Protection Bureau’s efforts to streamline mortgage disclosures and the closing process will likely demand heightened cooperation between lenders and settlement services providers in the coming months. However, regulators’ vendor management expectations are already having an impact on the lender/service provider relationship. In a keynote speech at October Research, LLC’s 2014 National Settlement Services Summit in June, Mike Flynn, executive vice president and general counsel with Flagstar Bank, will describe what lenders need from their settlement services providers to remain compliant.
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Live coverage: Ohio MBA touts legislative victories
Posted Date: Wednesday, May 7, 2014
Mortgage lenders across the nation are coping with unprecedented regulatory change at the federal level. However, industry participants must also keep tabs on state issues that can impact their businesses. Dodd Frank Update was on hand at the Ohio Mortgage Bankers Association Annual Convention as that group’s leaders provided an update on some legislative victories they’ve scored in recent months. Read on to learn about the issues lenders in the Buckeye State are watching.
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Inside the CFPB’s proposed QM points and fees cure
Posted Date: Wednesday, May 7, 2014
The Consumer Financial Protection Bureau proposed mortgage rule amendments that would establish a mechanism where lenders who exceed the bureau’s qualified mortgage points and fees cap could refund the excess amount to consumers and still have the loan retain QM status. Read on to learn about the proposed QM points and fees cure provision and the CFPB’s request for comments regarding whether it should propose a cure or correction provision for QM’s debt-to-income ratio cap.
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NS3 PREVIEW: Speakers address strategic partnerships and CFPB enforcement
Posted Date: Wednesday, May 7, 2014
Strategic partnerships can be highly beneficial for the parties involved. With the benefits, however, also come some risks if the venture is not compliant. Compliance is crucial to avoiding a RESPA violation and enforcement action by the Consumer Financial Protection Bureau. During October Research, LLC’s 2014 National Settlement Services Summit (NS3) in June expert attorneys will discuss the ins and outs of complying with the laws and regulations governing affiliated business arrangements and marketing services agreements, as well as CFPB enforcement and increased regulatory scrutiny.
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CFPB probes credit reporting industry
Posted Date: Thursday, May 1, 2014
The Consumer Financial Protection Bureau is reportedly investigating the national credit bureaus for potential violations of the Dodd-Frank Act and Fair Credit Reporting Act. Word of the investigation came in a recent regulatory filing from Equifax Inc., which revealed that it received a civil investigative demand from the bureau earlier this year. Read on to learn more about the CFPB’s investigation.
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HMDA compliance is key focus for CFPB, banking regulators
Posted Date: Thursday, May 1, 2014
Home Mortgage Disclosure Act compliance is emerging as a priority for the Consumer Financial Protection Bureau and federal banking regulators, according to agency representatives who spoke at a recent Consumer Bankers Association forum in Washington, D.C. Read on to learn about the agencies’ HMDA compliance efforts.
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U.S. House approves Volcker Rule CLO bill
Posted Date: Thursday, May 1, 2014
The U.S. House approved legislation that would address the Volcker Rule’s treatment of certain collateralized loan obligations. The Republican-backed bill passed April 29 by a bi-partisan voice vote despite concerns from some Democrats that allowing banks to have an interest in certain CLOs could increase systemic risk.
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CFPB proposes first post-implementation mortgage rule revisions
Posted Date: Thursday, May 1, 2014
The Consumer Financial Protection Bureau proposed its first set of mortgage rule adjustments since those rules took effect earlier this year. The proposal lays out limited circumstances where lenders who exceed the bureau’s qualified mortgage points and fees cap can refund the excess amount to consumers and still have the loan be considered a QM. The proposal also includes two changes that would help certain nonprofit organizations continue to provide mortgage credit and servicing to underserved populations. Part one of this three-part series on the proposal provides an overview of the bureau’s plan.
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Supreme Court to take up TILA rescission case
Posted Date: Thursday, May 1, 2014
The U.S. Supreme Court has agreed to address the question of whether borrowers who wish to rescind a loan as provided in the Truth in Lending Act must notify the lender of the rescission within three years of receiving their loan, or whether instead borrowers must sue the lender within that three-year period. Federal appeals courts are split on that question, and the CFPB previously filed a number of amicus briefs on the issue. Read on for the details.
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