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News By Edition
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Dodd Frank Update Monthly Edition
Dodd Frank Update October 2017
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Concrete compliance training for fluid regulations
Posted Date: Tuesday, September 26, 2017
With the current regulatory environment in a state of constant flux, LenderLive General Counsel and Enterprise Compliance Officer Maria Moskver told Dodd Frank Update that new compliance staff trainees know how critical it is for them to be able to think on their feet.
Moskver has been tapped to lead LenderLive Compliance Solutions, the company’s new business line established to expand its compliance services by offering compliance services bundled with notice fulfillment, and also a la carte regulatory compliance services to banks, non-bank mortgage servicers, credit unions and other financial institutions.
Find out what tips Moskver offered for properly training compliance staff for the challenges presented by ever-changing regulations.
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Equifax breach raises cybersecurity, arbitration concerns
Posted Date: Tuesday, September 12, 2017
Equifax recently reported a data breach that impacts a major segment of the U.S. population and calls attention to two hot-button issues for the financial industry: cybersecurity and arbitration.
After discovering that vulnerabilities in the company’s website allowed hackers to access sensitive information of millions of Americans, Equifax put out a press release detailing steps it is taking to help affected consumers, and met with further controversy.
Find out how impactful this situation is and the multiple controversies it touches.
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Congress presses Equifax on breach details
Posted Date: Friday, September 15, 2017
Multiple congressional leaders are taking Equifax to task regarding the recent data breach that compromised sensitive information of approximately 143 million Americans.
Two House representatives want the credit reporting company to explain the circumstances surrounding the breach before Congress. Two senators have issued a written ultimatum requesting the company to disclose specific information about the breach and its consumer remediation plans.
With so much riding on the information compromised in this incident, be sure to stay on top of what is revealed by such inquiries.
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Cordray pressed to disclose political, policy intentions
Posted Date: Friday, September 8, 2017
Consumer Financial Protection Bureau Director Richard Cordray is facing pressure to explicitly state his near-term political intentions, and to indicate whether they are affecting the bureau’s near-term rulemaking plans.
House Financial Services Committee Chairman Jeb Hensarling (R-Texas) and Consumer Bankers Association President Richard Hunt have pressed Cordray to clarify whether speculation that he plans to run for governor of Ohio is true and whether that is impacting the bureau’s activities.
Stay on top of what types of questions are being raised about the director’s future and its implications for the bureau.
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CFPB report details UDAAP, communication
Posted Date: Tuesday, September 19, 2017
The Consumer Financial Protection Bureau’s (CFPB) 16th edition of its Supervisory Highlights highlighted multiple instances where improper communication practices led to compliance issues at certain banks, debt collection companies and credit card providers.
The report also offered new insight about what examiners will be looking for in relation to the bureau’s program directly supervising service providers.
Lackluster practices for communicating with customers can result in many feeling misled, and this report provides an in-depth look at numerous examples of how such occurrences can adversely affect a business.
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CFPB alleges Aequitas engaged in predatory lending
Posted Date: Tuesday, August 22, 2017
A Consumer Financial Protection Bureau complaint proposes that Aequitas Capital Management, Inc. and related entities distribute millions in loan forgiveness and reductions to redress Corinthian College students the company issued expensive private loans, allegedly to help the school qualify for federal funding.
The bureau asserts that Aequitas worked with Corinthian in funding loans students could not afford to try to obtain federal aid for the school.
Read on to find out how much the bureau is recommending in redress and other details about the complaint, as well as previous allegations brought against Aequitas and Corinthian.
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Court dismisses CFPB chokepoint case
Posted Date: Friday, September 15, 2017
A case filed by the Consumer Financial Protection Bureau accusing various individuals and companies of being involved in a debt collection scheme recently was dismissed because of the bureau’s inability to produce credible witnesses and its improper objections during proceedings.
In the case, Consumer Financial Protection Bureau v. Universal Debt Solutions, LLC, et al., filed in the District Court for the Northern District of Georgia, the bureau claimed that debt collectors created limited liability companies in Georgia and New York to perpetrate the scheme.
Read on to become aware of how an entity’s conduct in court can affect a case outcome.
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CFPB proposes judgment against credit repair company
Posted Date: Tuesday, September 12, 2017
Alleging that the credit repair company violated misled customers about the effectiveness of its services, the Consumer Financial Protection Bureau recently proposed a final judgment in federal court calling for monetary relief for harmed consumers.
The bureau alleged that the company’s conduct violated the Dodd-Frank Act and the Telemarketing and Consumer Fraud and Abuse Prevention Act, and is similar to previous complaints the agency filed against other entities the company did business with.
Take note of what conduct the company allegedly engaged in that led to alleged compliance infractions.
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CFPB investigating Wells over closed, frozen accounts
Posted Date: Monday, August 28, 2017
As Wells Fargo continues to deal with the aftermath of the 2016 Consumer Financial Protection Bureau (CFPB) investigation into the creation of millions of phony customer accounts, the bureau now is investigating the ramifications of the bank’s actions preventing customers from accessing accounts because of suspected fraud.
Customers have reported numerous instances to the CFPB complaint database where the company froze or closed customer accounts after suspecting they may have been compromised.
Read on to find out details about the circumstances that led to some of the complaints and what led the bureau to start an investigation.
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Wells finds more potentially fraudulent accounts
Posted Date: Thursday, August 31, 2017
An expanded third-party review of Wells Fargo’s retail banking accounts revealed that the company may be responsible for creating approximately 4 million unauthorized accounts, dating back to 2009.
The revelation that the company may have opened roughly 1.4 million more unauthorized accounts than previously discovered, as well as more than 500,000 potentially fraudulent online bill pay accounts, has elicited strong reaction in Congress.
Find out what the company is doing in response to the investigation findings and what Financial Services Committee Chairman Jeb Hensarling and Ranking Member Maxine Waters had to say about the latest news from the embattled bank.
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Mortech integrates pricing engine with digital mortgage platform
Posted Date: Wednesday, September 27, 2017
Mortech, a Zillow Group business providing mortgage technology solutions for mortgage bankers and secondary market teams, is integrating its product and pricing engine (PPE) with MortgageHippo, a digital mortgage platform white-labeled to lenders to deliver a modern borrowing experience.
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Equifax CEO announces resignation
Posted Date: Tuesday, September 26, 2017
Equifax’s Richard Smith has stepped down from his role as CEO and chairman of the company’s board of directors in the wake of the cybersecurity breach that compromised sensitive information of 143 million Americans.
The board plans to consider both internal and external candidates during its search for a new permanent CEO, according to a company press release.
The board has appointed two members to take over Smith’s duties on a temporary basis. Read on to find out more about them and what the company plans to do in the near future.
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Trump nominates three to Export-Import Bank board
Posted Date: Tuesday, September 26, 2017
President Donald Trump recently nominated three candidates to become members of the Export-Import Bank’s Board of Directors, in addition to two nominees he named in June, which generated controversy in Congress.
Sen. Heidi Heitkamp (R-N.D.) released a statement supporting the Trump administration’s most recent nominees to serve the bank, which operates as an export credit agency, backing loans to foreign entities that aid in solidifying deals with American exporters.
Learn what experience the recent nominees bring to the table and how they compare to the two previous nominations to join the bank’s leadership board.
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CFPB amends ECOA, proposes HMDA guidance
Posted Date: Thursday, September 21, 2017
Mortgage lenders will have more flexibility with regard to the Equal Credit Opportunity Act thanks to the Consumer Financial Protection Bureau’s newly finalized amendments to the rule.
The bureau also released a proposed policy guidance that includes information about what Home Mortgage Disclosure Act data the bureau intends to make public.
The industry has been curious what data will be made public. Find out what details the proposed guidance has to offer in that regard.
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Equifax execs exit as investigations continue
Posted Date: Thursday, September 21, 2017
Equifax recently announced that its internal investigation into factors that led to the security breach that could impact 143 million Americans has turned up new details.
Two Equifax executives have stepped down in the wake of the breach, and three others are being investigated for possible insider trading.
Be sure to stay abreast of the numerous elements to the Equifax breach that involve consumers, investors and federal and state regulators.
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Trades oppose small business lending details
Posted Date: Thursday, September 21, 2017
In response to the Consumer Financial Protection Bureau’s Request for Information (RFI) regarding small business lending reporting mandates, financial trade organizations expressed concern about the impact such requirements will have on smaller lenders’ ability to serve small businesses.
The American Bankers Association, the Credit Union National Association and the Independent Community Bankers of America were among the trade groups to respond to the RFI, which the bureau published in the Federal Register May 15, 2017.
See what feedback the trade organizations offered the bureau and what concerns they highlighted.
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Fannie Mae offers hurricane flexibilities
Posted Date: Thursday, September 21, 2017
To address concerns about loans impacted by Hurricanes Harvey and Irma, Fannie Mae has been proactive in making information about selling policies readily available to mortgage lenders and borrowers through various mediums.
The company noted in a press release that all relief flexibilities extended for loans affected by Harvey apply to those affected by Irma as well.
Make sure you are aware of what relief options could be available to your business.
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CBA announces 2018 leaders, advocacy priorities
Posted Date: Thursday, September 21, 2017
The Consumer Bankers Association (CBA) recently announced that it has elected a new chairman of its Board of Directors, while also highlighting the organization’s legislative and regulatory priorities for 2018.
Among the organization’s 2018 priorities are some policies the organization frequently has championed along with others in the financial industry.
Who will carry the torch for the CBA board in the coming year, and what will be their main objectives? Find out by reading more.
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ABA notes drop in existing-home sales, housing starts
Posted Date: Thursday, September 21, 2017
The housing industry saw dips in existing-home sales and housing starts in August, according to information published by the National Association of Realtors and the U.S. Department of Commerce.
The American Bankers Association highlighted some of the key findings on its blog.
Learn more about certain housing market trends that financial professionals need to be aware of by reading on.
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MBA whitepaper recommends CFPB changes
Posted Date: Tuesday, September 19, 2017
The Mortgage Bankers Association recently released a whitepaper, entitled “CFPB 2.0: Advancing Consumer Protection,” which examines the Consumer Financial Protection Bureau’s approach to enforcement and supervision, and offers recommendations for how the bureau could better fulfill its mission in moving forward.
The paper analyzes the bureau’s actions that have been out of step with what other regulatory bodies have done and that may not be in line with what is best for the financial industry, in the eyes of mortgage lenders.
Get an overview of some of the core concepts outlined in the whitepaper.
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‘Countdown to HMDA’ provides vital checklist
Posted Date: Tuesday, September 19, 2017
If you are like the majority of those whom attended October Research, LLC’s “Countdown to HMDA” webinar in September, you still have some work to do before Jan. 1, 2018, to feel confident that your company is fully ready to account for all of the changes to the Home Mortgage Disclosure Act.
Akerman Partner Thomas Kearney, who helped draft the Consumer Financial Protection Bureau’s (CFPB) final rule implementing various changes to HMDA reporting requirements, provided attendees a comprehensive breakdown of where your company should be, what you should do if you’re not there yet and how will you know when you get there, in terms of compliance.
Be sure to keep your ears and your notepads open as you listen to the wealth of information provided in this one-hour session.
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Senate confirms new HUD deputy secretary
Posted Date: Tuesday, September 19, 2017
The Senate recently voted to confirm a new deputy secretary of the Housing and Urban Development, who will become the agency’s primary support to HUD Secretary Ben Carson.
The new appointment has garnered widespread support from several trade organizations representing the housing and financial marketplaces.
Not only has the new HUD official been on the receiving end of support, find out what support she offered the Trump administration and his nominees prior to her own nomination.
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Trump nominates new FHA commissioner
Posted Date: Tuesday, September 19, 2017
President Donald Trump has nominated Brian D. Montgomery to become the U.S. Department of Housing and Urban Development’s next assistant secretary of housing and commissioner of the Federal Housing Administration.
Montgomery currently is serving as vice chairman of The Collingwood Group, an advisory firm focused on business consulting, risk management and compliance within the financial services industry.
Learn what kind of unique experience Montgomery could bring to the role, if confirmed by the Senate.
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Indecomm to showcase Kaizen’s enhanced automation solutions at MBA forum
Posted Date: Monday, September 18, 2017
Indecomm Global Services, a leading provider of business process as a service , software as a service technology, and learning products for the mortgage industry, will be showcasing its Kaizen risk management automation solution at the Mortgage Bankers Association (MBA) Risk Management, QA and Fraud Prevention Forum 2017.
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House passes bill preserving independent FSOC member
Posted Date: Friday, September 15, 2017
The House recently passed H.R. 3110, the “Financial Stability Oversight Council Insurance Member Continuity Act” by a 407-1 margin.
The bipartisan legislation, introduced by Rep. Randy Hultgren (R-Ill.) and Ranking Member Maxine Waters (D-Calif.), is intended to strengthen the work the Financial Stability Oversight Council performs by allowing its independent member with insurance expertise to continue serving in his/her position beyond the end of their term.
With the current independent council member approaching the end of his term, find out what arguments are being made to get this legislation adopted into law as soon as possible.
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Fed adopts Qualified Financial Contracts rule
Posted Date: Friday, September 15, 2017
Intending to enhance global financial stability, the Federal Reserve Board of Governors has adopted a final rule prohibiting U.S. global systemically important banking institutions (GSIBs) and the U.S. operations of foreign GSIBs allowing the immediate cancellation or termination of qualified financial contracts if a firm enters bankruptcy or a resolution process.
The board voted to adopt the rule at a recent meeting that began with opening remarks from Fed Board Chairperson Janet Yellen, speaking in support of the rule.
Be aware of what this may mean for future contracts involving the world’s largest banking entities.
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Court freezes debt company assets over FTC complaint
Posted Date: Friday, September 15, 2017
A federal court temporarily froze assets of a debt collection company after the Federal Trade Commission charged it with using intimidating and deceptive practices to collect on fake debts, or debts the company had no right to collect.
The FTC’s complaint alleges that the company’s practices violated the FTC Act and the Fair Debt Collection Practices Act.
Find out what types of conduct led to this particular company’s issues with federal regulators.
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FFIEC launches ‘Industry Outreach’ website
Posted Date: Friday, September 15, 2017
The Federal Financial Institutions Examination Council recently launched a new “Industry Outreach” website designed to disseminate information about financial institution supervision with financial institutions, regulators, the public and other stakeholders.
The new website offers industry professionals access to informative webinars and other useful information regarding compliance and cybersecurity matters, among others.
Take a look to see how this new site may be beneficial to your company.
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Fed board vice chairman steps down early
Posted Date: Tuesday, September 12, 2017
Federal Reserve Board of Governors Vice Chairman Stanley Fischer recently submitted his resignation, effective several months before his term is set to expire.
Fischer, 73, was appointed by President Barack Obama for an unexpired term ending Jan. 31, 2020, and his term as vice chairman does not expire until June 12, 2018.
Find out what that means in terms of the number of vacancies on the board.
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Credit unions collaborate on Harvey, Irma relief efforts
Posted Date: Tuesday, September 12, 2017
In response to flooding and damage caused by Hurricane Harvey and Hurricane Irma, numerous credit union organizations have collaborated to raise money and provide other assistance for people affected.
The organizations are urging credit union supporters across the country to take advantage of the opportunity to provide assistance to their industry counterparts.
Get an idea of how you can help by reading the full story.
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Banking trades weigh in on Hurricane Irma relief
Posted Date: Tuesday, September 12, 2017
As they continue to offer support to millions of people affected by Hurricane Harvey, financial trade associations now also turn their attention to Florida and the millions more whom have been impacted by Hurricane Irma.
American Bankers Association President and CEO Rob Nichols and Mortgage Bankers Association President and CEO David Stevens released statements noting what their organizations’ have to offer in response to Irma.
Find out what both organizations have to say about the situation.
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Indecomm named in 2017 IDC FinTech Rankings
Posted Date: Monday, September 11, 2017
Indecomm Global Services, a leading provider of business process as a service , software as a service technology and learning products for the mortgage industry, recently was named to the 2017 IDC FinTech Rankings for the fifth year.
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CFPB offers reg flexibility to help Harvey efforts
Posted Date: Friday, September 8, 2017
The Consumer Financial Protection Bureau issued a supervisory statement encouraging covered entities to take advantage of existing regulatory flexibility when working with consumers affected by Hurricane Harvey.
The bureau stated that supervised entities should strive to maintain adequate staffing to address affected consumers’ needs, and noted certain provisions of Regulation B, Regulation X and Regulation Z that will be relaxed to benefit affected consumers.
Be sure to familiarize yourself with examples of regulatory flexibility the bureau is making available.
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Banks support Hurricane Harvey relief
Posted Date: Friday, September 8, 2017
Numerous banking trade associations have issued responses in the aftermath of Hurricane Harvey, which affected millions of people in and around southeast Texas and parts of Louisiana.
Some are leading the rallying call for bankers to provide monetary aid for those displaced by the storm while others have turned to Congress and federal banking agencies, suggesting ways they can help.
As recovery efforts continue, stay up to date on what bankers are doing to pitch in.
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DOL proposed fiduciary rule delay approved
Posted Date: Friday, September 8, 2017
The Department of Labor’s proposal to delay the applicability of amendments to its fiduciary rule has been approved by the Office of Management and Budget.
The delay, noted in a proposed rule published in the Federal Register on Aug. 31, would delay the end of the transition period by 18 months.
Make sure you are up to date on what this delay would mean if it would be finalized.
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NAFCU opposes NCUA proposal to merge funds
Posted Date: Friday, September 8, 2017
Calling attention to how the proposal may impact members’ dividends, the National Association of Federally-Insured Credit Unions has urged the National Credit Union Administration to reconsider its plan to raise the National Credit Union Share Insurance Fund’s normal operating level from 1.3 percent to 1.39 percent.
NAFCU’s board of directors and two internal committees unanimously voted to oppose the proposal, according to a press release, asserting that such an action would adversely affect the industry.
Be sure to stay on top of the industry’s thoughts on the agency’s proposal and what that proposal entails.
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NAR survey says lenders anticipate higher rates
Posted Date: Thursday, September 7, 2017
The National Association of Realtors recently released findings from its 15th Survey of Mortgage Originators, detailing lenders’ thoughts on several developments affecting the mortgage industry, based on their experiences during the second quarter of 2017.
Respondents offered their take on the future impact of Fannie Mae’s increase to its debt-to-income ratio, as well as the Federal Reserve’s decision to end its program of reinvesting its portfolio of treasuries and agency mortgage-backed securities.
Get up to date on how lenders expect certain trends and policy changes to affect the marketplace.
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Castle & Cooke Mortgage adds three new executives
Posted Date: Thursday, August 31, 2017
Castle & Cooke Mortgage, LLC, one of the nation’s leading independent mortgage lenders with locations across the U.S., welcomes three new members to its executive team.
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Wipro Gallagher Solutions announces HMDA compliance update
Posted Date: Wednesday, August 30, 2017
Wipro Gallagher Solutions, a Wipro Limited company and end-to-end provider of lending technology products and services, has announced the release of its enhanced Home Mortgage Disclosure Act functionality in NetOxygen.
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CFPB finalizes HMDA HELOC relief
Posted Date: Tuesday, August 29, 2017
The Consumer Financial Protection Bureau has finalized a rule temporarily raising the origination threshold for home equity lines of credit, which affects whether financial institutions are subject to compliance with its expanded Home Mortgage Disclosure Act (HMDA) reporting requirements.
The rule also clarifies data collection and reporting requirements for mortgage lending, making several technical corrections to HMDA updates that became effective in 2015.
Stay informed about what this rule entails and how long its effects will be felt throughout the financial industry.
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AmEx rewarded, but disputes discrimination charge
Posted Date: Tuesday, August 29, 2017
The old saying that honesty is the best policy typically is viewed as a hollow cliché rather than words to live by.
However, when American Express decided to take an open, honest approach with the Consumer Financial Protection Bureau regarding discriminatory actions by two of its subsidiaries, the effort did not go unnoticed.
Take a peek at how the company’s decision to come forward and begin redressing harmed consumers – before being ordered to do – was reflected in the bureau’s consent order, and why the company is disputing the charges of discrimination.
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FFIEC releases HMDA resubmission guidelines
Posted Date: Tuesday, August 29, 2017
The Federal Financial Institutions Examination Council has released guidelines for examiners charged with testing for compliance with Home Mortgage Disclosure Act (HMDA) reporting requirements.
The guidelines address how federal regulators are to evaluate HMDA data from all entities required to submit it, with in-depth breakdowns of how they will handle errors and tolerances that will be taken into consideration.
Stay abreast of what these guidelines mean for covered financial institutions and examiners, and what could trigger the need for resubmission.
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Banking regulators preparing new capital rules
Posted Date: Tuesday, August 29, 2017
Federal banking regulators have proposed a rule that would extend existing transitional capital treatment for certain regulatory capital deductions and risk weights as they prepare for a forthcoming proposal aimed at simplifying regulatory capital requirements.
The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency announced via a joint press release that the extension would apply to banking organizations that are not subject to the agencies’ advanced approaches Basel-III capital rules, which would be particularly beneficial to community banks.
Get up to speed on what proposals banking regulators have in the works.
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DOJ drops Operation Choke Point
Posted Date: Monday, August 28, 2017
The Department of Justice has announced that it will end its Operation Choke Point initiative, launched under President Barack Obama with the intention to fight consumer fraud by denying fraudulent businesses access to banking services.
Financial trade organizations have raised concerns that the initiative could deter eCommerce development and slow economic growth. Many financial institutions also have expressed concerns that, until recently, they had not seen confirmation that the DOJ officially was discontinuing all choke point activities.
Read on to find out more about the announcement and the industry’s support for ending the choke point.
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FDIC: Bank profits up 11 percent, returns at 10-year high
Posted Date: Monday, August 28, 2017
The second quarter of 2017 saw $48.3 billion in aggregate net income for financial institutions insured by the Federal Deposit Insurance Corp., which is up $4.7 billion from a year prior, and the banking industry’s average return on assets is at a 10-year high.
Community banks also continued to see net income gains compared to the previous year, as well as growth in other financial areas.
Stay up to date about progress banks have made in the last year and what one industry expert has to say about the newly released data.
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Colonial president on Hurricane Harvey impact
Posted Date: Monday, August 28, 2017
David Motley, president of Colonial Savings, F.A. and chairman-elect of the Mortgage Bankers Association, spoke with Dodd Frank Update about how the storm has affected his company, particularly Colonial’s two offices based in the Houston area.
Motley said the company has ceased certain operations until the issues resulting from the storm are mitigated, and implemented standard disaster recovery protocols provided by agencies such as the Federal Emergency Management Agency.
Keep up with how this storm is impacting the financial industry.
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ICBA whitepaper offers tax reform recommendations
Posted Date: Friday, August 25, 2017
As Congress and the Trump administration turn their attention toward tax reform, the Independent Community Bankers of America (ICBA) offered recommendations for reforming the nation’s tax code in a new whitepaper titled “ICBA Principles for Tax Reform.”
The whitepaper notes the association’s support for modernizing and simplifying the tax system, characterizing its current state as complex and inefficient.
Get a grasp of what ICBA is urging legislators to consider when drafting tax reform measures.
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