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The CFPB channel: Takeaways from three recent enforcement actions (pt. 1)
Posted Date: Tuesday, October 28, 2014
The Consumer Financial Protection Bureau announced a number of high-profile enforcement actions in recent weeks, and there are some things you need to know about what the bureau has been saying. Dodd Frank Update spoke with Richard Andreano, a partner at Ballard Spahr LLP and practice leader of the firm’s Mortgage Banking Group, and Richard Horn, a partner in Dentons’ Capital Markets practice, to get their takeaways from some recent consent orders. Read on for part one of this two-part series.
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Lawmakers, regulators debate bankers’ fear of supervisory retaliation
Posted Date: Wednesday, October 1, 2014
Banking agency leaders often say that open communication is at the core of the community bank supervision process, but is fear of retaliation stifling the dialog between regulators and the regulated? Lawmakers and top regulators debated that issue during a recent Senate Banking Committee hearing.
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Agencies finalize QRM rule
Posted Date: Wednesday, October 22, 2014
As expected, federal agencies working to implement Dodd-Frank’s credit risk retention provisions unveiled final rules that will align the key “qualified residential mortgage” definition with the Consumer Financial Protection Bureau’s “qualified mortgage” definition. The agencies finalized the rules despite continued concern from some top regulators. Read on to learn about the final rules and why one member of the Federal Deposit Insurance Corp. board could not support them.
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CFPB introduces no-action letter proposal
Posted Date: Tuesday, October 14, 2014
Having come under fire from lawmakers for rules and policies that the Consumer Financial Protection Bureau has implemented and their effect on businesses forced to comply, the CFPB on Oct. 10 issued a proposal to create no-action letters.
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FHFA director says changes are coming to improve credit conditions
Posted Date: Wednesday, October 22, 2014
FHFA Director Melvin Watt made “extraordinary announcements” at the MBA Annual conference in Las Vegas that could result in sweeping changes to the U.S. housing market, according to MBA CEO David Stephens. Read on to find out what they involved.
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CFPB finalizes privacy disclosure rule
Posted Date: Wednesday, October 22, 2014
The Consumer Financial Protection Bureau finalized a rule to 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 bureau took up the annual privacy notice rulemaking after industry participants sought regulatory burden reduction for institutions that limit the sharing of information with third parties.
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CFPB proposes to tweak mortgage disclosures rules
Posted Date: Tuesday, October 14, 2014
The Consumer Financial Protection Bureau proposed some minor changes to its new mortgage disclosure rules that take effect in August. Among other things, the proposal would relax the timing requirement for revised disclosures when the consumer locks a rate. Read on to learn about the proposal.
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CFPB enforcement action carries warning for banks that advertise free checking
Posted Date: Friday, October 10, 2014
The Consumer Financial Protection Bureau ordered Buffalo-based M&T Bank to refund $2.9 million to tens of thousands of consumers the agency said were shifted out of their free checking accounts when they failed to maintain a minimum level of account activity. The bureau said the bank disclosed the minimum activity requirement in certain documents but failed to do so in its adverting. Read on for the details.
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CFPB may take closer look at specialty consumer reporting agencies, Cordray says
Posted Date: Friday, October 17, 2014
Consumer Financial Protection Bureau Director Richard Cordray said at an Oct. 8 forum that the CFPB is interested in some of the actions of specialty consumer reporting agencies, and how their reports to banks and credit unions may be limiting consumers’ access to checking accounts. Read on to see the details.
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President delivers ‘chip and PIN’ message from CFPB
Posted Date: Friday, October 17, 2014
President Obama issued an executive order Oct. 17 saying the federal government would transition secure payments to and from the government to “chip and PIN” technology, including newly issued and existing government credit cards and debit cards such as Direct Express and SmartPay. Read on for more details about the government’s move.
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NAR urges bureau to ease up on ‘mini-correspondent’ guidance
Posted Date: Tuesday, October 7, 2014
The National Association of Realtors is concerned that recent Consumer Financial Protection Bureau guidance on mini-correspondent lenders could unfairly discriminate against smaller market participants and lead to further concentration in the mortgage market. The group urged the bureau not to over-emphasize certain elements of its mini-correspondent test. Read on to learn about the CFPB’s mini-correspondent guidance and NAR’s concerns.
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Banking association urges FHFA to ‘abandon’ single security proposal
Posted Date: Friday, October 17, 2014
The comment period closed Oct. 13 for the Federal Housing Finance Agency’s plan for a single security issued and sponsored by both Fannie Mae and Freddie Mac. And although there has been broad consensus behind the move toward a single security, one banking association has come out strongly opposed to the plan. Read on to find out which one.
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CFPB studies manufactured-housing market
Posted Date: Tuesday, October 7, 2014
The Consumer Financial Protection Bureau released a whitepaper on manufactured housing, an area that has proven thorny as it works to implement its mortgage policies. Read on to learn about the many issues surrounding manufactured housing and the CFPB’s rules.
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Castle & Cooke case revisited in newly filed class-action suit
Posted Date: Wednesday, October 22, 2014
A class-action lawsuit filed in California federal court may breathe new life into a case settled nearly a year ago between the CFPB and a Utah mortgage lender for an alleged “secret, illegal bonus program” in violation of the Consumer Financial Protection Act and Regulation Z. Among the allegations in the new lawsuit are that C&C Mortgage violated TILA, even after the Dodd-Frank Act amended loan originator compensation requirements in the statute. Read on for details of this new development in a year-old case.
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President huddles with Dodd-Frank regulators
Posted Date: Friday, October 10, 2014
President Barack Obama apparently feels better about the pace of Dodd-Frank implementation these days. When Obama met with regulators in 2013, he urged them to keep their feet on the gas as they work to erect the nation’s new financial regulatory framework. Last week, he met with agency leaders again to discuss their progress. Read on for the details.
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CFPB releases rural, underserved counties lists for 2015
Posted Date: Tuesday, October 28, 2014
The Consumer Financial Protection Bureau released its lists of “rural” and “rural or underserved” counties for 2015. The annual lists apply to certain exemptions set forth under the agency’s mortgages rules.
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ABA amplifies call for guidance on rolling delinquencies
Posted Date: Tuesday, October 28, 2014
The American Bankers Association again is asking the Consumer Financial Protection Bureau for guidance on how to properly apply certain servicing rules in situations involving rolling delinquencies. The group expressed concern that legal and regulatory uncertainty over servicing issues could serve as an additional factor weighing on banks as they consider whether to scale back their servicing activities.
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Court weighs CFPA anti-retaliation claim
Posted Date: Tuesday, October 28, 2014
A former bank president who previously failed in his attempt to seek relief under the whistleblower protection provisions of Title IX of Dodd-Frank did not have much more luck under Title X. Nicholas Zillges claimed that he was discriminated against by his former employer in violation of the Consumer Financial Protection Act. Read on to learn why a federal district judge dismissed the claim.
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State regulators form non-bank MSR task force
Posted Date: Friday, October 24, 2014
The same week that two members of Congress asked the Government Accountability Office to look into non-bank mortgage servicing growth, the Conference of State Bank Supervisors announced it would form a task force to develop standards for non-bank mortgage servicers.
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CFPB multi-state project to aid disabled consumers
Posted Date: Friday, October 24, 2014
The Consumer Financial Protection Bureau revealed plans for a multi-state project aimed at helping thousands of low-income consumers with disabilities navigate the financial marketplace. The program, known as “Bridges to Financial Security,” is just one of the consumer education and empowerment initiatives the bureau is planning to roll out in the coming months. Read on for the details.
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Inside the CFPB’s QM points and fees cure
Posted Date: Friday, October 24, 2014
The Consumer Financial Protection Bureau finalized a set of amendments to its ability-to-repay rule that took effect in January. Among other things, the amendments establish a mechanism where lenders who exceed the rule’s points and fees cap for qualified mortgages can refund the excess amount and have the loan retain QM status. The bureau made a number of important changes from its points and fees cure proposal. Read on for an in-depth look.
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Banking regulators unveil Dodd-Frank stress test scenarios
Posted Date: Friday, October 24, 2014
Banking regulators released the supervisory scenarios institutions will use for upcoming required capital planning initiatives and Dodd-Frank stress tests. The annual stress tests are intended to determine how the largest institutions would fare should economic conditions deteriorate. Read on to learn about the scenarios.
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CFPB answers motion to dismiss from Hanna
Posted Date: Wednesday, October 22, 2014
The Consumer Financial Protection Bureau struck back at a law firm that moved to dismiss a case brought against it by the CFPB. In a motion filed Oct. 3, the CFPB maintained that it had legal standing and cause for bringing a lawsuit against Frederick J. Hanna & Associates PC. Read on for the details of the CFPB’s response.
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Fed calls meeting to discuss final QRM rule
Posted Date: Friday, October 17, 2014
One month after regulators said they held varying levels of hope for approval of the final rule for qualified residential mortgages, the Board of Governors of the Federal Reserve will meet Oct. 22 to discuss the final rule.
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SIFMA urges extensions to Volcker compliance
Posted Date: Friday, October 17, 2014
An industry association has told the Federal Reserve that although the financial services industry is working toward the July 21, 2015, compliance date for the Volcker Rule, some obstacles are in the path to compliance. Read on to find out what they might be.
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OFR to ask companies for bilateral repo data
Posted Date: Tuesday, October 14, 2014
Saying its job is to shine a light into dark corners of the financial system, Office of Financial Research Director Richard Berner updated the Financial Stability Oversight Council on a plan to gather data on bilateral repo transactions. Will the industry be forced to self report? Read on to find out the details.
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CFTC grants no-action letter extension for package transactions
Posted Date: Tuesday, October 14, 2014
Responding to industry concerns over the timeline for implementation of new regulations involving a package transaction, the Commodity Futures Trading Commission on Sept. 30 extended the deadline of a no-action letter on the matter. The agency said it was responding to market participants who suggested the technology they needed to comply with the regulations “would not be implemented by the expiration date, as previously anticipated.”
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FHFA extends comment period on FHLB revisions
Posted Date: Tuesday, October 14, 2014
Faced with continuing concerns from the industry over its plan to revise eligibility requirements for Federal Home Loan Bank membership, the Federal Housing Financing Agency extended its comment period on the plan.
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Commodities trader faces first Dodd-Frank ‘anti-spoofing’ indictment
Posted Date: Friday, October 10, 2014
A high-frequency trader was indicted for allegedly manipulating commodities futures prices and illegally profiting nearly $1.6 million as a result of trading orders he placed through CME Group and European futures markets in 2011. The indictment marks the first federal prosecution under Dodd-Frank’s “anti-spoofing” provisions. Read on to learn about the case.
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CFPB updates mortgage rule readiness guide for RESPA-TILA disclosure rollout
Posted Date: Friday, October 10, 2014
The Consumer Financial Protection Bureau updated its Mortgage Rules Readiness Guide to include information on the new mortgage disclosure forms and rules that take effect in August under the Real Estate Settlement Procedures Act and the Truth in Lending Act. The update offers valuable guidance on how firms should evaluate their readiness for complying with the rule changes, the bureau said. Read on for the details and for a link to the guide.
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What does Bernanke’s failed refi attempt say about the new mortgage rules?
Posted Date: Friday, October 10, 2014
Did you hear the one about the former Federal Reserve Chairman who tried to get a refi but couldn’t? Attendees at a recent conference in Chicago thought former Fed chief Ben Bernanke was kidding when he admitted during a panel discussion that he recently tried to refinance his mortgage but was unable to do so. The audience laughed, but it was no joke. Could Bernanke’s story impact the continuing debate over the Consumer Financial Protection Bureau’s new mortgage rules? Dodd Frank Update spoke with Richard Andreano, a partner at Ballard Spahr LLP, to get his take.
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Fed to study effects of bank capital rules on insurance companies
Posted Date: Tuesday, October 7, 2014
The Federal Reserve plans to conduct a quantitative impact study to analyze the effects of its regulatory capital framework on insurance firms, including supervised savings and loan holding companies and nonbank financial companies. The study comes as lawmakers express concern over the notion of subjecting insurance companies to bank-centric capital requirements under Dodd-Frank’s Collins Amendment.
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IG weighs CFPB compliance with small business impact requirements
Posted Date: Tuesday, October 7, 2014
Some Washington watchers have expressed concern that new regulations crafted by the Consumer Financial Protection Bureau could harm small businesses. The inspector general for the CFPB and the Federal Reserve recently rated the bureau’s compliance with Dodd-Frank provisions that require the agency to assess the impact of its proposed rules on the cost of credit for small entities. Read on for the IG’s findings.
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OCC still seeing mortgage performance improvement
Posted Date: Wednesday, October 1, 2014
The performance of first-lien mortgages serviced by large national and federal savings banks experienced a seasonal decline during the second quarter of 2014, but improved from a year earlier, according to new numbers from the Office of the Comptroller of the Currency.
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CFPB announces first enforcement action under new servicing rules
Posted Date: Wednesday, October 1, 2014
The Consumer Financial Protection Bureau announced its first enforcement action under servicing rules that took effect in January. In addition to violating the bureau’s Real Estate Settlement Procedures Act servicing rules, the agency said Michigan-based Flagstar Bank committed unfair acts or practices by impeding borrowers’ access to loss mitigation and engaged in deception by misrepresenting borrowers’ right to appeal loan application denials. Read on for the details.
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Title insurance agency hit with $200K CFPB fine
Posted Date: Wednesday, October 1, 2014
The Consumer Financial Protection Bureau ordered Lighthouse Title, a Michigan title insurance agency, to pay $200,000 for alleged violations of the Real Estate Settlement Procedures Act. Read on for the details.
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CFPB orders bank to beef up third-party oversight
Posted Date: Wednesday, October 1, 2014
The Consumer Financial Protection Bureau fined a bank and ordered it to improve its oversight of third-party vendors after the agency determined that some consumers unfairly were charged for “add-on” identity protection and credit monitoring services they did not receive. The bureau’s order requires the bank to review its third-party risk management and responsible banking programs to ensure they meet certain minimum standards. Read on for the details.
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