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Inside the CFPB’s HMDA proposal (pt. 1)
Posted Date: Wednesday, August 6, 2014
The Consumer Financial Protection Bureau proposed a long-expected rule that would implement Dodd-Frank provisions expanding the current Home Mortgage Disclosure Act data set. The proposal also aims to improve upon the data collected, reduce unnecessary burden on financial institutions, and streamline and modernize the manner in which financial institutions collect and report HMDA data. Part one of this series focuses on the CFPB’s proposed changes to Regulation C’s institutional and transactional coverage tests.
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Data points: Inside the CFPB’s HMDA proposal (pt. 2)
Posted Date: Friday, August 8, 2014
The Dodd-Frank Act requires the Consumer Financial Protection Bureau to add certain data points to the Home Mortgage Disclosure Act data set. The bureau also has authority to prescribe additional reporting requirements it believes may be necessary to carry out HMDA’s purposes. Read on to learn about the CFPB’s plans to expand the data set, as Dodd Frank Update continues its in-depth look at the bureau’s HMDA proposal.
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Cordray testifies on CFPB workplace issues, defends bureau supervision program
Posted Date: Saturday, August 2, 2014
The House Oversight and Investigations Subcommittee held the fourth in a series of hearings probing allegations of discrimination and retaliation at the Consumer Financial Protection Bureau. This time, the subcommittee heard testimony from Richard Cordray, the bureau’s director, who addressed claims raised during a previous hearing that the CFPB has engaged in results-oriented examinations.
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Committee advances Basel III MSA, Volcker Rule cost-benefit bills
Posted Date: Saturday, August 2, 2014
The House Financial Services Committee advanced several pieces of legislation during a recent markup hearing, including a Volcker Rule cost-benefit bill and another bill that would require regulators to study the impact of new Basel III requirements on mortgage servicing assets. Read on to learn about these and other bills approved by the committee.
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Senators float CFPB depository examination threshold bill
Posted Date: Wednesday, August 13, 2014
Two Senators are backing a bill that would raise the current $10 billion threshold for direct Consumer Financial Protection Bureau supervision of depository institutions. Read on to learn about the proposed asset threshold and for a refresher on the scope of the CFPB’s authority to supervise banks and various nonbanks.
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Rural balloon QM legislation introduced in Senate
Posted Date: Wednesday, August 13, 2014
A U.S. Senator introduced legislation that would alter provisions of the Truth in Lending Act intended to ensure that consumers have access to balloon-payment mortgages from certain creditors operating in rural and underserved areas. The bill, introduced by Sen. Angus King, I-Maine, would set an overall originations threshold for institutions to be eligible to make balloon-payment qualified mortgages. The bill also would establish a new “rural” definition. Read on to learn about the bill.
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Bureau alleges Amerisave violated CFPA, TILA, RESPA and MAP rule
Posted Date: Wednesday, August 13, 2014
The Consumer Financial Protection Bureau announced an enforcement action targeting Amerisave Mortgage Corp., its affiliate, Novo Appraisal Management Co., and the owner of both companies, Patrick Markert, for engaging in what the agency said was a deceptive bait-and-switch mortgage-lending scheme that harmed tens of thousands of consumers. Amerisave and Novo were ordered to pay $14.8 million in refunds to consumers and pay a $4.5 million penalty. Markert, as an individual, will pay an additional $1.5 million penalty. Read on to learn about the bureau’s consent order and enforcement action.
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$5 fee gets retailer in trouble with CFPB
Posted Date: Tuesday, August 19, 2014
A Virginia-based retailer agreed to pay more than $400,000 in refunds and penalties under a Consumer Financial Protection Bureau consent order targeting what the agency said was a scam to trick members of the military into paying fees for legal protections to which they already were entitled under the Servicemembers Civil Relief Act. Read on to learn about the alleged practices that put the retailer on the bureau’s bad side.
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CFPB building case for overdraft rulemaking
Posted Date: Wednesday, August 6, 2014
The Consumer Financial Protection Bureau released another report highlighting the agency’s concerns about overdraft services. Richard Cordray, the bureau’s director, said the CFPB’s latest report shows that consumers who opt in to overdraft coverage put themselves at “serious risk” when they use their debit cards. Read on to learn about the report and what the bureau has said about the possibility of an overdraft rulemaking.
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FHFA seeks comment on plan for GSEs
Posted Date: Monday, August 25, 2014
The FHFA is seeking comment from industry stakeholders and others on its Strategic Plan for 2015-2019 that seeks to guide the conservatorships of government sponsored enterprises Fannie Mae and Freddie Mac. Read on to see how to make your voice heard.
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Divided SEC adopts new rules for money market mutual funds
Posted Date: Saturday, August 2, 2014
A divided Securities and Exchange Commission voted to adopt amendments to its rules governing money market mutual funds. The amendments, approved by the commission July 23 on a 3-2 vote, make structural and operational changes aimed at addressing risks of investor runs in MMFs. Approval of the final rule is a key milestone in what has proven to be an arduous regulatory process. Read on to learn about the final rule and why one commissioner could not support it.
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CFTC alleges precious metals dealers violated Dodd-Frank
Posted Date: Monday, August 18, 2014
The Commodity Futures Trading Commission has announced a number of actions targeting alleged precious metals schemes in recent weeks. Some cases involve claims that firms violated Dodd-Frank by engaging in illegal, off-exchange transactions. Read on to learn about the CFTC’s actions.
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Community banks seek call report burden relief
Posted Date: Wednesday, August 13, 2014
The Independent Community Bankers of America urged top banking regulators to simplify and streamline call report requirements for small institutions. The push for call report reform represents just one front in what the organization has called its “war on regulatory burden.”
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ABA seeks clarity on 120-day rule, other CFPB servicing provisions
Posted Date: Wednesday, August 6, 2014
The American Bankers Association urged the Consumer Financial Protection Bureau to clarify some of its new mortgage servicing requirements, including the application of rule provisions that bar servicers from making the first notice or filing for foreclosure unless a borrower’s loan is more than 120 days delinquent. The group said that this seemingly simple regulatory requirement “becomes complicated to apply on a day-to-day basis.” Read on to learn about the issues identified by the ABA and how the group would like the CFPB to address them.
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Appraiser ‘doesn’t have the goods’ to prove whistleblower claim, court says
Posted Date: Tuesday, August 19, 2014
The U.S. District Court for the District of Colorado tossed out a whistleblower claim brought by an appraiser against her firm. The appraiser had alleged that she was fired for reporting potential appraiser standards violations by her coworkers. Read on to find out how this latest securities law case played out in court.
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Regulatory compliance a top barrier to growth in banking industry, survey finds
Posted Date: Monday, August 18, 2014
According to a report summarizing its 2014 banking industry outlook survey, “Banking on the Customer,” global audit firm KPMG said complying with Dodd-Frank’s rulemakings continues to hamper banking industry growth due to high compliance costs and associated restrictions on products and services. Read on to find out what 100 banking executives at the nation’s top firms had to say about how much regulation is costing them.
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CFPB cautions consumers on virtual currencies, hints at future ‘policy steps’
Posted Date: Monday, August 18, 2014
The virtual currency market is like the “Wild West,” according to Richard Cordray, director of the Consumer Financial Protection Bureau. Last week, the bureau warned consumers of the risks associated with Bitcoin and other virtual currencies. The agency also started accepting virtual currency complaints; a move it hinted could inform future policy action.
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CFPB extends disclosure relief for remittance transfer providers
Posted Date: Tuesday, August 26, 2014
Federally insured institutions will have an additional five years to begin providing exact disclosures for international money transfers in certain cases under a rule finalized Aug. 22 by the Consumer Financial Protection Bureau. Read on to learn about the bureau’s latest remittance rule revisions.
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CFPB adjusts Regulation Z thresholds
Posted Date: Tuesday, August 26, 2014
The Consumer Financial Protection Bureau recently announced its annual adjustments for certain dollar-amount thresholds for provisions of Regulation Z based on inflation and other factors. Read on to find out what new thresholds will take effect in January.
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CFPB eClosing pilot gains steam
Posted Date: Tuesday, August 26, 2014
The Consumer Financial Protection Bureau selected participants for its mortgage eClosing pilot program. The three-month pilot will begin later this year. Read on to learn which vendors and creditors will be taking part in the pilot.
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Agencies clarify UDAP authority post Dodd-Frank
Posted Date: Tuesday, August 26, 2014
Federal banking and credit union regulators are repealing rules that define acts or practices that are unfair or deceptive. The repeal is a consequence of Dodd-Frank, and regulators issued guidance clarifying that they still have supervisory and enforcement authority regarding unfair or deceptive acts or practices, notwithstanding the repeal of the regulations. Read on to learn what the agencies had to say about the basis for their UDAP authority.
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CFPB fines credit reporting data furnisher
Posted Date: Monday, August 25, 2014
The Consumer Financial Protection Bureau has taken action against a Texas-based auto finance company it said failed to fix known flaws in a computer system that provided inaccurate information to credit reporting agencies. Richard Cordray, the bureau’s director, warned that “companies cannot pass the buck by blaming a computer system or vendor for their mistakes.”
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2nd Circuit sidesteps internal reporting debate in whistleblower case dismissal
Posted Date: Monday, August 25, 2014
The 2nd U.S. Circuit Court of Appeals recently avoided weighing in on whether whistleblowers who report potential violations internally are entitled to certain protections under the Dodd-Frank Act. Had the court reached the issue and created a split among the circuits, the matter could have been teed up for Supreme Court review — but the 2nd Circuit instead found that the Taiwan resident who filed a suit against a Chinese company had bigger barriers to prove he qualified for protection under the U.S. statute.
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Retailers ask Supreme Court to take up ‘swipe fee’ case
Posted Date: Monday, August 25, 2014
Retailers want the U.S. Supreme Court to review an appeals court ruling that upheld Federal Reserve debit card interchange caps enacted under Dodd-Frank’s Durbin Amendment. Read on to learn about the question the group would like the Court to decide.
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CFPB warns on mortgage servicing transfers
Posted Date: Monday, August 25, 2014
The Consumer Financial Protection Bureau updated its guidance related to mortgage servicing transfers and said it may consider further mortgage servicing rules. Read on to learn about the bureau’s plans to scrutinize servicing transfers.
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DOJ announces record-breaking mortgage settlement
Posted Date: Monday, August 25, 2014
Bank of America agreed to pay more than $16.6 billion to resolve state and federal claims stemming from mortgage-related activities before and during the financial crisis. Read on to learn about this historic settlement.
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Consumer privacy: Inside the CFPB’s HMDA proposal (pt. 5)
Posted Date: Monday, August 25, 2014
The Consumer Financial Protection Bureau recently proposed to expand the Home Mortgage Disclosure Act dataset to provide a more detailed picture of the mortgage market than currently available. However, the plan has implications for borrower privacy and data security. Read on for the fifth and final installment in Dodd Frank Update’s series on the CFPB’s HMDA proposal.
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Submission process: Inside the CFPB’s HMDA proposal (pt. 4)
Posted Date: Tuesday, August 19, 2014
The Consumer Financial Protection Bureau recently proposed a long-expected rule that would implement Dodd-Frank provisions expanding the current Home Mortgage Disclosure Act data set. The 573-page proposal, released July 25, also discusses new tools aimed at making the HMDA data submission process more efficient. Read on to learn about some of the ideas the CFPB discussed.
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Agencies provide more guidance to smaller ‘living will’ filers
Posted Date: Tuesday, August 19, 2014
Regulators are providing additional guidance to more than 100 financial firms that will be required to file their second round of Dodd-Frank-mandated resolution plans in December. Read on to learn about the issues firms will be required to address in their forthcoming “living will” submissions.
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Lenders expect operational costs to increase under QM rule
Posted Date: Tuesday, August 19, 2014
Lending institutions of all sizes expect their operational costs to increase as they continue to work on complying with the Consumer Financial Protection Bureau’s ability-to-repay/qualified mortgage rule, a recent Fannie Mae survey revealed. Find out how lenders are adapting to the new regulatory requirements.
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Institutions fail to make CFPB’s grade on campus financial product disclosure
Posted Date: Monday, August 18, 2014
The Consumer Financial Protection Bureau took to its blog recently to admonish some financial institutions for failing to make available on their websites the terms of their agreements with colleges to market campus financial products to students. The bureau also called out some schools it said are partnered with financial institutions that have not fully disclosed this information.
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FHFA floats plan for single GSE security
Posted Date: Monday, August 18, 2014
The Federal Housing Finance Agency kicked off what it said will be a multi-year effort to develop a single security that would be issued and guaranteed by Fannie Mae or Freddie Mac. The agency published a request for input on its initial plans. Read on for the details.
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Aligning data standards: Inside the CFPB’s HMDA proposal (pt. 3)
Posted Date: Wednesday, August 13, 2014
The Consumer Financial Protection Bureau recently released a 573-page proposal that would implement Dodd-Frank’s changes to the Home Mortgage Disclosure Act data set. The bureau also is seeking to align HMDA reporting requirements with industry data standards. Read on to learn more about the bureau’s plans, as Dodd Frank Update’s series on the CFPB’s HMDA proposal continues.
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Government watchdog busy with CFPB audits
Posted Date: Wednesday, August 13, 2014
The Office of Inspector General for the Federal Reserve and Consumer Financial Protection Bureau has numerous bureau-related audits in the pipeline, many of which touch on issues that have become hot buttons for lawmakers and industry participants. Read on to learn about the projects the CFPB’s IG is working on.
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ICBA vows to keep fighting Operation Choke Point
Posted Date: Friday, August 8, 2014
A trade group representing community banks welcomed the Federal Deposit Insurance Corp’s. decision to reissue guidance that has figured prominently in an ongoing debate over the Justice Department’s Operation Choke Point. Lawmakers and industry participants have expressed concern that the guidance has been used as part of a broader effort to force banks to sever ties with certain legally operating business that the government deems objectionable. The group promised to continue to press government leaders to suspend the Choke Point initiative.
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Fed surveys senior LOs on ATR/QM rule impact
Posted Date: Friday, August 8, 2014
How much of an impact has the Consumer Financial Protection Bureau’s new ability-to-repay/qualified mortgage rule had on mortgage approvals? To find out, the Federal Reserve recently surveyed senior loan officers at banks of various sizes. Read on for the results.
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FDIC shares community bank compliance tips
Posted Date: Friday, August 8, 2014
The Federal Deposit Insurance Corp. is providing tips aimed at helping community banks understand and meet their regulatory compliance obligations. The latest edition of the FDIC’s Supervisory Insights publication highlights compliance materials the agency has made available. The FDICs also offered suggestions for how institutions may be able to leverage their own internal resources to conduct required independent reviews.
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Agencies send megafirms back to drawing board on living wills
Posted Date: Friday, August 8, 2014
The nation’s 11 largest banking and financial institutions sent regulators the latest versions of their resolution plans, or living wills, and the government’s assessment is not good news. According to the Federal Reserve System and the Federal Deposit Insurance Corp., the plans “are not credible and do not facilitate an orderly resolution under the U.S. Bankruptcy Code.” Read on to find out where the plans fall short and what the companies must do to correct the deficiencies.
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GAO reviews CFPB civil penalty fund
Posted Date: Wednesday, August 6, 2014
The Consumer Financial Protection Bureau said it has taken steps to better document the factors it considers when determining how to allocate money from its civil penalty fund for consumer education and financial literacy programs. Word of the move came in a Government Accountability Office report on the bureau’s civil penalty fund. Read on to learn about the GAO’s review.
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GAO’s too-big-to-fail report may be too narrow to judge
Posted Date: Wednesday, August 6, 2014
To what extent has the Dodd-Frank Act codified too-big-to-fail protections for the nation’s largest bank and bank holding companies? This question was the theme of a recent Senate subcommittee hearing that examined the Government Accountability Office’s latest report on the aftereffects of too-big-to-fail. Read on to find out what the GAO concluded, and whether lawmakers and economists are in agreement with the agency’s most recent assessment.
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CFPB extends comment period for complaint narrative policy proposal
Posted Date: Saturday, August 2, 2014
The Consumer Financial Protection Bureau said it will give the public more time to comment on its plan to add consumer narratives to its complaint database. Industry groups have voiced concern over the addition of complaint narratives, arguing that the proposal’s original 30-day comment period provided insufficient time to analyze and respond to the bureau’s plan. Read on to learn about the new comment deadline.
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Portfolio QM bill introduced in U.S. Senate
Posted Date: Saturday, August 2, 2014
Sen. Mary Landrieu, D-La., proposed a bill that will grant qualified mortgage status to loans that certain creditors hold in portfolio. The bill, introduced July 22, differs in at least one important respect from portfolio QM legislation advanced by the House Financial Services Committee earlier this year. Read on for the details.
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CFPB enforcement action alleges violations of TILA, CFPA
Posted Date: Saturday, August 2, 2014
The Consumer Financial Protection Bureau and 13 state attorneys general obtained roughly $92 million in debt relief from Colfax Capital Corp. and Culver Capital LLC, also collectively known as Rome Finance, for about 17,000 U.S. servicemembers and other consumers the agencies said were harmed by a predatory lending scheme that involved the financing and sale of consumer goods. The bureau said Rome Finance violated the Truth in Lending Act. The companies also engaged in abusive acts or practices in violation of the Consumer Financial Protection Act, the CFPB said. Read on to learn about the bureau’s consent order.
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