|
CFPB should expand QM small creditor definition, industry commenters say
Posted Date: Wednesday, July 16, 2014
Earlier this year, the Consumer Financial Protection Bureau sought feedback on a limited proposal to amend some of its new mortgage rules. The bureau also asked for public comment on its “small creditor” definition, which intersects with rule provisions intended to preserve consumers’ ability to access credit from community banks and credit unions. Industry commenters responded by urging the CFPB to expand the small creditor definition. They also discussed the impact the bureau’s rules are having on community institutions.
|
|
|
Basel III mortgage servicing impact discussed during hearing on regulatory relief
Posted Date: Friday, July 18, 2014
Community bankers say new Basel III capital rules could force smaller institutions to sell their mortgage servicing rights to nonbanks. During a recent U.S. House Financial Institutions and Consumer Credit Subcommittee hearing, bankers urged lawmakers to back legislation that would require regulators to study appropriate capital requirements for mortgage servicing assets held by community institutions. Read on to learn about the measure and other burden-reduction bills discussed during the hearing.
|
|
|
Lawmakers on warpath against Operation Choke Point
Posted Date: Friday, July 18, 2014
Although the U.S. Department of Justice contends that the authority it exercises over banks and financial institutions in Operation Choke Point is fair and reasonable, some Republican lawmakers argue that the initiative is being used to strong-arm banks into denying financial services to businesses for political reasons. The debate escalated last week as two House committees held hearings to probe the legality of the program and examine its impact on businesses and consumers.
|
|
|
CFPB floats plan to add narratives to consumer complaint database
Posted Date: Friday, July 18, 2014
The Consumer Financial Protection Bureau is seeking comment on a proposed policy change that would see the bureau add consumer narratives to its complaint database. The CFPB said publishing the narratives would aid consumer decision making and drive improved customer service among industry participants. However, the policy is likely to face pushback from industry participants who have vigorously opposed such a move. Read on to learn about the bureau’s proposed policy and the debate over publicizing consumer complaint narratives.
|
|
|
CFPB now takes gripes on prepaid cards, nonbank products
Posted Date: Tuesday, July 22, 2014
The Consumer Financial Protection Bureau is now accepting consumer complaints about prepaid cards, such as gift cards, benefit cards and general purpose reloadable cards. Consumers can also now submit complaints about additional nonbank products, including debt settlement services, credit repair services, and pawn and title loans.
|
|
|
Bureau sues debt collection law firm, cites lack of meaningful attorney involvement in collections actions
Posted Date: Friday, July 18, 2014
The Consumer Financial Protection Bureau has sued a Georgia-based debt collection law firm the agency said relied on automation and non-attorney support staff to create a “lawsuit mill” that allowed the firm to file hundreds of thousands of suits against consumers. The bureau said some of the consumers who were sued may not have owed the alleged debts. Read on to learn about the case and how the law firm responded.
|
|
|
CFPB alleges UDAAP trifecta in payday lending enforcement action
Posted Date: Friday, July 11, 2014
The Dodd-Frank Act gave the Consumer Financial Protection Bureau authority to root out unfair, deceptive and abusive acts or practices in the consumer financial markets, and the agency has fined a payday lender it said engaged in all three in order to drive consumers into a cycle of debt. Irving, Texas-based Ace Cash Express agreed to pay $10 million to resolve CFPB claims that the company used illegal debt collection tactics — including harassment and false threats of lawsuits or criminal prosecution — to pressure overdue borrowers into taking out additional loans they could not afford. Read on to learn about the CFPB’s UDAAP claims.
|
|
|
OCC top supervisory concerns outlined in new report
Posted Date: Thursday, July 3, 2014
Competitive pressures and strategic and operational risks top a semiannual list of supervisory concerns released by the Office of the Comptroller of Currency. The OCC’s spring Semiannual Risk Perspective report indicates that while conditions overall showed improvement in the second half of 2013, credit risk is building. Read on to learn about the issues OCC examiners plan to focus on in the coming months as they supervise mid-size and community banks.
|
|
|
CFTC extends swaps valuation data reporting relief
Posted Date: Friday, July 11, 2014
The Commodity Futures Trading Commission’s Division of Market Oversight issued a so-called “no-action” letter extending relief to swap dealers and major swap participants from the obligation to report valuation data for cleared swaps as required under the commission’s Dodd-Frank regulations. Read on to learn about the extension.
|
|
|
Industry groups urge CFPB to consider possible QM DTI cure, correction mechanism
Posted Date: Friday, July 11, 2014
Groups representing mortgage lenders urged the Consumer Financial Protection Bureau to address concerns that debt-to-income ratio calculation errors could jeopardize a loan’s status as a qualified mortgage under the ability-to-repay rule. In April, the CFPB sought feedback on whether it should consider crafting a provision that would allow lenders to cure or correct a DTI error. Some industry commenters supported such a provision. Consumer advocates, on the other hand, argued that a cure or correction provision would harm consumers and would be unworkable as a practical matter.
|
|
|
Bipartisan Policy Center suggests Dodd-Frank changes
Posted Date: Tuesday, July 22, 2014
The Bipartisan Policy Center marked the fourth anniversary of the passage of the Dodd-Frank Act by highlighting areas of financial reform progress while also proposing certain legislative and regulatory changes the group said would improve upon the act. A number of the suggestions pertained to the Consumer Financial Protection Bureau. Read on to learn about some of the ways the BPC said Congress and regulators could improve upon Dodd-Frank.
|
|
|
Survey underscores need to reduce call report burden, ICBA says
Posted Date: Wednesday, July 16, 2014
The Independent Community Bankers of America released the results of a new survey the organization said shows the “increasing and unnecessary regulatory burden” that quarterly call report requirements impose on community banks. The organization suggested that regulators should streamline the reporting regime for certain institutions. Read on to learn which elements of the call report bankers find most burdensome.
|
|
|
CFPB to become more involved in government’s response to virtual currencies
Posted Date: Thursday, July 3, 2014
Attention to potential consumer protection concerns involving Bitcoin and other virtual currencies has intensified in recent months, and the Consumer Financial Protection Bureau plans to increase its involvement in the government’s effort to address issues in the space. The CFPB announced those intentions in its response to a report from the Government Accountability Office that urged the bureau to beef up its collaboration with other government agencies working on virtual currency issues. Read on to learn why the GAO believes the bureau should be more involved in the virtual currency discussion.
|
|
|
Industry mourns the loss of thought leader
Posted Date: Saturday, July 26, 2014
Todd Bjorklund, a leader in the real estate and mortgage industries, passed away on July 19 at the age of 56. Bjorklund was an entrepreneur, having started his first business when he was only 18 years old.
|
|
|
Fed, state sweep of foreclosure relief operations spawns lawsuits nationwide
Posted Date: Saturday, July 26, 2014
An ongoing joint federal and state enforcement sweep called Operation Mis-Modification has rounded up dozens of companies and individuals nationwide. The initiative resulted in a slew of lawsuits targeting alleged deceptive mortgage relief scams. According to the Consumer Financial Protection Bureau and the Federal Trade Commission — which have filed lawsuits in several states — the scams violated both Regulation O and the Dodd-Frank Act. Read on for the details of their complaints and allegations.
|
|
|
|
What Barney Frank would change about Dodd-Frank (and what he wouldn’t)
Posted Date: Saturday, July 26, 2014
Barney Frank, the retired Massachusetts Democrat who coauthored the Dodd-Frank Act, returned to Capitol Hill for a hearing coinciding with the fourth anniversary of the measure’s enactment. Frank, who once chaired the House Financial Services Committee, sparred with the committee’s Republican leaders and shared his views on where Dodd-Frank should change, where it shouldn’t and areas where regulators may be missing the mark. Read on to learn why Frank is troubled by regulators’ plans to equate Dodd-Frank’s qualified mortgage and qualified residential mortgage definitions.
|
|
|
Dodd-Frank by the numbers
Posted Date: Saturday, July 26, 2014
This past marked the fourth anniversary of the Dodd-Frank Act, and Davis Polk & Wardwell LLP recently released a progress report on federal agency efforts to complete Dodd-Frank rulemakings. Read on for a snapshot look at how regulators have been progressing.
|
|
|
CFPB third anniversary: Free special report
Posted Date: Saturday, July 26, 2014
In just a little over three years, the Consumer Financial Protection Bureau has reshaped the mortgage market by implementing regulations, doling out enforcement actions and supervising industry participants. RESPA News, Dodd Frank Update’s sister publication, has teamed up with sponsor RedVision to provide a free special report on the bureau’s activities. Read on to learn about the report and to download your free copy.
|
|
|
Trade groups want more time to comment on complaint narrative proposal
Posted Date: Saturday, July 26, 2014
A group of trade associations urged the Consumer Financial Protection Bureau to give the public more time to comment on the agency’s plan to add consumer narratives to its complaint database. Industry participants have previously urged the bureau not to add narratives to the database, and the groups said the bureau’s policy proposal raises “serious legal and practical issues.” Read on to learn about the associations’ request.
|
|
|
CFPB proposes Dodd-Frank HMDA rule
Posted Date: Saturday, July 26, 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, released July 25, also aims to simplify the reporting process for financial institutions. Read on for an overview of the proposal.
|
|
|
CFPB releases complaint report, urges consumers to share their stories
Posted Date: Tuesday, July 22, 2014
The Consumer Financial Protection Bureau has handled more than 400,000 consumer complaints since it officially opened its doors three years ago this week. The CFPB recently released its latest snapshot report describing the consumer complaints it has received. The bureau also encouraged consumers to share their stories about issues they have experienced in the marketplace for consumer financial products and services.
|
|
|
O’Malia leaving CFTC
Posted Date: Tuesday, July 22, 2014
Scott O’Malia, one of two Republicans on the five-member Commodity Futures Trading Commission, announced that he will leave the agency next month. O’Malia was a key figure in the debate over the commission’s efforts to implement Dodd-Frank’s swaps reforms. Read on for a look at O’Malia’s role during this important period for the CFTC.
|
|
|
Barney Frank to return to the Hill for showdown over namesake legislation
Posted Date: Tuesday, July 22, 2014
The House Financial Services Committee will mark the fourth anniversary of the enactment of the Dodd-Frank Act with a hearing that will feature testimony from Barney Frank, the retired Massachusetts’s Democrat who co-authored the legislation. The hearing will pit Frank against committee Republicans, who argued in a report earlier this week that Dodd-Frank has failed to live up to its biggest promise. Read on for a preview.
|
|
|
House-approved appropriations bill would change CFPB funding mechanism
Posted Date: Friday, July 18, 2014
The U.S. House approved a $21.3 billion spending bill July 16 that would bring the Consumer Financial Protection Bureau under the congressional appropriations process. The measure served as a focal point for the continuing debate over the CFPB and other agencies charged with implementing provisions of the Dodd-Frank Act.
|
|
|
Financial trade groups to CFPB: ‘Keep It Simple, Streamline!’
Posted Date: Friday, July 18, 2014
After receiving more time to comment on the Consumer Financial Protection Bureau’s proposed changes to Regulation P, the nation’s top banking and financial services industry trade groups have penned a 13-page letter stating the bureau’s new annual privacy disclosure notice proposal “does little to minimize the overall, unnecessary regulatory burden currently in place.” What do the groups suggest the bureau do instead? Read on for a summary of their concerns and suggestions.
|
|
|
Democrats add to growing list of housing finance reform proposals
Posted Date: Wednesday, July 16, 2014
A group of U.S. House Democrats has floated yet another proposal aimed at overhauling the nation’s housing finance system. Under the measure, HR 5055, known as the Partnership to Strengthen Homeownership Act, all government-guaranteed single-family and multi-family mortgage-backed securities would be supported by a minimum of 5 percent private sector capital standing in a first loss position. Read on to learn more about the proposal.
|
|
|
CFPB to scrutinize brokers shifting to ‘mini-correspondent’ model
Posted Date: Wednesday, July 16, 2014
The Consumer Financial Protection Bureau is keeping a close eye on mortgage brokers transitioning to a “mini-correspondent” lender model in the wake of new rules pertaining to the payment and regulatory treatment of broker compensation. The bureau is concerned that some brokers who now purport to be mini-correspondent lenders may really just be brokers by a different name. The CFPB recently released guidance on the issue, including a series of questions the bureau will use to help determine a mortgage transaction’s “true nature.”
|
|
|
Citigroup to pay $7B under mortgage settlement
Posted Date: Wednesday, July 16, 2014
Citigroup Inc. will pay $7 billion — including a record $4 billion civil penalty — to resolve federal and state claims related to the bank’s conduct in the packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities in the lead up to the financial crisis. The settlement requires Citigroup to provide relief to underwater homeowners, distressed borrowers and affected communities through a variety of means including financing affordable rental housing developments for low-income families in high-cost areas. Read on to learn more about the agreement.
|
|
|
CFPB comes up empty in quest to use remittance transfers to enhance credit score data
Posted Date: Friday, July 11, 2014
Following up on a 2011 report on the potential of remittance transfers to improve credit scores for people with thin or poor credit profiles, the Consumer Financial Protection Bureau released a report detailing the results of empirical analysis conducted on the matter — and the report’s conclusions may not be what the bureau hoped to discover. Read on for a summary of the CFPB’s findings.
|
|
|
Heirs can take over mortgages without triggering ATR rule, CFPB says
Posted Date: Friday, July 11, 2014
The Consumer Financial Protection Bureau issued an interpretive rule clarifying that when a borrower dies, the name of the borrower’s heir generally may be added to the mortgage without triggering the agency’s ability-to-repay rule. The CFPB made the clarification after industry and consumer advocates expressed uncertainty about the application of the ATR rule in situations where a successor-in-interest seeks to be added as an obligor or substituted for the current obligor on an existing mortgage. Read on to learn about the interpretive rule.
|
|
|
Castro confirmed as HUD secretary
Posted Date: Friday, July 11, 2014
The U.S. Senate confirmed San Antonio Mayor Julián Castro’s nomination to become secretary of the Department of Housing and Urban Development by a vote of 71-26. Castro replaces Shaun Donovan who will now be the director of the White House Office of Management and Budget.
|
|
|
CFPB failed to make sound business case for headquarters project, IG finds
Posted Date: Tuesday, July 8, 2014
The inspector general for the Federal Reserve and the Consumer Financial Protection Bureau determined that the CFPB has not provided a sound business case to support the funding of its controversial headquarters renovation project. Republicans on the U.S. House Financial Services Committee said the IG’s report is further evidence that the CFPB is unaccountable and should be restructured. Read on to learn about the report.
|
|
|
Agencies provide guidance for HELOCs nearing ‘end-of-draw’ periods
Posted Date: Tuesday, July 8, 2014
Federal bank regulators and the Conference of State Bank Supervisors issued guidance to financial institutions regarding home equity lines of credit nearing their “end-of-draw” period, which occurs when the principal amount of the HELOC must begin to be repaid. The guidance encourages financial institutions to effectively communicate with borrowers about the pending reset and provides broad principles for managing risk as HELOCs reach their end-of-draw periods. Read on to learn about the regulators’ expectations.
|
|
|
FHFA urged to assess litigation options for lender-placed insurance losses
Posted Date: Tuesday, July 8, 2014
Although the Federal Housing Finance Agency said it has taken steps to prevent the financial harm that certain practices in the lender-placed insurance market caused Fannie Mae and Freddie Mac, the agency says the government-sponsored enterprises stand a good chance of recouping their losses in court. Read on to find out why.
|
|
|
Feds release public sections of Dodd-Frank ‘living wills’
Posted Date: Tuesday, July 8, 2014
The Federal Reserve and the Federal Deposit Insurance Corp. released the public portions of annual resolution plans for 17 financial firms. Each plan, commonly known as a “living will,” must describe the company’s strategy for rapid and orderly resolution under the U.S. Bankruptcy Code in the event of material financial distress or failure of the company.
|
|
|
Battle over proposed CFPB pre-dispute arbitration survey continues
Posted Date: Tuesday, July 8, 2014
Industry participants and consumer advocates continue to debate the efficacy of a proposed Consumer Financial Protection Bureau survey on credit card pre-dispute arbitration agreements. The bureau has been seeking feedback on its plan to conduct a national telephone survey of 1,000 credit card holders as part of a study mandated by the Dodd-Frank Act. Recently, banking industry groups said they want the Office of Management and Budget to deny approval for the CFPB’s survey.
|
|
|
More time to comment on position limits, aggregation rulemakings
Posted Date: Thursday, July 3, 2014
The Commodity Futures Trading Commission is giving stakeholders more time to comment on a Dodd-Frank position limits proposal that would replace a final rule vacated by a federal court in September 2012. The CFTC also extended the comment period for proposed changes to its position limits aggregation policy. Read on to learn about the new comment deadline.
|
|
|
End of ‘too big to fail?’ Too soon to tell, Lew says
Posted Date: Thursday, July 3, 2014
While presenting the Financial Stability Oversight Council’s 2014 annual report to the House Financial Services Committee on June 24, Treasury Secretary Jacob Lew was grilled on whether “too big to fail” still exists, and he offered a mixed response. Read on to find out why he told lawmakers that we may not know if one of the main contributors to the financial collapse is a thing of the past until the next financial crisis happens.
|
|
|
Mortgage performance continues to improve, OCC says
Posted Date: Thursday, July 3, 2014
The performance of first-lien mortgages serviced by large national and federal savings banks improved in the first quarter of 2014, according to new numbers from the Office of the Comptroller of the Currency. Read on to learn what percentage of mortgages were current and performing at the end of the quarter.
|
|
|
Federal, state regulators launch cybersecurity pilot for community institutions
Posted Date: Thursday, July 3, 2014
State and federal agencies have launched a pilot program designed to help regulators assess how community financial institutions manage cybersecurity and their preparedness to mitigate increasing cyber risks. The program, announced by the Federal Financial Institutions Examination Council, is said to involve more than 500 community institutions. Read on for the details.
|
|
|
Fed gives big banks more time to resubmit capital plans
Posted Date: Tuesday, July 1, 2014
Four firms that saw their annual capital plans rejected by the Federal Reserve earlier this year have been granted additional time to resubmit their plans. Citigroup Inc., HSBC North America Holdings Inc., RBS Citizens Inc. and Santander Holdings USA Inc. were initially required to resubmit their revised plans by June 26.
|
|
|
Cordray, lawmakers discuss QM, advisory opinions and CFPB employee issues
Posted Date: Tuesday, July 1, 2014
Richard Cordray, director of the Consumer Financial Protection Bureau, recently appeared before the House Financial Services Committee to discuss his agency’s latest semi-annual report. Cordray fielded lawmakers’ questions on several topics including the impact of the CFPB’s qualified mortgage rule, allegations of discrimination at the agency and the possibility that the bureau may consider issuing advisory opinions to help regulated industry participants better understand their compliance obligations.Read on to learn what Cordray had to say.
|
|
|
U.S. Bank to pay $200 million to settle FHA mortgage claims
Posted Date: Tuesday, July 1, 2014
U.S. Bank agreed to pay $200 million to resolve Justice Department allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Federal Housing Administration that did not meet applicable requirements. The agreement comes just days after the Justice Department announced that SunTrust Mortgage will pay nearly $1 billion to settle state and federal mortgage claims, including claims related to FHA mortgages.
|
|
|
SEC adopts cross-border security-based swaps rules
Posted Date: Tuesday, July 1, 2014
The Securities and Exchange Commission adopted the first of a series of rules and guidance on cross-border security-based swap activities. The rules and guidance explain when a cross-border transaction must be counted toward the requirement to register as a security-based swap dealer or major security-based swap participant. The commission also adopted a procedural rule regarding the submission of “substituted compliance” requests. Read on to learn about the SEC’s rules and how they intersect with cross-border guidance released by the Commodity Futures Trading Commission last summer.
|
|
|
Regulators seek comment on revised Call Report requirements
Posted Date: Tuesday, July 1, 2014
The nearly 7,000 U.S. banks and thrifts that are required to submit information to regulators each quarter in the form of Reports of Condition and Income, commonly known as Call Reports, may have different reporting requirements come this time next year. Read on to find out what changes the FDIC, OCC and FRB want to make, and how you can give the agencies your input on the proposed revisions.
|
|