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Webinar offers ways to self-police your company
Posted Date: Wednesday, February 27, 2013
The Consumer Financial Protection Bureau is now holding lenders accountable for the actions of their service providers. Because of this and the recent uncertainty regarding agent vetting, title insurance agents need to prepare now for this new phase of liability and customer concerns. But, to what extent?
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Mortgage professionals weigh QM concurrent proposal
Posted Date: Wednesday, February 27, 2013
The Consumer Financial Protection Bureau released its ability-to-repay/qualified mortgage rule on Jan. 10, but the rule’s impact on community lenders and the customers they serve still isn’t clear. That’s because, in addition to the final rule, the bureau released a concurrent proposal that includes a set of important rule modifications and exemptions. The comment period for the concurrent proposal recently closed. Read on to learn what community lenders and mortgage brokers had to say about the CFPB’s plans to craft a new QM category and settle outstanding issues related to loan originator compensation.
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Lawmakers amplify Basel III concerns
Posted Date: Wednesday, February 27, 2013
Two U.S. House lawmakers again urged regulators to consider the needs of community banks as they craft rules implementing Basel III’s capital requirements in the United States. Reps. Shelley Moore Capito R., W.Va., and Carolyn Maloney, D-N.Y., said the final rules should be “appropriate for the wide range of financial institutions that comprise our financial system.”
Community bankers and some lawmakers argued that Basel III was designed for large, internationally active banks. Capito and Maloney said in their Feb. 19 letter to regulators that applying the Basel III capital requirements to community and regional banks “could have a significant negative economic effect.”
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Fed extends foreign bank rulemaking comment period
Posted Date: Wednesday, February 27, 2013
The Federal Reserve extended the comment period for proposed rules that would require foreign banks with significant U.S. operations to create intermediate holding companies over their U.S. subsidiaries. The proposal would also implement Dodd-Frank’s enhanced prudential standards and early remediation requirements for foreign banking organizations and certain foreign nonbank financial companies. Read on to learn about the comment extension.
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CFPB’s Shapiro joins Offit Kurman’s new compliance firm
Posted Date: Wednesday, February 27, 2013
Congress passed new rules and regulations regarding mortgage lending and other consumer issues that may well prove to be a complicated maze for businesses to navigate. As a result, the law firm of Offit Kurman, which already has a thriving Financial Institutions Compliance Practice Group, recently launched C3 Compliance Consultants Inc. In addition, Offit Kurman hired Barton Shapiro as a principal in its Financial Institutions Compliance Practice.
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SEC whistleblower award levels shouldn’t change, government report says
Posted Date: Wednesday, February 27, 2013
A recent report from the Securities and Exchange Commission’s Office of Inspector General determined that whistleblower award levels established under the Dodd-Frank Act should not be altered. The OIG also said lawmakers should not consider introducing a private right of action into the new whistleblower regime until the agency has an opportunity to study the matter further.
Title IX of the Dodd-Frank Act empowered the SEC to provide monetary awards to eligible whistleblowers under certain circumstances and directed the commission to establish the Office of the Whistleblower to administer the whistleblower program. The act also required the SEC’s OIG to evaluate the whistleblower program. Read on for the details.
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Wake up sleepy heads! It is time to go to school!
Posted Date: Wednesday, February 27, 2013
Thanks to the Consumer Financial Protection Bureau, the past year has been a whirlwind for mortgage bankers of all stripes. In this article, Howard Lax of Bodman PLC discusses the CFPB’s activities and explains why those in the mortgage business need to reexamine their processes and training programs in light of the CFPB’s requirements.
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CFPB seeks to expand repayment options for struggling student loan borrowers
Posted Date: Friday, February 22, 2013
The Consumer Financial Protection Bureau is gathering information intended to help make repayment of private student loans more manageable for struggling borrowers. The bureau released a Federal Register notice intended to inform detailed recommendations that will be presented to policymakers. The recommendations will supplement other suggestions made by the bureau and the Department of Education. Read on for the details.
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CFPB focused on deceptive marketing, discrimination
Posted Date: Friday, February 22, 2013
Deceptive marketing and discrimination are among four classes of problems Consumer Financial Protection Bureau Director Richard Cordray said can “hijack consumers on the pathway to opportunity.” Cordray discussed these and other issues during a Feb. 21 meeting of the CFPB’s Consumer Advisory Board. He also renewed the bureau’s commitment to pursue discrimination in consumer financial markets based on disparate impact as well as on intentional violations. Read on for the details.
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State regulators hail CFPB servicing transfer bulletin
Posted Date: Friday, February 22, 2013
State banking and mortgage regulators applauded the Consumer Financial Protection Bureau’s promise to scrutinize firms involved in large mortgage servicing transfers. The Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators will seek to update state examination procedures to account for recent CFPB guidance on mortgage servicing transfers. The groups also urged regulated businesses to familiarize themselves with applicable state and federal requirements. Read on for the details.
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CFPB Dodd-Frank Rules: The Great Easter Egg Hunt (Part 2)
Posted Date: Friday, February 22, 2013
The Consumer Financial Protection Bureau’s new mortgage rules will shape the industry for years to come. But while many industry participants are focusing on the negative, Howard Lax of Bodman PLC is on the hunt for the rules’ hidden gems. This is the second in a series of articles highlighting provisions of the CFPB’s ability-to-repay rule, 12 CFR §1026.43, also known as the qualified mortgage rule. Read on to learn about the rule’s temporary financing exception.
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Industry groups, consumer advocates sound off on CFPB trial disclosure plan
Posted Date: Friday, February 22, 2013
Groups representing lenders and consumer advocates shared differing views on a Consumer Financial Protection Bureau proposal aimed at encouraging companies to design and test trial disclosures. While lenders asked for increased flexibility in a trial disclosure regime, consumer advocates urged the bureau to adopt additional protections. Read on for the details.
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Inter-affiliate swaps, muni advisor bills re-proposed
Posted Date: Tuesday, February 19, 2013
Bills to exempt inter-affiliate swaps from certain Dodd-Frank requirements and to amend Dodd-Frank’s provisions related to municipal advisors were introduced into the U.S. House. Versions of both bills passed the House last year but failed to come up for a Senate vote during the 112th Congress. Read on for the details.
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Lawmakers probe Dodd-Frank derivatives reform issues
Posted Date: Tuesday, February 19, 2013
A market shift from swaps to futures that took place as the Commodity Futures Trading Commission implemented new derivatives rules under the Dodd-Frank Act was “somewhat natural,” CFTC Chairman Gary Gensler told the U.S. Senate Banking Committee on Feb. 14. Read on to learn what else Gensler said about the so-called “futurization” of the swaps market and other issues related to Dodd-Frank’s derivatives provisions.
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Community bank concerns aired during Dodd-Frank implementation hearing
Posted Date: Tuesday, February 19, 2013
A number of lawmakers on the Senate Banking Committee questioned top regulators about community bank issues during a Feb. 14 hearing on Dodd-Frank Act implementation. Republicans and Democrats admonished regulators to be mindful of community banks’ concerns. They also asked the agency leaders to outline their efforts to address bank consolidation and regulatory burden. Read on for the details.
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Most of today’s loans would meet QM standards, CFPB says
Posted Date: Tuesday, February 19, 2013
Mortgage Industry participants have been discussing the potential impact of the Consumer Financial Protection Bureau’s ability-to-repay/qualified mortgage rule since the rule was finalized on Jan. 10. Now the CFPB is letting the public know what percentage of today’s loans it believes would meet the new QM standards. Read on for the details.
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Democrats back Cordray nomination
Posted Date: Tuesday, February 19, 2013
Fifty-two Democrats and two independent Senators signed a letter supporting President Barack Obama’s decision to renominate Richard Cordray as director of the Consumer Financial Protection Bureau. Republicans vowed to block Cordray’s confirmation unless changes are made to the CFPB. Read on for the details.
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Alleged bogus mortgage relief firm hits back at CFPB over recess appointment
Posted Date: Tuesday, February 19, 2013
A defendant tied to an alleged phony mortgage relief operation that was shut down by the Consumer Financial Protection Bureau struck back at the agency, questioning the validity of the bureau’s actions in light of a recent court decision that cast doubt on the recess appointment of CFPB Director Richard Cordray.
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CFPB unveils plan to implement new mortgage rules
Posted Date: Monday, February 18, 2013
The Consumer Financial Protection Bureau will publish plain-language guides for industry participants as part of a multifaceted plan aimed at ensuring the mortgage industry appropriately implements new Dodd-Frank rules set to go into effect in January 2014. Read on to learn about the CFPB’s implantation plans and to find out how to contact the bureau if you have a question regarding the new regulations’ meaning or intent.
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Influential U.S. House committee plans to scrutinize Dodd-Frank implementation
Posted Date: Monday, February 18, 2013
A key U.S. House committee plans to scrutinize regulators’ efforts to implement the Dodd-Frank Act over the next two years. The House Financial Services Committee oversight plan for the 113th Congress indicated lawmakers will keep close watch on the new agencies created under the act, including the Consumer Financial Protection Bureau, the Financial Stability Oversight Council and the Federal Insurance Office. Read on to learn about the committee’s other areas of focus.
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Analysis projects impact of QM, QRM requirements
Posted Date: Monday, February 18, 2013
An analysis by mortgage data provider CoreLogic finds that while the early impact of the Consumer Financial Protection Bureau’s qualified mortgage rules will likely be blunted, only half of current originations would meet the general QM standard set forth in the bureau’s new ability-to-repay rule.
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Fed’s Tarullo says regulators should consider ‘congruent’ QM, QRM
Posted Date: Monday, February 18, 2013
A Federal Reserve governor said that while the Dodd-Frank Act’s qualified mortgage and qualified residential mortgage provisions were crafted to achieve different ends, regulators should consider whether to make the QM and QRM definitions “more or less congruent.” Governor Daniel Tarullo told lawmakers on the U.S. Senate Banking Committee that low and middle-income borrowers could be negatively impacted if the QM and QRM rules include “too much in the way of duplicate or multiple kinds of requirements.” Read on for the details.
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More states seek to join Dodd-Frank constitutional challenge
Posted Date: Monday, February 18, 2013
Eight more state attorneys general hope to join a federal lawsuit challenging the constitutionality of the Dodd-Frank Act’s orderly liquidation authority. If approved by the court, the AGs would join three other states, a Texas-based community bank, a senior advocacy group and a non-profit public policy think tank in the lawsuit that also targets the Financial Stability Oversight Council, the Consumer Financial Protection Bureau and the CFPB director’s recess appointment.
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Government report weighs costs of financial crisis, Dodd-Frank’s impact
Posted Date: Monday, February 18, 2013
The recent financial crisis may have cost the United States more than $10 trillion in lost output, according to a review of studies conducted by the Government Accountability Office. Read on to learn what the GAO had to say about the other impacts of the crisis and the costs and benefits associated with implementing the Dodd-Frank Act.
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Commenters question FSOC’s money market fund reform proposal
Posted Date: Tuesday, February 12, 2013
Industry groups representing money market mutual fund borrowers, investors and directors questioned the Financial Stability Oversight Council’s role in crafting a set of MMF reform alternatives. Read on to learn why the group said the FSOC’s proposals are invalid under the Dodd-Frank Act.
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Mortgage servicing transfers draw CFPB scrutiny
Posted Date: Tuesday, February 12, 2013
Firms engaged in significant mortgage servicing transfers should be prepared to show the Consumer Financial Protection Bureau how they plan to limit potential consumer harm related to a transfer, according to a new bulletin from the bureau.
The CFPB issued its bulletin after noting a “significant number of servicing complications related to the large amount of servicing transfers that have occurred in the last year.” In many cases, banks transferred the servicing of troubled loans to more specialized nonbank servicers. The guidance also indicated bureau examiners “will be carefully reviewing servicers’ compliance with federal laws applicable to servicing.”
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Proposed U.S. House legislation targets ‘too-big-to-fail’ problem
Posted Date: Tuesday, February 12, 2013
Troubled financial firms that fail to meet certain capital benchmarks would be placed into receivership under U.S. House legislation proposed on Feb. 11. The bill, sponsored by California Republican John Campbell, reportedly would also repeal one of the Dodd-Frank Act’s most controversial provisions. Read on for the details.
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How many current loans would qualify as a QM?
Posted Date: Tuesday, February 12, 2013
Fewer than half of the banks that responded to an American Bankers Association survey believe 80 percent or more of their current loans would meet the qualified mortgage criteria set forth in the Consumer Financial Protection Bureau’s ability-to-repay final rule. Read on for the details.
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Credit union regulator should have power to delay, amend CFPB rules, association says
Posted Date: Tuesday, February 12, 2013
A credit union trade group said lawmakers should give the National Credit Union Administration authority to amend or delay implementation of Consumer Financial Protection Bureau rules in certain circumstances. This change, proposed by the National Association of Federal Credit Unions, is one of several the group said is necessary to help ease credit unions’ growing regulatory burdens. Read on to learn about the group’s other proposed changes.
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Current, proposed mortgage disclosures subject of CFPB study
Posted Date: Friday, February 8, 2013
Current federal mortgage disclosures and the new disclosures proposed by the Consumer Financial Protection Bureau will be the focus of an upcoming study. The CFPB said it will coordinate a study comparing consumers’ understanding of the current forms and the new disclosures. Read on for the details.
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Benefits of title insurance extolled during CFPB industry roundtable
Posted Date: Friday, February 8, 2013
Title industry representatives discussed the importance of title insurance during a Jan. 18 roundtable meeting with the leader of the Consumer Financial Protection Bureau in Atlanta. They also urged the bureau to change a proposed rule that would see owner’s title insurance listed as optional on mortgage disclosures the CFPB is currently working to finalize. Read on for the details.
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Know your regulator: Ombudsman now on OCC’s executive committee
Posted Date: Friday, February 8, 2013
The Office of the Comptroller of the Currency announced it elevated the position of Larry Hattix, the agency’s ombudsman. As senior deputy comptroller for enterprise governance and ombudsman, Hattix will now be a member of the OCC’s executive committee. Read on to learn about Hattix’s new responsibilities and why the agency decided to restructure this position.
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Ability-to-repay webinar airs Thursday, 2/14
Posted Date: Friday, February 8, 2013
Join Dodd Frank Update and sponsor North American Title Insurance Co. for a 90-minute training webinar on the Consumer Financial Protection Bureau’s ability-to-repay final rule. Learn from two top mortgage and real estate attorneys about compliance with the QM standard, points and fees, affiliate fees, best practices for implementation and more. Read on for further details and registration information.
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Trade groups chime in on CFTC’s latest cross-border proposals
Posted Date: Friday, February 8, 2013
A group of industry associations critiqued the Commodity Futures Trading Commission’s most recent attempt to define the cross-border application of new derivatives rules enacted under the Dodd-Frank Act. Read on to learn what the associations had to say about the CFTC’s proposed U.S. person definition and requirements related to calculating whether firms’ swap dealing activities surpass the de minimis threshold for swap dealer registration.
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Community bankers ‘more successful than they realize’ in fighting one-size-fits-all regulations
Posted Date: Friday, February 8, 2013
Community bankers again urged policymakers to carve their institutions out of a wave of new regulations promulgated in the wake of the financial crisis. The call came as a Federal Reserve governor noted banking regulators and the Consumer Financial Protection Bureau have worked to craft new requirements in a manner that responds to community bankers’ concerns. Read on for the details.
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Senate Republicans demand CFPB changes, promise to block nomination
Posted Date: Wednesday, February 6, 2013
Senate Republicans are again vowing to block any nominated director of the Consumer Financial Protection Bureau unless changes are made to “ensure the accountability and transparency of the bureau.” The demand from 43 senators came after a recent court ruling cast doubt on the validity of President Barack Obama’s 2012 recess appointment of current CFPB Director Richard Cordray. Lawmakers also proposed legislation that would freeze some CFPB funding until a director is confirmed by the Senate. Read on for the details.
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CFPB looking into school-endorsed financial products
Posted Date: Wednesday, February 6, 2013
The Consumer Financial Protection Bureau launched an inquiry into the impact of financial products marketed to students through colleges and universities. The CFPB said it will use the information to determine whether these arrangements are in the best interest of students. Read on to learn about the information the CFPB is seeking.
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CFTC commissioners discuss futurization, swapification
Posted Date: Wednesday, February 6, 2013
Two members of the Commodity Futures Trading Commission, who have often been at odds over Dodd-Frank implementation issues, shared differing views on a recent market shift attributed to the CFTC’s new swaps rules. Read on to learn what Commissioners Scott O’Malia and Bart Chilton had to say about the “futurization” of the swaps market.
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Inside the CFPB’s ability-to-repay concurrent proposal
Posted Date: Wednesday, February 6, 2013
The Consumer Financial Protection Bureau released its ability-to-repay/qualified mortgage rule on Jan. 10, but the rule’s impact on community lenders and the customers they serve still isn’t clear. That’s because, in addition to the final rule, the bureau released a proposal that would provide QM status for certain loans made by small creditors.
The proposal includes numerous revisions and exemptions intended to preserve credit availability, particularly for low-to-moderate-income consumers and consumers in rural and underserved areas. Read on for the details.
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Government sues S&P for fraud in rating mortgage-backed securities
Posted Date: Wednesday, February 6, 2013
The U.S. Justice Department sued Standard & Poor’s, alleging that the desire to retain market share and bolster profits in the run up to the financial crisis led the ratings agency to mask the true risks of certain residential mortgage-backed securities and collateralized debt obligations. Read on for the details.
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Know your regulator: SEC names acting deputy director for enforcement
Posted Date: Wednesday, February 6, 2013
The Securities and Exchange Commission continues to fill key leadership positions. The agency recently named a new inspector general and an acting deputy director of enforcement. Read on to learn about the new faces in new places at the SEC.
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Dodd-Frank stress-test results due in March
Posted Date: Monday, February 4, 2013
Results from supervisory stress tests required under the Dodd-Frank Act will be released in March, the Federal Reserve said. The agency will also release related results from the Comprehensive Capital Analysis and Review.
The Dodd-Frank stress tests are intended to help assess whether institutions have sufficient capital to absorb losses and support operations during adverse economic conditions. The test results will include data such as capital ratios, revenue and loss estimates under a severely adverse scenario and assuming a common set of capital actions that is used in the analysis of all of the firms.
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OCC’s Curry urges CFPB, banking agency coordination
Posted Date: Monday, February 4, 2013
U.S. Comptroller of the Currency Thomas Curry called on the Consumer Financial Protection Bureau and the federal banking agencies to coordinate their supervision and regulatory efforts. Read on to learn why he said supervisory coordination is particularly important when it comes to fair lending issues.
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QM points and fees: Loan originator compensation (Part 2)
Posted Date: Monday, February 4, 2013
The Consumer Financial Protection Bureau finalized its ability-to-repay rule on Jan. 10, setting forth the criteria for a qualified mortgage. Despite vocal opposition from some industry participants, the final rule includes certain loan originator compensation and fees paid to lenders’ affiliates in the calculation of a cap on points and fees established as part of the QM definition.
In part two of this series, Dodd Frank Update examines the rule’s provisions related to loan originator compensation, including important rule revisions proposed by the CFPB.
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Survey: Dodd-Frank’s international remittance provisions will hurt banks’ payments business
Posted Date: Monday, February 4, 2013
The vast majority of banks feel their payments business will be harmed by Dodd-Frank Act provisions intended to enhance protections for consumers who transfer money internationally, according to a recent survey of industry participants. The survey, conducted by Fundtech, a technology provider serving banks and corporations around the world, also found that only 2 percent of respondents thought the provisions would deliver the intended benefits. Read on for the details.
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FDIC’s community banking committee adds new members
Posted Date: Monday, February 4, 2013
The Federal Deposit Insurance Corp. selected eight new members for its Advisory Committee on Community Banking, which has been providing advice and recommendations to the FDIC since it was established in 2009.
The community banking committee discusses and provides input to the FDIC on a wide variety of topics, including current examination policies and procedures, credit and lending practices, deposit insurance assessments, insurance coverage and regulatory compliance.
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Mortgage broker group slams CFPB loan originator compensation rule
Posted Date: Monday, February 4, 2013
An industry group representing mortgage brokers gave the Consumer Financial Protection Bureau’s new loan originator compensation rule low marks. Read on to learn why the National Association of Mortgage Brokers said the rule, coupled with other CFPB regulations, will limit small mortgage brokers’ ability to compete with larger creditors.
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