CFPB releases report on overdraft practices
Subscriber Access OnlyCFPB releases report on overdraft practices
The Consumer Financial Protection Bureau released a report on bank and credit union overdraft practices that raises concerns about whether consumers can anticipate and avoid overdraft costs associated with checking accounts. The report shows significant differences across financial institutions when it comes to overdraft coverage on debit card transactions and ATM withdrawals. The report also finds that consumers who opt in for overdraft coverage incur greater costs. Read on to learn about the study and how the CFPB intends to proceed from here.
Summit live coverage: The ‘year of implementation’ and the one thing that will pull us out of the recession
Subscriber Access OnlySummit live coverage: The ‘year of implementation’ and the one thing that will pull us out of the recession
Positivity permeated the grand ballroom of Cleveland’s Marriott at Key Center hotel as Bill Cosgrove, vice chairman of the Mortgage Bankers Association and the chief executive officer of Union Home Mortgage Corp, kicked off the 2013 National Settlement Services Summit. As the housing market continues to improve, it’s becoming a key component to pulling the country out of the recession. While housing numbers are encouraging, Cosgrove cautioned that we need to ensure we have the proper mortgage industry structure in place as we continue through the “year of implementation.”
Groups worry QM compliance could trigger fair lending concerns
Subscriber Access OnlyGroups worry QM compliance could trigger fair lending concerns
Several major trade groups want the government to provide written assurances that complying with the Consumer Financial Protection Bureau’s new mortgage rules won’t increase institutions’ risk of a fair lending violation. The groups said the mortgage rules will constrict credit availability and may lead to disparate outcomes for some borrowers. Read on for the details.
CFPB releases first round of exam manuals for new mortgage rules
Subscriber Access OnlyCFPB releases first round of exam manuals for new mortgage rules
The Consumer Financial Protection Bureau released the first in a series of roadmaps its examiners will use to assess compliance with the agency’s new mortgage rules. The bureau said its exam procedures offer financial institutions and mortgage companies “valuable guidance” on what the CFPB will be looking for as the rules become effective. The first pair of manuals focuses on new requirements pertaining to appraisals, escrow accounts, and compensation and qualifications for loan originators. Read on for the details.
CFPB wields power to quash alleged ‘abusive’ practices for first time
Subscriber Access OnlyCFPB wields power to quash alleged ‘abusive’ practices for first time
Since the advent of the Consumer Financial Protection Bureau, industry participants have wondered how and when the new agency would use its Dodd-Frank-mandated authority to ban abusive acts or practices in the consumer financial marketplace. On May 29, the agency announced it is seeking to exercise this power for the first time in a case involving a Florida debt-relief company. Read on to learn what activities the company allegedly engaged in that constituted abuse in the eyes of the CFPB.
Lawmakers warn of potential QM fallout
Subscriber Access OnlyLawmakers warn of potential QM fallout
Some members of Congress want the Consumer Financial Protection Bureau to make significant changes to its new ability-to-repay rule. Lawmakers on both sides of the aisle recently challenged bureau representatives on numerous issues ranging from the rule’s 3-percent cap on points and fees for qualified mortgages to the bureau’s ability and willingness to change the rule in the event it fails to function as expected when it takes effect in January 2014. Read on for part one of this two-part series.
  
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Navigating the new age of lender liability will require collaboration, advocacy
Subscriber Access OnlyNavigating the new age of lender liability will require collaboration, advocacy
The Consumer Financial Protection Bureau created a stir last April when it indicated that lenders would be held responsible for the activities of their vendors. Since then, the real estate settlement services industry has been grappling with the problem of how best to verify to lenders that agents are in compliance with applicable consumer protection laws and regulations. During the 2013 National Settlement Services Summit in Cleveland, Penny Reed, vice president, Wells Fargo Home Mortgage, recommended that settlement agents engage their lender clients to address the issue head on.
 
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ICBA sounds off on Freddie Mac low-volume fee
Subscriber Access OnlyICBA sounds off on Freddie Mac low-volume fee
The Independent Community Bankers of America expressed serious concern with a Freddie Mac policy change that would require financial institutions that do not meet certain mortgage volume requirements to pay a $7,500 annual fee for low activity. The group said the fee would be unaffordable for some community banks and would limit institutions’ ability to provide mortgages to their customers.
 
Banking Headlines
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Bureau launches web page for mortgage rule implementation
Subscriber Access OnlyBureau launches web page for mortgage rule implementation
The Consumer Financial Protection Bureau unveiled a web page intended to aid the mortgage industry as it works to comply with several regulations finalized earlier this year. The bureau’s new mortgage rule implementation web page consolidates the rules and related compliance guides, videos and other implementation materials all in one place. Read on for a link to the web page.
 
CFPB Headlines
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U.S. House approves derivatives cross-border, end-user bills
Subscriber Access OnlyU.S. House approves derivatives cross-border, end-user bills
The U.S. House approved three derivatives-related bills on June 12. One bill would require the Securities and Exchange Commission and Commodity Futures Trading Commission to adopt identical rules establishing how Dodd-Frank’s swaps provisions will apply outside of the United States. Another bill is intended to ensure that true derivatives end-users are exempt from Dodd-Frank’s margin requirements. Read on to learn about the bills.
 
Derivatives Headlines
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SEC resurrects money market fund reform effort
Subscriber Access OnlySEC resurrects money market fund reform effort
The Securities and Exchange Commission unanimously voted to release a set of proposals that would change the way money market funds operate — resurrecting a reform effort the agency scuttled in 2012. The SEC’s action came after the Financial Stability Oversight Council made MMFs a key priority and signaled it would use its powers under the Dodd-Frank Act to advance a package of reforms. Read on for the details.
 
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Data security — where’s a service provider to start?
The FTC, CFPB and other agencies are pressuring lenders and their service providers to beef up efforts to protect sensitive data. However, crafting and implementing a data security plan can be a daunting task, especially for smaller service providers. Read on to learn what experts and a representative from the FTC had to say about the resources that are available to companies hoping to understand and meet their data security obligations.

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Dodd Frank Update June 2013
This month, Dodd Frank Update takes an in-depth look at the debate surrounding the qualified mortgage rule. You’ll learn what lawmakers and leaders from the CFPB are saying about the eventual size of the non-QM market. You’ll also find out about the steps the bureau could take if the rule fails to work as expected. In addition, you’ll learn what lawmakers recently had to say about the efficacy of Dodd-Frank’s orderly liquidation provisions.

Cover Story:

Fed Prohibition Against Federal Assistance to Swaps Entities - Interim Final Rule (Docket No. R-1458)
The Federal Reserve approved an interim final rule clarifying the treatment of uninsured U.S. branches and agencies of foreign banks under Dodd-Frank’s so-called swaps push-out provisions. Section 716 of Dodd-Frank will require entities that have access to certain federal assistance to move their swaps activities to an affiliate. The rule establishes a process whereby state member banks and uninsured state branches or agencies of foreign banks may seek additional time to exit the swaps business.
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Recent Webinar

Reviewing your Marketing
Agreements and the
Interpretive Rule
Part 3 of the 2013 RESPA Webinar Series
In this 60-minute webinar, two RESPA attorneys educate listeners on effective marketing agreements that comply with the current regulatory landscape.
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