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CFPB, FTC amicus in Ocwen ‘junk fee’ lawsuit likely strategic, experts say
Posted Date: Tuesday, March 5, 2024
Federal regulators weighed in on whether “convenience fees” charged by a mortgage servicing company are unfair to consumers. The Consumer Financial Protection Bureau and the Federal Trade Commission submitted arguments consistent with their ongoing campaign against illegal “junk fees” in an advisory opinion followed by a recent amicus brief.
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Supreme Court case against BoA raises preemption question
Posted Date: Tuesday, March 26, 2024
In Cantero v. Bank of America, petitioners asked the U.S. Supreme Court whether a New York statute requiring mortgage lenders to pay a minimum interest rate on funds held in mortgage-escrow accounts is preempted by the U.S. Constitution.
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Fed, OCC fine JPMorgan Chase $348.2 million for trade surveillance deficiencies
Posted Date: Tuesday, March 26, 2024
The Federal Reserve and the Office of the Comptroller of the Currency coordinated separate actions against JPMorgan Chase & Co. for alleged deficiencies in the firm’s trade surveillance program, which the company previously disclosed.
The company agreed to pay approximately $348.2 million in total fines levied by the two agencies and undertake specific corrective actions.
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Crypto firm to pay $21 million over unregistered lending program
Posted Date: Tuesday, March 26, 2024
The Securities and Exchange Commission sought a $21 million civil money penalty from Genesis Global Capital, LLC, to settle claims the company failed to register its retail crypto lending products before offering them to the public.
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Experts discuss four ‘pillars’ to consider in fintech partnerships
Posted Date: Tuesday, March 26, 2024
FNF Family of Companies’ Chuck Cain and Mortgage Connect’s Gabe Minton were featured in October Research, LLC’s “RESPA: Ensuring Fintech Partner Compliance” webinar. The two field experts highlighted what you should consider when entering into and maintaining fintech partnerships.
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Agencies extend certain CRA compliance deadlines, request feedback
Posted Date: Tuesday, March 26, 2024
Federal banking agencies have extended the implementation period for certain provisions of their modernized Community Reinvestment Act (CRA) rules. Covered entities will have until Jan. 1, 2026, to align their CRA compliance policies and procedures with the revised rules, which had an original applicability date of April 1 of this year.
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FDIC issues revised policy statement on bank mergers, requests comments
Posted Date: Friday, March 22, 2024
The Federal Deposit Insurance Corp. (FDIC) announced it is considering revising its policy statement on bank mergers to be stronger and clearer in response to ongoing consolidation within the financial system.
The FDIC noted that the revised statement of policy is principles-based and reflects legislative and other developments that have occurred since it was last amended in 2008.
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CFPB supports New York UDAAP legislation
Posted Date: Friday, March 22, 2024
As New York considers legislative reforms to strengthen the state’s laws intended to protect consumers against unfair, deceptive, or abusive tactics, the Consumer Financial Protection Bureau expressed strong support for such a measure in identical letters to state leaders.
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FTC secures record $59 million settlement from two fintechs
Posted Date: Friday, March 22, 2024
The Federal Trade Commission (FTC) secured $59 million in total remediation from two fintechs charged with making false promises to small businesses seeking Covid-19 relief through the federal Paycheck Protection Program. The settlements mark the largest damage total ever obtained by the agency under the FTC Act.
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FOMC says rates should stay put but notes positive indicators
Posted Date: Friday, March 22, 2024
The Federal Reserve announced it would once again keep the target range for the federal funds rate at 5-1/4 to 5-1/2 percent while pointing to positive economic indicators of continued growth, despite lingering inflation concerns.
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MBA economist testifies about market, CBA unveils overdraft survey results
Posted Date: Friday, March 22, 2024
The state of the housing market is intrinsically tied to the economy, making Mortgage Bankers Association Chief Economist Mike Fratantoni well suited to comment on where it stands, as he recently did before members of Congress.
Read what he had to say, as well as other developments announced by trade organizations representing banks, credit unions and other corners of the financial marketplace.
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FDIC demands three companies stop misrepresenting deposit insurance
Posted Date: Friday, March 22, 2024
Three companies and certain associated parties received cease-and-desist letters from the Federal Deposit Insurance Corp. (FDIC) for making false and misleading statements about federal deposit insurance. The letters highlight specific examples of violations of the FDIC Act.
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Lennar Mortgage moves servicing operations to ICE Mortgage Technology
Posted Date: Friday, March 22, 2024
Lennar Mortgage will move its servicing operations onto the ICE Mortgage Technology Mortgage Servicing Platform (MSP) to streamline its processes. Lennar expects to see increased efficiencies and compliance support from the integration of the systems via the ICE end-to-end technology ecosystem, according to a press released by the Intercontinental Exchange, Inc.
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MBA appoints Madisyn Rhone as vice president of legislative affairs
Posted Date: Wednesday, March 20, 2024
The Mortgage Bankers Association (MBA) recently brought in Madisyn Rhone to be the trade organization’s vice president of legislative affairs. Rhone will be responsible for advocating on behalf of MBA’s legislative and policy priorities, with a primary focus on Democratic members of the U.S. House of Representatives, according to an MBA press release.
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LIVE: Dodd Frank Update at 2024 CBA Conference
Posted Date: Tuesday, March 19, 2024
For real-time coverage of CBA LIVE 2024, follow Dodd Frank Update on X (@DoddFrankUpdate) as we share photos and updates throughout the retail banking sector’s premier annual event, hosted by the Consumer Bankers Association (CBA), March 25-27, at National Harbor in Washington, D.C.
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CFPB intent on preventing anticompetitive open banking standards
Posted Date: Tuesday, March 19, 2024
Consumer Financial Protection Bureau Director Rohit Chopra framed the bureau’s proposed rules under Sec. 1033 of the Dodd-Frank Act as crucial to preventing anticompetitive standard-setting practices as more Americans discover open banking.
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Chime ordered to pay $2.5 million for poor complaint handling
Posted Date: Tuesday, March 19, 2024
Chime Financial, Inc. was ordered to pay a $2.5 million penalty to settle claims concerning its mishandling of complaints involving customer transactions. The California Department of Financial Protection and Innovation cited the company for unfair acts, as defined by the California Consumer Financial Protection Law.
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CBA whitepaper examines long-term impacts of Basel III Endgame proposal
Posted Date: Tuesday, March 19, 2024
The Consumer Bankers Association published a whitepaper examining various aspects of the federal banking regulators’ proposed Basel III capital risk management rules, describing how some of the proposed changes could be harmful to institutions and consumers.
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Regulatory Roundup: Agencies reconsider operational resilience standards
Posted Date: Tuesday, March 19, 2024
Financial stability remains a critical concern for federal banking regulators, prompting them to reconsider certain standards put in place to ensure that covered entities have the proper infrastructure to withstand operational challenges. Learn about these issues and more in this roundup.
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Biden admin requests $325 million for CDFI program
Posted Date: Tuesday, March 19, 2024
The Biden administration has requested $325 million be allocated to the Community Development Financial Institutions (CDFI) Fund in its proposed budget for fiscal year 2025. If approved by Congress, the proposal would represent a $1 million increase in CDFI Fund allocations from last year and a 20 percent increase from the 2021 budget.
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Powell says Basel III proposal could see ‘material, broad changes’
Posted Date: Friday, March 15, 2024
During his recent testimony before the Senate Banking Committee, Federal Reserve Chair Jerome Powell said the Basel III Endgame capital standards proposal will likely see “material and broad changes” before it is finalized.
Many arguments against expanding Basel III risk-based capital standards beyond the largest, most complex institutions were brought front and center during the hearing.
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SEC announces climate-risk disclosure final rules
Posted Date: Friday, March 15, 2024
New rules adopted by the Securities and Exchange Commission will require public companies to disclose climate-related risks related to their operations, as well as the methods and costs involved in mitigating those risks. There is internal opposition to the rules, which passed by a 3-2 commission vote, as well as pushback from trade organizations and lawmakers.
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NIST updates cybersecurity framework for protecting sensitive data
Posted Date: Friday, March 15, 2024
The National Institute of Standards and Technology released a revised version of its Cybersecurity Framework guidance detailing steps organizations can take to reduce cybersecurity risks, placing a greater priority on the role of corporate governance and supply chains in protecting sensitive data.
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FDIC: Banks report drop in Q1 net income, uptick in loan balances
Posted Date: Friday, March 15, 2024
Banks reported $256.9 billion in first-quarter net income, representing a $30 billion drop from the fourth quarter of 2023 and a year-over-year decrease of $6 billion, according to the Federal Deposit Insurance Corp.’s latest Quarterly Banking Profile. About 70 percent of the drop-off was attributed to specific, nonrecurring, noninterest expenses at large banks.
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House passes Expanding Access to Capital Act in party-line vote
Posted Date: Friday, March 15, 2024
House Republicans celebrated the passage of H.R. 2799, which aims to facilitate capital formation by strengthening public markets, helping small businesses and entrepreneurs and creating new investment opportunities. The bill passed via a 212-205 vote along party lines.
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Loan officers sue Loan Factory for exploiting their information, images
Posted Date: Tuesday, March 12, 2024
A group of loan officers filed a class action lawsuit against Loan Factory for using their personal information and likenesses on its website without consent to drum up business. The plaintiffs claimed they never even worked with the San Jose, Calif.-based mortgage brokerage firm.
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Experts assess ABA report on regulation through guidance
Posted Date: Tuesday, March 12, 2024
The American Bankers Association issued a white paper titled, “Effective agency guidance: Examining bank regulators guidance practices,” where it voiced its and other trade association’s concern over agency use of guidance “to advance regulatory policy agendas.” Industry experts shared their takeaways from the report.
ABA President Rob Nichols referenced the white paper, along with copies of recent comment letters, in a letter to the federal financial regulators requesting their consideration of the feedback. Richard Andreano of Ballard Spahr, Loretta Salzano of Franzén and Salzano, and Mike Silver of Husch Blackwell, LLP spoke about their takeaways from the report.
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Industry reacts to HUD secretary’s resignation
Posted Date: Tuesday, March 12, 2024
U.S. Department of Housing and Urban Development Secretary Marcia Fudge gave her two weeks’ notice on March 11. After working in the public sector for almost 50 years, she will be retiring from public life. Dodd Frank Update reached out for reactions from the industry.
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Mid-year rate cuts look increasingly likely to economists
Posted Date: Tuesday, March 12, 2024
Economists are increasingly confident that the first federal funds rate cut since 2020 could happen as flowers are blooming in the late spring and early summer. This aligns with what Mortgage Bankers Association Chief Economist Michael Fratantoni suggested during October Research’s 2024 Economic Forecast webinar in January.
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Regulatory Roundup: FHFA adjusts timeline for bi-merge credit scoring model
Posted Date: Tuesday, March 12, 2024
Between merging banks and merging credit scoring models, financial regulators still have to find time to conduct examinations and rulemaking activities. Here are a few synopses of activities and announcements that recently came out of the Federal Housing Finance Agency, Federal Deposit Insurance Corp., the Federal Reserve and the Office of the Comptroller of the Currency.
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MBA challenges CFPB blog post calling closing costs ‘junk fees’
Posted Date: Tuesday, March 12, 2024
The Consumer Financial Protection Bureau’s blog posts related to its policy initiatives under Director Rohit Chopra have rubbed many financial professionals the wrong way. The bureau’s latest post referred to closing costs as “junk fees” that hinder housing affordability, prompting criticism from the Mortgage Bankers Association.
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CFPB credit card fee rule opens floodgates for lawsuits
Posted Date: Friday, March 8, 2024
The Consumer Financial Protection Bureau is no stranger to legal or political challenges against its rulemaking efforts. One former bureau attorney predicted the agency’s credit card late fee rule was “almost certain” to be the next and why the agency may be OK with that.
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Former CFPB attorney assesses legal arguments over credit card late fee rule
Posted Date: Friday, March 8, 2024
Several trade organizations have filed suits challenging the Consumer Financial Protection Bureau’s final rule on credit card late fees. Dodd Frank Update consulted former CFPB attorney Richard Horn, co-managing partner at Garris Horn LLP, about the merits of the common arguments presented among these case filings.
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Financial sector argues FTC’s junk fee proposal overlaps existing regulations
Posted Date: Friday, March 8, 2024
More than 60,000 comments have been submitted concerning the Federal Trade Commission’s proposed rule on “junk fees” from all corners of the business world. The proposed rule prohibits companies from excluding mandatory fees from advertised prices, asserting that doing so misleads consumers about the total cost of products and services.
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FinCEN proposes rule to apply BSA requirements to investment advisors
Posted Date: Friday, March 8, 2024
The Treasury Department’s Financial Crimes Enforcement Network proposed a rule to extend its authority under the Bank Secrecy Act to cover certain investment advisors. Regulators published a fact sheet about the proposal and a Treasury report assessing the types of risks posed by certain investment advisors.
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McHenry reintroduces Financial Services Innovation Act again
Posted Date: Friday, March 8, 2024
Financial Services Committee Chair Patrick McHenry (R-N.C.) hopes the fourth time is the charm for his legislation to create “regulatory sandboxes” allowing financial services providers to offer innovative products and services under an alternative compliance plan.
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MBA reacts to Biden administration’s affordable housing initiatives
Posted Date: Friday, March 8, 2024
The Mortgage Bankers Association (MBA) was generally encouraged by the Biden administration’s announcements regarding the housing market, released just prior to the 2024 State of the Union Address.
MBA President and CEO Bob Broeksmit also noted the organization’s concerns about certain indications from the Consumer Financial Protection Bureau (CFPB) about closing costs and other expenses associated with mortgage transactions.
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CFPB targets large credit card providers with rule to close late fee ‘loophole’
Posted Date: Tuesday, March 5, 2024
The Consumer Financial Protection Bureau finalized a rule seeking to reduce excessive credit card fees by closing a regulatory “loophole.” The new rule essentially blocks a 2011 rule amendment enacted by the Federal Reserve that allowed banks to charge fees exceeding the amount required to recover its expenses associated with a late payment.
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Banks request clear guidance on BOI final rule
Posted Date: Tuesday, March 5, 2024
While the Financial Crimes Enforcement Network’s final rule on access to beneficial ownership information addressed some concerns expressed by banks, others remain as the reporting deadline draws near. Banking advocates asserted the need for guidance to clarify certain elements of the rule to help small businesses and newly formed entities covered under the rule.
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Fed incorporates ‘exploratory analysis’ into stress test scenarios
Posted Date: Tuesday, March 5, 2024
The
Federal Reserve’s 2024 hypothetical stress test scenarios are the first to incorporate
elements the agency is studying as part of its “exploratory analysis” of the
banking system. The analysis is distinct from the stress test but will
complement it by offering aggregate results tested against different economic
and financial conditions.
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Quantalytix appoints Michael McCay as mortgage technology director
Posted Date: Monday, March 4, 2024
Quantalytix has named Michael McCay as director of mortgage technology, the company announced in a press release. Quantalytix is known for its cloud-based Enterprise Bank Management (EBM) software, as well as its Enterprise Data Management (EDM) platform for financial institutions.
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Biden directs DOJ, CFPB to help protect Americans’ sensitive data
Posted Date: Friday, March 1, 2024
The rash of recent data breaches at American firms prompted an executive order from the Biden administration directing multiple federal agencies, including the Department of Justice and the Consumer Financial Protection Bureau, to take steps to help protect Americans’ sensitive personal data.
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loanDepot estimates data breach cost over $12 million
Posted Date: Friday, March 1, 2024
The recent ransomware attack against loanDepot compromised personal data belonging to nearly 17 million individuals and cost the company between $12 million and $17 million, according to first-quarter company estimates. The full financial impact of the incident could be much higher as the country’s fifth-largest mortgage lender faces multiple legal challenges related to the breach.
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Court rules on lawsuit over UWM ‘All In’ ultimatum
Posted Date: Friday, March 1, 2024
A Florida district court ruled on a class action lawsuit against United Wholesale Mortgage and its CEO Mathew Ishbia alleging anticompetitive practices in the wholesale lending market. The case centers on UWM’s ultimatum prohibiting partner brokers from doing business with Rocket Mortgage or Fairway Independent Mortgage.
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SEC orders 16 firms to pay $81 million combined over recordkeeping failures
Posted Date: Friday, March 1, 2024
The Securities and Exchange Commission recently issued $81 million in total fines against 16 financial firms for widespread recordkeeping failures. Examiners determined employees, including some in senior leadership, engaged in “off-channel” communications and the mishandling of electronic correspondence.
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Call for regulatory relief made by trade groups
Posted Date: Friday, March 1, 2024
Industry trade organizations representing banks and credit unions recently published views and research findings about policies and proposals issued by the Federal Housing Administration, Consumer Financial Protection Bureau and the National Credit Union Administration.
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Xactus selects Michael Crockett to be new COO
Posted Date: Friday, March 1, 2024
Xactus recently announced that Michael Crockett to be the new chief operating officer (COO) for the mortgage verification technology provider. Crockett previously served as the company’s chief data officer.
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Agencies assess financial sector risks in Shared National Credit program report
Posted Date: Friday, March 1, 2024
Federal banking regulators released their 2023 Shared National Credit (SNC) report assessing credit quality and risk factors associated with large, syndicated bank loans as “moderate” despite some downward trends attributed to high interest rates. The SNC program assesses risk among the largest and most complex credit facilities shared by regulated financial institutions and nonbank investors.
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Mortgage Connect names Kim Hoffman president of Adfitech
Posted Date: Thursday, February 29, 2024
Mortgage Connect, a national mortgage services provider, recently appointed Kim Hoffman to serve as president of Adfitech, Inc., which the company acquired in 2022 to expand into the third-party due diligence market. Adfitech has spent 40 years offering quality control and risk management services to the mortgage industry, according to a press release.
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