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How debt collection proposals affect creditors
Posted Date: Tuesday, August 23, 2016
The Consumer Financial Protection Bureau said in releasing proposed rules for debt collection that its rules would govern third-party collection, and that the bureau would address first-party debt collection rulemaking at a later time. However, parts of the proposed rules directly affect first-party debt collectors, how they keep track of information, and what and how they can sell debt to third-party collectors. Read on for the details.
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Co-ops, privacy concerns make cut in TRID amendments
Posted Date: Friday, July 29, 2016
The status of protections for cooperative units under the TILA-RESPA Integrated Disclosure (TRID) rule is one of the areas impacted by proposed TRID rulemaking issued by the Consumer Financial Protection Bureau. What else did the bureau tackle? Read on for all the details.
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Is a processor a covered person?
Posted Date: Tuesday, August 16, 2016
In a case involving the Consumer Financial Protection Bureau’s authority to enforce against unfair, deceptive and abusive acts and practices (UDAAP), the bureau might have changed what it considers its authority over payment processors, according to one law group. Read on for details of the case, the new claim that one law group says could be a game-changer, and what the processor under fire has to say about the case.
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CFPB on firm ground issuing CID to ‘any person’
Posted Date: Tuesday, August 9, 2016
A recent Consumer Financial Protection Bureau (CFPB) decision to deny a company’s appeal on a civil investigative demand (CID) has surprised many with its strong statements about the CFPB’s ability to issue a CID to “any person” with information “relevant to a violation,” but compliance experts agree that the bureau’s firm stance on the scope of its authority is on the right side of the law. Here’s why.
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CFPB shoots down CID appeals
Posted Date: Tuesday, July 26, 2016
Consumer Financial Protection Bureau (CFPB) Director Richard Cordray has within the past few months denied petitions from two companies to modify or set aside their civil investigative demands, finding they failed to demonstrate that their requests are overbroad or impose an undue burden, and shooting down their objections to the bureau’s enforcement authority. Here’s what the companies had to say about the demands issued by the CFPB, and what the bureau had to say about it.
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CFPB amends servicing rules in 900 pages
Posted Date: Thursday, August 4, 2016
Nearly two years after proposing amendments to its mortgage servicing rules, the Consumer Financial Protection Bureau finalized those amendments, primarily dealing with foreclosure protections and successors-in-interest. However, the bureau said its 900-page final rule contains “a number of changes” from proposals after listening to public comments. Read on for more.
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The CFPB wants to hear about installment loans
Posted Date: Thursday, August 4, 2016
As the Consumer Financial Protection Bureau (CFPB) continues to collect feedback on proposed rules for payday, vehicle title and other high-cost installment lenders, it’s also curious about other high-risk loan products and practices that fall outside the scope of the proposed rules, but still impact consumers who may be short on cash in similar ways. Here’s what the CFPB is looking to learn, and what commenters have to say about the subject so far.
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GAO gives CFPB passing grade on SBREFA
Posted Date: Friday, August 12, 2016
Asked by two senators to assess how well the Consumer Financial Protection Bureau is working with small businesses on proposed rulemakings, the Government Accountability Office said the bureau is doing a decent job of fulfilling its statutory requirements, but could stand to make some improvements to the process. Here’s where small businesses think the CFPB falls short when it comes to ensuring its rulemakings are fair and reasonable.
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Your next competitor: Postal Service?
Posted Date: Tuesday, July 26, 2016
Banks and credit unions have found some competition for their financial services increase in recent years, from payday lenders to check cashing stores to large retailers such as Wal-Mart. A section of the platform for the Democratic Party says one of the next competitors in the financial services industry could by the U.S. Postal Service. Read on for the details.
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NCUA board votes to cease annual exams
Posted Date: Friday, July 22, 2016
Following through on a plan introduced in May by Chairman Rick Metsger, the National Credit Union Administration voted to cease rules which require it to annually examine all federal credit unions and federally insured state credit unions with at least $250 million in assets. Read on for details and reaction.
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Banking agencies issue new Q&A on CRA
Posted Date: Friday, July 22, 2016
The federal banking agencies on July 15 issued interagency questions and answers regarding the Community Reinvestment Act, offering guidance to help regulated financial institutions meet the credit needs of their entire communities. The guidance addresses alternative systems for delivering retail banking services; community development-related issues; and the qualitative aspects of an institution’s performance. Here are a few of the Q&A’s highlights.
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CFPB settles for $107 million judgment
Posted Date: Friday, July 22, 2016
The companies failed to respond to the CFPB’s federal lawsuit alleging they violated the Telemarketing Sales Rule and made false representations to consumers under the Consumer Financial Protection Act. Read on for details of their alleged scheme.
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CUNA: CFPB decisions ‘terribly troubling,’ ‘baffling’
Posted Date: Friday, August 12, 2016
In a letter to Consumer Financial Protection Bureau Director (CFPB) Richard Cordray following meetings with CFPB officials and staff, the Credit Union National Association blasted the bureau for not considering credit union carve-outs from recent proposed rulemaking on arbitration and small-dollar loans. Read on for more.
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CFPB tabs new experts for advisory councils
Posted Date: Tuesday, August 23, 2016
The Consumer Financial Protection Bureau announced the appointment of new consumer experts from outside the federal government to the Consumer Advisory Board, Community Bank Advisory Council, Credit Union Advisory Council, and Academic Research Council. Read on to see who will represent the industry in advisory discussions with the bureau.
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Here’s how CFPB says it oversees TRID exams
Posted Date: Friday, August 19, 2016
As the Consumer Financial Protection Bureau goes through re-proposing and amending the TILA-RESPA Integrated Disclosure rule, the bureau told Dodd Frank Update what its oversight standards during TRID examinations is, and what it likely will be through the re-proposal process. Read on for the bureau’s view and industry reaction from someone who already has gone through TRID exams.
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SEC targets whistleblower clause in severance deals again
Posted Date: Friday, August 19, 2016
The Securities and Exchange Commission alleged that BlueLinx Holdings Inc., the nation’s largest building products wholesaler, required separating employees to sign away their rights to pursue whistleblower complaints or face losing their severance pay and other post-employment benefits, marking the second time the commission has taken action against a company for using improperly restrictive language in confidentiality agreements with the potential to stifle the whistleblowing process.
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FCA finalizes capital requirements
Posted Date: Friday, August 19, 2016
Concluding a two-year rulemaking process, the Farm Credit Administration has released new regulatory capital requirements for FCS banks and institutions, mirroring the Basel III framework. Here are the specific new requirements for the government sponsored enterprise.
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FDIC updates ATR/QM videos
Posted Date: Friday, August 19, 2016
The updates to Federal Deposit Insurance Corp. Ability-to-Repay videos, which are part of the FDIC’s Community Banking Initiative, reflect changes in federal laws and regulations since the FDIC released the videos in 2014. If you’re a small creditor or operate in a rural area, you’ll want to pay attention to these updates.
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TARP still recovering funds 7 years later
Posted Date: Friday, August 19, 2016
TARP. Remember that? Hank Paulson, Neel Kashkari … originally authorized to distribute $700 billion from the Treasury Department, the program got plenty of good and bad press over the years. As it turns out, the program is still getting funds paid back, as recently as July. Read on for details, as well as a progress report from the SIGTARP investigative office.
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CFPB updates HMDA resources
Posted Date: Friday, August 19, 2016
In its continuing work to provide online resources for compliance with the Home Mortgage Disclosure Act (HMDA), the Consumer Financial Protection Bureau announced it had new information available for the industry on its website. Read on for more details.
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House committee holds FDIC’s feet to fire on cybersecurity
Posted Date: Tuesday, August 16, 2016
Two Federal Deposit Insurance Corp., officials last month faced tough questions from lawmakers who are concerned about major security breaches involving sensitive information for thousands of consumers, after a report alleged a “culture of concealment” at the agency. Here’s what the report concluded and how two top FDIC officials were received by the House Committee on Science, Space and Technology.
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Pew report: Lenders move to payday installment loans
Posted Date: Tuesday, August 16, 2016
A new report from Pew Charitable Trusts cites a nationwide trend of payday lenders moving from traditional payday loans, repayable in one lump sum after their term has ended, to high-interest installment loans. The transition brings new concerns and potential consumer harm to the industry, even with new federal regulations at a proposal stage. Read on for more details.
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HSBC reaches deal with DOJ over servicemember repos
Posted Date: Tuesday, August 16, 2016
More than a year after Santander Consumer USA Inc., paid nearly $10.5 million to settle Department of Justice claims that it violated the Servicemembers Civil Relief Act in illegally repossessing the vehicles of active servicemembers, there are still repercussions for HSBC Finance Corp., which will pay $434,500 for its involvement in the alleged violations. Here’s how the two cases are connected.
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OCC updates handbook with governance, risk standards
Posted Date: Tuesday, August 16, 2016
The Office of the Comptroller of the Currency (OCC) on July 29 released updates to the “Corporate and Risk Governance” booklet of its Comptroller’s Handbook, which assists OCC examiners with their oversight and supervision of national banks and federal savings associations. Here’s what the new booklet has to say about the type of governance practice every bank should have in place, and how banks should handle various risks.
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CEA: Dodd-Frank working for community banks
Posted Date: Friday, August 12, 2016
A new report from the White House Council of Economic Advisers says the decline in numbers of community banks – defined as institutions with less than $10 billion in assets – has been primarily because of macroeconomic factors and not because of burdensome regulations in the Dodd-Frank Act. That view was not entirely shared by the industry. Read on for details of the report and industry reaction.
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2008, Part 2: Fannie and Freddie Strike Back
Posted Date: Friday, August 12, 2016
If the financial crisis of 2008 happened again today, would the government-sponsored enterprises be able to absorb the same catastrophic losses? The Federal Finance Housing Agency said they could need as much as $125.8 billion in government bailout money if 2008, the sequel, happened, but is that enough to cover major potential losses at Fannie Mae and Freddie Mac?
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OCC: Derivatives make less, get riskier
Posted Date: Friday, August 12, 2016
A report from the Office of the Comptroller of the Currency shows that institutions under its supervision brought in less trading revenue than a year ago and overall credit risk from derivatives and trades increased from the fourth quarter of 2015. Read on for details from the report.
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NCUA offers guidebook for digital growth
Posted Date: Friday, August 12, 2016
The National Credit Union Administration is reaching out to help members address the digital banking needs of their customers, offering a new guidebook to help credit unions make strategic plans. Read on for the details.
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CFPB under pressure as anniversary arrives
Posted Date: Tuesday, August 9, 2016
As the Consumer Financial Protection Bureau celebrated its fifth anniversary, the agency found itself in the spotlight, both in political and legislative arenas. It’s stature is being challenged in court, its makeup is being debated in Congress, and it’s very existence is the subject of political sparring. Read on to see how ICBA’s Viveca Ware, Richard Horn, Loretta Salzano and others see the CFPB as it marks its anniversary.
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FDIC proposes third-party lender guidance
Posted Date: Tuesday, August 9, 2016
The Federal Deposit Insurance Corp. said proposed amendments to its supervision appeals guidelines will make its policies easier to understand, more transparent and more consistent with other federal banking regulations, while its draft exam guidance for institutions that work with third parties provides a specific framework for setting up and maintaining these relationships in a compliant manner.
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House subcommittee zeroes in on FinTech industry
Posted Date: Tuesday, August 9, 2016
With online marketplace lending, or FinTech or “peer-to-peer” lending, as it’s sometimes called, developing rapidly over the last decade, the House Committee on Financial Services’ Subcommittee on Financial Institutions and Consumer Credit on July 12 convened the first of several hearings to examine the growth potential of this already $5 trillion industry and what kind of regulatory regime would best serve it.
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Fed slams ex-Goldman director for leaking supervisory information
Posted Date: Tuesday, August 9, 2016
An ex-director who improperly used confidential supervisory information has cost Goldman Sachs Group more than $36 million in civil penalties and may be permanently barred from working in the banking industry. Read on for the details.
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Community banks to get Call Report relief
Posted Date: Friday, August 5, 2016
After nearly two years of study and conversations with members of the Independent Community Bankers Association and the American Bankers Association, federal banking agencies are proposing a shorter Call Report for community banks that would cut down nearly 30 percent of the pages and 40 percent of the data items. Read on for details of the proposal and which banks it would affect, as well as reaction from the trade groups.
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CFTC takes action on cross-border transactions
Posted Date: Friday, August 5, 2016
The Commodity Futures Trading Commission (CFTC) announced two separate actions on how the rules related to the Dodd-Frank Act apply to cross-border transactions, one in response to a court order in a 2014 ruling and the other in a no-action letter to the industry. The CFTC chairman said the moves showed progress in harmonizing regulations around the world. Read on for more details.
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CFPB explores consumer feedback on complaint resolution
Posted Date: Thursday, August 4, 2016
The Consumer Financial Protection Bureau (CFPB) is soliciting comment on a proposal to add a survey for consumers to the Consumer Complaint Database. The survey would allow consumers to provide feedback and ratings on how companies resolved their complaint. The CFPB says feedback would be shared with the company “to inform its complaint handling” and help the bureau supervise companies and monitor the market. Read on for the details.
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Agencies extend living will deadlines
Posted Date: Thursday, August 4, 2016
One more year! One more year! That’s how long 38 financial institutions are getting to file their next living will plans, according to the Federal Reserve and the Federal Deposit Insurance Corp. Read on for more details.
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Agencies offer guidance on 342 self-assessments
Posted Date: Thursday, August 4, 2016
In echoes of information shared on the opening day of the National Settlement Services Summit (NS3) in Charlotte, N.C., federal banking agencies have released guidance on how regulated institutions can submit self-assessments of their diversity policies and practices in according with Dodd-Frank Section 342. Read on for the details.
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SEC takes second crack at natural resource extraction rules
Posted Date: Thursday, August 4, 2016
After a federal court shot down the Securities and Exchange Commission’s (SEC) first attempt to adopt natural resource extraction rules, the SEC once again has set established requirements for commercial oil, natural gas and mineral developers to disclose any payments they make to U.S. or foreign governments. Here’s how the SEC tweaked the original controversial rules to pacify the concerns of resource extraction issuers.
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Democrats push for quick move on arbitration rules
Posted Date: Thursday, August 4, 2016
Congressional Democrats are pushing the Consumer Financial Protection Bureau (CFPB) to make quick decisions in finalizing proposed rules governing arbitration clauses. In separate letters from senators and representatives, Democrats expressed their support for the CFPB’s proposal and urged quick adoption of the rule, which is still under open comment period through Aug. 22. Read on for more.
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Fed’s Payment System Risk policy amendments to take effect in September
Posted Date: Friday, July 29, 2016
The new policy incorporates an amendment that NACHA, the Electronics Payment Association that represents nearly 10,000 financial institutions, made earlier this year which enables a “network effect” intended to enhance the value to automated clearinghouse (ACH) originators by ensuring that ACH payments can reach all ACH endpoints.
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CFPB debt collection avoids first parties, for now
Posted Date: Friday, July 29, 2016
At a field hearing in Sacramento, Calif. Consumer Financial Protection Bureau (CFPB) Director Richard Cordray outlined the framework for the agency’s proposed rulemaking of the debt collection market. In its proposal, the rules will only apply to third-party debt collectors, but Cordray said the bureau would address first-party debt collection oversight in a separate track of rulemaking to come. Read on for more details.
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NS3 keynote speaker talks mortgage opportunities
Posted Date: Friday, July 29, 2016
BB&T Home Mortgage Executive Vice President, Retail Lending Manager Abraham Cox delivered the keynote address at the 2016 National Settlement Services Summit in Charlotte, N.C. He discussed how to capitalize on opportunities in the residential mortgage industry. Read on for all the details.
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Lenders ponder Uber-ization of mortgage industry
Posted Date: Friday, July 29, 2016
According to Fannie Mae’s most recent Mortgage Lender Sentiment Survey, the mortgage industry would like to see a technology disruption like what Uber did for the transportation industry, but do they think such a paradigm shift is possible in the mortgage world, which has been somewhat slow to embrace new technology? Here’s what a few thousand senior lender executives told the government-sponsored enterprise about how they are using new technology, what their major pain points are and the kinds of innovation they would like to see.
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Report says Dodd-Frank implementation costs skyrocket
Posted Date: Friday, July 29, 2016
The latest annual report from the American Action Forum finds that six years after the passage of the Dodd-Frank Act, implementation of its rulemaking in the past year soared, with costs rising 50 percent from the first five years of work. What rulemakings have impacted the figures so dramatically? Read on for the details.
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GAO: Community lenders not leaving mortgage servicing
Posted Date: Friday, July 29, 2016
A new report from the Government Accountability Office (GAO) shows that new mortgage servicing rule promulgated by the Consumer Financial Protection Bureau in 2014 have not driven community banks and credit unions out of the mortgage servicing business. The report did express concerns from GAO on whether the bureau would effectively be able to examine the impact of the rules by a January 2019 deadline. Read on for the details.
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Cordray joins with NAACP to fight for economic equality
Posted Date: Friday, July 29, 2016
To achieve true racial equality, eradicating redlining and predatory lending practices against minority consumers should be part of the current national discussion about several recent police incidents involving minorities, the Consumer Financial Protection Bureau told the National Association for the Advancement of Colored People at its recent national convention.
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Is FDIC preventing new banks from forming?
Posted Date: Tuesday, July 26, 2016
Why has the FDIC only approved three new bank applications since 2011? This was the subject of a July 13 House Committee on Oversight and Government Reform hearing, where lawmakers examined why new bank formation is sluggish, and what risks this may pose to the financial sector. Here’s what the FDIC, community bankers, researchers and lawmakers had to say about this alarming trend.
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Senate examines effectiveness of bank capital requirements
Posted Date: Tuesday, July 26, 2016
Bank capital and liquidity requirements got a serious overhaul after the financial crisis, but how effective have these regulations been, and how have they impacted banks’ operations? And if more regulations are enacted, will a more complex regulatory system be so burdensome to banks that we risk another systemic failure? These are the questions examined by the Senate Committee on Banking, Housing and Urban Affairs on June 23, sparked by a banking regulator report released last month which examined the effect of capital rules on mortgage servicing assets. Read on to find out how people feel about the current state of banking regulation, and what additional regulations could be in the works.
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Curry: Work to be done on TRID, MLA compliance
Posted Date: Tuesday, July 26, 2016
Comptroller of the Currency Thomas Curry said the Office of the Comptroller of the Currency’s Semiannual Risk Perspective report shows that the federal banking system continues to improve from the depths of the Great Recession. However, he said the agency remains concerned with risk management in a number of areas, singling out banks’ shortcomings in compliance with the TILA-RESPA Integrated Disclosure rule and the Military Lending Act. Read on for the details.
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Deceptive acts lead to Santander penalty
Posted Date: Friday, July 22, 2016
The Consumer Financial Protection Bureau (CFPB) announced an enforcement action against Santander Bank that will cost the company $10 million for having a third-party telemarketer deceptively signing up customers for overdraft services which the customers did not opt-in to receive. The CFPB called the action an enforcement against overdraft services abuses, but the crux of the consent order focused on shortcomings from the third party, and Santander’s lax oversight that contributed to the alleged harm. Read on for the details.
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Lenders lukewarm over new PACE guidance from FHA
Posted Date: Friday, July 22, 2016
Lenders who are looking to make loans to energy-efficient residential properties might have to become more familiar with new guidance issued by the Department of Housing and Urban Development (HUD) on how it will insure loans affiliated with the Property Assessed Clean Energy program. Read on for details from HUD and why lenders aren’t excited by the news.
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Bureau adds to senior staff
Posted Date: Friday, July 22, 2016
The Consumer Financial Protection Bureau (CFPB) announced three new appointments to senior leadership positions. Read on for details of the new staffing at the CFPB.
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