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Kraninger pulled two directions by industry, consumer groups
Posted Date: Friday, December 14, 2018
Kathy Kraninger has seen unwavering support from the financial industry and Republicans, and equally consistent pushback from consumer advocates and Democrats from her nomination to lead the Consumer Financial Protection Bureau (CFPB) to her recent swearing in as the agency’s second full-time director.
Going forward, her perception among either side largely will be determined by how closely she hews to the leadership path carved by acting director Mick Mulvaney.
Find out in what ways the two sides are pulling Kraninger in totally different directions.
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CFPB will stay ‘CFPB’ under Kraninger
Posted Date: Friday, December 28, 2018
The decision not to go through with changing the name of the Consumer Financial Protection Bureau (CFPB) in light of the high estimated industry costs associated with the move certainly could be described as “reasonable,” as could CFPB Director Kathy Kraninger’s thoughts on why the change is unnecessary.
Ironically, the rebranding initiative was undertaken by acting director Mick Mulvaney, whose “reasonable” leadership approach the financial industry has urged Kraninger to continue. One industry expert told Dodd Frank Update he believes Kraninger handled the “ridiculous” rebranding issue “artfully and appropriately.”
Find out how Kraninger’s reasoning on the matter differs with Mulvaney’s.
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Withheld CFPB report highlights exploitative fees
Posted Date: Tuesday, December 18, 2018
When Seth Frotman left his post as student loan ombudsman at the Consumer Financial Protection Bureau (CFPB) in August, his scathing resignation letter to Mick Mulvaney accused the acting director of suppressing a report detailing how numerous entities have taken advantage of college students through excessive product fees and other means related to student lending.
The bureau’s Office for Students and Young Consumers, which was folded as part of an office reorganization undertaken by Mulvaney, completed the report in October 2017, more than a year before it was made public.
Find out what details the controversial report highlights about the practices and the impact to students.
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CFPB says lender misled veterans about IRRRL benefits
Posted Date: Tuesday, December 18, 2018
Cases of predatory lenders saddling active and retired military servicemembers with high-interest refinancing plans have become prevalent in recent years.
The Consumer Financial Protection Bureau has charged a Nevada-based non-bank mortgage company with violating consumer financial protection laws for engaging in such activity involving the Interest Rate Reduction Refinance Loan program through the Department of Veterans Affairs.
Find out more details about the charges and the ongoing issue of loan “churning.”
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Regulators urge innovative BSA/AML approaches
Posted Date: Tuesday, December 11, 2018
Five financial regulatory bodies urged covered entities to explore innovative compliance approaches pertaining to Bank Secrecy Act/anti-money laundering (BSA/AML) requirements in a joint statement to industry participants.
The statement focuses on ways banks and credit unions can utilize existing tools, as well as new technologies – such as artificial intelligence – to identify and report money laundering, terrorist financing and other illicit financial activity.
Find out what the agencies are doing to facilitate such innovation and what recommendations the industry has offered.
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Marriott breach underscores push for nationwide data security standard
Posted Date: Friday, December 7, 2018
A data breach impacting as many as 500 million guests at Marriott’s Starwood properties is among the largest on record and highlighted why many in the financial sector have been pushing for nationwide data security standards that hold retailers as accountable for consumer data safety as financial institutions.
Ryan Donovan of the Credit Union National Association and Jeremy Dalpiaz of the Independent Community Bankers of America told Dodd Frank Update why they believe such a standard is imperative.
Learn what points they presented to support their positions.
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MBA, NAFCU testify on housing finance reform
Posted Date: Friday, December 28, 2018
With days left in his tenure as chairman of the House Financial Services Committee, Rep. Jeb Hensarling (R-Texas) led a hearing to discuss a discussion draft of a bill aimed at accomplishing the elusive task of creating a permanent and sustainable housing finance system.
Mortgage Bankers Association (MBA) President and CEO Robert Broeksmit and Rick Stafford, president and CEO of Tower Federal Credit Union, testifying on behalf of the National Association of Federally-Insured Credit Unions (NAFCU), were among the industry representatives invited to weigh in on the merits of the bill based on their associations’ policy views.
Find out more details about what was discussed.
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Proposal would exempt community banks from Volcker Rule
Posted Date: Friday, December 28, 2018
Five federal financial regulators are seeking comments on a proposed rule that would exclude community banks from Volcker Rule restrictions. The jointly proposed rule implements a provision of the Economic Growth, Regulatory Relief, and Consumer Protection Act.
FDIC Board Member Martin Gruenberg detailed what he believes should be considered when crafting such exemptions during a recent meeting with the FDIC Board of Directors, including asset thresholds and collateralized debt obligations.
Find out more details about how the exemption would impact community banks.
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Shutdown impacts housing agencies
Posted Date: Friday, December 28, 2018
The partial federal government shutdown will not directly impact most financial regulatory bodies but will impact various federal lending programs.
Multiple agencies, including the Department of Housing and Urban Development and the Department of the Treasury, have released contingency plans detailing how they will allocate their limited staffs for the duration of the shutdown to ensure fulfillment of essential functions.
Find out more details about the shutdown’s impact on federal agencies.
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DOJ calls Big Spring case wrong ‘vehicle’ for CFPB challenge
Posted Date: Friday, December 28, 2018
The constitutionality question relating to the Consumer Financial Protection Bureau and the statute that established it has come to the forefront in numerous court cases but has yet to reach the nation’s highest court.
The fact that one newly sworn-in justice previously ruled on one of the most high-profile of such cases caused the Department of Justice to urge the Supreme Court not to take it up.
Find out more about the DOJ’s reasoning cited in the brief.
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CFPB finalizes HMDA data guidance
Posted Date: Friday, December 28, 2018
The Consumer Financial Protection Bureau (CFPB) recently issued a final policy guidance regarding what Home Mortgage Disclosure Act (HMDA) loan-level data the bureau intends to disclose to the public beginning in 2019.
It also details the bureau’s take on whether and how data should be altered prior to disclosure for the sake of consumer privacy.
Find out more details about the final policy guidance, as well as when the bureau plans to commence rulemaking to adopt a more “definitive” approach to disclosing HMDA data.
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Square files second ILC charter application
Posted Date: Friday, December 28, 2018
Square Inc. has reapplied to the Federal Deposit Insurance Corp. (FDIC) for an industrial loan charter more than five months after withdrawing its initial application. The company also filed a second industrial bank charter application with the Utah Department of Financial Institutions (DFI).
Banks and credit unions, which are subject to significantly more regulatory scrutiny than fintech companies, have advocated for regulators to reject such applications until congressional action is taken to address certain safety and soundness concerns.
Find out more about Square’s second charter application and why the industry’s opposition isn’t likely to wane.
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Hensarling gives farewell address
Posted Date: Friday, December 28, 2018
As his final days in Congress ticked down, Rep. Jeb Hensarling (R-Texas) reflected on the principles he championed during his 16 years in office and touted his hopes for what course legislators may take moving forward in his farewell address in the House chambers.
The Financial Services Committee chairman spoke at length about trends that concern him affecting the direction of the country after starting off recounting his love of American free market capitalism.
Read on to find out more of what he had to say.
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FHA functions impacted by shutdown
Posted Date: Friday, December 28, 2018
Many of the Federal Housing Administration’s (FHA) functions will be affected as a result of the partial federal government shutdown, although the agency has a plan for maintaining essential functions. The FHA released a breakdown of what functions its Office of Single Family Housing and its mortgage insurance program will be impacted.
The FHA noted that functions that remain operational will entail longer wait times because of staffing limitations.
Read on to learn more details from the agency.
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Trump to tap Otting as acting FHFA director
Posted Date: Friday, December 21, 2018
President Donald Trump announced that he intends to designate Comptroller of the Currency Joseph Otting to become acting director of the Federal Housing Finance Agency once Mel Watt’s term ends Jan. 6.
Otting would serve until a permanent director is confirmed by the Senate while also continuing to carry out his duties as comptroller, a role he has held since November 2017.
Find out more about Otting’s experience and his ties to the mortgage marketplace.
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Industry welcomes revised farm bill passage
Posted Date: Tuesday, December 18, 2018
After several tense months hoping for a bipartisan compromise from the Senate, the House passed a Senate-amended version of Agriculture and Nutrition Act, commonly known as the 2018 Farm Bill, by a landslide 369-47 margin.
Trade associations representing community banks were pleased with the final version of the bill, noting that it kept many provisions pertaining to their members intact.
Find out more details about the legislation.
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NCUA, state regulators to launch exam pilot
Posted Date: Tuesday, December 18, 2018
The National Credit Union Administration (NCUA) and six state regulators will launch an alternating examination pilot program involving a select group of federally insured, state-chartered credit unions, beginning Jan. 1, 2019.
The pilot will run for one full alternating cycle, approximately three years, and is designed to help the NCUA and state regulators determine how an alternating examination program could improve coordination and make the best use of federal and state resources.
Read on to learn more about the intent of the pilot.
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Senate bill would delay RBC rule for credit unions
Posted Date: Tuesday, December 18, 2018
The credit union industry has another vehicle to achieve its long-sought delay of the National Credit Union Administration’s rule on risk-based capital. Sen. Mike Rounds (R-S.D.) has introduced a bill – S. 3750 – which would push back the rule’s implementation date from Jan. 1, 2020, to Jan. 1, 2021.
Credit union trade advocates have pushed for delays to the rule’s implementation to afford their member entities additional time to ensure proper compliance.
Find out more details about the rule and the industry’s stance.
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Waters to lead Financial Services Committee
Posted Date: Friday, December 14, 2018
The House Financial Services Committee (FSC) will be chaired by one of the most outspoken opponents of the Trump administration and a firm supporter of the Consumer Financial Protection Bureau’s (CFPB) mission, thanks to the Democratic Caucus’ decision to tap Rep. Maxine Waters (D-Calif.) for the role. Waters will become the first woman to lead the panel.
Waters has served as the committee’s ranking member since 2013 alongside Chairman Jeb Hensarling (R-Texas), who she will succeed upon his retirement in January 2019, before the start of the 116th Congress.
Find out what she had to say about her selection for the position.
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CFPB requires no redress in State Farm settlement
Posted Date: Friday, December 14, 2018
The Consumer Financial Protection Bureau (CFPB) recently announced a settlement over Fair Credit Reporting Act (FCRA) violations which stated consumer harm, but did not include restitution or a civil money penalty.
State Farm Bank was charged with obtaining reports from consumers who were not involved in any transaction with the bank, and with opening vehicle-loan applications for consumers who had not applied for a loan, so the bank then could solicit the consumers.
Find out more details about the terms of the settlement.
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Trump to nominate Calabria to run FHFA
Posted Date: Friday, December 14, 2018
President Donald Trump announced plans to nominate Mark Calabria to become the next director of the Federal Housing Finance Agency (FHFA). Calabria would take over for Mel Watt, whose term is set to expire Jan. 4, 2019.
Industry leaders have reacted favorably to Calabria’s pending nomination given his experience with the housing market and support for ending, and even disdain for, the conservatorship of Fannie Mae and Freddie Mac.
Find out more about his views on the government-sponsored enterprises and what the industry is saying.
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Trump chooses new CFTC chairman
Posted Date: Friday, December 14, 2018
The Commodity Futures Trading Commission (CFTC) is on track to have a new chairman with President Donald Trump’s recent announcement that he intends to nominate Heath Tarbert for the position.
If confirmed, Tarbert would succeed J. Christopher Giancarlo, who has served as CFTC chairman since August 2017 and is scheduled to remain in the role until April 2019.
Read on to learn more details about the new nominee.
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OCC report shows mortgage performance improvement
Posted Date: Friday, December 14, 2018
The Office of the Comptroller of the Currency’s (OCC) Mortgage Metrics Report for the third quarter of 2018 showed year-over-year improvement among first-lien residential mortgages, based on data collected on loans owned by seven national banks representing 32 percent of all outstanding residential mortgages nationwide.
The report indicates growth in market share for first-lien residential mortgages and a drop in foreclosures and delinquencies.
Read on to learn more details.
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Kraninger holds first day press conference
Posted Date: Tuesday, December 11, 2018
Kathy Kraninger was sworn in as the director of the Consumer Financial Protection Bureau on Monday night by Vice President Mike Pence during a ceremony that was closed to the press. Kraninger held a press conference the next day – her first in office – during which she answered various questions from members of the media who were present.
Among the matters she was asked to address were the bureau’s approach to rulemaking and enforcement under acting director Mick Mulvaney, how she plans to handle certain staffing decisions and whether she has concerns about estimated costs associated with officially renaming the CFPB as the Bureau of Consumer Financial Protection.
Find out more about what she had to say.
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Treasury advises against ‘postal banking’ resurrection
Posted Date: Tuesday, December 11, 2018
The Treasury Department recommended against getting the U.S. Postal Service (USPS) involved in the banking business in a report exploring possible methods of generating more revenue for the USPS.
The financial industry long has been among those opposed to postal banking services, which once were standard, whereas some politicians have voiced support for the idea.
Find out why many believe the concept is a bad idea and what arguments its supporters present.
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Firm fined $1.34 billion for sanction violations
Posted Date: Tuesday, December 11, 2018
Multiple federal and state government bodies issued a total of $1.34 billion in fines against a French investment bank for engaging in unsafe and sound business practices. The penalty total is the second-largest ever imposed on a financial institution for violating U.S. economic sanctions laws.
The firm has been charged one felony count for conspiring to violate the Trading with the Enemy Act, as well as violations of regulations enforced by the Treasury Department’s Office of Foreign Assets Control and various New York state laws.
Find out more about the charges brought against the firm.
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Marginal rates reduced in OCC fees, assessment schedule
Posted Date: Tuesday, December 11, 2018
The Office of the Comptroller of the Currency (OCC) recently released its 2019 fees and assessment schedule, noting a 10 percent reduction in marginal rates.
The decreasing marginal rates reflect cost savings lowered operating costs at the OCC and projections of the OCC’s costs and revenue.
Learn more details about the 2019 fees and assessment schedule.
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Kraninger confirmed as CFPB director
Posted Date: Friday, December 7, 2018
The same slim voting margin that was enough to end Senate debate on Kathy Kraninger’s nomination to be the next director of the Consumer Financial Protection Bureau (CFPB) also was sufficient to confirm her for the role.
The financial industry and Republicans celebrated the Senate’s 50-49 party-line vote Thursday, whereas Democrats and consumer advocates reiterated their staunch opposition to Kraninger leading the bureau.
Find out more details about what both sides have to say now that Kraninger’s confirmation is final.
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New Congress finally decided, almost
Posted Date: Friday, December 7, 2018
A month after polling places across the country closed their doors for the night, it appears we finally know how the congressional races turned out.
Well … almost.
The Senate has been finalized, and the House appeared to be as well as the final contested race in California seems to be decided. However, allegations in a North Carolina race for Financial Services Committee member Robert Pittenger’s seat have thrown a race thought to be over into unknown status. Read on for the latest on the makeup of the 116th Congress.
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Fed publishes inaugural financial stability report
Posted Date: Friday, December 7, 2018
The Federal Reserve recently released its inaugural report on the stability of the U.S. financial system. Its findings indicate that the country’s largest banks are well capitalized and hold more liquid assets than they did just prior to the financial crisis but that there are certain near-term vulnerabilities of which to be wary.
The Fed plans to publish the report twice annually as it examines the resilience of the financial system.
Find out more details highlighted by the report.
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VA expedites cash-out refi rulemaking
Posted Date: Friday, December 7, 2018
The Department of Veterans Affairs (VA) is expediting its statutorily obliged rulemaking to address predatory lenders who take advantage of veterans through cash-out refinance offerings that often are harmful to borrowers and investors in mortgage-backed securities (MBS).
S. 2155 requires the VA to address the issue by issuing a rule amending its regulation on VA-guaranteed or insured cash-out refinance loans, and permits the agency to forgo Administrative Procedure Act advance notice and comment requirements if it determines circumstances pertaining to the rule are “urgent and compelling.”
Find out more details about the agency’s forthcoming rule.
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