News By Edition

President-elect Joe Biden has nominated Rohit Chopra to be the next director of the Consumer Financial Protection Bureau (CFPB).

Chopra previously served as assistant director for the CFPB and in 2011 he was appointed the bureau’s student loan ombudsman, leading efforts to improve the market for students and student loan borrowers.

Read on for industry reactions to the news.

The Consumer Financial Protection Bureau has filed a lawsuit against 1st Alliance Lending, LLC and three individuals for allegedly engaging in unlawful mortgage-lending practices.

Specifically, the bureau alleges violations of the Truth in Lending Act, the Fair Credit Reporting Act, the Equal Credit Opportunity Act, the Mortgage Acts and Practices – Advertising Rule, and the Consumer Financial Protection Act of 2010.

For details from the complaint, read on.

President Joe Biden has named a new board chairman for the National Credit Union Administration, replacing Rodney Hood. Hood originally took the position in April 2019 and will continue to serve as a board member.

“I have received the greatest honor of my career,” the new chairman said. “I am deeply humbled by the trust and faith placed in me by the new administration.”

Read on for more details.

The Mortgage Bankers Association’s (MBA) Builder Application Survey (BAS) revealed mortgage applications for new home purchases increased in December.

The BAS tracks application volume from mortgage subsidiaries of home builders nationwide, allowing the MBA to provide an early estimate of new home sales at multiple levels and information on the types of loans used to purchase said homes.

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A SLK Global Solutions’ product assisted a leading U.S. bank in improving turnaround times for its mortgage originations.

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Mortgage 1 has launched a new application to assist homebuyers electronically sign mortgage-closing documents.

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Goldman Sachs Growth Equity has invested in Blue Sage Solutions during the first external round of funding since the company was founded.

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As President Joe Biden was sworn in, Consumer Financial Protection Bureau Director Kathy Kraninger resigned from her position, concluding two years of leadership.

“I am proud of all that we accomplished on behalf of consumers,” Kraninger tweeted. “It has been an honor to lead the agency during these challenging times.”

Read on for more details.

The Consumer Financial Protection Bureau and the National Credit Union Administration (NCUA) signed a memorandum of understanding agreement to improve coordination between the agencies.

“This agreement underscores NCUA’s commitment to consumer protection by facilitating vital information sharing between the agencies for credit unions over $10 billion dollars in assets,” NCUA Chairman Rodney Hood said.

Read on for more details.

The National Credit Union Administration has streamlined its application for federally insured low-income credit unions seeking Community Development Financial Institution certification.

The certification gives credit unions the opportunity to receive training and participate in competitive award programs that enhance their capacity to provide underserved communities with insured, affordable financial services.

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October Research offered a free Economic and Regulatory Outlook webinar for audiences looking to learn what lies in store for the industry in 2021.

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The Mortgage Industry Standards Maintenance Organization has announced its board of directors for 2021.

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The National Credit Union Administration has named its board liaison to the Defense Credit Union Council and the National Association of State Credit Union Supervisors.

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The Financial Crimes Enforcement Network (FinCEN) has assessed Capital One $390 million in civil money penalties for violating the Bank Secrecy Act both willfully and negligently.

“Capital One’s egregious failures allowed known criminals to use and abuse our nation’s financial system unchecked, fostering criminal activity and allowing it to continue and flourish at the expense of victims and other citizens,” FinCEN Director Kenneth Blanco said.

For more details on the violations, read on.

The Office of the Comptroller of the Currency announced its acting Comptroller Brian Brooks has stepped down. Chief Operating Officer Blake Paulson will replace him.

“The nation and the federal banking system are fortunate to have such a stable, capable hand like Blake Paulson to step in and guide the agency with the other executive committee members until the next comptroller is nominated and confirmed,” Brooks said.

Read on for more details.

Black Knight Origination Technologies has launched Seller Digital, a new correspondent lending platform.

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The Federal Housing Finance Agency announced extensions to the Enterprises’ COVID-19 relief provisions.

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The National Credit Union Administration has named a new deputy chief financial officer.

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In a management alert issued to the U.S. Small Business Administration, the Office of Inspector General (OIG) reported improper payments to lenders for potentially ineligible recipients under the Paycheck Protection Program (PPP).

“Our review of [the] Treasury’s analysis showed approximately $3.6 billion in PPP loans to potentially ineligible recipients,” the OIG said.

For more details from the alert, read on.

Mid America Mortgage, Inc. recently promoted Jemma Pachiano, its former national support and training director, to chief operating officer.

“Jemma Pachiano’s vast experience in the mortgage industry and keen ability to tackle even the most complex challenges have made a measurable impact on Mid America since 2011, which makes her an excellent fit for this role,” Mid America owner and CEO Jeff Bode said.

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The Independent Community Bankers of America announced StreetShares, a fintech company that provides technology specializing in small business underwriting and business lending solutions, as its newest preferred service provider.

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The Federal Deposit Insurance Corp. has announced three individuals in new positions in its division of risk management supervision and division of depositor and consumer protection. Read on for more details.

The Consumer Financial Protection Bureau has settled with Discover Bank, the Student Loan Corp., and Discover Products, Inc. for allegedly violating a previous consent order, the Electronic Fund Transfer Act, and the Consumer Financial Protection Act.

The new consent order requires Discover to pay a civil money penalty of $25 million, pay consumer redress of at least $10 million, and establish a compliance plan to prevent further violations.

Read on for more details.

The Federal Housing Finance Agency announced the publication of Fannie Mae and Freddie Mac’s (the Enterprises) 2021 underserved market plans. The plans, issued under their Duty to Serve programs, became effective Jan. 1, 2021.

The plans address how the Enterprises will serve markets relating to manufactured housing, rural housing, and affordable housing preservation.

For more details on the plans, read on.

The Consumer Financial Protection Bureau has reached a settlement with Omni Financial of Nevada, Inc. regarding bureau findings the company violated the Military Lending Act, Electronic Fund Transfer Act, and Consumer Financial Protection Act of 2010.

Omni Financial, also operating under Omni Military Loans, is headquartered in Las Vegas and specializes in lending to consumers with military affiliations.

For more details on the consent order, read on.

The National Credit Union Administration issued a letter to federal credit unions regarding the operating fee schedule for 2021.

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Sagent has appointed Marianne Sullivan and Jeffrey Taylor to its board of directors.

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The Office of the Comptroller of the Currency has issued a notice of proposed rulemaking addressing the permissibility standards for real estate used as national bank or federal savings associations premises.

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The Consumer Financial Protection Bureau’s consumer taskforce on federal consumer financial law released a report addressing consumer protection, information and education, competition and innovation, regulatory modernization and flexibility, and inclusion and access.

The taskforce made over 100 recommendations in an almost 900-page report to be used as a foundation for systematic changes to the bureau.

Read on for more details.

The Consumer Financial Protection Bureau has settled with Envios de Valores La Nacional (La Nacional) based on the bureau’s finding the remittance transfer provider violated the Electronic Fund Transfer Act and the Remittance Transfer Rule.

La Nacional is required to pay $750,000 in civil money penalties, as well to adopt a compliance plan.

Read on for more details.

The Federal Housing Finance Agency (FHFA) has issued a notice of proposed rulemaking on resolution plans for Fannie Mae and Freddie Mac (the Enterprises).

The proposed rule would require the Enterprises to develop what is known as a living will and would “facilitate a rapid and orderly resolution should the FHFA have to be appointed their receiver under the Housing and Economic Recovery Act of 2008.”

Read on for more details.

The National Association for Federally-Insured Credit Unions issued a statement supporting the Center for Disease Control’s determination credit union employees are part of an essential group.

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The U.S. Small Business Administration has extended the application period for economic injury disaster loans for the COVID-19 pandemic.

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The National Credit Union Administration approved a request for information seeking comments and information on the agency’s communication methods.

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Ten individual and corporate defendants have agreed to settle with the Federal Trade Commission (FTC) on charges they participated in, controlled, or illegally benefitted from marketing of a real estate scam regarding the Sanctuary Belize development.

According to the FTC, the scheme took more than $120 million from consumers.

Read on for more details.

Freddie Mac published a white paper as part of its “Duty to Serve” plan analyzing its multifamily Green Advantage programs, which are designed to assist borrowers to reduce energy and water consumption by offering financing incentives.

Properties participating in the program saved an average of 2.7 million gallons of water and 1.3 million kBtu of energy per year.

For more details from the report, read on.

The National Credit Union Administration voted to propose changes to the agency’s derivatives rule intended to modernize the rule and make it more principles-based. The National Association of Federally-Insured Credit Unions supports the proposed changes.

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The Federal Housing Finance Agency has issued its annual performance plan for 2021.

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The National Association of Federally-Insured Credit Union shared its recommendations regarding a notice of proposed rulemaking on the role of supervisory guidance.

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The Ninth Circuit Court of Appeals issued a decision stating the Consumer Financial Protection Bureau (CFPB) was not required to start an investigation into Seila Law “from scratch”.

This ruling is a follow-up to the U.S. Supreme Court case in which the CFPB’s organizational structure was deemed unconstitutional. CFPB Director Kathy Kraninger then ratified the bureau’s actions after the Supreme Court’s decision, which sparked several challenges across the country on whether this ratification was appropriate.

For more details from the decision, read on. 

The Consumer Financial Protection Bureau issued an additional rule on debt collection in accordance with the Fair Debt Collection Practices Act. It accompanies the rule passed in October 2020 regulating the activities of debt collectors.

This rule amends Regulation F disclosure requirements and addresses collection of time-barred debt.

Read on for more details on the rule.

The National Credit Union Administration released its third quarter report for 2020.

The review tracks performance indicators for federally-insured credit unions in all 50 states and the District of Columbia, including asset growth, shares and deposit, membership numbers, and the number of loans. Overall, 82 percent of these credit unions reported positive net income during the measured period.

For more details from the report, read on.

The Federal Housing Finance Agency announced the Enterprises have extended the COVID-19 forbearance offered to qualifying multifamily property owners through March 31, 2021.

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The Mortgage Bankers Association has hired Charmaine Brown as its director of diversity and inclusion, a newly created position for the organization.

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The U.S. Department of Housing and Urban Development awarded over $34 million to three public housing agencies through its Capital Fund Emergency/Disaster and Safety and Security Program.

Read on for more details.