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Crypto think tank prepares for challenge to Treasury Tornado Cash sanction
Posted Date: Friday, August 19, 2022
Crypto think tank Coin Center is preparing a challenge to the Treasury Department’s sanction on crypto mixer Tornado Cash.
The Treasury issued the ban and sanctions on Tornado Cash amidst claims the crypto mixer is being used to send funds tied to criminal activities, including the North Korea’s proceeds from hacking crypto exchanges and services.
Read on for more details.
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CFPB says UDAAP covers data security
Posted Date: Tuesday, August 23, 2022
In a Consumer Financial Protection Circular, the Consumer Financial Protection Bureau (CFPB) stated that the prohibition of unfair, deceptive, and abusive acts or practices (UDAAP) under the Consumer Financial Protection Act (CFPA) can be violated if an entity has insufficient data protection or information security.
The CFPB has been on a recent push to expand the applicability of the CFPA’s UDAAP prohibition on areas peripherally related to the provision of consumer finance products and services.
Read on for more details.
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Toomey questions FDIC stance on banks involvement in crypto
Posted Date: Tuesday, August 23, 2022
In a recent letter to Acting FDIC Chair Martin Gruenberg, Sen. Pat Toomey (R-Pa.) pressed the Federal Deposit Insurance Corp. (FDIC) on its stance toward banks involvement in cryptocurrency. He questioned if the agency is “improperly” deterring banks from offering cryptocurrency services.
Toomey points to “corroborated” whistleblower claims that the FDIC is actively urging banks to refrain from engaging in crypto-related activities.
Read on for more details.
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Fed offers new guidelines for crypto industry
Posted Date: Tuesday, August 23, 2022
The Federal Reserve Bank has finalized new guidelines for evaluating state-chartered crypto banks seeking access to the Fed’s payment systems. These guidelines offer much demanded transparency as to how the Fed is reviewing the federal charter applications of crypto banks.
In June 2022, Custodia bank, a Wyoming-based crypto bank, sued the Fed claiming it had not acted upon Custodia’s application for access to the Fed’s payment systems for over 19 months.
Read on for more details.
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Social media influencers and marketing compliance
Posted Date: Tuesday, August 23, 2022
As social media has become more and more prevalent, social media influencers have become a type of celebrity businesses are using to market products and services. The Federal Trade Commission has begun updating regulations to ensure advertising regulations are capable of addressing these new types of marketing practices.
Read on for more details.
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Tenth circuit adopts “reasonable consumer” standard for FDCPA claims
Posted Date: Friday, August 19, 2022
The Tenth Circuit Court of Appeals recently held that violations of the Fair Debt Collection Practices Act are to be evaluated through the perspective of a “reasonable consumer.” This is a deviation from the “least sophisticated consumer” standard used by many other circuits.
The court rejected the “least sophisticated consumer” standard as nebulous and vague.
Read on for more details.
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US Senators urge OCC to rescind crypto guidance
Posted Date: Friday, August 19, 2022
Senators have sent a letter to the Office of the Comptroller of the Currency (OCC) and Acting Comptroller Michael Hsu asking the OCC to rescind interpretive letters allowing banks to engage in crypto activities and explain how involved banks are becoming in crypto.
The letters were published under the leadership of former Acting Comptroller Brian Brooks who is not the CEO of a crypto company.
Read on for more details.
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CFPB fines fintech company for use of “faulty algorithm”
Posted Date: Friday, August 19, 2022
The Consumer Financial Protection Bureau issued a fine against fintech company Hello Digit, LLC for using a “faulty algorithm” which allegedly caused overdrafts and overdraft penalties for customers.
Read on for more details.
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Fed fines bank $9.5M, bars former CEO from industry
Posted Date: Friday, August 19, 2022
The Federal Reserve Board issued a $9.5 million fine against Maryland-based EagleBank for violations of the board’s insider lending regulation. The order also barred the bank’s former CEO and chairman from the banking industry.
Read on for more details.
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Waters urges CFPB “moratorium” on Equifax scores
Posted Date: Friday, August 19, 2022
Rep. Maxine Waters (D-Calif.) has asked the Consumer Financial Protection Bureau (CFPB) to issue a temporary moratorium to prevent Equifax from sending credit scores to financial institutions following its acknowledgement that it sent out inaccurate credit scores earlier this year.
Read on for more details.
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BPI criticizes regulators plans to update CRA
Posted Date: Tuesday, August 16, 2022
Activist and lobbying group Bank Policy Institute (BPI) participated in the public comment on the banking agencies’ joint Community Reinvestment Act (CRA) proposal. BPI supports the existing CRA and its core mission and is critical of the current efforts to engage in massive overhauls by the regulators.
Read on for more details.
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The CFPB and ‘modern-day redlining’
Posted Date: Tuesday, August 16, 2022
The CFPB has taken an aggressive stance towards something it and the DOJ call "modern-day redlining." Former CFPB senior counsel and special advisor Richard Horn says the CFPB is really targeting "marketing discrimination."
Read on to learn more about the way the CFPB is targeting who lenders solicit new business.
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MoneyGram accuses CFPB of ‘naked’ forum shopping
Posted Date: Tuesday, August 16, 2022
MoneyGram has accused the Consumer Financial Protection Bureau of “naked forum shopping” in a motion to transfer jurisdiction of the case to a Texas federal court. The criticism is derived from the CFPB’s recent interpretive rule allowing for greater ties between the bureau and states’ consumer financial protection law enforcement actions.
Read on for more details.
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Multifamily lending hit record high in 2021
Posted Date: Tuesday, August 16, 2022
An annual report from the Mortgage Bankers Association showed a record level of multi-family lending for 2021.
Read on for more details.
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Voxtur acquires Blue Water Financial Technologies
Posted Date: Tuesday, August 16, 2022
Voxtur Analytics’ U.S. subsidiary has executed a purchase agreement for Blue Water Financial Technologies Holding Co. This acquisition will bring Voxtur’s technology suite to the secondary market.
Read on for more details.
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House Democrats urge regulators to strengthen CRA rules
Posted Date: Tuesday, August 16, 2022
Congresswoman Maxine Waters (D-Calif.) led a letter with 76 other Democratic members of the House of Representatives urging banking regulators to carefully consider the comments received from civil rights and community groups regarding the proposed updates to Community Reinvestment Act regulations.
Read on for more details.
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Third Circuit adopts ‘reasonable reader’ standard for credit reporting
Posted Date: Friday, August 12, 2022
In a consolidation of cases, the Third Circuit Court of Appeals has adopted a “reasonable reader” standard to determine if notations were misleading or inaccurate. The case derived from several student loan borrowers who had loans closed and transferred following the borrowers’ inability to make payments.
Following the transfer of these accounts, TransUnion maintained the status of the accounts as having been 120 days past due.
Read on for more details.
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Wells Fargo wins “secret agreement” arbitration appeal
Posted Date: Friday, August 12, 2022
A Georgia appellate court has reversed a lower court’s decision which vacated Wells Fargo’s arbitration following allegations the bank had a “secret agreement” with industry self-regulator FINRA to bar certain arbitrators from hearing the case.
The appeals court decision came a month after FINRA released a report of its internal investigation of the matter.
Read on for more details.
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Trade groups petition CFPB to supervise data aggregators
Posted Date: Friday, August 12, 2022
Eight national trade groups petitioned the Consumer Financial Protection Bureau (CFPB) to begin rulemaking procedures to increase supervision and regulation of fintechs, tech companies and data aggregators.
The CFPB has previously engaged in information gathering on the topic but has yet to engage in related rule making.
Read on for more details.
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CFPB warns digital marketers to comply with consumer finance protection laws
Posted Date: Friday, August 12, 2022
The Consumer Financial Protection Bureau (CFPB) issued an interpretive rule laying out when digital marketing providers for financial firms must comply which federal consumer financial protection laws.
This interpretive rule is the latest in federal efforts to clarify rules relating to digital marketing.
Read on for more details.
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SEC charges 11 in $300M crypto pyramid scheme
Posted Date: Friday, August 12, 2022
The Securities and Exchange Commission charged 11 individuals for their alleged roles in creating a $300 million crypto pyramid scheme. The alleged fraudulent blockchain scheme spanned multiple countries including the U.S. and Russia.
Read on for more details.
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Senators demand info from US Bank after CFPB deal
Posted Date: Friday, August 12, 2022
Senate Democrats are demanding more information from U.S. Bank about the account-opening activity that led to the settlement order with the Consumer Financial Protection Bureau.
Read on for more details.
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FDIC issues advisory to banks working with crypto companies
Posted Date: Tuesday, August 9, 2022
The Federal Deposit Insurance Corp. (FDIC) has issued an advisory to FDIC-insured institutions regarding dealings with crypto companies. The advisory comes after some crypto companies were charged with claiming FDIC insurance coverage because of maintained relationships with FDIC-insured banks.
Read on for more details.
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SEC files insider trading action against former crypto exchange manager
Posted Date: Tuesday, August 9, 2022
The Securities and Exchange Commission filed a single-count complaint in the U.S. District Court for the Western District of Washington against a former manager at Coinbase.
The complaint alleges the defendant provided material, non-public information about upcoming Coinbase listing announcements to his brother and a friend who used that information to buy and sell crypto assets for significant profits.
Read on for more details.
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Senate holds hearing on risks in crypto and securities markets
Posted Date: Tuesday, August 9, 2022
The U.S. Senate Committee on Banking, Housing and Urban Affairs held a hearing on the risks in crypto and securities markets. The committee heard testimony from witnesses about the efforts being made within the financial industries to reduce and prevent risk as well as what is being done when fraudulent activities do occur.
Read on for more details.
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House Republicans accuse Chopra of conspiring with states’ AGs
Posted Date: Tuesday, August 9, 2022
In a letter to Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra, Republican members of the House Financial Services Committee accused him and the CFPB of conspiring with states’ attorneys general to pursue “duplicative enforcement actions.”
The accusation comes after several interpretive rules from the CFPB encouraged and authorized states to participate in consumer financial protection law enforcement.
Read on for more details.
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Democrats seek DEI data from fintech industry
Posted Date: Tuesday, August 9, 2022
Democrats from the House Financial Services Committee sent a letter to 20 fintech companies requesting data regarding their diversity equity and inclusion efforts.
Read on for more details.
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FTC fines Opendoor $62M for misleading sellers about its homebuying service
Posted Date: Tuesday, August 9, 2022
The Federal Trade Commission has announced a proposed order that would require Opendoor Labs to pay $62 million following an investigation that found the company allegedly deceived homeseller into believing selling homes through its platform would save money.
Read on for more details.
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US Chamber files suit against FTC
Posted Date: Friday, August 5, 2022
The United States Chamber of Commerce has filed a lawsuit against the Federal Trade Commission in the U.S. District Court of the District of Columbia. The complaint alleges the current commission has created a “black-box environment” which lacks transparency and accountability.
Read on for more details.
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CFPB fines US Bank $37.5M for using customer data to open fake accounts
Posted Date: Friday, August 5, 2022
The Consumer Financial Protection Bureau (CFPB) has fined U.S. Bank for illegally accessing customers’ credit reports and opening accounts without their permission.
U.S. Bank allegedly pressured and incentivized employees to sell multiple products and services as part of their employees’ job requirements.
Read on for more details.
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OFR reports on CBDC’s potential benefits to banking stability
Posted Date: Friday, August 5, 2022
The Office of Financial Research released a report on the potential effects that a central bank digital currency (CBDC) would have on the stability of the banking system.
The report offers a model designed to capture one of the common concerns raised regarding CBDC policy discussions: the option to hold CBDC can increase the incentive for depositors to run on weak banks.
Read on for more details.
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Bank EVP admits to conspiracy to defraud First NBC Bank
Posted Date: Friday, August 5, 2022
The U.S. Attorney’s Office for the Eastern District of Louisiana announced that the former executive vice president of First NBC Bank, a New Orleans-based bank, pleaded guilty to conspiracy to defraud the bank.
Read on for more details.
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Most servicers anticipate more foreclosures next year
Posted Date: Friday, August 5, 2022
Auction.com, a leading distressed real estate online marketplace, released its 2022 Seller Insights report. The report shows that a majority of mortgage services that utilize the platform expect to see an increase in foreclosure volume in the next 12 months.
Read on for more details.
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TransUnion fights back against CFPB ‘repeat offender’ action
Posted Date: Tuesday, August 2, 2022
TransUnion is fighting back against the Consumer Financial Protection Bureau’s (CFPB) enforcement action alleging violation of a 2017 law enforcement order. The CFPB is calling this an example of the “repeat offenders” it intends to target, while TransUnion is comparing it to the movie Groundhog Day.
The suit comes after TransUnion has already paid nearly $17 million in fines and restitution as part of the 2017 order.
Read on for more details.
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House holds hearings on housing access, affordability and inequality
Posted Date: Tuesday, August 2, 2022
The U.S. House Committee on Financial Services held hearings on issues of homeownership, access to housing, affordability and inequality.
The first hearing looked at the affect private equity funds have had on the housing market and access to housing supply. The second hearing investigated the long-term impact the “hot” housing market has had on homeownership inequality.
Read on for more details.
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CFPB, DOJ demand $24M for alleged racial discrimination
Posted Date: Tuesday, August 2, 2022
The Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) have ordered Delaware-based non-bank lender Trident Mortgage Co. to pay more than $24 million for alleged discrimination against minority families.
The settlement is the first to involve a non-bank mortgage lender in the Biden administration’s efforts to combat ‘modern-day redlining.’
Read on for more details.
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FDIC, Fed demand crypto company stop claiming it is insured
Posted Date: Tuesday, August 2, 2022
The Federal Reserve and the Federal Deposit Insurance Corp. has issued a joint cease-and-desist order to Voyager Digital, a cryptocurrency company, demanding it stop claiming it is federally insured.
Read on for more details.
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Communities skeptical over BMO acquisition of Bank of the West
Posted Date: Tuesday, August 2, 2022
Bank of Montreal (BMO) and community advocates squared off at a public hearing held by the Federal Reserve and the Office of the Comptroller of the Currency regarding its proposed acquisition of San Francisco-based Bank of the West.
Read on for more details.
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House adds homebuyer assistance act to defense bill
Posted Date: Tuesday, August 2, 2022
The U.S. House of Representatives voted to add an amendment to the National Defense Authorization Act which is designed to make it easier for homebuyers to purchase a home with a Federal Housing Administration mortgage.
Read on for more details.
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Fourth Circuit requires borrower to return money after rescission of loan
Posted Date: Friday, July 29, 2022
The Fourth Circuit Court of Appeals held that the Truth in Lending Act (TILA) does not allow a borrower to keep the money after filing a notice of rescission, even if the lender failed to meet TILA disclosure requirements.
The circuit court overturned the district court’s decision, which held in favor of the borrower as a matter of law.
Read on for more details.
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FHFA director: Fannie, Freddie building $300B combined capital reserve
Posted Date: Friday, July 29, 2022
Federal Housing Finance Agency (FHFA) Director Sandra Thompson informed the House Committee on Financial Services that Fannie Mae and Freddie Mac are working to build a combined capital reserve of $300 billion.
She also addressed questions about the FHFA conservatorship over the two government sponsored enterprises and when she thought that might end.
Read on for more details.
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BPI questions need to update bank merger rules
Posted Date: Friday, July 29, 2022
In a recent report and blog post, lobbyist and advocacy group Bank Policy Institute questioned whether banking regulator’s plans to update bank merger rules are necessary. The report suggests bank market concentration has led to a robust level of competition.
Read on for more details.
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Another FOMC meeting, another rate hike
Posted Date: Friday, July 29, 2022
The Federal Reserve Federal Open Market Committee last week announced an increase of 75 basis points to the federal funds rate to 2.25-2.5 percent.
Read on for more details.
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Mortgage applications reach 22-year low
Posted Date: Friday, July 29, 2022
According to data from the Mortgage Bankers Association, mortgage applications have declined to the lowest levels since February 2000.
Read on for more details.
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BofA fined $225M for disbursement of pandemic unemployment benefits
Posted Date: Friday, July 29, 2022
The Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency have issued fines in excess of $225 million against Bank of America for its alleged failures relating to the distribution of state unemployment benefits during the COVID-19 pandemic.
The regulators said that the bank wrongfully froze customers accounts because of issues with its fraud detection program.
Read on for more details.
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CFPB seeks larger role in bank regulation
Posted Date: Tuesday, July 26, 2022
On March 31, 2022, the Federal Deposit Insurance Corp. (FDIC) issued the “Request for Information and Comment on Rules, Regulations, Guidance, and Statements of Policy Regarding Bank Merger Transactions” (RFI). This RFI provided clear insight into the perceptions, concerns and goals of the administration under President Joe Biden regarding bank mergers.
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HUD proposes updates to manufactured home construction standards
Posted Date: Tuesday, July 26, 2022
The Department of Housing and Urban Development announced proposals for updating the Manufactured Home Constriction and Safety Standards. The proposals are the largest set of changes to these safety standards in over two decades.
These changes are part of the Biden administration’s priority to expand the supply of manufactured housing as a part of the efforts to address housing supply challenges.
Read on for more details.
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Court sets deadline for CFPB completion of Small Business Lending Data Rule
Posted Date: Tuesday, July 26, 2022
A federal judge has ordered the Consumer Financial Protection Bureau (CFPB) to complete its rules for collecting data to identify potential discrimination in small-business lending by early next year.
The judge approved an agreement between the CFPB and consumer advocates to have the rule completed by March 31, 2023.
Read on for more details.
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Mortgage credit availability decreased in June
Posted Date: Tuesday, July 26, 2022
The Mortgage Credit Availability Index, a report from the Mortgage Bankers Association that analyzes data from ICE Mortgage Technology, found that mortgage credit availability decreased in June.
Read on for more details.
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Xactus acquires MassiveCert
Posted Date: Tuesday, July 26, 2022
Xactus, a verification service provider for the banking and mortgage industries, has acquired MassiveCert, a data and technology leader in residential national flood data and technology.
Read on for more details.
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California man sentenced to over 11 years for PPP fraud
Posted Date: Tuesday, July 26, 2022
A southern California man was sentenced to 135 months in prison for submitting fraudulent applications seeking money from the Paycheck Protection Program, submitting false statements to a financial institution, and money laundering.
Read on for more details.
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