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CFPB mortgage rule implementation: The first six months (pt.1)
Posted Date: Monday, June 23, 2014
It’s been roughly six months since sweeping new federal requirements took effect for mortgage originators and servicers, and while the full impact of those Consumer Financial Protection Bureau rules is still unclear, some trends may be emerging. Read on to learn what industry watchers and consumer advocates had to say about the impact of the rules and the state of the mortgage market during a recent meeting of the CFPB’s Consumer Advisory Board.
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CFPB mortgage rule implementation: The first six months (pt.2)
Posted Date: Tuesday, June 24, 2014
It’s been roughly six months since sweeping new federal requirements took effect for mortgage originators and servicers, and while the full impact of those Consumer Financial Protection Bureau rules is still unclear, some trends may be emerging. Learn what industry watchers and consumer advocates had to say about the impact of the CFPB’s servicing rules and the general cost of mortgage rule compliance during a recent meeting of the bureau’s Consumer Advisory Board, as Dodd Frank Update’s two-part series concludes.
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Lawmakers press regulators on Operation Choke Point, reputational risk
Posted Date: Tuesday, June 17, 2014
The leader of the U.S. House Oversight Committee wants more information on the Federal Deposit Insurance Corp.’s involvement in Operate Choke Point, a Justice Department initiative some lawmakers said is forcing banks to sever relationships with legal businesses deemed objectionable by the Obama administration. A payday loan group also sued regulators over Operation Choke Point. Read on for an update on the debate surrounding this controversial regulatory initiative.
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Hensarling amplifies call to halt SIFI designations
Posted Date: Tuesday, May 27, 2014
Industry stakeholders joined the leader of the House Financial Services Committee in calling on the Financial Stability Oversight Council to refrain from designating any more institutions as systemically important until Congress can review the potential impact of such determinations. During a hearing examining the FSOC’s designation process, Jeb Hensarling, R-Texas, the chairman of the committee, said designation could enshrine too-big-to-fail and harm certain types of firms and their customers. However, others hailed the designation process as an important cornerstone of financial reform.
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House passes Mortgage Choice Act
Posted Date: Tuesday, June 10, 2014
On June 9, the U.S. House of Representatives unanimously passed HR 3211, the Mortgage Choice Act. The bill amends the qualified mortgage definition in the Dodd Frank Act and is designed to improve access to credit and qualified mortgages for low- and moderate-income borrowers while protecting consumers from bad loans. Read on for more details.
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Senate confirms three to CFTC
Posted Date: Friday, June 6, 2014
The Senate voted June 3 to approve nominations to fill three vacant seats on the five-member Commodity Futures Trading Commission. Lawmakers narrowly approved Sharon Bowen’s nomination to the commission after some criticized her work as vice chair and acting chair of the Securities Investor Protection Corp. Tim Massad’s nomination to become CFTC chairman was approved by a voice vote, as was Christopher Giancarlo’s nomination to the commission.
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Debt collection, consumer reporting, payday issues discussed in latest CFPB supervision report
Posted Date: Tuesday, May 27, 2014
The Consumer Financial Protection Bureau issued a report highlighting alleged illegal actions uncovered by the bureau’s supervision of the debt collection, consumer reporting and payday lending markets. The report also revealed that recent non-public CFPB supervisory activities have resulted in more than $70 million in remediation to approximately 775,000 consumers. Read on to learn what the CFPB had to say in its latest Supervisory Highlights report.
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Title company to pay $30,000 in CFPB RESPA action
Posted Date: Monday, June 16, 2014
The Consumer Financial Protection Bureau ordered a New Jersey-based title company to pay $30,000 to settle claims that it paid illegal kickbacks for referrals in violation of the Real Estate Settlement Procedures Act. The CFPB said the firm, Stonebridge Title Services Inc., paid commissions to more than 20 independent salespeople who referred title insurance business to the company. Read on to learn about the bureau’s enforcement action.
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Real estate firm’s affiliate disclosures fell short of RESPA requirements, CFPB says
Posted Date: Thursday, May 29, 2014
RealtySouth, the largest real estate firm in Alabama, agreed to pay $500,000 to settle Consumer Financial Protection Bureau claims that its affiliated business disclosures failed to satisfy the requirements of the Real Estate Settlement Procedures Act. The bureau said the company’s preprinted form purchase contracts either explicitly directed or suggested that title and closing services be conducted by an affiliate.
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OCC releases interim exam manual for Volcker Rule
Posted Date: Tuesday, June 17, 2014
The Office of the Comptroller of the Currency issued interim procedures examiners will use to assess banks’ progress in developing a framework to comply with rules implementing Section 619 of the Dodd-Frank Act, commonly known as the Volcker Rule. Read on to learn about the Volcker Rule interim exam manual.
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Fed to amend stress test, capital plan rules
Posted Date: Tuesday, June 17, 2014
The Federal Reserve is seeking public comment on a proposal to modify the regulations for capital planning and stress testing. The proposed rule would shift the start date of the capital plan and stress test cycles. The proposal also includes a number of additional measures to alter the capital planning and stress test process. Read on to learn about the proposal.
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SEC brings first Dodd-Frank whistleblower anti-retaliation case
Posted Date: Tuesday, June 17, 2014
An Albany, N.Y.-based hedge fund advisory firm will pay more than $2 million to settle Securities and Exchange Commission claims that the company engaged in prohibited principal transactions and then retaliated against an employee who reported the activity to the agency. The case marks the first time the SEC has brought an action under Dodd-Frank’s whistleblower anti-retaliation provisions. The SEC also charged the firm’s owner with causing the improper principal transactions.
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NS3 Live Coverage: Keynote discusses vendor management from the lender’s perspective
Posted Date: Tuesday, June 10, 2014
Regulators have made it clear that they want lenders to beef up their oversight of third-party service providers, but just how those expectations will impact the relationship between lenders and the settlement services industry remains unclear. In a keynote speech at October Research, LLC’s 2014 National Settlement Services Summit in New Orleans, Mike Flynn, executive vice president and general counsel with Flagstar Bank, discussed vendor management from the lender’s perspective. Read on to learn about Flynn’s view of the changes that may be coming.
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Industry backs CFPB QM points and fees cure proposal, suggests tweaks
Posted Date: Monday, June 16, 2014
Industry commenters critiqued the Consumer Financial Protection Bureau’s proposal to establish a mechanism to cure qualified mortgage points and fees overages. The agency unveiled the proposed QM cure April 30 and sought comment on its provisions. Industry participants approved of the cure but suggested some changes to the proposal. Read on to learn what they had to say.
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Dodd-Frank whistleblower provisions did not invalidate arbitration agreement, appeals court says
Posted Date: Friday, June 6, 2014
A man who was let go from his job and replaced by a younger worker sued his former employer for alleged age discrimination. When the company moved to compel arbitration, the former employee argued that the arbitration clause in his contract was invalid because it did not include a carve-out for Dodd-Frank whistleblower claims. Read on to learn what the 4th U.S. Circuit Court of Appeals had to say about the issue.
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Senator challenges Cordray on National Mortgage Database information collection activities
Posted Date: Monday, June 16, 2014
A top Senate lawmaker told the leader of the Consumer Financial Protection Bureau that he is deeply concerned about the types of information the bureau and the Federal Housing Finance Agency indicated may be collected as part of an expansion of the National Mortgage Database project. During last week’s CFPB oversight hearing in the Senate Banking Committee, Mike Crapo, the committee’s ranking member, expressed concern that the data collection could represent an unnecessary invasion of privacy.
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House approves sweeping CFTC reauthorization bill
Posted Date: Friday, June 27, 2014
The Commodity Futures Trading Commission would be required to beef up its regulatory cost-benefit analysis under a measure approved by the U.S. House. The bill, which reauthorizes the CFTC, is also intended to provide relief to commercial end-users. Some Democrats said the measure would place heavy administrative burdens on the CFTC and hamper the commission’s efforts to carry out its responsibilities under the Dodd-Frank Act.
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Cordray, lawmakers spar over CFPB accountably, spending, mortgage data collection
Posted Date: Friday, June 27, 2014
Richard Cordray, director of the Consumer Financial Protection Bureau, recently appeared before the House Financial Services Committee to discuss his agency’s latest semi-annual report. Lawmakers grilled Cordray for three hours on a wide range of topics including bureau accountability, spending and its mortgage data collection plans. Read on for key takeaways from the hearing.
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House Financial Services lawmakers hammer FSOC on transparency
Posted Date: Friday, June 27, 2014
At a June 24 committee hearing, Treasury Secretary Jacob Lew presented the 2014 annual report of the Financial Stability Oversight Council, but spent most of the 90-minute hearing on the defensive as legislators demanded details about FSOC’s decision-making process, particularly with regard to its ability to identify and designate certain large firms as systemically important financial institutions.
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Senate banking committee approves HUD nomination
Posted Date: Friday, June 27, 2014
The U.S. Senate Banking Committee advanced San Antonio Mayor Julián Castro’s nomination to become secretary of the Department of Housing and Urban Development, clearing the way for a Senate vote. The committee also advanced Laura Wertheimer’s nomination to be inspector general of the Federal Housing Finance Agency.
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CFPB is calling all techies
Posted Date: Friday, June 27, 2014
The Consumer Financial Protection Bureau is seeking a new batch of technologists who will help the agency develop the tools it will use to further its mission of making financial products and services work for consumers. The CFPB is currently accepting applications for the second round of its Technology and Innovation Fellowship, a two-year program for software developers, graphic and user experience designers, data specialists and cybersecurity professionals who will work on projects impacting everything from consumer engagement to the bureau’s supervision program. Read on to learn about the fellowship and its work.
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SEC commissioner gives Dodd-Frank implementation ‘mixed’ review
Posted Date: Tuesday, June 24, 2014
As we mark the four-year anniversary of the enactment of the Dodd-Frank Act next month, an SEC commissioner recently told a group of international economists that many of the act’s reforms have yet to be implemented, and “squabbling” among different regulatory agencies threatens progress.
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Know your regulator: New CFTC chairman announces staff appointments
Posted Date: Tuesday, June 24, 2014
Commodity Futures Trading Commission (CFTC) Chairman Timothy Massad announced his staff hires as he starts his chairmanship. Massad named his chief of staff, as well as general counsel, director of legislative affairs, senior counsel and director of public affairs. A new enforcement director was announced earlier this month. Read on to learn about the new faces at the CFTC.
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Committee advances FSOC SIFI ‘pause button’ legislation
Posted Date: Tuesday, June 24, 2014
The Republican-controlled U.S. House Financial Services Committee advanced two Financial Stability Oversight Council-related bills, including a measure that would place a one-year moratorium on future systemic designations under the Dodd-Frank Act. Democrats opposed the bills, although some did express concern over the council’s recent activities.
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CFPB launches examinations, investigations on new mortgage rules
Posted Date: Tuesday, June 24, 2014
The bulk of the Consumer Financial Protection Bureau’s new mortgage requirements may have taken effect in January, but the agency did not immediately begin examining institutions for compliance with the rules at that time. Now that the rules have been in place for a while, CFPB Deputy Director Steve Antonakes said the bureau has launched a number of compliance examinations and investigations at banks and non-banks.
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DOJ, CFPB announce largest-ever federal credit card discrimination settlement
Posted Date: Monday, June 23, 2014
The Consumer Financial Protection Bureau ordered GE Capital Retail Bank — known as of June 2 as Synchrony Bank — to provide an estimated $225 million in relief to consumers the agency said were harmed by illegal and discriminatory credit card practices. As part of a joint enforcement action by the CFPB and Department of Justice, GE Capital must provide $169 million to about 108,000 borrowers excluded from debt relief offers because of their national origin. The action represents the federal government’s largest credit card discrimination settlement in history.
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SunTrust to pay nearly $1 billion in mortgage settlement with feds, states
Posted Date: Monday, June 23, 2014
SunTrust Mortgage Inc. agreed to pay $968 million to settle state and federal claims related to its mortgage origination and servicing practices. The joint agreement followed an extensive investigation by the Department of Justice, Department of Housing and Urban Development, Consumer Financial Protection Bureau and state attorneys general across the country.
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Senator urges CFPB to tackle payday lending following controversial Ohio Supreme Court decision
Posted Date: Monday, June 23, 2014
Spurred into action by a controversial Ohio Supreme Court decision that some feel undermines laws intended to protect Ohio consumers from predatory loans, Sen. Sherrod Brown, a Democrat from the Buckeye State, is urging the Consumer Financial Protection Bureau to provide more robust consumer protections to combat what he called “inadequate state laws” as regulators look to reform the payday lending market.
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Concerns over definitions, state adoption of proposed AMC rules pepper public comments
Posted Date: Tuesday, June 17, 2014
The public comment period for a proposed rule that would implement Dodd-Frank’s minimum requirements for state registration and supervision of appraisal management companies has closed, and AMCs, independent appraisers, trade groups, lenders and even a state regulator have voiced their concerns and made suggestions to improve the proposal. Read on for a breakdown of the comments posted in the Federal Register.
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Federal court in New York latest to tackle whistleblower issues
Posted Date: Monday, June 16, 2014
Another court has weighed in on the question of whether a plaintiff bringing a lawsuit against an employer for wrongful termination after reporting company wrongdoing can claim whistleblower protection under Sarbanes-Oxley and Dodd-Frank. Whistleblower or not? Read on to find out what the court decided.
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House committee advances more CFPB bills
Posted Date: Monday, June 16, 2014
The U.S. House Financial Services Committee approved several more bills related to the Consumer Financial Protection Bureau, including a measure that would allow covered firms to submit inquiries with the bureau regarding whether prospective products and services conform to federal consumer financial protection laws. Read on to learn about the bills.
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Mobile financial services subject of new CFPB inquiry
Posted Date: Monday, June 16, 2014
The Consumer Financial Protection Bureau is launching an inquiry into the opportunities and challenges associated with the use of mobile financial services. As part of the inquiry, the CFPB is exploring how mobile technologies are impacting unbanked and underserved consumers with limited access to traditional banking systems. Read on to learn about the CFPB’s efforts.
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NS3 Live Coverage: Summit attendees help ‘Make a Child Smile’
Posted Date: Wednesday, June 11, 2014
The goal of October Research, LLC’s 2014 National Settlement Services Summit is to help settlement services companies build their businesses and grow their bottom line, but conference goers took time out from networking and attending panel discussions Monday to focus on a more important goal — helping restore the city of New Orleans, one nut and bolt at a time. The third-annual “Make a Child Smile” charity event, sponsored by Winward Consulting | Software LLC, saw attendees across industries roll up their sleeves to help assemble 30 bikes that will be donated to New Orleans children in need.
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CFPB plans meetings on new mortgage regulations, mobile financial services
Posted Date: Tuesday, June 10, 2014
The Consumer Financial Protection Bureau is hitting the road for a pair of important meetings. Bureau leaders will be in New Orleans this week for a field hearing on mobile financial services. Next week, the CFPB’s Consumer Advisory Board will meet in Reno, Nev., to discuss the impact of the bureau’s new mortgage rules.
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CFPB tweaks proposed credit card pre-dispute arbitration survey
Posted Date: Tuesday, June 10, 2014
The Consumer Financial Protection Bureau is continuing work on a proposed telephone survey that will be part of a Dodd-Frank-mandated study on credit card pre-dispute arbitration agreements. The bureau has been receiving feedback on the survey for months and recently sought additional comments on a revised survey proposal. Read on to learn what industry stakeholders have been saying about the proposed survey and how the bureau responded.
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October Research announces industry award winners
Posted Date: Tuesday, June 10, 2014
October Research, LLC, publisher of The Title Report, The Legal Description, Valuation Review, RESPA News and Dodd Frank Update, announced the winners in its annual awards program June 10. The awards program was launched to honor men and women in the mortgage and settlement services industries for exemplary accomplishment in the areas of leadership, innovation and philanthropy.
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October Research announces industry award winners
Posted Date: Tuesday, June 10, 2014
October Research, LLC, publisher of The Title Report, The Legal Description, Valuation Review, RESPA News and Dodd Frank Update, today announced the winners in its annual awards program, launched to honor men and women in the mortgage and settlement services industries for exemplary accomplishment in the areas of leadership, innovation and philanthropy.
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Agencies launch regulatory burden reduction effort
Posted Date: Friday, June 6, 2014
The federal banking agencies released the first in a series of requests for comments to identify outdated, unnecessary or unduly burdensome regulations imposed on insured depository institutions. The action stems from the Economic Growth and Regulatory Paperwork Reduction Act, which requires the banking agencies to review regulations issued by the agencies at least every 10 years. The National Credit Union Administration also launched an EGRPRA review.
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Senate approves Dodd-Frank insurance revision
Posted Date: Friday, June 6, 2014
The U.S. Senate approved a bipartisan bill to revise Dodd-Frank by clarifying that the Federal Reserve has authority to take into account distinctions between banking and insurance when setting capital standards for firms under its jurisdiction. The bill’s backers said the measure removes any doubt that the Fed need not impose a bank-centric capital regime on insurance activities.
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Two whistleblowers split $875K SEC award
Posted Date: Friday, June 6, 2014
The Securities and Exchange Commission announced a whistleblower award of more than $875,000 to be split evenly between two people who provided tips and assistance to help the agency bring an enforcement action. A total of eight whistleblowers have now been awarded through the SEC’s Dodd-Frank whistleblower program since it began in late 2011.
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NCUA, trade group, lawmakers battle over risk-based capital proposal
Posted Date: Tuesday, June 3, 2014
Regulators, lawmakers and industry participants are trading barbs over the National Credit Union Administration’s plan to institute new risk-based capital requirements. Hundreds of lawmakers recently signed a letter expressing concern that the proposal could unnecessarily burden credit unions and impact their ability to provide mortgage and small business credit. NCUA Chairman Debbie Matz defended the reasoning behind the proposal and argued that industry implementation cost estimates are inflated.
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U.S. House takes aim at disparate impact theory, Operation Choke Point
Posted Date: Tuesday, June 3, 2014
An appropriations measure approved by the U.S. House includes provisions Republicans said would stop the Justice Department from using disparate impact theory. The spending package also restricts the department’s ability to fund Operation Choke Point, which industry participants and some lawmakers have said is designed to force certain legally operating entities out of business by cutting them off from financial services.
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CFPB extends comment period for annual privacy notice proposal
Posted Date: Tuesday, June 3, 2014
A group of trade associations requested more time to assess some of the proposal’s possible “operational ramifications.” Read on to find out what the banking and financial service industries are saying about the amendments so far, as well as to find out how to take part in the comment period yourself.
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Five takeaways from the CFPB’s latest semi-annual report
Posted Date: Tuesday, June 3, 2014
The Consumer Financial Protection Bureau outlined its accomplishments and future plans in a semi-annual report to Congress released May 28. The Dodd-Frank-mandated report detailing the bureau’s recent activities comes as House Republicans call for changes at the agency. Read on for takeaways from the report.
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OCC to alter big bank supervisory process
Posted Date: Tuesday, June 3, 2014
The Office of the Comptroller of the Currency said it will make significant changes to the process it uses to supervise large institutions. The changes — which include drawing down the number of on-site examiners at individual banks — respond to recommendations from an international peer review of the OCC’s supervision of large banks and thrifts. Read on to learn about the OCC’s planned changes.
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CFPB updates rulemaking plans
Posted Date: Thursday, May 29, 2014
The Consumer Financial Protection Bureau plans to move forward with 14 separate regulatory initiatives through the end of this year, according to the CFPB’s latest rulemaking agenda. The rulemakings cover a wide range of markets from residential mortgage to auto finance. Read on to learn about the rules the CFPB plans to write in the coming months.
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CFTC issues first Dodd-Frank whistleblower award
Posted Date: Thursday, May 29, 2014
The Commodity Futures Trading Commission announced its first award to a whistleblower as part of the commission’s Dodd-Frank whistleblower program. The person will receive approximately $240,000 for providing information about violations of the Commodity Exchange Act. Read on to learn about the CFTC’s whistleblower program.
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Hensarling questions agencies’ use of ‘reputational risk’ in prudential supervision
Posted Date: Thursday, May 29, 2014
The leader of the House Financial Services Committee wants top bank and credit union regulators to explain their agency’s use of “reputational risk” in prudential supervision. Rep. Jeb Hensarling, R-Texas, the committee’s chairman, is concerned that some regulators may be relying on subjective judgments of what constitutes reputation risk.
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