News By Edition

At the Consumer Bankers Association (CBA) convention, CBA’s Dan Smith hosted a virtual roundtable with former staff of the Consumer Financial Protection Bureau.

Among the several topics discussed, the speakers gave important tips and advice when it comes to examinations at the end of a unique year.

For more on what they had to say, read on.

The Consumer Financial Protection Bureau, Federal Reserve Board, and Office of the Comptroller of the Currency announced the 2021 threshold for exempting loans for special appraisal requirements for higher-priced mortgage loans.

The calculation for the threshold is based on the annual percentage increase in the Consumer Price Index for urban wage earners and clerical workers as of June 1, 2020.

Read on for more details.

Calyx announced its Path loan origination software has been integrated with Marksman, a product and pricing engine offered by Mortech.

Read on for details. 

Freddie Mac has partnered with Zest AI, a software company for credit underwriting, to improve its credit decisioning models for managing risk.

Read on for more details.

The Federal Housing Finance Agency (FHFA) announced the 2021 multifamily loan purchase caps for Fannie Mae and Freddie Mac.

“FHFA will keep a close eye on the multifamily caps to ensure that they are sufficient and serve to increase the supply of affordable housing but do not crowd out private capital,” FHFA Director Mark Calabria said.

For more details, read on.

The Federal Housing Finance Agency (FHFA) issued its strategic plan for fiscal years 2021-2024.

“The finalized strategic plan will help cement the agency as a world-class financial regulator by ensuring that we fulfill our statutory mission and continue working to end the conservatorships of the Enterprises responsibly,” FHFA Director Mark Calabria said.

For more details on the plan, read on.

eOriginal announced the release of ClosingCenter 2.3, an update to the company’s cloud-based solution for digital mortgage closing.

For details on the update, read on.

Promontory MortgagePath, LLC announced the additions of Diane Capers and Greg Bruns as regional vice presidents.

Read on for more details.

MISMO announced Seth Appleton as its new president, starting Dec. 1, 2020.

Read on for more details.

Anthony Alexis, former assistant director and head of enforcement at the Consumer Financial Protection Bureau, and Ori Lev, former deputy director of enforcement, engaged in a virtual forum with Dan Smith, Consumer Bankers Association executive vice president.

The trio discussed the current state of the CFPB’s supervisory, enforcement, and fair lending division.

Read on for details.

The Federal Housing Finance Agency (FHFA) announced Fannie Mae and Freddie Mac will extend loan origination flexibilities through the end of the year. Previously, they were set to expire Nov. 30, 2020.

“These changes are to ensure continued support for borrowers during the COVID-19 national emergency,” FHFA stated.

To learn what flexibilities have been extended, read on.

Community banks continue to play a vital role in supporting small businesses through the Paycheck Protection Program (PPP), according to a Federal Deposit Insurance Corp. analysis of call report data from its insured banks.

The report also showed that PPP loans increased community banks’ share of loans to small businesses.

Read on for more details. 

Sagent and Bizzy Labs have partnered to offer an AI-powered engine to assist in automating the compliance process for loan servicers.

Read on for details. 

Ellie Mae, now ICE Mortgage Technology, announced the release of Encompass 20.2, which includes enhancements to increase productivity for lending and investing workflows.

Read on for more details.

The Consumer Financial Protection Bureau and the Colorado Attorney General will hold joint virtual office hours on Dec. 2, 2020.

Read on for details.

In a case regarding the Dodd-Frank Act’s ability-to-repay provisions, the U.S. Sixth Circuit Court of Appeals determined the defendant bank violated the Truth-in-Lending Act by erroneously relying on the verbal statements from the plaintiff and his ex-wife regarding his income and failing to verify those statements with documentation.

For details on the case, read on.

According to the Mortgage Bankers Association’s (MBA) National Delinquency Survey, the delinquency rate for mortgage loans on one-to-four-unit residential properties decreased in the third quarter of 2020.

“Consistent with the improving labor market and the overall economic rebound, homeowners’ ability to make their mortgage payments improved,” Marina Walsh, MBA vice president of industry analysis, said.

Read on for more details.

The Consumer Financial Protection Bureau filed a lawsuit against Driver Loan, LLC, and its CEO for allegedly engaging in deceptive acts or practices.

According to the complaint, the company allegedly made misrepresentations about the APR for its small dollar loans and made misleading statements to depositors in its program called the “DriverLoan Investors Club”.

For more details on the lawsuit, read on.

Jason Cave has been hired by the Federal Housing Finance Agency to serve as its new deputy director for the division of resolutions.

Read on for more details.

The Consumer Financial Protection Bureau issued a no action letter to Bank of America, providing a safe harbor regarding a small-dollar credit product. Bank of America sought the letter for its product called Balance Assist, developed for the entity’s checking account customers.

The application was based on the bureau-approved no action letter template issued earlier this year.

For details on the no action letter, read on.

Renters are one of the groups that has been hit hardest during the COVID-19 pandemic, with many losing income and having access to less options than those who pay a mortgage.

However, a new analysis from Freddie Mac shows “rent payment has remained healthier than some market participants anticipated.”

Read on for more details.

Fannie Mae announced Sheila Bair will be the new chair for its board of directors.

Read on for details.

In the Mortgage Bankers Association’s most recent Forbearance and Call Volume Survey, the data showed a decrease in the number of mortgage loans in forbearance.

Read on for details.

David Brickman, CEO of Freddie Mac, and Hugh Frater, CEO of Fannie Mae, had a virtual sit-down with the Mortgage Bankers Association (MBA) Chairman-Elect Kristy Fercho at this year’s MBA annual convention.

The CEOs highlighted their takeaways from their respective company’s COVID-19 responses and addressed current issues the GSEs are facing.

Read on for details.

The Consumer Financial Protection Bureau has issued a final rule revising regulation of the Fair Debt Collection Practices Act.

The final rule addresses communications in connection with debt collection and prohibitions on harassment or abuse, false or misleading representations, and unfair practices in debt collection. This update also includes newer forms of communication, such as cell phones and social media.

For more details on the final rule, read on.

The Consumer Financial Protection Bureau settled with SMART Payment Plan, LLC regarding alleged deceptive sales practices.

For more on the consent order, read on.

The U.S. Commerce Department released its third quarter estimate for the real gross domestic product. Mortgage Bankers Association’s Mike Fratantoni issued his own analysis of the data.

For more about the estimates, and Fratantoni’s perspective, read on.

The Consumer Financial Protection Bureau issued a final rule amending its disclosure of records and information regulation.

Read on for details.

In its response to Community Financial Services Association of America and a Texas trade group’s suit alleging the payday loan rule is illegal, the Consumer Financial Protection Bureau stated the rule was valid because Director Kathy Kraninger ratified it.

Plaintiffs and defendant have filed motions for summary judgment with the federal court in the Western District of Texas.

Read on for details. 

The Consumer Financial Protection Bureau issued a consent order against the ninth and final mortgage company in a group that engaged in deceptive loan practices targeting servicemembers and veterans.

According to the order, the company violated the Consumer Financial Protection Act’s prohibition against deceptive acts and practices, as well as other regulations.

Read on for details.

The Office of the Comptroller of the Currency granted Social Finance, Inc. conditional approval to establish a full-service national bank.

Read on for details.

The Financial Crimes Enforcement Network, in conjunction with the Federal Reserve, proposed a new rule to make changes to the Bank Secrecy Act’s recordkeeping and travel rule regulations.

Read on for details. 

Senator Sherrod Brown has asked Consumer Financial Protection Bureau Director Kathy Kraninger to delay the reorganization of the bureau’s division of supervision, enforcement, and fair lending.

In a letter to the bureau, Brown asserted the reorganization is poorly timed, citing the election, and the possibility Kraninger might no longer be the director after Jan. 20, 2021.

For details of the senator’s concerns, read on. 

The National Association of Federally-Insured Credit Unions, the Credit Union National Association, and several other financial services organizations joined together in a letter to Congress about the Office of the Comptroller of the Currency’s proposed special purpose payments charter for nonbanks.

In the letter, the groups asked the new charter be subject to a notice-and-comment process.

Read on for more details.

The Consumer Financial Protection Bureau has reached a settlement with Washington Federal Bank regarding an issue with its mandated data reporting.

Read on for details.

The Consumer Financial Bureau issued an advance notice of proposed rulemaking on consumer access to financial records.

Read on for details.