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Kraninger challenged on CFPB enforcement approach
Posted Date: Friday, October 18, 2019
Not unlike her first stint in the congressional hot seat as director of the Consumer Financial Protection Bureau (CFPB), Kathy Kraninger addressed changes to the bureau’s approach to enforcement and fulfilling its statutory mission during her second semi-annual report to Congress.
Multiple congressional representatives, including a former enforcement officer, picked apart Kraninger’s method for determining appropriate amounts for fines and restitution included in settlement agreements.
Learn what insights came out of the hearings.
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Supreme Court to rule on CFPB structure, trades want commission
Posted Date: Tuesday, October 22, 2019
Speculation over whether the Supreme Court would heed calls for it to settle the long-running dispute over the constitutionality of the Consumer Financial Protection Bureau (CFPB) ended Friday.
The court’s highly anticipated announcement that it will hear the case of Seila Law v. CFPB could mean any number of possible outcomes for the future of the CFPB, the Dodd-Frank Act and consumer protection laws.
Find out why the industry is continuing to push for a CFPB commission.
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CFPB cracks down on another high-interest credit broker
Posted Date: Tuesday, October 8, 2019
For the third time this year, the Consumer Financial Protection Bureau announced it has taken action against defendants involved in alleged unfair or deceptive acts or practices in offering high-interest credit to veterans and other consumers.
The circumstances of the most recent lawsuit, filed in a South Carolina district court, are strikingly similar to the two other cases against brokers whom were found to have direct business ties.
Learn more details about the similarities between the past cases and the most recent one.
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CFPB sues for credit reporting, debt collection violations
Posted Date: Thursday, September 26, 2019
The Consumer Financial Protection Bureau (CFPB) cited the largest debt collection company in the country for multiple consumer protection law violations in a complaint filed in a Maryland district court.
The lawsuit alleges various issues with the company’s practices dealing with disputes over its furnishing of consumer credit information and its debt collection practices.
Find out more details about the allegations against the company.
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Industry floats automatic QM status for ‘seasoned’ loans
Posted Date: Tuesday, October 15, 2019
The increasing popularity of alternative and innovative means for verifying mortgage borrowers’ ability to repay their loans has caused financial entities and regulators to reevaluate rules and statutes implemented to protect those same borrowers from the types of predatory lending that contributed to the financial crisis.
Many reason that some of the safeguards put in place by the Dodd-Frank Act and federal regulators are too restrictive and offered various suggestions for addressing that issue.
Find out more details about stakeholder suggestions.
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Diversity among priorities for new MBA chairman
Posted Date: Friday, November 1, 2019
New Mortgage Bankers Association Chairman Brian Stoffers was sworn in, taking over from National Settlement Services keynote speaker Chris George of CMG Financial.
Stoffers, the global president, debt and structured finance at CBRE, said in prepared remarks that he’s excited about the challenge, particularly following George’s year at the helm.
Read on for more details.
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SEC to review RMBS requirements
Posted Date: Friday, November 1, 2019
The Securities and Exchange Commission (SEC) has requested public feedback on the agency’s asset-level disclosure requirements for residential mortgage-backed securities (RMBS).
The Treasury Department’s housing reform plan recommends that the SEC undertake such a review to determine potential improvements.
Find out more details about the goal of such a review.
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CFPB adjusts TILA, appraisal thresholds for 2020
Posted Date: Friday, November 1, 2019
Federal regulators recently announced statutorily required dollar-threshold adjustments for Regulation Z (Truth in Lending Act) and Regulation M (Consumer Leasing Act). Regulators also jointly finalized rules raising the exemption threshold for higher-priced loans to be subject to special appraisal requirements.
The thresholds are adjusted annually in accordance with applicable statutory amendments implemented by the Dodd-Frank Act.
Find out more details about the adjusted thresholds.
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MBA installs 2020 board, committee members
Posted Date: Friday, November 1, 2019
During its 2020 Annual Convention in Austin, Texas, the Mortgage Bankers Association (MBA) announced its roster of leaders elected to serve multiple boards and committees over the coming year.
Those groups include its Residential Board of Governors (RESBOG), Commercial Real Estate/Multifamily Finance Board of Governors (COMBOG) and Residential Committees.
Read on to find out what members comprise each one.
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MBA whitepaper details tips for managing cyberrisks
Posted Date: Tuesday, October 29, 2019
A freshly released whitepaper by the Mortgage Bankers Association (MBA) offers insight about the current information security risks facing the mortgage industry.
It also details basic components of an information security program intended to help lenders manage such risks.
Find out more information about the report.
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NCUA proposes FOM change
Posted Date: Tuesday, October 29, 2019
The National Credit Union Administration (NCUA) recently proposed a new rule that would address concerns raised in a lawsuit over the agency’s field-of-membership (FOM) rule.
The agency also finalized a rule allowing public and nonmember deposits account for half of a federal credit union’s (FCU) total paid-in and unimpaired capital, less any public unit and nonmember shares.
Learn more details about the rulemaking actions.
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ComplianceEase offers free pre-exam testing portal
Posted Date: Monday, October 28, 2019
Offering a new method to aide residential mortgage lenders in preparing for electronic examinations (e-Exams), ComplianceEase announced that it will offer a complementary Pre-Exam Portal “sandbox” beginning in January, in cooperation with the Multistate Mortgage Committee (MMC).
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GAO: Three Fed guidance docs eligible for CRA repeal
Posted Date: Friday, October 25, 2019
The Government Accountability Office (GAO) recently found that three guidance documents issued by the Federal Reserve from as far back as 2011 – two of which pertain to large bank supervision – have the force and effect of rules, and therefore are eligible for repeal under the Congressional Review Act (CRA).
GAO’s determination comes shortly following two White House directives stating that guidance may not have the force and effect of a rule.
Get a refresher on what we’ve learned in the past about CRA repeal rules.
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Rich Horn offers insight on regulatory, CFPB trends in webinar
Posted Date: Friday, October 25, 2019
The federal financial regulatory environment has undergone some dramatic shifts under the leadership of Trump administration appointees. Even the savviest professionals could use the guidance of a couple of well-versed experts to interpret what these changes mean for their compliance priorities.
Dodd Frank Update’s “Regulatory and CFPB Update” webinar features insight from former Consumer Financial Protection Bureau (CFPB) attorney Richard Horn of Garris Horn Legal PLLC and is moderated by Mortgage Cadence Vice President of Marketing and Chief Storyteller Pamela Hermann.
Get more information on how to access the valuable insight contained in this webinar.
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Banks, credit unions applaud BSA/AML bill approval
Posted Date: Friday, October 25, 2019
Community banks and credit unions are applauding the House’s passage of a bill updating “beneficial ownership” disclosure requirements under federal laws pertaining to Bank Secrecy Act/anti-money laundering rules.
Trade associations representing community banks and credit unions wrote to House leaders ahead of the vote to reiterate their support for the legislation.
Find out more about the legislation and the industry’s take on its potential impact.
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CFPB to hold small business lending symposium
Posted Date: Friday, October 25, 2019
The Consumer Financial Protection Bureau (CFPB) plans to hold a symposium discussing the Dodd-Frank Act provision pertaining to small business lending requirements.
The event will be the third in the CFPB’s symposia series initiated by Kraninger earlier this year to facilitate dialogue on topics related to rulemaking and consumer protection policies.
Learn more details about the event.
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Four agencies join Global Financial Innovation Network
Posted Date: Friday, October 25, 2019
Four federal regulatory agencies have announced plans to join the Global Financial Innovation Network (GFIN), which was established to facilitate dialogue between regulators and innovators regarding technological developments.
With the move, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, the Securities and Exchange Commission and the Commodity Futures Trading Commission will become part of GFIN.
Learn more about the network and its purpose.
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Kraninger fields inquiries on CFPB rulemaking, policy initiatives
Posted Date: Tuesday, October 22, 2019
Numerous rulemakings the Consumer Financial Protection Bureau (CFPB) has undertaken were the subject of debate during Director Kathy Kraninger’s second semi-annual report to Congress.
Of particular note were questions levied regarding the CFPB’s policy initiatives on innovation and rules on payday lending, fair lending and Qualified Mortgage (QM) standards, among others.
Learn more details that were discussed during the hearings.
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Community banks escalate feud with credit unions
Posted Date: Tuesday, October 22, 2019
Community banks and credit unions have a complex and at times tumultuous relationship.
Their advocacy goals frequently align. However, the rift between the two only seems to be becoming progressively more pronounced, leading to concerted efforts among their respective trade associations to undermine the other.
Learn more about this ongoing, escalating saga.
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CFPB invites public feedback on disclosure testing
Posted Date: Tuesday, October 22, 2019
The Consumer Financial Protection Bureau (CFPB) announced that it will invite public feedback each time it conducts testing of consumer financial disclosures.
The decision has drawn appreciation from the financial industry, given that the bureau is not legally obligated to do so, stating that it would enable industry stakeholders to point out weaknesses in disclosure testing procedures.
Read on for more information.
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OCC finalizes first OREO updates in two decades
Posted Date: Tuesday, October 22, 2019
For the first time in two decades, the Office of the Comptroller of the Currency (OCC) announced that it is finalizing modifications to its regulations on “other real estate owned” (OREO) properties.
The changes, proposed in April, are intended to streamline and clarify OREO rules for national banks and update and harmonize the OREO activity framework at federal savings associations.
Find out more details about the newly finalized changes.
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Cooperation at heart of student loan ombudsman report
Posted Date: Friday, October 18, 2019
The first report from Consumer Financial Protection Bureau Private Education Loan Ombudsman Robert Cameron found that over the past two years, two-thirds of the complaints the agency received regarding student loans were on federal student loans, rather than private loans.
Cameron offered up recommendations in the report regarding complaints and unscrupulous student loan debt relief companies, suggesting that all policymakers should consider working together more closely.
Read on for more insights from the bureau’s report.
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FASB votes to extend CECL delay
Posted Date: Friday, October 18, 2019
The Financial Accounting Standards Board (FASB) recently announced that it will push back the compliance date for its current expected credit loss (CECL) standard again for most lenders.
Specifically, the delay would apply to small reporting companies (as defined by the SEC), non-SEC public companies and private companies.
Find out more details about the delay and a new interagency policy statement on CECL changes.
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Trades back House bills on BSA/AML
Posted Date: Friday, October 18, 2019
Saying that Congress is “long overdue” to work together on legislation to prevent money laundering and counter terrorism financing, a group of financial services trade associations wrote House leaders in support of two bills expected to get votes this week.
The bills would create a national database that banks could use to verify a business’s beneficial ownership information and modernize the existing Bank Secrecy Act (BSA)/Anti-Money Laundering (AML) framework by enhancing bank-law enforcement communications.
Read on for more details of the associations’ outreach.
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Trades concerned by NCUA, FHFA vendor oversight bill
Posted Date: Friday, October 18, 2019
Financial industry advocates noted their concerns about draft legislation on third-party vendor authority with regard to third-party cloud storage providers in letters to House leaders.
The draft legislation proposes to amend the Bank Service Company Act to cover vendors of credit unions and entities supervised by the Federal Housing Finance Agency (FHFA) to the same extent as it covers banks and savings associations.
Find out what financial trade associations had to say about the proposed measure.
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Study supports eliminating credit union tax exemption
Posted Date: Friday, October 18, 2019
New research in support of the banking industry’s argument for eliminating the tax-exempt status credit unions once again has put credit union advocates on the defensive.
A study conducted by the Tax Foundation, a non-partisan non-profit organization dedicated to providing research and analysis on federal and state tax policies, recently concluded that there is no justification for the nation’s largest credit unions to be tax-exempt.
Learn more details about the study’s findings.
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Black Knight enhances CompassPoint, CompassPPE
Posted Date: Thursday, October 17, 2019
Black Knight, Inc. recently released two solutions intended to enhance accuracy, efficiency and automation in origination and secondary marketing.
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IDS becomes preferred partner with Mortgage Builder
Posted Date: Wednesday, October 16, 2019
Mortgage document preparation vendor International Document Services, Inc. (IDS) recently entered into a preferred partnership agreement with Mortgage Builder, which provides award-winning mortgage loan origination and servicing software systems, according to a press release.
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CFPB creates consumer financial law taskforce
Posted Date: Tuesday, October 15, 2019
A new taskforce is being commissioned by the Consumer Financial Protection Bureau (CFPB) to examine potentially viable avenues for improving and strengthening existing federal consumer financial laws and regulations.
The bureau is taking applications to join its Taskforce on Federal Consumer Financial Law, which will have a similar mission to a national commission established in 1968.
Learn more about the taskforce and its membership qualifications.
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Bankers on CFPB constitutionality: Make it a commission
Posted Date: Tuesday, October 15, 2019
As the constitutionality question looms seemingly larger than ever over the Consumer Financial Protection Bureau (CFPB), financial industry advocates largely have maintained their long-held contention that the best remedy for the bureau’s controversial leadership structure is to reform it as a bipartisan commission.
The Consumer Bankers Association noted that such a structure was proposed in the original version of Dodd-Frank that passed the House with bipartisan support in 2010.
Find out what specific points the trade organization cited.
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How digital asset transactions trigger AML/BSA requirements
Posted Date: Tuesday, October 15, 2019
The fact that financial institutions increasingly are engaging in transactions involving digital assets has spurred federal agencies to speak up regarding additional compliance obligations that come with the territory.
The agencies detailed those obligations and the circumstances that trigger their applicability in a recent joint statement.
Find out more details about the new guidance on digital assets.
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Lender Price releases FLEX Pricer for non-QM lenders
Posted Date: Tuesday, October 15, 2019
Lender Price, a provider of mortgage origination and loan pricing technology, recently released a new pricing platform designed specifically for non-agency and non-QM lenders called FLEX Pricer.
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CBA supports bill to improve student lending
Posted Date: Tuesday, October 15, 2019
Legislation recently was introduced in the Senate as part of a package of eight bills geared toward making college more accessible to underserved and minority communities.
The Consumer Bankers Association (CBA) expressed its support for the measure, noting that it wishes to see future legislative action regarding federal student loan disclosures.
Read on to learn more about the bill.
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DataVerify offers flood zone determinations
Posted Date: Friday, October 11, 2019
DataVerify, a provider of data verification, risk mitigation, workflow enhancement and data aggregation services, now provides flood zone determinations to the mortgage industry, the company announced in a press release.
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Executive orders on guidance could affect CECL
Posted Date: Friday, October 11, 2019
Two new executive orders issued by President Donald Trump’s administration stipulate that guidance documents will be absent any force or effect of the law – a determination prudential regulators decreed one year earlier. The directives also add an extra step to the civil investigative process for federal agencies.
The directives, aimed at improving policies on federal guidance documents and civil administrative enforcement and adjudication proceedings, shine a light on the legal quandary surrounding guidance, which Dodd Frank Update previously explored in-depth.
Learn more details about the directives and the uncertainties surrounding guidance.
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Trump taps Montgomery as HUD deputy
Posted Date: Friday, October 11, 2019
President Donald Trump has nominated Federal Housing Commissioner Brian Montgomery to serve as deputy secretary of the U.S. Department of Housing and Urban Development (HUD), a position in which he would have many of the same responsibilities he currently assumes as HUD’s assistant secretary and head of the Federal Housing Administration (FHA).
Numerous industry trade associations applauded Montgomery’s nomination, as they did when he was nominated to lead FHA in 2017.
Learn more about the implications of the nomination.
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CFPB provides M&A clarity in finalized HMDA exemption rule
Posted Date: Friday, October 11, 2019
The Consumer Financial Protection Bureau (CFPB) issued a rule finalizing specific provisions of the agency’s May 2019 Notice of Proposed Rulemaking (NPRM) under the Home Mortgage Disclosure Act (HMDA) regarding data collection requirements for small entities.
The rule also provides clarity regarding the applicability of partial HMDA exemption provisions not covered in previous rulemakings – namely with regard to mergers and acquisitions.
Learn more details about how the rule will impact the financial industry.
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Fed tailors rules to bank risk profiles
Posted Date: Friday, October 11, 2019
The Federal Reserve recently finalized rules establishing a tailored framework for regulations applying to domestic and foreign banks.
The rules are designed to more closely match institutions’ risk profiles, reducing compliance requirements for firms with less risk while maintaining the most stringent requirements for the largest and most complex institutions.
Get more details about the implications of the newly finalized rules.
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Kasper to leave Ginnie for private sector
Posted Date: Friday, October 11, 2019
The Department of Housing and Urban Development (HUD) and Ginnie Mae announced Thursday that Executive Vice President and Chief Operations Officer Maren Kasper will be stepping down effective Oct. 18 for a role in the private sector.
Kasper has served as Ginnie Mae’s executive vice president since June 2017 and also assumed the role of acting president following Michael Bright’s resignation in January.
Find out more details about what responsibilities she will leave behind.
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Supreme Court passes on ADA case
Posted Date: Friday, October 11, 2019
The Supreme Court recently declined to weigh in on a case pertaining to the applicability of Americans with Disabilities Act (ADA) to Domino’s website versus the company’s brick-and-mortar locations. The credit union industry has been at the forefront of an ongoing fight for clarity on the matter on which numerous courts have failed to see eye-to-eye.
Carrie Hunt of the National Association of Federally-Insured Credit Unions told Dodd Frank Update that the Supreme Court’s decision not to evaluate the Domino’s case essentially is a missed opportunity to offer clarity on ADA requirements.
Find out more details about the implications of the high court’s decision.
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Garnet Capital Advisors adds CRV broker certification
Posted Date: Friday, October 11, 2019
Garnet Capital recently earned the Certified Receivables Vendor (CRV) designation for Broker Services from the Receivables Management Association International (RMAI), adding to its extensive list of existing certifications.
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Garnet Capital Advisors adds CRV broker certification
Posted Date: Thursday, October 10, 2019
Garnet Capital recently earned the Certified Receivables Vendor (CRV) designation for Broker Services from the Receivables Management Association International (RMAI), adding to its extensive list of existing certifications.
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Quicken touts nationwide eClosing capabilities
Posted Date: Tuesday, October 8, 2019
Less than two years removed from its first eClosing, Quicken Loans announced Monday that it will become the first lender to offer eClosing capabilities in all 50 states.
Quicken said it can perform hybrid closings in all 50 states in transactions facilitated by Amrock. Hybrid transactions would require papering out three to five documents, depending on the state.
Learn more about the company’s nationwide eClosing capabilities.
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Kraninger announces new CFPB committee members
Posted Date: Tuesday, October 8, 2019
Consumer Financial Protection Bureau Director Kathy Kraninger recently announced the appointment of members to the Consumer Advisory Board, as well as the bureau’s three discretionary advisory committees – the Community Bank Advisory Council, the Credit Union Advisory Council and the Academic Research Council.
Per the planned enhancements Kraninger announced in March, the committees’ focus will shift to broad policy matters and the frequency of in-person meetings, along with a host of other changes.
Get more details about the new committee members and changes to their terms and duties.
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OCC finalizes rule raising stress test threshold
Posted Date: Tuesday, October 8, 2019
The Office of the Comptroller of the Currency (OCC) issued a final rule to dramatically increase the threshold for national banks and federal savings associations to be covered by the OCC’s Dodd-Frank Act stress testing.
The agency considered recommendations pertaining to the testing requirements and the frequency with which the tests are conducted.
Read on for more information about the rule, which aligns with financial reform legislation passes last year.
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SEC settles with Blockchain provider over securities violation
Posted Date: Tuesday, October 8, 2019
In one of its first settlements between federal regulators and a Blockchain provider, the Securities and Exchange Commission (SEC) recently reached a $24 million settlement with Block.one over allegations that the company conducted an unregistered initial coin offering (ICO), which raised the equivalent of several billion dollars in digital assets in about a year.
The settlement shines a light on the question as to whether digital assets should be treated as securities, rather than currency.
Learn more about the nuances involved in this matter.
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NewDay adds Anita Kwan to advisory board
Posted Date: Monday, October 7, 2019
NewDay USA recently announced the addition of Anita Kwan to the VA mortgage company’s board of advisors. Kwan has more than three decades of corporate and management experience and is a co-founder and former CEO of ComplianceEase.
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