The CFPB channel: Takeaways from three recent enforcement actions (pt. 1)
The Consumer Financial Protection Bureau announced a number of high-profile enforcement actions in recent weeks, and there are some things you need to know about what the bureau has been saying. Dodd Frank Update spoke with Richard Andreano, a partner at Ballard Spahr LLP and practice leader of the firm’s Mortgage Banking Group, and Richard Horn, a partner in Dentons’ Capital Markets practice, to get their takeaways from some recent consent orders. Read on for part one of this two-part series.
Inside the CFPB’s QM points and fees cure
The Consumer Financial Protection Bureau finalized a set of amendments to its ability-to-repay rule that took effect in January. Among other things, the amendments establish a mechanism where lenders who exceed the rule’s points and fees cap for qualified mortgages can refund the excess amount and have the loan retain QM status. The bureau made a number of important changes from its points and fees cure proposal. Read on for an in-depth look.
FHFA director says changes are coming to improve credit conditions
FHFA Director Melvin Watt made “extraordinary announcements” at the MBA Annual conference in Las Vegas that could result in sweeping changes to the U.S. housing market, according to MBA CEO David Stephens. Read on to find out what they involved.
President delivers ‘chip and PIN’ message from CFPB
President Obama issued an executive order Oct. 17 saying the federal government would transition secure payments to and from the government to “chip and PIN” technology, including newly issued and existing government credit cards and debit cards such as Direct Express and SmartPay. Read on for more details about the government’s move.
CFPB enforcement action carries warning for banks that advertise free checking
The Consumer Financial Protection Bureau ordered Buffalo-based M&T Bank to refund $2.9 million to tens of thousands of consumers the agency said were shifted out of their free checking accounts when they failed to maintain a minimum level of account activity. The bureau said the bank disclosed the minimum activity requirement in certain documents but failed to do so in its adverting. Read on for the details.
CFPB announces first enforcement action under new servicing rules
The Consumer Financial Protection Bureau announced its first enforcement action under servicing rules that took effect in January. In addition to violating the bureau’s Real Estate Settlement Procedures Act servicing rules, the agency said Michigan-based Flagstar Bank committed unfair acts or practices by impeding borrowers’ access to loss mitigation and engaged in deception by misrepresenting borrowers’ right to appeal loan application denials. Read on for the details.