The Financial Accounting Standards Board (FASB) has revealed more details about its proposal to delay the effective date of its Current Expected Credit Loss (CECL) accounting standards until 2023 for smaller financial entities. Industry stakeholders, who were largely supportive of the board’s vote to delay CECL implementation in July, are being asked to review the proposal and provide feedback.

The Credit Union National Association (CUNA) wrote to the Federal Trade Commission (FTC) in support of amendments to the Safeguards Rule, which requires financial institutions to develop, implement and maintain a comprehensive security program to keep consumer information secure.  Although CUNA generally was supportive of proposed changes by the FTC, it reiterated its strong support for national data security standards from Congress, adding the FTC was “in the position to help lead the effort for robust protection for all consumers.”

ITT Educational Services, Inc. has agreed to a proposed $60 million settlement with the Consumer Financial Protection Bureau for alleged unfair and abusive practices related to student loans. Although former ITT students will have their existing loan debt forgiven as a result of a previous action, a stipulated final judgment stated that the technical college, which is in bankruptcy, will not have to pay the settlement amount.

The Department of Justice recently announced it had reached a settlement with the financing arm of an auto provider, alleging violations of the Servicemembers Civil Relief Act.  The settlement, for $3 million, is the department’s 10th settlement with an auto finance provider since 2015, DOJ stated, settling allegations that the company repossessed vehicles without first obtaining required court orders, and failed to refund up-front amounts to servicemembers who lawfully terminated their leases early after receiving military orders.

Nearly two years after granting a no-action letter to Upstart Network for its work on using alternative data and machine learning in making credit underwriting and pricing decisions, the Consumer Financial Protection Bureau publicly announced early findings from the program.  The findings announced by the bureau showed expansion in credit availability with no fair lending disparities. 

The Federal Housing Administration and Ginnie Mae announced new standards for cash-out refinance loans set to take effect later this year.  FHA’s requirements will affect loan-to-value ratios for mortgages beginning in September, while Ginnie Mae’s announcement targets the ability to pool Veterans Administration cash-out refis into Ginnie pools beginning in November.

The Consumer Financial Protection Bureau recently announced its annual statutory changes to TILA thresholds for the Credit Card Accountability Responsibility and Disclosure Act of 2009, the Home Ownership and Equity Protection Act of 1994, and other aspects of the Dodd-Frank Act.  The adjustments are required based on the annual percentage change in the Consumer Price Index.

The Federal Housing Finance Agency (FHFA) directed the government-sponsored enterprises (GSEs) Thursday to remove the required Limited English Proficiency (LEP) question from its redesigned Uniform Residential Loan Application (URLA) and automated underwriting system. Consequently, FHFA and the GSEs said they will extend the URLA compliance deadline beyond the Feb. 1, 2020, effective date.

In the mortgage process, collaboration between all parties involved is crucial to completing a transaction in a timely, compliant fashion. At no point in the process is it more important perhaps than at the closing table. Robert Hinson of Bank of America and Jerra Ryan of First Choice Loan Services Inc. talked about the importance of collaboration during the aptly-titled session “Lender Panel: Collaboration in Closings” during the 2019 National Settlement Services Summit in Phoenix. Brian Webster of Wells Fargo Home Lending moderated the session.