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Dodd Frank Update September 2024

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Dodd Frank Update September 2024
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Mr. Cooper acquires Flagstar Bank mortgage operations in billion-dollar deal
Posted Date: Friday, July 26, 2024
Mr. Cooper Group Inc. announced plans to acquire Flagstar Bank’s mortgage operations in a transaction expected to add approximately 1.3 million customers and $356 billion in unpaid loan balances to the company’s portfolio. Read on to learn the total value of the transaction and what it will mean for both companies.

 
Interest rate cuts could be coming soon, Powell says
Posted Date: Tuesday, August 27, 2024
Federal Reserve Chair Jerome Powell said the “time has come” for the Fed to adjust its policy direction with respect to interest rates in light of recent data on inflationary pressure, employment, and other factors. Although Fed officials left the federal funds rate unchanged during the July 30-31 meeting of the Federal Open Market Committee, many experts believe a rate cut could be on the way in September and more could follow.

 
CFPB sheds light on deceptive solar energy lending practices
Posted Date: Tuesday, August 27, 2024
Deceptive lending practices covered under the Consumer Financial Protection Bureau’s jurisdiction can come in many forms. A recent report issued by the bureau focused on such illegal practices not with respect to a home itself but a product that sits atop it – solar panels.

 
Setting the standard for regulating open banking, AI technology solutions
Posted Date: Tuesday, August 27, 2024
Technology is playing an ever-expanding role in the world of real estate finance. This expansion is only accelerating with the proliferation of emerging technology solutions in the mortgage space and other segments of the financial services sphere. The more they become woven into the fabric of the financial ecosystem, the more imperative it is for institutions to adapt their processes and compliance programs accordingly.

 
Regulatory Roundup: Bowman supports rate cuts, FTC redresses mortgage relief scheme victims
Posted Date: Tuesday, August 27, 2024
The matter of when it will be appropriate for the Federal Reserve to reduce the federal funds rate is nearly settled, as indicated by Fed Chair Jerome Powell, whose speech indicating cuts are on the way came just days after another member of the Fed Board explained why they believe the time has come for rate reductions to begin. Learn about this perspective and more in this regulatory roundup.

 
U.S. Bank enters strategic alliance with investment firm
Posted Date: Tuesday, August 27, 2024
In an effort to demonstrate its focus on meeting consumers where they are and offering a simplified experience around its core deposit products, U.S. Bank entered into a strategic partnership with a major investment firm to serve the banking needs of the firm’s clients.

 
FDIC selects independent attorney to monitor workplace culture
Posted Date: Tuesday, August 27, 2024
The Federal Deposit Insurance Corp. (FDIC) announced the selection of a private attorney to serve as the agency’s independent transformation monitor to audit its ongoing efforts to implement recommendations for addressing findings of workplace harassment and abuse highlighted in a report published by the FDIC’s Office of the Inspector General.

 
Economist offers deep dive into interest rate environment, impact to bank profitability
Posted Date: Friday, August 23, 2024

Rick Maroney, senior managing director at Hovde Group, detailed bank stock performance, interest rates and bank profitability during his “State of the Industry Update” at the Community Bankers Association of Ohio’s annual convention in Columbus.


 
Firms to pay over $390M as penalty for recordkeeping failures
Posted Date: Friday, August 23, 2024

The Securities and Exchange Commission announced charges against 26 broker-dealers, investment advisers and those dually-registered for widespread failures by the firms and their personnel to maintain and preserve electronic communications.


 
SEC charges crypto schemers who raised $615 million fraudulently
Posted Date: Friday, August 23, 2024

The Securities and Exchange Commission (SEC) charged the perpetrators of a cryptocurrency scheme with defrauding more than 200,000 investors out of more than $615 million. The SEC reached a partial settlement with the defendants and is seeking permanent injunctive relief and disgorgement of ill-gotten gains, as well as civil money penalties.


 
Fourteenth credit union-bank acquisition this year raises ire among community bankers
Posted Date: Friday, August 23, 2024

U.S. Eagle Credit Union became the 14th credit union to acquire a bank this year when it finalized an agreement to acquire a New Mexico community bank. The deal raised eyebrows among community banking advocates who have been expressing alarm about industry consolidation in light of these types of transactions.


 
MBA reports first profitable IMB quarter in two years
Posted Date: Friday, August 23, 2024

For the first time in two years, independent mortgage banks and mortgage subsidiaries of chartered banks reported a pre-tax net profit, according to the Mortgage Bankers Association’s latest quarterly mortgage bankers performance report.


 
CFPB comments on AI risks, opportunities
Posted Date: Friday, August 23, 2024

Stressing the importance of maintaining a fair, competitive and transparent financial marketplace amid the rise of artificial intelligence (AI) and other emerging technologies, the Consumer Financial Protection Bureau published its response to the Treasury Department’s request for comment on the potential risks and opportunities of emerging technologies like AI in the financial sector.


 
‘Bowtie’ Economist shares unique outlook on housing, interest rates
Posted Date: Tuesday, August 20, 2024
To offer an unorthodox perspective on the state of the U.S. economy and housing market, October Research welcomed acclaimed “Bowtie” Economist Elliot Eisenberg, Ph.D., to speak at the 2024 National Settlement Services Summit (NS3) in Naples, Fla.

 
LIVE: Dodd Frank Update at NAMMBA Connect ‘24
Posted Date: Tuesday, August 20, 2024
The 2024 National Association of Minority Mortgage Bankers of America Connect conference is taking place from Aug. 21-23 in Orlando, Fla. Dodd Frank Update will be covering the event, which promotes diversity, inclusion, and economic opportunities for women and minorities in the mortgage banking sector.

 
CFPB charges credit repair company tech provider with TSR violations
Posted Date: Tuesday, August 20, 2024
A technology company is facing a lawsuit for its role in aiding credit repair companies in charging illegal advance fees to consumers. The Consumer Financial Protection Bureau filed a proposed order that would require the company and its CEO to pay $3 million in combined civil money penalties.

 
MBA reports 49 percent drop in multifamily lending in 2023
Posted Date: Tuesday, August 20, 2024
Multifamily residential lending volume dropped 49 percent last year, according to the Mortgage Bankers Association’s annual report on the health of the multifamily market. The report analyzed survey results with data from larger multifamily mortgage providers and recently reported Home Mortgage Disclosure Act data.

 
Regulatory Roundup: FHFA committee to talk affordable housing, OCC revises BAAS
Posted Date: Tuesday, August 20, 2024
Aside from the slew of regulatory actions on the radars of banks and credit unions of all sizes and types, federal agencies are also busy working to solicit input on matters such as affordable and equitable housing and address frequently asked questions about best accounting practices. Learn more in this regulatory roundup.

 
Biden administration launches ‘Time is Money’ regulatory initiative
Posted Date: Tuesday, August 20, 2024
Plans for a renewed multi-agency regulatory agenda released by the White House will tackle corporate practices that officials say rob consumers not of their money, but their time. The initiatives encompassed in the plan are regulations the Consumer Financial Protection Bureau is considering, as well as agency rules governing the use of artificial intelligence.

 
New York Fed names chief financial officer
Posted Date: Wednesday, August 14, 2024
The Federal Reserve Bank of New York has named Anat Gourji as chief financial officer and head of the corporate group. In this role, she will also be a member of the bank’s executive committee.

 
CFPB takes aim at predatory contract-for-deed financing
Posted Date: Tuesday, August 13, 2024
Growing concerns surrounding contract-for-deed home financing led the Consumer Financial Protection Bureau to release an advisory opinion and research report addressing certain predatory practices that often arise in mortgage transactions where a seller retains a home’s deed until the borrower completes a series of payments.

 
FHLBank system could increase support for affordable housing initiatives
Posted Date: Tuesday, August 13, 2024
The Federal Housing Finance Agency is considering whether to increase the share of net income from the Federal Home Loan Banks (FHLBanks) set aside for affordable housing program initiatives. The agency explained its reasoning in its FHLBank System at 100: Focusing on the Future report and received support from the Treasury Department despite concerns expressed by state banking advocates.

 
Fed terminates Silvergate Bank enforcement action
Posted Date: Tuesday, August 13, 2024
Silvergate Bank and its holding company, Silvergate Capital Corp., completed a liquidation of assets and paid back all deposits owed to customers, thus ending its 36-year history as a bank and causing the Federal Reserve to terminate its enforcement action against both entities.

 
Renasant, First Bancshares agree to $1.2 billion merger
Posted Date: Tuesday, August 13, 2024
Renasant Corp. and The First Bancshares, Inc. jointly announced a definitive merger agreement through an all-stock transaction valued at approximately $1.2 billion. The merger will create a six-state banking franchise in the southern part of the country.

 
Regulatory Roundup: Regulators seek feedback on bank-fintech relationships
Posted Date: Tuesday, August 13, 2024
Federal banking regulators are taking a closer look at the potential risks present in various bank-fintech relationships, as they become increasingly prevalent within the financial sector. Learn how to weigh in via the recent request for information on this matter, as well as other developments included in this regulatory roundup.

 
Bowman offers views on M&A, bank liquidity regulations
Posted Date: Tuesday, August 13, 2024
Federal Reserve Gov. Michelle Bowman explained her views about the role bank mergers and acquisitions play in preserving a healthy financial market during a speech at the Kansas Bankers Association summit. She also reiterated her concerns about reforms proposed by the federal banking agencies intended to improve liquidity in response to the bank failures of 2023.

 
Federal agencies propose joint data standards, seek public feedback
Posted Date: Friday, August 9, 2024
Nine federal agencies are listed on a joint proposal to establish technical data standards for certain financial institutions as required by the Financial Data Transparency Act of 2022. The standards would assign common identifiers for entities, geographic locations, dates, and certain products and currencies to promote data interoperability across regulatory agencies.

 
ROV implementation delayed in response to lender feedback
Posted Date: Friday, August 9, 2024
Regulators at the Department of Housing and Urban Development and the Federal Housing Administration listened to feedback from lenders requesting additional time to implement the necessary policies and procedures to comply with new reconsideration of value requirements.

 
BitClout founder charged with fraud
Posted Date: Friday, August 9, 2024
The founder and promoter of the BitClout cryptocurrency was arrested and charged with defrauding a purchaser by Southern District of New York Attorney Damian Williams, and Christie Curtis, the acting assistant director in charge of the New York Field Office of the Federal Bureau of Investigation.

 
WesBanco, Premier announce ‘transformative’ merger
Posted Date: Friday, August 9, 2024
WesBanco, Inc. and Premier Financial Corp. agreed to execute a definitive merger agreement to create one of the largest financial services institutions in Ohio, serving nine states.

 
MBA notes uptick in mortgage applications as rates decline; CBA launches CFPB fact-checking site
Posted Date: Friday, August 9, 2024
While a long-anticipated interest rate cut remains a topic of speculation, a recent drop in mortgage rates produced a notable spike in mortgage applications, according to the leading trade group representing the real estate finance industry. Learn more about this development and more topics trade organizations are buzzing about in this roundup.

 
Lawmakers urge Fed to repropose Basel III Endgame in its entirety
Posted Date: Friday, August 9, 2024
House Financial Services Committee members wrote to Federal Reserve Chair Jerome Powell, urging him to retract and reintroduce the agency’s Basel III Endgame rulemaking. Many financial industry insiders expect the Fed to do so amid widespread pushback on its provisions.

 
NS3 Lender Panel: Driving Excellence in the Mortgage Transaction
Posted Date: Tuesday, August 6, 2024
The tremendous impact collaboration can have on industry growth was a central theme during the 2024 National Settlement Services Summit (NS3) in Naples, Fla. Leaders from the top mortgage lenders took part in a panel discussion on the need for all business segments to collaborate across the real estate transaction to navigate shared challenges. The panel featured Kate Steineman, senior vice president, business execution manager, Wells Fargo Home Lending, and Bob Burns, operations group manager at U.S. Bank, with Lisa Steele, chief operating officer at Mother Lode Holdings, doing the moderating

 
CFPB sues Amica for illegal, deceptive credit practices
Posted Date: Tuesday, August 6, 2024
The Consumer Financial Protection Bureau filed suit against Amica Holdings and its subsidiary, Amica Digital, alleging it used illegal, deceptive practices to coerce consumers into high-cost credit agreements to finance the purchase of household goods. The allegations against the two point-of-sales financing companies constitute violations of the Consumer Financial Protection Act, the Truth in Lending Act, the Fair Credit Reporting Act and the Electronic Fund Transfer Act.

 
FDIC proposes guidance to address ILC transparency concerns
Posted Date: Tuesday, August 6, 2024
Industrial loan companies (ILCs) are the target of newly proposed rulemaking issued by the Federal Deposit Insurance Corp. The rule would aim to increase regulatory oversight of the parent companies of ILCs to mitigate systemic risks and increase transparency for market participants.

 
ACNB to acquire community bank in $73.5 million deal
Posted Date: Tuesday, August 6, 2024
ACNB Corp. announced its plans to acquire a community bank holding company in York, Pa., through a definitive merger agreement valued at $73.5 million. The combined company is expected to have $3.3 billion in total assets.

 
Regulatory Roundup: FTC exposes credit repair scheme, OCC releases CRA evaluations
Posted Date: Tuesday, August 6, 2024
Federal banking regulators were busy last week with various proposed rules and guidance related to financial stability and regulatory measures. Meanwhile, there were also several enforcement and supervision developments, which you may have missed and we have rounded up below.

 
Republicans to FDIC: Withdraw corporate governance proposal
Posted Date: Tuesday, August 6, 2024
Amid the litany of recent proposals issued by the Federal Deposit Insurance Corp., a cohort of Senate Republicans is calling on the agency to withdraw a proposed rule published in October seeking to enhance corporate governance standards for financial institutions with more than $10 billion in total assets.

 
Brad Cardwell joins Down Payment Resource as VP of sales and business development
Posted Date: Monday, August 5, 2024
Down Payment Resource has named 20-year mortgage industry veteran Brad Cardwell vice president of sales and business development. In this role, he will lead enterprise sales and spread awareness of DPA benefits.

 
ACES Quality Management enhances ACES Deposit Account Audit Pack
Posted Date: Friday, August 2, 2024
ACES Quality Management announced the release of its Deposit Accounts Audit Pack. The pre-configured audit pack is designed to assist financial institutions with meeting the deposit account monitoring requirements from the Federal Deposit Insurance Corporation and other regulators.

 
Fed remains committed to ‘restrictive’ monetary policy stance as rates stay put
Posted Date: Friday, August 2, 2024
The Federal Reserve continued its cautious approach to interest rates, voting to maintain the federal funds rate at a range of 5.25 percent to 5.5 percent. This marks the eighth consecutive time the Fed decided to keep rates unchanged following a policy meeting of the Federal Open Market Committee.

 
Court dismisses loanDepot poaching lawsuit against competitor
Posted Date: Friday, August 2, 2024
A federal court dismissed charges filed by loanDepot.com accusing a competitor of poaching 25 employees and coercing them into divulging trade secrets, among other allegations. Filed in July 2023, the case was one of two poaching lawsuits filed by loanDepot within a year’s time.

 
FDIC finalizes Fair Hiring in Banking Act rule
Posted Date: Friday, August 2, 2024
The Federal Deposit Insurance Corp. (FDIC) finalized a rule under Section 19 of the Federal Deposit Insurance Act, implementing revisions detailed in the Fair Hiring in Banking Act, which took effect in December 2022. Section 19 regulations generally prohibit any individual convicted of specific types of crimes from participating in banking without the prior written consent of the FDIC.

 
FDIC approves guidance for largest regional banks, triennial full-filers
Posted Date: Friday, August 2, 2024
To help certain banks with total assets exceeding $250 billion with resolution planning, the Federal Deposit Insurance Corp. approved final joint guidance largely similar to one proposed in August last year but revised in response to stakeholder comments.

 
Trades react to interest rate news, alert members about HELOC check fraud
Posted Date: Friday, August 2, 2024
Trade associations representing all corners of the financial industry are continuing to watch the Federal Reserve’s activity with respect to interest rates with bated breath while also keeping a watchful eye on regulatory proposals and emerging forms of check fraud. Learn about some of the latest developments on these fronts in this roundup.

 
GAO report identifies needed improvements to regulatory review policies
Posted Date: Friday, August 2, 2024
The Government Accountability Office’s latest report to Congress detailed various improvements needed for federal banking regulators to better ensure existing policies and procedures align with identified best practices. The report addressed concerns regulators identified related to stress testing, documentation, and cost-benefit analyses of rules and regulations, among others.

 
Cornerstone Capital Bank expands leadership team
Posted Date: Wednesday, July 24, 2024
Cornerstone Capital Bank has expanded its leadership team with seven senior executives, further strengthening its growing financial services franchise.

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