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How will Fed rate cut impact lending?
Posted Date: Friday, September 20, 2024
Months of tense anticipation and speculation culminated in the Federal Reserve announcing its decision to cut the federal funds rate by a half percent on Sept. 18. Fed Gov. Michelle Bowman cast the loan dissenting ballot among the 12 voting members, becoming the first to do so on an interest rate decision since 2005.
Dodd Frank Update spoke with several economists about what the cut means for mortgage rates and the housing market.
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Bank of America customers report outage
Posted Date: Wednesday, October 2, 2024
According to the website Downdetector, more than 19,000 people reported an outage at Bank of America Wednesday afternoon.
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DOJ accuses Visa of monopolizing credit markets
Posted Date: Tuesday, October 1, 2024
Accusing the corporate credit conglomerate with monopolizing credit markets, the U.S. Department of Justice (DOJ) filed a civil antitrust lawsuit against Visa Inc. in the U.S. District Court for the Southern District of New York. The lawsuit is indicative of a broader effort by the DOJ to root out anticompetitive practices in the financial sector.
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Why does your bank need to think about succession planning now?
Posted Date: Tuesday, October 1, 2024
Business leaders often like to compare their top executives to quarterbacks on a football team because both must have the ability to make tough decisions that will impact the whole company or team and be able to do so in high-pressure situations.
That is why Julie Bell, Ph.D., who heads up Chartwell Partners’ suite of leadership advisory services, often uses this analogy when giving presentations to rooms full of professionals as she did during the Community Bankers Association of Ohio’s 2024 annual conference in Columbus. Her background in sports psychology helps as well.
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Industry insider describes benefits of loan modification proposal
Posted Date: Tuesday, October 1, 2024
The last thing a loan originator wants for their borrower is to one day face foreclosure on their mortgage. In July, the Consumer Financial Protection Bureau (CFPB) proposed key revisions to the mortgage servicing provisions within Regulation X aiming to reduce that risk by lessening certain technical, application-based hurdles to obtaining a loan modification.
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New York Fed launches reference rate committee
Posted Date: Tuesday, October 1, 2024
The Federal Reserve Bank of New York has initiated a new group to support the integrity, efficiency, and resilience of interest rate benchmarks across financial markets, including those managed by the New York Fed. The reference rate use committee will assemble private market participants to address evolving issues related to reference rates and changes in the underlying markets.
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Regulatory Roundup: Fed governor talks about impact of AI on labor markets
Posted Date: Tuesday, October 1, 2024
The impact of emerging technologies on employment and financial markets continues to be a major concern among regulators and professionals. One Federal Reserve governor explored this topic in-depth during a recent speaking engagement at The Ohio State University. Learn more about this and other recent news from the regulatory sphere in this roundup.
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Mortgage industry cheers ‘trigger leads’ restrictions being added to NDAA
Posted Date: Tuesday, October 1, 2024
The addition of legislation reining in mortgage trigger leads to the Senate’s Fiscal Year 2025 National Defense Authorization Act garnered praise from the real estate finance industry.
Senate Amendment 2358 would add language from S. 3502, the “Homebuyers Privacy Protection Act of 2024,” to the proposal.
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STRATMOR urges lenders to share their stories
Posted Date: Monday, September 30, 2024
The mortgage advisory and consulting firm STRATMOR Group released its September Insights Report, highlighting the demonstrative benefits of lenders sharing their stories with borrowers and teammates with respect to building strong relationships, retaining leads, recruiting top talent and driving revenue.
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CFPB sues Horizon over deceptive credit card marketing practices
Posted Date: Friday, September 27, 2024
Horizon Card Services faces allegations of deceiving “financially vulnerable” consumers into signing up for its expensive membership credit card in a lawsuit filed by the Consumer Financial Protection Bureau. The bureau’s complaint described violations of the Truth in Lending Act and the Consumer Financial Protection Act for misleading consumers.
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CFPB seeks to provide consumers clarity on remittance disclosure requirements
Posted Date: Friday, September 27, 2024
The Consumer Financial Protection Bureau proposed a narrow amendment to its remittance transfer rule intended to provide consumers with a clearer understanding of the various disclosure requirements for certain international money transfers. The bureau is seeking comments from industry stakeholders about the proposed revisions.
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Chopra says interest rate cut should benefit all mortgage holders
Posted Date: Friday, September 27, 2024
Consumer Financial Protection Bureau Director Rohit Chopra addressed key issues affecting homeowners with mortgages – including the effects of the Federal Reserve’s recent interest rate cut, the potential for mortgage refinancing, and the looming crisis in homeowners insurance – in prepared remarks delivered at the Center for American Progress Housing Summit.
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16th acquisition of a bank by a credit union announced
Posted Date: Friday, September 27, 2024
ESL Federal Credit Union entered into a definitive purchase and assumption agreement to acquire substantially all assets and liabilities of Generations Bank and its parent company Generations Bancorp NY, Inc. in an all-cash transaction. The deal is the 16th this year involving a credit union taking majority ownership of a bank.
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New legislation seeks to outlaw discriminatory AI credit decisions
Posted Date: Friday, September 27, 2024
New legislation aimed at regulating artificial intelligence (AI) could have major implications for mortgage lenders using automated tools in their credit decisions. The AI Civil Rights Act, introduced by Sen. Edward Markey (D-Mass.), would outlaw the use or distribution of AI-driven solutions that may perpetuate discrimination and bias.
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Could lower rates get potential borrowers off the sidelines?
Posted Date: Tuesday, September 24, 2024
By dropping the federal funds rate by a half point, the Federal Reserve may have not only encouraged professionals in the real estate finance industry, but also may have signaled the go-ahead to consumers who have been waiting for the right time to start house-shopping.
While the rate cut could have a positive psychological effect on some potential homebuyers, the full impact is not likely to be seen until early next year, according to experts consulted by Dodd Frank Update.
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Why community banks should be proactive when faced with potential policy changes
Posted Date: Tuesday, September 24, 2024
During a breakout session at the Community Bankers Association of Ohio’s 2024 annual conference in Columbus, Hunton Andrews Kurth Partner Josh McNulty described what recent regulatory proposals could mean for community banks in terms of brokered deposits, liquidity risk management, and credit risks.
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CFPB director highlights barriers to homeownership, generational wealth
Posted Date: Tuesday, September 24, 2024
Consumer Financial Protection Bureau Director Rohit Chopra offered an in-depth assessment of the bureau’s commitment to prosecuting redlining while speaking at the Congressional Black Caucus Foundation’s 53rd annual Legislative Conference in Washington, D.C. He stressed the importance of fair and accurate home appraisals and curbing the rising costs of buying and maintaining a home.
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NCUA approves rules on second chance hiring, shared insurance regulations
Posted Date: Tuesday, September 24, 2024
The National Credit Union Administration voted to approve two key final rules during the board’s sixth open meeting this year. These regulations address second-chance hiring practices and outline revisions to existing share insurance regulations for credit unions.
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ROAD to Housing Act gains mortgage industry support
Posted Date: Tuesday, September 24, 2024
Newly introduced legislation aimed at improving the state of the nation’s housing marketplace is gaining support from the mortgage sector. The “Renewing Opportunity in the American Dream (ROAD) to Housing Act” proposes a broad set of changes meant to make homeownership more affordable for borrowers and improve the lending environment for institutions.
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FDIC, OCC update M&A policy statement amid dissent, mixed industry reactions
Posted Date: Friday, September 20, 2024
The Federal Deposit Insurance Corp. voted to adopt a final statement of policy on bank merger transactions with Vice Chair Travis Hill and Director Jonathan McKernan casting the dissenting votes. The announcement has been met with mixed reactions from the financial sector.
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Agencies extend RFI deadline for bank-fintech arrangements
Posted Date: Friday, September 20, 2024
Federal banking regulators have extended the comment period on their request for information about bank-fintech arrangements involving banking products and services. The agencies are interested in learning about the nature and implications of these types of arrangements, as well as effective risk management practices.
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MBA says August home purchases rose year-over-year, CBA details 2025 policy agenda
Posted Date: Friday, September 20, 2024
Real estate professionals will hope to see a noticeable increase in mortgage activity in the months ahead following the Federal Reserve’s long-awaited decision to reduce interest rates. Data released by the country’s largest mortgage industry trade association reported a modest year-over-year improvement in purchase application volume the month before the Fed’s first rate cut in over four years.
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McHenry criticizes FDIC chair for avoiding committee hearing
Posted Date: Friday, September 20, 2024
Federal Deposit Insurance Corp. Chair Martin Gruenberg is once again the subject of criticism by Rep. Patrick McHenry (R-N.C.) who expressed disappointment at his repeated refusal to testify before the House Financial Services Committee about workplace culture issues at his agency.
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Fed cuts interest rates by half point
Posted Date: Wednesday, September 18, 2024
As anticipated, the Federal Open Market Committee Sept. 18 voted to cut interest rates. The committee decided to lower the target range for the federal funds rate by half a percentage point to 4-3/4 to 5 percent.
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OCC orders Wells Fargo to address AML deficiencies in enforcement action
Posted Date: Friday, September 13, 2024
The Office of the Comptroller of the Currency cited significant deficiencies in Wells Fargo's anti-money laundering controls and overall financial crimes risk management in a formal agreement with the nation’s third-largest bank, which holds more than $1.7 trillion in total assets.
The OCC outlined a series of corrective actions the bank must take to address various shortcomings in its adherence to federal requirements meant to safeguard the financial system against criminal activity.
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TD Bank ordered to pay nearly $28M for sharing inaccurate customer credit information
Posted Date: Friday, September 13, 2024
The Consumer Financial Protection Bureau ordered TD Bank to pay $27.76 million in fines and restitution for practices that adversely impacted tens of thousands of customers. The bureau found the bank furnished inaccurate and negative information about its customers with consumer reporting agencies over a two-year span.
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Federal Reserve governors share Basel III Endgame suggestions
Posted Date: Friday, September 13, 2024
After countless calls from the financial sector for the Federal Reserve to reconsider implementing its Basel III Endgame framework in its current state, the industry may be on the verge of getting what it wished for.
Fed Board Vice Chair for Supervision Michael Barr and Fed Gov. Michelle Bowman described some of the revisions under consideration with respect to the Fed’s controversial capital standards proposal during separate speaking engagements in Washington, D.C.
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Freddie Mac announces new CEO, board member
Posted Date: Friday, September 13, 2024
Freddie Mac selected a new CEO to lead the government-sponsored enterprise. The new executive brings four decades of experience in banking, real estate, capital markets and affordable housing to the role and will also join the organization’s board of directors.
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Trades react to Basel III Endgame remarks by Fed Gov. Barr
Posted Date: Friday, September 13, 2024
Financial industry trade organizations have been receptive to the prospect of various updates to the Basel III Endgame regulatory capital framework described by Federal Reserve Board Vice Chair of Supervision Michael Barr.
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FDIC selects firm to help reshape workplace culture
Posted Date: Friday, September 13, 2024
The Federal Deposit Insurance Corp. announced the selection of Boston Consulting Group Federal Corp. to guide the agency in implementing its action plan for a safe, fair, and inclusive work environment, as mandated following the independent investigation into claims about workplace misconduct within the agency earlier this year.
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LenderLogix adds account executive
Posted Date: Friday, September 13, 2024
LenderLogix announced Ben Head has joined the company as an account executive responsible for expanding LenderLogix’s market share.
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OCC issues enforcement action against Wells Fargo
Posted Date: Friday, September 13, 2024
The Office of the Comptroller of the Currency entered into a formal agreement with Wells Fargo Bank, in an enforcement action citing deficiencies in the bank’s financial crimes risk management practices and anti-money laundering internal controls.
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Texas court sides with CFPB, calls Section 1071 challenge ‘all over the place’
Posted Date: Tuesday, September 10, 2024
The U.S. District Court for the Southern District of Texas, McAllen Division described the Texas Bankers Association’s arguments to strike down the Consumer Financial Protections Bureau’s small business lending rule as “all over the place,” using words like “misrepresents” and “grossly overstated” in reference to the organization’s arguments.
The opinion comes after a stay was lifted while the district court waited for the U.S. Supreme Court to rule on the bureau’s financial structure’s constitutionality.
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Debate over credit union tax exemption heats up as acquisition trend continues
Posted Date: Tuesday, September 10, 2024
Shortly after REV Federal Credit Union finalized the 15th bank acquisition by a credit union this year, industry advocates voiced opposing viewpoints on the state of the financial marketplace. One leading community banking advocate called it a “dangerous trend” while the credit union lobby stepped up to defend the industry against what it referred to as “misinformation” about the credit union tax exemption.
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Chopra addresses obstacles to affordable housing, refinancing
Posted Date: Tuesday, September 10, 2024
Consumer Financial Protection Bureau Director Rohit Chopra addressed the state of the mortgage market, focusing on the impact of high interest rates on homeowners and the obstacles they face when refinancing during a speech at the National Housing Conference.
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Industry leaders share how ‘failure’ can lead to success
Posted Date: Tuesday, September 10, 2024
First American Trust’s Sheri Olsen and Futura Title & Escrow’s Jenny Martin presented “Growing Our Journey Together” at October Research’s second annual Women’s Leadership Summit, sharing how perceived failures can help shape actual successes.
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Federal Reserve seeks comments on discount window operations
Posted Date: Tuesday, September 10, 2024
The Federal Reserve Board is seeking public feedback regarding operational practices for its discount window program, which provides short-term credit for banks and credit unions. The agency said comments gathered in response to this request for information process will be considered by the Fed and the nation’s Reserve Banks as they evaluate ways to improve the efficiency and ease of access to discount window and intraday credit.
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FFIEC to sunset cybersecurity assessment tool next year
Posted Date: Tuesday, September 10, 2024
The Federal Financial Institutions Examination Council announced it plans on sunsetting its Cybersecurity Assessment Tool (CAT) next year. The CAT has been helping financial institutions identify their risks and determine their cybersecurity preparedness since it was released in June 2015 as a voluntary assessment tool.
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A closer look at the ILC ‘loophole’ origin, opposition
Posted Date: Friday, September 6, 2024
The prospect of holding industrial loan companies (ILCs) to the same regulatory scrutiny as traditional financial institutions has been a source of heated contention among many banking industry advocates concerned with leveling the playing field in the marketplace.
Independent Community Bankers of America Executive Vice President, Senior Regulatory Counsel Chris Cole explored the topic of ILCs in-depth while speaking with Dodd Frank Update.
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CFPB highlights debt collection trends in annual FDCPA report
Posted Date: Friday, September 6, 2024
The Consumer Financial Protection Bureau’s (CFPB) 2024 Annual Report on its supervision and enforcement work related to the Fair Debt Collection Practices Act offered multiple valuable insights for mortgage lenders and compliance professionals, despite its primary focus being on medical debt collection practices.
By staying attuned to what trends the bureau is focused on with respect to debt collection, compliance professionals can better ensure their debt collection policies and procedures do not allow for practices the CFPB might cite as unfair, deceptive or abusive.
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Community banks raise burden concerns over FinCEN’s AML/CFT investment advisor rule
Posted Date: Friday, September 6, 2024
In an effort to address the uneven application of anti-money laundering/countering the financing of terrorism (AML/CFT) requirements across the financial industry, the Financial Crime Enforcement Network finalized a rule to apply AML/CFT requirements to investment advisors.
The rule has caused concerns among some financial industry advocates who argue the rule simply codifies activities banks already engage in to help law enforcement thwart criminal activity and adds new burdens for smaller financial institutions.
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MBA offers mortgage lending predictions, CBA launches consumer education campaign
Posted Date: Friday, September 6, 2024
As the mortgage marketplace anticipates long-awaited reductions in interest rates and inflation, some experts are optimistic about the implications for the housing market. Learn what the largest trade organization in the lending space is saying and about other recent developments in the financial sector in this roundup.
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Large wholesale mortgage lender acquires HomeStar Financial
Posted Date: Friday, September 6, 2024
A wholesale mortgage lender acquired HomeStar Financial Corp. to expand its nationwide footprint. The lender is among the largest wholesale mortgage companies in the country, as well as one of the most prolific originators of non-qualified mortgage loans.
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NCUA distributes more than $3.5M in CDRLF grants
Posted Date: Friday, September 6, 2024
The National Credit Union Administration (NCUA) awarded more than $3.5 million in Community Development Revolving Loan Fund (CDRLF) grants to 135 low-income-designated credit unions spread across 37 states.
Thirty-nine grantees were minority depository institutions, which received almost $1.4 million total. Another 18 grantees were first-time applicants, according to the NCUA.
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CFPB fines NewDay USA over deceptive loan cost comparisons
Posted Date: Tuesday, September 3, 2024
The Consumer Financial Protection Bureau ordered repeat offender New Day Financial to pay a civil money penalty for deceiving active duty servicemembers and veterans seeking cash-out refinance loans. The facts of this enforcement action should signal to lenders the importance of ensuring all loan disclosures contain complete and accurate information.
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Federal Reserve sets individual capital requirements for largest banks
Posted Date: Tuesday, September 3, 2024
The Federal Reserve finalized individual capital requirements for the nation’s largest federal-insured financial institutions, based on the results of stress tests conducted earlier this year.
Stress tests provide federal banking regulators insight which informs the capital requirements imposed on systemically-important financial institutions with $100 billion or more in total consolidated assets in accordance with their individual risk profiles and forward-looking assessment of their capital needs.
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CFPB finds ‘cash back’ fees more prevalent in underbanked communities
Posted Date: Tuesday, September 3, 2024
Americans are paying tens of millions of dollars to large retailers to access their own money, according to a new report on “cash back” fees published by the Consumer Financial Protection Bureau. In areas lacking local bank branches, cash-back transactions are often one of the only sources of physical cash for entire communities, according to the report.
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NCUA urges feedback on succession planning, credit union profile proposals
Posted Date: Tuesday, September 3, 2024
Federally insured credit unions have only a few weeks left to comment on a pair of proposed rule revisions issued by the National Credit Union Administration.
The agency published reminders that the deadline to submit comments about its proposed succession planning rule is Sept. 23 and the comment period for proposed revision and extension of the “Credit Union Profile” (Form 4501A) ends Sept. 24.
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Regulatory Roundup: Fed Gov. discusses digital payments, FDIC lists enforcement actions
Posted Date: Tuesday, September 3, 2024
Federal regulators are busier than ever dealing with matters involving emerging technology. In this regulatory roundup, learn about some of the more recent activities concerning the oversight of solutions intended to allow for faster payments and measures regulators are taking to ensure speed does not lead to fraud.
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FDIC Board divided on oversight of independent investigations
Posted Date: Tuesday, September 3, 2024
The Federal Deposit Insurance Corp. Board voted down a resolution to establish a committee to oversee independent investigations into alleged workplace misconduct. Instead, the board decided to explore a process that would outsource such oversight to other federal regulatory bodies.
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Cornerstone Capital Bank appoints new CFO
Posted Date: Friday, August 30, 2024
Cornerstone Capital Bank appointed Paul Woo as chief financial officer (CFO). Woo will oversee a skilled financial team, strategic planning and capital management.
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