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News By Edition
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Dodd Frank Update Monthly Edition
Dodd Frank Update November 2017
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Can small-dollar lenders survive constant, looming UDAAP threat?
Posted Date: Friday, November 3, 2017
There are many firsts in life worth celebrating. For many lenders who issue short-term/payday loans, the Consumer Financial Protection Bureau’s (CFPB) first rule based on its authority to issue enforcement actions for what it deems to be unfair, deceptive or abusive acts or practices (UDAAP) is not one of those.
Venable Partner and former CFPB Senior Counsel Andrew Arculin spoke with Dodd Frank Update about how great a threat the new rule poses to lenders specializing in short-term, small-dollar loan products, considering the potential UDAAP implications of failing to comply with its terms.
Read on to find out more about what they had to say on the matter.
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Payday lending rule has major industry implications
Posted Date: Thursday, October 5, 2017
The Consumer Financial Protection Bureau’s rule on short-term/payday lending likely will have major implications for auto title lenders and large depository institutions. The rule reflects some recommendations from smaller lenders who advocated for exemptions from certain aspects of the rule.
Once implemented, the rule will require lenders to determine whether the borrower can afford loan payments and neglecting basic living expenses and major financial obligations.
Find out how this rule may impact areas of the financial industry and an interview with the Consumer Bankers Association.
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Industry gives mixed reaction to payday lending rule
Posted Date: Tuesday, October 10, 2017
Reaction to the Consumer Financial Protection Bureau’s (CFPB) final rule regulating short-term, small-dollar loans has been mixed, both in Congress and within the financial industry.
CFPB Director Richard Cordray and many congressional Democrats believe that the rule, which requires payday lenders and similar creditors to determine borrowers’ ability to repay loans before issuing them, will prevent consumers from falling into a cycle of debt created by taking out payday loans to cover financial hardships. Opponents note the detrimental impact the rule could have to certain businesses, and claim it will cause consumers to turn to illegitimate sources for short-term loans.
Find out what points various trade associations and congressional leaders made for and against the new rule.
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Making the Volcker Rule more flexible
Posted Date: Tuesday, October 24, 2017
Among the most divisive topics in financial regulation is a law with the expressed purpose of setting dividers between what banks can and cannot do.
Section 619 of the Dodd-Frank Act, more commonly known as the “Volcker Rule” has been a subject of debate since its implementation.
Data Boiler Founder and President Kelvin To told Dodd Frank Update he sees something tantamount to harmony between the two sides of the issue, in some respects, which could be the doorway to finding a bipartisan solution.
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House committee passes reg relief bills
Posted Date: Tuesday, October 17, 2017
The House Financial Services Committee recently passed 22 pieces of legislation, many of which are industry-backed regulatory relief bills. Among the approved legislation are bills focused on limiting the regulatory burden felt by smaller financial institutions.
The American Bankers Association, Credit Union National Association, Independent Community Bankers of America and National Association of Federally-Insured Credit Unions were among the trades to comment on the House’s actions.
Find out what bills the committee passed and what the trades had to say in response.
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Senators, trades support ending GSE profit sweep
Posted Date: Tuesday, September 26, 2017
To enable the government-sponsored enterprises to build capital, six Democrats on the Senate Banking Committee and some financial trade organizations are advocating for the elimination of policy that forces Fannie Mae and Freddie Mac to forward all of their profits to the Treasury Department.
The senators wrote in a letter to Treasury Secretary Steven Mnuchin and Federal Housing Finance Agency Director Mel Watt that the profit sweep policy will leave the entities responsible for backing the mortgage industry deficient the funds necessary to do so.
Find out which organizations are among those that have joined Senate Democrats and spoken up on the matter.
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Cordray, Noreika clash over CFPB arbitration rule
Posted Date: Friday, October 20, 2017
Consumer Financial Protection Bureau Director Richard Cordray and Acting Comptroller of the Currency Keith Noreika have clashed over the two agencies’ respective analyses of the bureau’s rule prohibiting mandatory arbitration agreements in financial contracts.
Both agency leaders detailed their positions in letters to congressional leaders and in op-eds published by political blog The Hill.
Find out what both sides had to say about the rule’s implications and each agency’s analysis.
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CFPB sued over arbitration rule
Posted Date: Tuesday, October 10, 2017
Claiming that the Consumer Financial Protection Bureau’s rule banning mandatory arbitration agreements in financial contracts violates multiple federal statutes, numerous financial trade organizations joined the U.S. Chamber of Commerce in filing a lawsuit against the bureau and Director Richard Cordray to stop the rule’s implementation.
The organizations backing the lawsuit include the American Bankers Association, the Consumer Bankers Association, the Financial Services Roundtable, the American Financial Services Association, the Texas Bankers Association and several municipal chambers of commerce from across the country.
Learn what arguments they noted in their complaint against the rule.
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CFPB proposal addresses TRID ‘black hole’
Posted Date: Tuesday, October 17, 2017
After much advocacy from lenders and the mortgage servicing industry, the Consumer Financial Protection Bureau recently released its proposed changes to the TILA-RESPA Integrated Disclosure (TRID) Rule, intended to eliminate the “black hole” issue, which was not addressed in TRID amendments the bureau released in July 2017.
The proposal would allow creditors to reflect cost changes using initial or corrected closing disclosures to determine if an estimated closing cost was disclosed in good faith, regardless of when the closing disclosure was provided relative to consummation.
Find out what some financial trade associations are saying about the amendments.
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MBA president announces retirement
Posted Date: Wednesday, October 25, 2017
Mortgage Bankers Association President and CEO David Stevens announced that he plans to retire next year.
The organization has created a search committee to immediately begin looking for Stevens’ replacement.
Read on to find out more about what factors went into his decision to retire and some of his accomplishments during his tenure.
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Court dismisses two CFPB claims against TCF
Posted Date: Friday, October 13, 2017
A federal court recently dismissed two of three counts the Consumer Financial Protection Bureau (CFPB) alleged in a lawsuit against TCF National Bank related to its overdraft policies.
The Minnesota District Court upheld the bureau’s allegation that TCF engaged in activities that violated the Dodd-Frank Act’s prohibition against unfair, deceptive or abusive acts or practices (UDAAP), but rejected the bureau’s two claims that the company violated Federal Reserve guidance and Regulation E.
Find out why the court sided with the bureau on its UDAAP allegation but not on its interpretation of Regulation E.
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CFPB enforcement cites illegal debt collection lawsuits
Posted Date: Friday, September 29, 2017
The Consumer Financial Protection Bureau recently took action against the National Collegiate Student Loan Trusts and their debt collector, Transworld Systems, Inc., ordering them to pay more than $20 million for filing thousands of illegal student loan debt collection lawsuits.
The bureau filed a complaint in Delaware District Court alleging that the companies, on behalf of multiple trusts, filed thousands of collections lawsuits that violated consumer protection laws prohibiting unfair, deceptive or abusive acts or practices.
Learn more about what issues led the bureau to pursue action against the two companies and how much monetary restitution they have been ordered to pay.
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Blue Sage Solutions launches new Digital Lending Platform
Posted Date: Friday, October 27, 2017
Blue Sage Solutions recently launched a new Digital Lending Platform designed to serve retail and wholesale businesses channels in addition to its existing correspondent lending capabilities. Developed by industry professionals who created the mortgage industry’s first browser-based, end-to-end loan origination system, and available immediately, the new platform was crafted to enable retail and wholesale lenders to sell, manufacture and close loans online while offering borrowers a fast, efficient and user-friendly digital mortgage experience, according to a company press release.
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Promontory Mortgagepath reveals new point of sale solution
Posted Date: Friday, October 27, 2017
Promontory MortgagePath, a new entrant in the mortgage technology and fulfillment solutions spaces, announced that the company’s technology arm, PromonTech, has released a new point of sale solution (POS) — the Borrower Wallet.
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Poll says Americans want tax reform prioritized
Posted Date: Friday, October 27, 2017
Nearly three out of four American voters believe Congress should make passing a tax reform bill a top priority, according to a recent poll conducted by Morning Consult and released by the Financial Services Roundtable.
The poll was conducted through a national online survey of nearly 2,000 registered voters between Oct. 3 and 5, 2017.
Read on to find out more about its findings.
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LoanScorecard integrates Portfolio Underwriter with Compliance EAGLE
Posted Date: Thursday, October 26, 2017
LoanScorecard, a leading provider of automated underwriting and compliance solutions, recently announced that its automated underwriting system, Portfolio Underwriter, has integrated with QuestSoft’s Compliance EAGLE software platform.
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NewDay USA hires two new executives
Posted Date: Thursday, October 26, 2017
NewDay USA, a national VA mortgage lender, recently announced the hiring of Gaurav Bhatia as its new chief digital officer and Michael Greenwood as senior vice president of mortgage servicing.
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STRATMOR details how lenders can maximize digital mortgage investments
Posted Date: Thursday, October 26, 2017
The STRATMOR Group, a leading mortgage industry consultancy, recently released the October edition of its STRATMOR Insights report. The “In Focus” section of the report features STRATMOR Senior Partner Garth Graham exploring the steps lenders should take to make the best decisions about their digital investments, according to a press release.
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First CFPB rule set for repeal, trades react
Posted Date: Wednesday, October 25, 2017
The Senate approved a resolution to nullify the Consumer Financial Protection Bureau’s (CFPB) final rule banning mandatory arbitration agreements in financial contracts and immediately received praise from many in the financial industry, as well as President Donald Trump.
The heads of numerous financial trade organizations also reacted favorably to the Senate’s vote. Many of them issued statements citing studies asserting that the rule would do more harm than good for consumers.
Get a more complete view of the reasons many of the rule’s detractors are citing and what arguments the bureau’s leadership has put forth in its defense.
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MBA forecast: Purchases drive market in 2018
Posted Date: Wednesday, October 25, 2017
The Mortgage Bankers Association (MBA) announced that it expects to see a 7.3 percent increase in purchase mortgage originations in 2018, helping the overall market dip just slightly from $1.69 trillion in 2017 to $1.6 trillion forecast in 2018. Read on for more details from MBA’s latest announced forecast.
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Carson talks reg relief, defect review at MBA
Posted Date: Wednesday, October 25, 2017
Department of Housing and Urban Development (HUD) Secretary Ben Carson made his first appearance before the Mortgage Bankers Association annual convention, taking the stage in Denver this week.
His message: Protect dream makers by reviewing regulations and HUD’s process on defect taxonomy.
Read on for details of the HUD secretary’s remarks before the mortgage bankers.
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SoFi withdraws FDIC application
Posted Date: Wednesday, October 25, 2017
Opponents of fintech firms being treated as banks were pleased to learn that Social Financial Inc. recently withdrew its deposit insurance application with the Federal Deposit Insurance Corp. The company cited recent leadership changes as a main factor in its decision.
The announcement came shortly before a speech by Acting Comptroller of the Currency Keith Noreika reiterating his support for issuing bank charters for fintechs.
Find out more about the various viewpoints surrounding this matter.
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CFPB releases principles on authorized data access, sharing
Posted Date: Tuesday, October 24, 2017
The Consumer Financial Protection Bureau has released a set of principles for consumer-authorized financial data sharing and aggregation, designed to foster responsible innovation within the financial marketplace while protecting consumers and stakeholders.
The principles cover details related to data access, data scope and usability, data control and informed consent, payment authorizations, data security, transparency on data access rights, data accuracy, accountability for access and use and disputes and resolutions regarding unauthorized access.
Learn more specifics about what the principles state and what research went into their creation.
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Trump nominates FTC chairman
Posted Date: Tuesday, October 24, 2017
President Donald Trump has nominated an antitrust attorney to serve as chairman of the Federal Trade Commission, as well as one other nominee to fill a vacant seat within the agency.
If confirmed by the Senate, the nominee would serve as the agency’s first permanent leader since Edith Ramirez stepped down in February, shortly after Trump took office.
Read on to find out more about the new nominees.
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Quarles confirmed to Fed board
Posted Date: Tuesday, October 24, 2017
With the Senate’s recent confirmation of Randal Quarles to take over the Federal Reserve Board of Governors seat vacated by Daniel Tarullo in April, the Fed is getting a vocal proponent of tailored financial regulations.
The Senate voted 65-32 to confirm Quarles as Trump’s first nominee to be approved for a seat on the Fed.
Find out what his confirmation could mean for the future of tailored regulations.
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CFTC appoints new clearing and risk director
Posted Date: Tuesday, October 24, 2017
Commodity Futures Trading Commission (CFTC) Chairman J. Christopher Giancarlo has appointed a new director of the agency's Division of Clearing and Risk (DCR).
The appointee, who currently serves the Security and Exchange Commission’s Division of Trading and Markets as associate director for derivatives policy and trading practices, officially joined the CFTC on Oct. 16.
Read on to find out more about the agency’s new appointee and who he is replacing.
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FormFree among Fannie pilot participants in Single Source Validation
Posted Date: Monday, October 23, 2017
Georgia-based FormFree announced that it has entered into a pilot with Fannie Mae that could allow mortgage lenders to validate borrower income, asset and employment data through a single report as early as 2018. Fannie Mae unveiled its Single Source Validation at the Mortgage Bankers Association (MBA) annual convention in Denver on Monday.
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Follow Dodd Frank Update for MBA Annual coverage
Posted Date: Friday, October 20, 2017
The Mortgage Bankers Association’s (MBA) Annual Convention and Expo 2017 is among the premier events in the financial industry, and Dodd Frank Update is committed to keeping you up-to-date on the sights, sounds and insider info in real-time from ground level at the Denver Convention Center.
Follow @DoddFrankUpdate on Twitter and check out the LinkedIn group under the same name to find live updates, photos and video from the conference.
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Trades support Watt’s stance on GSE buffers
Posted Date: Friday, October 20, 2017
The Independent Community Bankers of America and the National Association of Federally-Insured Credit Unions wrote in support of allowing the government-sponsored enterprises to build capital.
The position taken by the trade associations is one long-supported by Federal Housing Finance Agency Director Mel Watt, who recently testified before Congress about the agency’s efforts to improve its ability to support the housing industry.
Find out more about what the trade associations had to say, regarding the GSEs’ capital buffers, and what points are similar to those Watt has made.
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FHFA releases annual guarantee fee report
Posted Date: Friday, October 20, 2017
The Federal Housing Finance Agency recently released its annual report on guarantee fees charged by Fannie Mae and Freddie Mac, intended to cover credit risk and other costs the government-sponsored enterprises incur when acquiring single-family loans from lenders.
Among the major findings included in the report are indications that certain fees decreased or remained consistent in 2016, which did not go unnoticed by the mortgage industry.
Read on to find out what the major findings of the report indicated.
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Trades support bills codifying 'valid-when-made' doctrine
Posted Date: Friday, October 20, 2017
Bipartisan legislation aimed at preserving consumer credit access by codifying the “valid-when-made” doctrine received support from 11 organizations representing numerous financial institutions, small businesses and entities specializing in financial technology and innovation.
The groups wrote a letter applauding four members of Congress for introducing H.R. 3299 and S. 1642 in the House and Senate, respectively. Both bills are known as the “Protecting Consumers’ Access to Credit Act of 2017.”
Learn more about what the proposed legislative pieces propose to do.
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SEC provides update on breach investigation
Posted Date: Friday, October 20, 2017
The Securities and Exchange Commission’s (SEC) ongoing staff investigation into the 2016 breach of its EDGAR filing system revealed details about what information third parties accessed during the incident.
SEC Chairman Jay Clayton provided an update on the status of the agency’s investigation as it continues to work towards determining how the third parties gained access to its system, in what it referred to in a press release as an “intrusion.”
Find out more about what Clayton had to say about the investigation and the agency’s plans going forward.
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ABA elects new board officers at conference
Posted Date: Friday, October 20, 2017
During the 2017 American Bankers Association’s (ABA) annual convention in Chicago, the trade association’s attending members elected new officers and directors to the ABA board for the 2017–2018 year.
The ABA also recognized existing board members who were elected to fresh terms, as well as members who still have time left on their current terms.
Read on to find out who the newly elected officers and board members are.
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Equator adds new customers to PRO REO solution
Posted Date: Tuesday, October 17, 2017
Equator, a leading provider of default software and marketing solutions for many of the country’s top servicers, real estate agents and vendors, recently announced two multi-year contracts – one with Trinity Financial Services and the other with Trojan Capital.
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IDC ranks Black Knight among world's top 25 fintechs
Posted Date: Tuesday, October 17, 2017
Black Knight, Inc., a leading provider of integrated software, data and analytics solutions that facilitate and automate many of the business processes across the homeownership lifecycle, was listed as one of the top 25 fintechs in the world in the 2017 IDC Fintech Rankings.
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MORE Lending implements LoanScorecard underwriting system
Posted Date: Tuesday, October 17, 2017
LoanScorecard, a provider of automated underwriting and compliance solutions, recently announced that MORE Lending has implemented Portfolio Producer as its automated underwriting system, product and pricing engine and distribution solution.
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White House’s Cohn talks banking at ABA Annual
Posted Date: Tuesday, October 17, 2017
The opening day of the American Bankers Association (ABA) annual convention in Chicago featured a number of high-profile speakers.
Maybe the most watched speaker, though, was the director of the National Economic Council, Gary Cohn. Cohn, the former president and chief operating officer at Goldman Sachs, joined ABA President and CEO Rob Nichols on stage to discuss banking and the economy.
Among the topics addressed were SIFI asset thresholds, regulatory reform, the future of tax reform and the focus put on cyber and data security. Read on for more.
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CFPB seeks alternative data insight with no-action letter
Posted Date: Tuesday, October 17, 2017
To further investigate the real-world impact of using alternative data in lending decisions, the Consumer Financial Protection Bureau (CFPB) recently granted an online company’s request for a no-action letter, regarding its non-traditional method of determining consumer creditworthiness.
The letter stipulates that the company, Upstart Network, Inc., based in San Carlos, Calif., will regularly report lending and compliance information to the CFPB to mitigate risk to consumers, and help with the bureau’s alternative data research.
Find out more about what information the company will be required to disclose and the bureau’s intent behind the letter.
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Industry supports withdrawing estate tax hike
Posted Date: Tuesday, October 17, 2017
The Treasury Department recently announced that it has identified more than 200 regulations that it believes should be repealed to relieve the compliance burden many businesses face.
Among the regulations the Treasury plans to roll back is a proposal that would increase the estate tax. The proposal is unpopular among multiple financial trade associations.
Find out more about what the Treasury is proposing and what the industry has to say in response.
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CFPB releases annual TILA threshold changes
Posted Date: Tuesday, October 17, 2017
The Consumer Financial Protection Bureau recently finalized a rule implementing annual dollar threshold adjustments for multiple Truth in Lending Act regulations that will apply to certain consumer credit transactions.
The adjustments are scheduled to become effective Jan. 1, 2018.
Read on to find out more information about these changes.
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Legislation touts activity-based SIFI designations
Posted Date: Friday, October 13, 2017
The Senate recently introduced a bill intended to provide the Federal Reserve flexibility when designating bank holding companies as systemically important financial institutions (SIFIs) by allowing the Fed to make such determinations based on an entity’s activities, not size.
The bipartisan legislation introduced by Sens. Claire McCaskill (D-Mo.) and David Perdue (R-Ga.) is similar to a House bill Rep. Blaine Luetkemeyer (R-Mo.) introduced in November 2016 and again in July 2017.
Find out what the legislators and the financial industry have to say about the proposed legislative pieces.
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FSOC rescinds SIFI designation for AIG
Posted Date: Friday, October 13, 2017
The Financial Stability Oversight Council voted to rescind American International Group Inc.’s (AIG) designation as a systemically important financial institution (SIFI) during a recent meeting.
The Treasury Department published a document detailing the individual members’ viewpoints about the SIFI designation process as they pertain to the council’s collective decision to remove the designation from AIG. Federal Reserve Chair Janet Yellen also released a statement weighing in on the matter.
Get a feel for what considerations the council prioritized while coming to a decision about the company’s status.
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Trump signs ‘FSOC Insurance Member Continuity Act’
Posted Date: Friday, October 13, 2017
President Donald Trump recently signed into law bipartisan legislation permitting the Financial Stability Oversight Council’s (FSOC) independent member with insurance expertise to continue serving in the position beyond his or her term, if necessary.
House Financial Services Committee Ranking Member Maxine Waters (D-Calif.) and Rep. Randy Hultgren (R-Ill.) introduced the legislation, H.R. 3110, dubbed the “FSOC Insurance Member Continuity Act.”
Read on to learn more about what the new law means for the council.
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Treasury recommends ‘Core Principle’ reg reforms
Posted Date: Friday, October 13, 2017
Based on its evaluation of the federal financial regulatory system, the Treasury Department released a report detailing reforms that could be made in an effort to promote economic growth while maintaining strong investor protections.
The report was issued in response to President Donald Trump’s Feb. 3 executive order, outlining “Core Principles of Financial Regulation.”
Find out what reforms the agency is recommending and what the industry is saying in response.
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CFPB notes rise in borrowers struggling to repay student loans
Posted Date: Friday, October 13, 2017
It may come as no surprise to many lenders that the percentage of student loan borrowers leaving college with more than $20,000 in debt has doubled during the past decade, according to a report released by the Consumer Financial Protection Bureau, titled “CFPB Data Point: Student Loan Repayment.”
The report analyzed credit reports from more than 1 million student loan borrowers who began repaying their loans between 2002 and 2014, as well as their repayment experience through 2016.
Find out what specific data the bureau’s study uncovered.
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OCC review says CFPB got arbitration wrong
Posted Date: Tuesday, October 10, 2017
The Office of the Comptroller of the Currency (OCC) has released a report about the potential effects of the Consumer Financial Protection Bureau’s arbitration rule that it says contradicts findings included in the bureau’s report on the matter.
The OCC’s report asserts that the rule would result in increased credit costs for companies that could be expect to be passed on to consumers.
With such a hotly contested issue, read up on what the latest argument against banning mandatory arbitration is likely to be.
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House reps introduce bills to protect consumer data
Posted Date: Tuesday, October 10, 2017
Before, during and after retired Equifax CEO Richard Smith’s recent testimony before the House Energy and Commerce Committee regarding the company’s recent data breach, multiple congressional representatives stated their desire to pass legislation that would increase regulatory oversight of credit reporting companies.
The proposed pieces of legislation are intended to hold companies that collect consumers’ personal information responsible for the security of that data and to give consumers more control over who can access their credit information.
Learn who is behind the legislative pieces and what they could mean for consumers if adopted by reading further.
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Senators challenge credit reporting business model
Posted Date: Tuesday, October 10, 2017
One day following his testimony before the House Energy and Commerce Committee, former Equifax CEO Richard Smith went before the Senate Banking Committee where both Democratic and Republican senators scrutinized the company’s response to the recent data breach, as well as its business model and recent contract with the Internal Revenue Service.
Chairman Mike Crapo (R-Idaho), Ranking Member Sherrod Brown (D-Ohio), Sen. Ben Sasse (R-Neb.) and Sen. Elizabeth Warren (D-Mass.) were among those who cross-examined the recently retired executive.
Find out what points the senators brought up and what Smith said in response.
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Wells Fargo CEO grilled by Senate committee
Posted Date: Thursday, October 5, 2017
Wells Fargo CEO Tim Sloan met with a slew of criticism during his hearing before the Senate Banking Committee Oct. 3 from senators on both sides of the political aisle. The purpose of the hearing was for Sloan to provide an update on the company’s progress one year after federal regulators fined it $185 million for creating millions of fake accounts.
Senators challenged the Wells Board of Directors’ decision to have Sloan succeed former CEO John Stumpf, noting their concerns over issues that have come to light during the past year.
Learn what critiques the senators levied regarding the company’s use of mandatory arbitration and what some want to see happen moving forward.
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OCC cites CFPB rule in rescinding deposit advance guidance
Posted Date: Thursday, October 5, 2017
The Office of the Comptroller of the Currency (OCC) is rescinding guidance released in 2013 on deposit advance products because the Consumer Financial Protection Bureau’s newly finalized small-dollar/payday lending rule overlaps its own.
“The final rule regarding short-term, small-dollar loans submitted to the Federal Register by the Consumer Financial Protection Bureau necessitates revisiting the OCC guidance,” Acting Comptroller of the Currency Keith A. Noreika said in a statement.
Read on for more details about the OCC’s move and what it will mean for lenders who are within its supervision.
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Open Story: CFPB finalizes payday lending rule
Posted Date: Thursday, October 5, 2017
The Consumer Financial Protection Bureau has finalized a rule on short-term/payday lending to consumers, requiring lenders to determine upfront a borrower’s ability to repay.
The rule is the bureau’s first based on its authority to prohibit “unfair, deceptive or abusive acts or practices” (UDAAP) under the Dodd-Frank Act.
Find out about what financial institutions will have to account for when making short-term loans covered by the rule, as well as what types of loans are excluded from the new stipulations.
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Former Equifax CEO testifies before House committee
Posted Date: Thursday, October 5, 2017
During the House Energy and Commerce Committee’s Oct. 2 hearing with recently retired Equifax CEO Richard Smith concerning the data breach that compromised millions of Americans’ credit information, multiple representatives tried to get answers about the causes of the breach and events that followed.
Smith was apologetic and said he decided to voluntarily testify before Congress, despite no longer being employed by the company, because the breach happened on his watch and, therefore, was his responsibility.
Find out what questions the representatives posed to Smith about the breach and what he had to say in response.
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CFPB files second suit citing harmed 9/11 first-responders
Posted Date: Thursday, October 5, 2017
For the second time this year, the Consumer Financial Protection Bureau and the New York attorney general’s office have filed suit against a company and related individuals, alleging that they scammed 9/11 first-responders and former National Football League players out of money awarded to them from victim compensation funds or legal settlements.
A key difference between the case the two regulatory bodies filed in September against Top Notch Funding, along with its owner Rory Donadio and his business associate John “Gene” Cavalli, and the one they filed in February, against RD Legal and related parties, is that the case against Top Notch includes a third group of plaintiffs made up of victims of the 2010 Deepwater Horizon oil-rig accident.
Learn what reasoning the CFPB offered to explain its determination that Top Notch broke consumer financial laws.
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NAMB announces rebranding effort
Posted Date: Thursday, October 5, 2017
A rebranding effort is underway at NAMB, intended to emphasize the diverse member base of the association, which represents the interests of individual mortgage loan originators, as well as small to mid-size mortgage businesses, including bankers, brokers and correspondent lenders.
The organization said in a press release that the rebrand comes with a new logo and a new marketing campaign.
Read on to find out more about the concepts behind the rebrand.
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Embrace Home Loans collecting donations for Puerto Rico
Posted Date: Wednesday, October 4, 2017
Embrace Home Loans, a leader in the mortgage industry, recently announced that it has organized efforts to provide relief assistance to residents in Puerto Rico in direct response to the devastating destruction caused by Hurricane Maria.
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Trelix approved for DBRS-rated transactions
Posted Date: Wednesday, October 4, 2017
Trelix, which provides due diligence, quality control, licensed fulfillment and non-licensed fulfillment products and services across the loan origination and securitization life-cycle, recently was approved as a third-party due diligence provider for DBRS-rated transactions.
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FFIEC releases 2016 HMDA data
Posted Date: Friday, September 29, 2017
The Federal Financial Institutions Examination Council released the data on behalf of its member agencies, detailing mortgage lending transactions at 6,762 banks, savings associations, credit unions and mortgage companies across the country throughout 2016.
The data includes information about trends in mortgage lending actions, loans insured by the Federal Housing Administration and denial rates among minority and non-minority loan applicants.
Find out more about what the data reveals about the state of the mortgage lending market.
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Bank regulators propose simpler Basel rules
Posted Date: Friday, September 29, 2017
A notice of proposed rulemaking issued by the federal banking agencies would simplify Basel III regulatory capital rules for all but the largest and most complex financial institutions. Some industry trade associations note that the rule aligns with their advocacy efforts.
The Office of the Comptroller of the Currency, the Federal Reserve and the Federal Deposit Insurance Corp. intend the rule as a means to “strike an appropriate balance between complexity and risk sensitivity” for the country’s largest financial entities.
Find out what financial trade associations have to say about the agencies’ proposal and what it would mean for the industry if adopted.
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CFPB takes second action against owner
Posted Date: Friday, September 29, 2017
The owner of an online lead aggregation company recently received his second enforcement action from the Consumer Financial Protection Bureau involving illegal steering practices.
A California-based company and its owner have been ordered to pay civil money penalties for steering practices that caused consumers to purchase loans that were void in their state and misrepresenting the quality of the loans they pointed consumers towards.
See how the bureau is handling the matter, given that it previously cited the business owner for similar conduct at a separate company he owned.
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ICBA submits petition touting reg relief platform
Posted Date: Friday, September 29, 2017
The Independent Community Bankers of America recently submitted a petition to the Senate Banking Committee urging committee leaders to take action on recommendations outlined in its “Plan for Prosperity” regulatory relief platform.
Thousands of community bank employees and advocates signed the petition, including members of numerous state banking associations across the country.
Read on to find out what points the association made regarding its advocacy platform and how much support it has garnered.
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Survey: Consumers like their mobile banking apps
Posted Date: Friday, September 29, 2017
With more than half of Americans using mobile apps to manage their bank accounts, it is important that those apps be up to the task.
A survey recently conducted by the Morning Consult on behalf of the American Bankers Association indicates that most Americans believe that they are.
Find out how consumers rated their bank’s mobile apps and how frequently they said they use them to do mobile transactions.
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Industry wants Equifax held accountable
Posted Date: Tuesday, September 26, 2017
Multiple financial trade organizations have reached out to leadership at Equifax and members of Congress, calling for accountability in the wake of the data breach that compromised approximately 143 million Americans’ personal information.
The organizations detailed concerns on behalf of their customers and members and stated their hopes for transparency from the company as it attempts to remediate adverse effects of the breach.
Find out what specific actions various trade groups are calling for.
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