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It’s less than a week away from the pinnacle event for U.S. mortgage professionals – the Mortgage Bankers Association’s (MBA) annual conference, MBA Annual 23, which is set to run Oct. 15-18 in Philadelphia.

To get a sense of what pressing topics to watch for during the event, Dodd Frank Update caught up with former MBA President and CEO David Stevens, currently serving as CEO of Mountain Lakes Consulting, Inc. Although Stevens will be away for a family occasion during the conference, he had plenty of insight to share.

CondoTek and Mortgage Guaranty Insurance Corporation (MGIC), the principal subsidiary of MGIC Investment Corporation, recently announced the launch of a new all-in-one Condominium Compliance solution available through CondoTek in a company press release.

Solve Mortgage, a Non-QM wholesale lender based in Calabasas, Calif., is optimistic about mortgage lending, following a solid first half of 2023. Solve Mortgage President Blake Scheifele said he believes that market conditions are now robust, which will offer his business an opportunity to grow, according to a company press release.

Inaccurate background checks and illegal credit freezes recently cost TransUnion and its subsidiary significant monetary penalties for violating the Fair Credit Report Act, according to a joint complaint filed by the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission.

The bureau pointed to a pattern of misconduct by TransUnion, noting the conglomerate has been subject to four CFPB enforcement actions in the last seven years, including the two charges described in its most recent enforcement actions.

Lenders interested in helping to provide affordable housing opportunities to low-to-moderate income individuals with disabilities should take note of a new initiative recently announced by the U.S. Department of Housing and Urban Development’s Office of Multifamily Housing.

The announcement comes as Mark Jones, the newly elected president and CEO of the Mortgage Bankers Association, revealed his top priority is supporting the expansion of affordable housing opportunities.

The annual conference for the National Society of Compliance Professionals (NSCP) came during a period when federal rulemaking activity for the financial industry is particularly high and there are many critical compliance dates on the horizon.

The Securities and Exchange Commission is among the busiest in that regard, NSCP Commissioner Mark Uyeda noted in prepared remarks.

In a move expected to accelerate a shift toward opening banking, the Consumer Financial Protection Bureau has proposed a rule giving consumers more control over their financial data and provide new protections against companies that misuse consumer data.

Dubbed the “Personal Financial Data Rights” rule, the proposed regulation would implement Sec. 1033 of the Dodd-Frank Act, pertaining to “consumer rights to access information.”

Mortgage lenders have no shortage of complaints about the rise in loan repurchase volume by Fannie Mae and Freddie Mac since the start of the COVID-19 pandemic. Federal Housing Finance Agency Director Sandra Thompson indicated relief could be on the horizon.

During the Mortgage Bankers Association’s annual convention and expo in Philadelphia, Thompson said given the current challenges facing the housing market, including high rates and prices coupled with limited housing stock, it is crucial for policies and industry efforts to align in supporting existing and aspiring homeowners.

The Federal Trade Commission has reached a settlement with the now-bankrupt cryptocurrency company Voyager and filed a lawsuit against the former CEO, Stephen Ehrlich, over false marketing claims.

Upon the company’s bankruptcy, consumers were locked out of their accounts for over a month and lost a significant amount of consumers’ crypto assets.

The Securities and Exchange Commission’s Division of Examinations recently published its 2024 Examination Priorities, which is a report intended to inform investors and registered entities about the primary risks, examination topics and areas of focus for the upcoming year.

These examinations will place particular emphasis on emerging risks which could impact investors and the financial markets while also addressing ongoing areas of concern.

As a result of supervisory work by the Consumer Financial Protection Bureau (CFPB) to address consumer payment obligations it refers to as “junk fees,” companies have returned $140 million to consumers. Approximately $120 million was for surprise overdraft fees and double-dipping on fees charged for non-sufficient funds.

The CFPB has taken a decidedly hardline approach when it comes to fees the bureau deems illegal and that place unreasonable barriers in front of consumers when trying to access basic information about accounts they own, as exemplified by findings included in the bureau’s Fall 2023 Supervisory Highlights Junk Fees Update Special Edition.

The Consumer Financial Protection Bureau (CFPB) has once again sued Freedom Mortgage Corp., one of the nation’s largest mortgage lenders, for Home Mortgage Disclosure Act (HMDA) violations, as well as for failing to comply with a previous consent order citing prevalent data reporting errors.

The lawsuit comes less than two months after a separate enforcement action in August in which the CFPB fined Freedom Mortgage $1.75 million for providing illegal kickback payments for loan referrals – violations the company also was cited for in 2019.

Federal regulators recently issued consent orders with One American Financial Corp., a registered bank holding company headquartered in Sioux Falls, S.D., in which the bank agreed to certain capital conservation restrictions to improve its financial stability.

The Federal Reserve Bank of Minneapolis outlined necessary measures One American will be required to take to fortify its financial and managerial resources for the sake of its long-term strength and so it can continue to support its subsidiary, One American Bank in Centerville, S.D.

A MISMO-developed dataset mapping standard, designed to facilitate innovations underway at the Veterans Administration (VA), recently became available for use across the real estate finance industry, according to a recent announcement by the Mortgage Industry Standards Maintenance Organization.

The dataset is intended to provide an industry standard for exchanging information required on the official VA Verification of Benefits form.

Dodd Frank Update is reporting live from the “City of Brotherly Love” at MBA Annual 23, where more than 2,500 mortgage professionals will be lending their ears during educational sessions and networking on the conference floor inside Philadelphia’s Pennsylvania Convention Center.

The Mortgage Bankers Association’s pinnacle event will feature a slew of notable speakers, including industry leaders, federal regulators and even award-winning authors, actors and musicians.

Asserting that charging consumers excessive fees to obtain information about their own accounts violates consumer protection laws, the Consumer Financial Protection Bureau issued an advisory opinion generally prohibiting the practice among large financial institutions.

The bureau shared its opinion the same day the Federal Trade Commission announced a proposed rule banning large banks and credit unions charging so-called “junk fees.”

Citing apparent oversights in the supervision of one of three banks to fail in March, the Federal Reserve’s Office of Inspector General scrutinized multiple aspects of the bank examiners’ approach in a detailed report, which could serve as a cautionary tale concerning the implications of lackluster supervisory approaches.

The report highlights a series of supervisory shortcomings with respect to Silicon Valley Bank, pointing to internal documents describing meetings in which supervisors shared their findings and proposed actions to be taken.

The Securities and Exchange Commission (SEC) adopted changes to its rules governing the beneficial ownership of stocks, shortening the reporting timeline for certain investors, among other changes. The rule revisions align with the SEC’s previously announced efforts to adapt long-standing requirements to modern marketplace conditions.

More than six months after its March failure, the remaining remnants of Signature Bank have been acquired by PNC Bank, one of the country’s largest and most diversified financial institutions, from the Federal Deposit Insurance Corp., which took ownership of the defunct bank as receiver shortly after it was shuttered by the New York State Department of Financial Services.

Offering his take on the current state of monetary policy and financial stability in the U.S. financial system, Michael Barr framed his perspective as coming from the intersection of his dual roles at the Federal Reserve – vice chair for supervision for the Federal Reserve Board and as a member of the Federal Open Market Committee – during a speaking engagement at the Forecasters Club of New York.

Barr touched on the current economic situation, focusing on inflation and employment, noting the recent stabilization in inflation and the corresponding uptick in economic activity, which has exceeded expectations.

The Consumer Bankers Association (CBA) recently appointed Kelvin Chen as senior executive vice president, head of policy, according to a press release by the trade organization representing some of the nation’s largest banks. This newly established position is intended to bolster CBA’s policy objectives on behalf of its members.

Diligent real estate and mortgage professionals tend to be particularly vigilant in rooting out compliance issues in official documents and when making credit determinations. But how many have ever considered the legal implications of a poorly worded marketing email, LinkedIn post or TikTok video?

John Levonick, senior partner at Garris Horn PLLC, and Nanci Weissgold, partner at Alston & Bird, along with moderator, Leslie Wyatt, director of regulatory compliance at SoftPro, speak on Dodd Frank Update’s Compliant Marketing Tactics webinar about a host of topics that should be top-of-mind for any financial institution when marketing their products and services.

Federal Reserve Gov. Michelle Bowman offered her perspective on the implications of recent bank failures and stress within the U.S. banking system while speaking at a recent conference sponsored by the Mississippi Bankers Association and the Tennessee Bankers Association.

Bowman said the three bank failures in March underscored the need for the Fed and other federal banking regulators to address supervisory deficiencies and consider revisions to certain regulations intended to ensure safe and sound practices among supervised depository institutions.

The Consumer Financial Protection Bureau recently announced appointments to the agency’s Consumer Advisory Board, Community Bank Advisory Council, Credit Union Advisory Council and Academic Research Council.

The Dodd-Frank Act stipulates that the CFPB must establish a Consumer Advisory Board, tasked with advising the bureau’s staff on an array of consumer financial issues.

Federal Communications Commission (FCC) Chair Jessica Rosenworcel recently introduced a proposal to begin the process of re-establishing the agency’s oversight over broadband and restoring uniform, nationwide net neutrality rules.

In 2017, the Trump administration repealed net neutrality despite strong public opposition. Rosenworcel said the FCC is seeking public input on rulemaking to restore net neutrality – particularly on how to best achieve a uniform, national open internet standard.

As U.S. Supreme Court justices heard arguments about the constitutionality of the Consumer Financial Protection Bureau’s funding structure, Dodd Frank Update’s sister publication, RESPA News, was in the courtroom to document the highly anticipated moment.

Afterward, we checked in with a couple of Dodd-Frank Act experts for their take on how the arguments went.

The Federal Reserve recently issued an enforcement action against a former executive-level employee at an Iowa-based bank, citing allegations involving falsified documents.

The Fed issued an order of prohibition against the former banker for allegedly falsifying certain documents relating to loans extended to a customer, including a security agreement and a subordination agreement, as well as alleged failures in their fiduciary duties.

LoanPASS recently announced its preferred partnership with The Mortgage Collaborative (TMC), the nation’s largest independent cooperative network serving the mortgage industry, according to a company press release. TMC stated in the release that it is dedicated providing its members with market-leading technology and expert resources to better manage the rapidly evolving customer demands and pace of technology innovation in today’s mortgage banking market.

A subsidiary of Deutsche Bank drew two separate enforcement actions from the Securities and Exchange Commission (SEC) for failing to develop a mutual fund anti-money laundering program and for misstatements about its environmental, social, and governance investment process.

DWS Investment Management Americas Inc., a registered investment adviser, agreed to settle the charges with the SEC for $25 million in total penalties.

Efforts to protect workers against unfair and deceptive acts and practices within the U.S. labor markets are being bolstered through a new memorandum of understanding between the Federal Trade Commission and the U.S. Department of Labor.

Under the newly signed agreement, the two agencies will collaborate on policymaking and enforcement activities pertaining to issues facing competition in the U.S. market, such as labor market concentration, one-sided contract terms and labor developments in the “gig economy.”

The National Credit Union Administration (NCUA) recently awarded $3.1 million in Community Development Revolving Loan Fund (CDRLF) grants to 142 low-income and minority depository institutions.

Noting that Congress designated additional funding and allowed MDI-designated credit unions to qualify for CDRLF grants in 2023, the NCUA took the opportunity to offer increased support to institutions that could use it.

H.R. 5403, also known as the “CBDC Anti-Surveillance State Act,” passed by a vote of 27-20, with amendments intended to ensure the country’s central banks are prohibited from issuing digital assets of any kind.

Lender Toolkit, which offers automated mortgage technology solutions powered by artificial intelligence (AI), recently launched the company’s latest product, designed to streamline the income calculation process – Prism. The result, according to a company press release, is shortened cycle times and increased profitability for lenders.

JPMorgan Chase’s recent announcement of its plan to close 14 branches acquired from First Republic Bank, one of three banks to fail this past spring, has sparked discussion about federal policies governing bank mergers and acquisitions.

The fact that First Republic’s failure represents the second-largest bank collapse in U.S. history and that those assets were acquired by the nation’s largest bank has proponents of tighter regulations fired up. 

Lenders know better than most about the potentially devastating impact of inaccurate data when it comes to credit decisions. For this reason, they likely can appreciate new rulemaking by the Consumer Financial Protection Bureau (CFPB) aimed at eliminating one common source of inaccuracies in consumer credit reports – medical billing information.

Bearing in mind that about 20 percent of Americans have medical debt, per a 2022 CFPB report, and that the debt often includes bills rife with errors, the CFPB is planning a rule under the Fair Credit Reporting Act to prohibit credit companies from including medical information in credit reports.

Securities and Exchange Commission Chair Gary Gensler discussed possible updates to the agency’s rules designed to enhance efficiency, integrity and resiliency in U.S. capital markets, during testimony before the Senate Committee on Banking, Housing, and Urban Affairs.

In prepared remarks, Gensler acknowledged the importance of adapting to dynamic markets and investor needs, focusing on protecting investors and lowering costs. 

The National Credit Union Administration Board recently approved a final rule clarifying stipulations to afford credit unions increased flexibility to use advanced technology for loan originations, indirect lending and more.

The rule allows federally insured credit unions to engage in indirect lending arrangements with fintechs and other third-party entities.

Financing the cannabis industry could soon become much less risky thanks to a revamped version of legislation proposing to provide safeguards for banks against negative legal implications for doing so.

The aptly named “SAFER Banking Act,” also known as the Secure and Fair Enforcement Regulation Banking Act (S. 2860), is essentially a revision of the SAFE Banking Act, which passed the House in 2019 only to languish in the lame duck session of the 117th Congress, despite significant bipartisan support.