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News By Edition
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Dodd Frank Update Monthly Edition
Dodd Frank Update November 2023
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Previewing MBA Annual Conference with David Stevens
Posted Date: Tuesday, October 10, 2023
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.
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CondoTek, MGIC launch all-in-one compliance solution
Posted Date: Friday, November 3, 2023
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.
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Solve Mortgage bullish on wholesale lending and OptifiNow TPO CRM
Posted Date: Thursday, October 26, 2023
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.
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CFPB, FTC sue TransUnion for credit practices, cite pattern of unlawful conduct
Posted Date: Tuesday, October 24, 2023
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.
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Senate advances measure to nullify Sec. 1071 rule
Posted Date: Tuesday, October 24, 2023
The
Senate recently passed a resolution to overturn the Consumer Financial
Protection Bureau’s rule regulating small-business data collection and
reporting as prescribed by Section 1071 of the Dodd-Frank Act. The vote came as
President Joe Biden indicated he would veto any measure to overturn the rule if
it reached his desk.
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CFPB calls out Sendwave app for ‘deceptive’ remittance claims
Posted Date: Tuesday, October 24, 2023
The
Consumer Financial Protection Bureau is ordering Chime Inc., which operates
under the name Sendwave, to provide redress for deceiving consumers about the
cost and speed of remittances through its Sendwave mobile application. In
addition to one charge of violating the Consumer Financial Protection Act, the
bureau has accused the nonbank fintech of multiple violations of the Electronic
Fund Transfer Act.
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HUD earmarks $212 million for low-income individuals with disabilities
Posted Date: Tuesday, October 24, 2023
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.
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Former NCUA chief of staff transitions to Dallas FHLB
Posted Date: Tuesday, October 24, 2023
National
Credit Union Administration Board Member Rodney Hood recently announced that
his senior advisor and former chief of staff will be transitioning into a new
role with the Federal Home Loan Bank of Dallas, where he will lead the
government and industry relations functions.
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NSCP commissioner outlines upcoming compliance dates
Posted Date: Tuesday, October 24, 2023
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.
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CFPB proposes consumer data rule under Dodd-Frank
Posted Date: Friday, October 20, 2023
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.”
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FHFA director addresses GSE repurchase volume at MBA
Posted Date: Friday, October 20, 2023
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.
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FTC sues crypto company CEO over false security claims
Posted Date: Friday, October 20, 2023
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.
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MBA chairman reveals top priority for 2024
Posted Date: Friday, October 20, 2023
Having been selected as the Mortgage Bankers
Association (MBA) 2024 chairman, Union Home Mortgage President Mark Jones
shared his top priority for the organization during its 2023 convention and
exposition in Philadelphia.
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MBA introduces 2024 officers at annual convention
Posted Date: Friday, October 20, 2023
The Mortgage Bankers Association announced its
2024 officers and advisory board members during the organization’s 2023
convention and exposition in Philadelphia. The newly elected officers bring
decades of mortgage industry experience to their respective roles.
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SEC exam priorities include AML, crypto among ‘emerging risks’
Posted Date: Friday, October 20, 2023
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.
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MBA honors Susan Stewart with Lowrie-Woodward Distinguished Service Award
Posted Date: Friday, October 20, 2023
The Mortgage Bankers Association (MBA) honored Susan
Stewart, chief executive officer of SWBC Mortgage Corporation, with its
Lowrie-Woodward Distinguished Service Award. The award recognizes the
dedication and prominent service to MBA and the mortgage lending industry in a
variety of capacities involving both legislative and regulatory activities,
according to an MBA press release.
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CFPB Supervisory Highlights report explains $140 million in returned fees
Posted Date: Tuesday, October 17, 2023
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.
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CFPB cites Freedom Mortgage for repeated HMDA violations
Posted Date: Tuesday, October 17, 2023
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.
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One American ordered to impose capital conservation restrictions
Posted Date: Tuesday, October 17, 2023
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.
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CFTC issues $53 million in fines against three financial firms
Posted Date: Tuesday, October 17, 2023
Three
of the country’s largest financial institutions recently accrued $53,000 in
fines between them from the Commodity Futures Trading Commission for violating
rules implemented under the Dodd-Frank Act to establish certain swap data and
disclosure requirements.
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MISMO releases dataset for VA benefit verification
Posted Date: Tuesday, October 17, 2023
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.
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Fed Gov. Barr describes relationship between capital, lending
Posted Date: Tuesday, October 17, 2023
The
relationship between fiscal policy and lending is tightly woven, as is the
relationship Federal Reserve Gov. Michael Barr sees between lending and
building better communities. Speaking at the American Bankers Association’s
Annual Convention in Nashville, Barr painted a picture of how a recent visit to
a Native American community in Montana illustrated this relationship for him as
he opined on the Fed’s proposed rulemaking affecting institutions that
represent the nation’s largest source of capital.
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LIVE: Dodd Frank Update at MBA Annual
Posted Date: Friday, October 13, 2023
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.
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CFPB, FTC take action on ‘junk fees’ among large banks, credit unions
Posted Date: Friday, October 13, 2023
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.”
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Fed details how lackluster supervision contributed to SVB failure
Posted Date: Friday, October 13, 2023
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.
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SEC to adopt modernized beneficial ownership rules
Posted Date: Friday, October 13, 2023
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.
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PNC completes $16.6 billion acquisition of Signature Bridge Bank
Posted Date: Friday, October 13, 2023
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.
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Fed gov. speaks on monetary policy, financial stability
Posted Date: Friday, October 13, 2023
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.
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CBA welcomes Kelvin Chen to executive team
Posted Date: Tuesday, October 10, 2023
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.
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Webinar: Do your new-age marketing tactics comply with established regs?
Posted Date: Tuesday, October 10, 2023
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.
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BSA/AML violations cost bank $15 million in penalties
Posted Date: Tuesday, October 10, 2023
The
Federal Deposit Insurance Corp. and the Financial Crimes Enforcement Network
recently assessed $15 million in civil money penalties against
Shinhan Bank America, alleging the bank engaged in willful violations of the
Bank Secrecy Act and its implementing regulations. The FDIC also cited the
bank’s failure to comply with a consent order issued in June 2017.
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Fed governor says bank supervisory reforms may be necessary
Posted Date: Tuesday, October 10, 2023
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.
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CFPB announces Consumer Advisory Board appointees
Posted Date: Tuesday, October 10, 2023
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.
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FCC chair proposes restoring net neutrality rules
Posted Date: Tuesday, October 10, 2023
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.
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Supreme Court hears oral arguments on CFPB funding structure
Posted Date: Friday, October 6, 2023
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.
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FDIC claims NSF lawsuit cites wrong guidance
Posted Date: Friday, October 6, 2023
Arguing
the plaintiffs targeted the wrong guidance document, the Federal Deposit
Insurance Corp. recently moved to dismiss a lawsuit challenging the validity of
its supervisory guidance created for companies charging multiple non-sufficient
funds fees.
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Federal Reserve charges former bank exec with unlawful practices
Posted Date: Friday, October 6, 2023
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.
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FinCEN seeks input on proposed BOI deadline extension
Posted Date: Friday, October 6, 2023
Proposed
rulemaking would amend the Financial Crimes Enforcement Network’s (FinCEN)
reporting deadline threefold for certain companies subject to the agency’s
beneficial ownership information requirements. FinCEN believes the extended
deadline will benefit companies by affording more time to gain an understanding
of their regulatory obligations following their initial registration.
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NCUA updates CECL tool with enhanced data entry process
Posted Date: Friday, October 6, 2023
The
National Credit Union Administration recently announced the latest update to
its tool to assist organizations in utilizing the current expected credit
loss methodology for estimating allowances for credit losses.
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CFPB reports steep drop in mortgage applications, refinances
Posted Date: Friday, October 6, 2023
The
Consumer Financial Protection Bureau’s report on 2022 trends in residential
lending reveals a notable drop in mortgage applications and originations from
the year prior. This drop coincided with an increase in rates, fees, discount
points and other costs, according to the bureau’s analysis of Home Mortgage
Disclosure Act data recorded during that timeframe.
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TMC adds LoanPASS to Preferred Partner Network
Posted Date: Friday, October 6, 2023
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.
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Congress avoids shutdown, reauthorizes NFIP… for now
Posted Date: Tuesday, October 3, 2023
With
the midnight deadline looming, Congress passed an 11th hour spending
bill led by House Speaker Kevin McCarthy (R-Calif). The measure provides
federal funding through Nov. 17, at which point new legislation will be
required to keep the government up and running.
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SEC charges Deutsche Bank subsidiary with AML, ESG violations
Posted Date: Tuesday, October 3, 2023
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.
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FTC, DOL issue MOU on UDAP protections for workers
Posted Date: Tuesday, October 3, 2023
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.”
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NCUA awards $3.1 million in community development grants
Posted Date: Tuesday, October 3, 2023
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.
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House divided on bill to prohibit central bank digital currency
Posted Date: Tuesday, October 3, 2023
The
House Financial Services Committee recently passed legislation to restrict the federal
government’s ability to introduce a U.S. central bank digital currency (CBDC), drawing
support from the financial services industry.
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.
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Over 100 firms commit to Treasury principles on green energy
Posted Date: Tuesday, October 3, 2023
More
than 100 U.S. firms have stepped up to the forefront of a voluntarily initiative
with the goal of achieving net-zero emissions through proactive measures to
reduce their climate footprint. It involves a commitment to nine principles set
by the Treasury Department and the Biden-Harris administration, which will act as
a practical framework to reach this goal.
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Lender Toolkit launches automated income calculator for Encompass users
Posted Date: Monday, October 2, 2023
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.
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JPMorgan closes 14 First Republic branches as senators call for new merger guidelines
Posted Date: Friday, September 29, 2023
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.
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CFPB considering FCRA rule prohibiting medical data in credit decisions
Posted Date: Friday, September 29, 2023
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.
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SEC considering rule changes to ‘meet challenges of the times’
Posted Date: Friday, September 29, 2023
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.
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Mississippi banks awarded $19 million from CDFI Fund
Posted Date: Friday, September 29, 2023
Thirty-five
Mississippi banks are set to receive $19 million awarded through the newly
created FY2023 Bank Enterprise Award Program. The funds will support lending
and investment activity in areas experiencing economic distress, especially
rural areas.
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NCUA approves final rule on financial innovation
Posted Date: Friday, September 29, 2023
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.
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Senate committee advances marijuana banking bill
Posted Date: Friday, September 29, 2023
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.
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