News By Edition

The Federal Trade Commission announced it is taking administrative action to block the proposed acquisition of Black Knight by Intercontinental Exchange. The commission believes the deal between two major competitors in the mortgage technology industry would lead to increases in costs for consumers and reductions in innovation and competition in the market. Read on for more details.

The U.S. Supreme Court granted the Consumer Financial Protection Bureau’s petition for writ of certiorari for review of the Fifth Circuit case which held the bureau’s funding structure to be unconstitutional. The bureau seeks to have the high court reverse the decision of the federal appellate court as early as April. Dodd Frank Update spoke with expert attorneys to understand what the court’s decision could mean for the industry and what to watch out for. Read on for more details.

The Consumer Financial Protection Bureau (CFPB) announced it is permanently banning RMK Financial Corp., which does business as Majestic Home Loan, from the mortgage lending industry following alleged “repeat offenses” against military families. The decision from the CFPB stems from a series of repeated enforcement orders against RMK starting in 2015. Along with the ban, RMK will be required to pay a monetary penalty to the CFPB’s victims relief fund. Read on for more details.

The Consumer Financial Protection Bureau (CFPB) published a new report analyzing the financial profiles of Buy Now, Pay Later (BNPL) borrowers. The research found BNPL borrowers are more likely to exhibit financial distress than non-users and are more likely to be active users of other forms of credit. This is the latest in the CFPB’s efforts to understand and better regulate the BNPL market. Read on for more details.

The London Interbank Offered Rate (LIBOR) has been the benchmark for setting interest rates between banks since the 1970s. It has served as a common standard by which the interest rate of adjustable-rate mortgages is set, often through specific contractual terms. With LIBOR set to end as the benchmark index in June, John Levonick, regulatory compliance attorney and CEO of Canopy Financial Technology Partners, spoke with Dodd Frank Update about the transition and some things mortgage servicers should expect. Read on for more details.

The White House and the Department of Housing and Urban Development announced that, through the Federal Housing Administration (FHA), it will be reducing its annual mortgage insurance premium for most new borrowers of FHA-insured mortgages. The announcement received a positive response from industry trade groups.

The U.S. House of Representatives passed the Reduce Exacerbated Inflation Negatively Impacting the Nation (REIN IN) Inflation Act. The legislation was shepherded in part by House Financial Services Committee Chair Patrick McHenry (R-N.C.) and chair of the House Republican Conference Elise Stefanik (R-N.Y.). Read on for more details.

The House Financial Services Committee passed the Data Privacy Act of 2023 during its first markup of the new congressional term. The legislation, introduced by committee Chair Patrick McHenry (R-N.C.), seeks to modernize financial data privacy laws and provide consumers with greater control over how their personal information is collected and used. Read on for more details.

The U.S. Court of Appeals for the Ninth Circuit affirmed the decision of a California district court to abstain from enjoining a state action brought by the Riverside County, Calif., district attorney (DA) against national bank Credit One. Credit One claimed the DA unlawfully exercised the National Bank Act and its associated regulations’ “visitorial powers.” The courts disagreed. Read on for more details.

The U.S. Securities and Exchange Commission is petitioning the Supreme Court for writ of certiorari to review a case questioning the constitutionality of internally adjudicated administrative enforcement proceedings and the for-cause removal restrictions of administrative law judges in agencies whose heads also have for-cause removal protections. Read on for more details.

California-based Silvergate Bank, which gained some notoriety as an early participant in crypto investment and transactions, announced it plans to voluntarily liquidate and wind down its business. Less than a week later, Silicon Valley Bank collapsed after announcing a $1.8 billion loss that would potentially make it unable to meet depositor needs. This was followed closely by New York-based Signature Bank, which was shuttered by state regulators. Read on for more details.

Sen. Sherrod Brown (D-Ohio), chair of the Senate Committee on Banking, Housing, and Urban Affairs, sent a letter to Acting Comptroller Michael Hsu asking the Office of the Comptroller of the Currency to apply greater scrutiny to banks that are closing branches in low- and moderate-income areas. Read on for more details.

Following the collapse of three U.S. regional banks earlier this month, banks and regulators in the United States, United Kingdom, and the European Union took a series of emergency measures to prevent a ripple effect that could be catastrophic for the banking sector and the global and U.S. economies. Read on for more details.

In an opinion piece, Consumer Bankers Association President and CEO Lindsey Johnson called on Congress to begin the process of reforming the Consumer Financial Protection Bureau and engaging in greater oversight of the bureau. Johnson criticized the bureau for being “increasingly motivated by politics and headlines as opposed to data and industry input.” Read on for more details.

Rep. Maxine Waters (D-Calif.) proposed legislation to increase the federal government’s clawback authority following the collapse of Silicon Valley and Signature. Read on for more details.

Mortgage Bankers Association subsidiary and real estate finance standards organization MISMO named its new president. Read on for more details.

The Federal Reserve announced the launch of its real time payment system, FedNow, is set for July. Read on for more details.

The House Financial Services Committee, subcommittee on financial institutions and monetary policy, led by Rep. Andy Barr (R-Ky.), held a hearing to discuss proposed reforms for the Consumer Financial Protection Bureau. The subcommittee heard testimony from legal and industry experts who suggested an array of changes that could be made to the bureau and its operations. Read on for more details.

The Federal Reserve’s Federal Open Market Committee is preparing to hold its March meeting to decide if another increase to the federal fund rate is appropriate in the continued effort to lower inflation. This meeting comes less than two weeks after the collapse of three U.S. banks and amid a less stable banking market. Read on for more details.

The Independent Community Bankers of America (ICBA) elected a new chair for the 2023-2024 term beginning March 16 at the conclusion of ICBA’s national convention. Read on for more details.

Sen. Elizabeth Warren (D-Mass.) and Rep. Katie Porter (D-Calif.) introduced a bill that would repeal the Trump-era changes to the Dodd-Frank Act. Read on for more details.

Artificial intelligence (AI) has been a thing of science fiction storytelling since the genre’s earliest days. For many, when they think of AI, they think of androids and possibly Isaac Asimov’s three laws of robotics. But there is more to AI and machine learning than robots. They can also be helpful tools in real estate finance. Read on for more details.

The Consumer Financial Protection Bureau and the Department of Justice filed a joint statement of interest in a lawsuit alleging an appraiser and a lender violated federal law by lowering the valuation of a home because the owners were Black and by denying a mortgage refinancing application based on that low appraisal. Read on for more details.

Celebrity Home Loans is facing a potential class action suit from its ex-employees who were laid off “abruptly” in February and who are claiming Celebrity still owes them back pay. Read on for more details.

The Federal Reserve Vice Chair for Supervision Michael Barr announced the Fed is setting up a “specialized team of experts” to help it supervise the crypto sector. Read on for more details.

The Consumer Financial Protection Bureau released a special edition of its supervisory highlights report which looks specifically at “unlawful junk fees” in different areas of the consumer financial services sector. Specifically, the bureau looks at the role fees place in deposit accounts and multiple loan servicing markets. Read on for more details.

The Commodity Futures Trading Commission filed the first civil enforcement action in federal court for a scheme to unlawfully obtain millions of dollars in digital assets. The type of scheme is sometimes called “oracle manipulation,” which involves the hacking and manipulation of a smart contract to cause a system failure, theft, or other damages. Read on for more details.

The Consumer Financial Protection Bureau is conducting a review of Regulation Z’s mortgage loan originator rules pursuant to the Regulatory Flexibility Act. The bureau is seeking input from “small entities” on the economic impact of the rules. Read on for more details.

The National Fair Housing Alliance partnered with Fairplay, a tech company that specializes in offering “fairness-as-a-service” through its AI-powered tools, to test artificial intelligence (AI) methodologies designed to improve mortgage lending outcomes for historically underserved homebuyers. Read on for more details.

Bipartisan legislation designed to “fix” digital asset reporting requirements was reintroduced in the House of Representatives by House Financial Services Committee Chair Rep. Patrick McHenry (R-N.C.) and Rep. Ritchie Torres (D-N.Y.). Read on for more details.

A Cincinnati man filed a complaint with the U.S. Department of Housing and Urban Development over what he claims is racial discrimination in property appraisal. At the center of his complaint are a series of alleged errors that lowered the value of his property and which the appraiser reportedly refused to correct. Read on for more details.

The Federal Reserve, Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency issued a joint warning about the risks of using and holding crypto assets. The International Monetary Fund also issued a new paper encouraging member countries to not move too quickly in matters of law and policy surrounding crypto assets. Read on for more details.

The Consumer Financial Protection Bureau is seeking public input regarding the consumer disclosures of a loan that finances both the construction and permanent purchase of a home. The request for input comes following an application to the bureau’s trial disclosure program from the Independent Community Bankers of America. Read on for more details.

New data reported from ATTOM found the number of zombie foreclosures – pre-foreclosure properties that have been abandoned by their owner – has been on the rise since the end of pandemic-era moratoria on evictions and foreclosures. Read on for more details.

New data released from Zillow found the value of homes owned by Black Americans appreciated in value at a higher rate than all other homes during the pandemic, continuing a trend that began in 2014. Though Black homeowners have seen a great rate of appreciation in value over the past nine years, it hasn’t been enough to close the racial wealth gap, according to Zillow. Read on for more details.

The Consumer Financial Protection Bureau (CFPB) finalized updates to the Rule of Practice for Adjudication Proceedings. The procedural rule became effective on Feb. 22, 2022. However, the CFPB opened a notice-and-comment period so that interested parties could comment on the updates. Following a review of the comments, the bureau has issued the finalized version of the procedural rules. Read on for more details.

The U.S. Department of Justice announced a settlement agreement with Newark, Ohio-based Park National Bank as part of the department’s Combatting Redlining Initiative. Read on for more details.

The inevitable part of Wells Fargo’s exit from substantial parts of the U.S. mortgage market has arrived. The bank announced it laid off hundreds of mortgage bankers as part of its strategic shift. Read on for more details.

Freddie Mac announced the appointment of a new lead for its single-family acquisitions division. Read on for more details.

In a filing with the Securities and Exchange Commission, PacWest Bancorp announced the restructuring of its subsidiary Civic Financial Services, LLC. This restructuring is set to include layoffs that will take effect in the second quarter of 2023. Read on for more details.

Mutual of Omaha Mortgage announced the acquisition of the assets of Keller Mortgage LLC, a member of the Keller Williams family of companies. Read on for more details.

The Federal Trade Commission launched a new office of technology which is intended to strengthen the commission’s ability to keep pace with technological challenges in the digital marketplace. Read on for more details.