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ICBA promotes Thomas to EVP
Posted Date: Wednesday, February 19, 2020
The Independent Community Bankers of America (ICBA) announced Lilly Thomas’ promotion to executive vice president and senior regulatory counsel, effective March 1, 2020.
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Calyx announces new enhancements to Zip
Posted Date: Tuesday, February 18, 2020
Calyx, a leading provider of comprehensive mortgage software solutions for banks, credit unions, mortgage bankers, wholesale and correspondent lenders announced that it has enhanced Zip, the company’s point-of-sale (POS) platform.
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Spring EQ hires Gentek as SVP
Posted Date: Tuesday, February 18, 2020
Spring EQ, a leading nationwide second mortgage lender that is using technology to change the way consumers access their home equity, announced that Gregory Gentek has joined the company as senior vice president of sales.
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Report finds new revenue potential in AI
Posted Date: Tuesday, February 18, 2020
A new global report on the use of artificial intelligence (AI) in financial services found that not only is AI expanding in the kinds of operations institutions use and plan to use it for, but that more companies are expecting the technology to provide new revenue potential rather than simply cost savings and efficiencies.
“The overarching findings of the study suggest that AI is expected to transform a number of different paradigms within the financial services industry,” the report stated.
Read on for details from the report regarding the greatest potential for profit from AI, as well as top areas of concern in regulation.
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Trades urge delay on QRM review
Posted Date: Tuesday, February 18, 2020
A group of financial services trade associations recently wrote federal regulators to comment on potential changes to the qualified residential mortgage (QRM) status.
The Dodd-Frank Act created QRM loans, which were intended to have standards for credit risk retention which originators must meet to have a loan earn QRM status and the safe harbor protections which go along with it.
Read on for details of the associations’ request to federal regulators.
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DOJ cites Chinese military in Equifax data breach
Posted Date: Tuesday, February 18, 2020
The Department of Justice announced that four members of the Chinese People’s Liberation Army have been indicted for causing the 2017 data breach of Equifax that affected 145 million Americans.
The nine-count indictment alleges that the four were members of the PLA’s 54th Research Institute, a component of the Chinese military. They allegedly conspired with each other to hack into Equifax’s computer networks, maintain unauthorized access to those computers, and steal sensitive, personally identifiable information.
Read on for more details about the two-year investigation into the Equifax breach.
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Regulators say leveraged loan risk elevated
Posted Date: Tuesday, February 18, 2020
Federal banking regulators said in a recent report that the credit risk associated with leveraged lending in the industry remains elevated.
The findings came in the Shared National Credit Program Review issued by the Federal Reserve, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency.
Read on for details from the report on the caution bank regulators are urging institutions to take with leveraged lending.
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MBA offers affordable housing recommendations
Posted Date: Tuesday, February 18, 2020
The Mortgage Bankers Association answered a request for information from the Department of Housing and Urban Development on eliminating regulatory barriers to affordable housing, saying the lack of affordable rental and ownership housing “has reached crisis proportions in many areas of the country.
“Absent thoughtful and coordinated policy interventions at multiple levels of government, this situation will only grow worse,” MBA cautioned.
Read on for more details on the ways in which MBA believes deregulation can best be done.
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ASA hires head of government affairs
Posted Date: Tuesday, February 18, 2020
The former chief of staff for a congressman considered as a candidate to be the director of the Consumer Financial Protection Bureau has been hired as the head of government affairs for the American Securities Association.
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Report: Regulatory focus increases on vendor management
Posted Date: Monday, February 10, 2020
A new report from Venminder details the state of third-party risk management, finding that little has changed in investment in third-party risk management, but that regulatory focus is on the rise.
Notably, it found that more companies are using a technology platform to help manage vendor management, but also that regulators are actively focused on exams in the space.
Read on for more details from the report.
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Using ‘visual classification’ tech to ensure loan quality
Posted Date: Monday, February 10, 2020
The potential advantages of using machine learning and automation are still being uncovered and some businesses are striving to see how far they can push the envelope to save time and money in the mortgage space, as well as other industries.
Dodd Frank Update spoke with Patrick Gluesing, president and chief operating officer at The StoneHill Group and John Martin, founder and CEO at BeyondRecognition, about how they are using machine learning and automation to help companies keep up with the pace of constant change in the industry.
Read on for details from the interview.
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Cloud-based security rises to forefront
Posted Date: Monday, February 10, 2020
The need to protect the vast amounts of consumer information financial institutions collect on an annual basis has been more evident than ever in recent years. The fact that cybercriminals have become ever more sophisticated and efficient at hacking traditional data servers has led to the rise of new innovations to secure data storage.
Among the fastest growing innovations in data security is cloud-based storage technology, which many industry insiders swear by, including Blue Sage COO David Aach, former executive vice president at Docutech, who sat down with Dodd Frank Update to discuss the benefits of the technology.
Read on for details from the interview.
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CFPB signs MOU to clarify student lending oversight work
Posted Date: Monday, February 10, 2020
A new agreement between the Consumer Financial Protection Bureau (CFPB) and the Department of Education is expected to smooth over differences between the agencies which have arisen over the past two years.
The agencies announced the signing of a Memorandum of Understanding to define primary roles in handling student loan servicing issues, with the Department of Education having primary responsibility over federal student loans and the CFPB handling the private student loan issues.
Read on for more details from the agreement.
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PennyMac records record origination levels
Posted Date: Monday, February 10, 2020
PennyMac reported record origination levels in 2019, with direct lending locks in the fourth quarter up 235 percent year-over-year.
According to Inside Mortgage Finance, PennyMac was the third-largest producer of mortgage loans for the fourth quarter and the full year of 2019. Loan production activity totaled $42.4 billion in the fourth quarter.
Read on for more details from PennyMac’s record report.
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Kraninger shows backbone of CFPB at hearing
Posted Date: Friday, February 7, 2020
The immediate focus for many from Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger’s appearance before the House Financial Services Committee was the discussion on the bureau’s recent policy statement surrounding abusiveness.
But the most revealing moments might have come in two of the CFPB’s most recent enforcement cases.
Read on for details from Kraninger’s appearance, including her response to notions that the CFPB was weak in its handling of a recent bank enforcement action.
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First American Mortgage Solutions president sees strength in 2020
Posted Date: Friday, February 7, 2020
Last fall, Kevin Wall, First American Mortgage Solutions’ president, sat down with Dodd Frank Update at the Mortgage Bankers Association (MBA) Annual Convention in Austin, Texas, to discuss the year and plans for 2020.
He exuded positive energy about the opportunities that lie ahead for the company and the industry at large in 2020.
Read on for details from the interview with Wall and the executive's outlook for the year.
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Last Cordray action filed is settled for $7
Posted Date: Friday, February 7, 2020
The last enforcement action filed in court by the Consumer Financial Protection Bureau under the leadership of Richard Cordray has been resolved.
The bureau announced a settlement in its case against bankrupt debt collector Think Finance in which the companies who reportedly operated a $133 million online loan scheme will be forced to pay $7 in civil money penalties.
The CFPB announcement was made in conjunction with a bankruptcy settlement which is expected to create a fund of as much as $39 million in consumer redress. Read on for more details.
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Keynote speaker details Fifth Third’s success
Posted Date: Friday, February 7, 2020
Fifth Third Bancorp recently reported fourth-quarter earnings that helped the company reach record profits for 2019, highlighted by skyrocketing mortgage origination gains.
The company posted profits of $734 million in the fourth quarter, up 61 percent from the previous year, while mortgage originations grew more than 60 percent.
Read on for details of Chairman, President and CEO Greg Carmichael’s call with analysts, in which the keynote speaker at the upcoming National Settlement Services Summit discussed the company’s record year and its plans for digital investment moving forward.
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Chase home lending CEO departs
Posted Date: Friday, February 7, 2020
The head of JPMorgan Chase’s home-lending division the past four years has left the company, reportedly for an opportunity elsewhere.
The departure of the home-lending CEO first was confirmed by Chase after published reports.
The executive had been with the company for 16 years, and was CEO of mortgage banking at Chase since 2015. Read on for more details.
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Bankers support FDIC transparency
Posted Date: Friday, February 7, 2020
The American Bankers Association recently took the opportunity to respond to a request from the Federal Deposit Insurance Corp. (FDIC) on a proposed framework the agency is considering to analyze its regulatory effect.
The trade association outlined five general principals in its letter to the FDIC to increase the transparency of the agency’s rulemaking process.
Read on for details from the association’s feedback.
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CardTapp integrates with Top of Mind to improve loan officer productivity
Posted Date: Friday, January 31, 2020
CardTapp recently announced an integration with Surefire by Top of Mind Networks, a provider of customer relationship management (CRM) and marketing automation software for the mortgage lending industry. The integration brings together Surefire’s new Power Calls capability with CardTapp’s digital assistant solution to increase loan officer productivity and enable speedier borrower outreach.
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Otting defends CRA proposal in FSC hearing
Posted Date: Friday, January 31, 2020
The efficacy of the Community Reinvestment Act reform plan published by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. was a central theme during Comptroller Joseph Otting’s latest hearing before the House Financial Services Committee.
Otting took the opportunity to attempt to clarify how aspects of the proposal will benefit low-to-moderate-income communities and to dispel misconceptions about the reform plan.
Learn more about the insights that came out of the hearing.
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Banks, credit unions comment on TRID costs, effectiveness
Posted Date: Friday, January 31, 2020
Various trade advocates pointed to the additional cost burdens associated with TRID regulations and questioned whether those regulations have had the desired effect.
Advocates for both community banks and credit unions, in particular, cited numerous concerns pertaining to TRID’s impact on compliance costs and its impact on their effect on smaller institutions’ ability to compete with their larger industry counterparts.
Learn more about the industry’s concerns.
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CFPB updates HMDA Small Entity Compliance Guide
Posted Date: Friday, January 31, 2020
Certain financial entities and companies that partner with them could benefit from the Consumer Financial Protection Bureau’s recently updated version of its Home Mortgage Disclosure Act (HMDA) Small Entity Compliance Guide.
The bureau revised the guide to account for HMDA changes implemented by its October 2019 final rule.
Find out more details about the newly revised compliance guide.
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CFPB names new enforcement, regulatory execs
Posted Date: Friday, January 31, 2020
The Consumer Financial Protection Bureau (CFPB) has new executives to its regulatory and enforcement staffs, as well as other divisions within the agency.
The five new executives come to the bureau with a wide array of experience levels relevant to their appointed positions.
Read on to learn more details about the officials.
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Visa acquires Plaid to expand consumer capabilities
Posted Date: Friday, January 31, 2020
Visa Inc. recently agreed to a $5.3 billion definitive agreement to acquire Plaid, a network designed to allow people to securely connect their financial accounts to apps used to manage finances offered by providers in the U.S., Canada and the United Kingdom.
Moody’s rated the acquisition as credit positive, given that it provides Visa with “a scaled leading central position between financial institutions and fintech applications for the open banking ecosystem.”
Find out more about the deal and its potential impact.
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CFPB issues abusive policy statement
Posted Date: Tuesday, January 28, 2020
The Consumer Financial Protection Bureau’s (CFPB) newly issued policy statement intended to ease uncertainty about conduct that may be flagged as “abusive” in supervisory and enforcement actions offers more insight about what will not be considered abusive than what will be.
The CFPB indicated that its approach for defining the nexus between will be dependent upon future supervisory or enforcement actions where it can illustrate the difference.
Find out more details about the policy statement, which took effect immediately.
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NCUA proposes rules on mergers, subordinated debt
Posted Date: Tuesday, January 28, 2020
The National Credit Union Administration (NCUA) recently proposed a new rule applying to mergers between credit unions and other types of entities.
The agency also issued a proposed rule on the permitted issuance of subordinated debt, which drew criticism from a top community bank trade leader.
Find out more details about the proposed rules.
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New FICO score could reduce mortgage defaults
Posted Date: Tuesday, January 28, 2020
Using a new algorithm designed to better predict borrowers’ credit worthiness, FICO has released an updated scoring model aimed at helping lenders reduce their default rates and better tracking consumers’ payment habits.
FICO estimates that mortgage lenders could reduce defaults on newly originated mortgages by as much as 17 percent using the new, less “consumer friendly” scoring system.
Find out more about the new score.
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Bank of NY Mellon reports 2019 profits
Posted Date: Tuesday, January 28, 2020
The Bank of New York Mellon Corp. was the beneficiary of higher revenues and asset growth in the fourth quarter of 2019 en route to $1.39 billion in fourth-quarter net income, despite the company’s mixed credit quality.
The bank saw increases in its deposit assets, year-over-year, including in interest-bearing deposits.
Read on to get more information.
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