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Dig into the CFPB's sweeping short-term (payday) lending proposal
Posted Date: Friday, June 24, 2016
In this two-part series, Dodd Frank Update explores the depths of the Consumer Financial Protection Bureau’s extensive small-dollar (or payday) lending proposal. The rule is much more expansive than you think so find out here whether your products are covered under the rule.
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GAO finds deficiencies in CFPB’s financial statements
Posted Date: Friday, June 17, 2016
The Government Accountability Office has identified deficiencies within the Consumer Financial Protection Bureau’s financial statements for fiscal years 2014 and 2015 regarding the bureau’s internal controls over accounting for property, equipment and software. The office made five recommendations for the bureau. Read on to learn more.
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CFPB: Payment processor cannot turn a ‘blind eye’
Posted Date: Tuesday, June 14, 2016
The Consumer Financial Protection Bureau filed a complaint against payment processer Intercept Corp. and two of its executives, alleging unfair acts and practices under the Dodd-Frank Act’s UDAAP standard. The CFPB alleged that Intercept “systematically enabled its clients to withdraw millions of dollars’ worth of unauthorized or otherwise illegal charges from consumers’ bank accounts,” among other things.
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Latest FHFA undertakings in FHLB oversight outlined
Posted Date: Friday, June 3, 2016
At the Federal Home Loan Bank annual Directors’ Conference, Federal Housing Finance Agency Director Melvin Watt discussed what the agency is doing to create a better Federal Home Loan Bank System, including the agency oversight efforts on the increased use of short-term funding in the form of discount notes, diversity and inclusion efforts, affordable housing and its finalized membership rule. What are the agency’s goals in the upcoming months? Read on to find out.
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First action brought under anti-fraud rules
Posted Date: Friday, June 17, 2016
The Securities and Exchange Commission has brought its first enforcement action under the Dodd-Frank Act’s municipal advisor anti-fraud provisions, reaching two settlements with School Business Consulting Inc. and Keygent LLC for alleged deceptive practices. Read on to learn more.
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FFIEC: Guard cybersecurity of interbank messaging
Posted Date: Friday, June 10, 2016
The Federal Financial Institutions Examination Council (FFIEC) has advised financial institutions to actively manage the risks associated with interbank messaging and wholesale payment networks, emphasizing that institutions should review risk-management practices and controls related to information technology systems and wholesale payment networks. Read on to learn more.
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CFPB Ombudsman seeks to ease communications
Posted Date: Friday, June 10, 2016
At the Consumer Bankers Association’s annual conference, members of the Consumer Financial Protection Bureau Ombudsman’s Office – an independent, impartial and confidential resource for industry stakeholders, participants and consumers – discussed the ways in which it informally resolves issues arising from bureau activities. Read on to learn more.
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Realtors highlight privacy, correction timeline issues
Posted Date: Friday, June 10, 2016
The National Association of Realtors wants the Consumer Financial Protection Bureau to clarify the state of privacy liability since the implementation of the TILA-RESPA Integrated Disclosures (TRID) rule. The suggestion is among three major points highlighted by the association in a comment letter to the bureau, in anticipation of the re-opening of rulemaking on TRID. Read on for more details.
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FASB issues final CECL standard; ABA, ICBA responds
Posted Date: Friday, June 17, 2016
The Financial Accounting Standards Board has issued its final accounting standards update on its Current Expected Credit Loss (CECL) standard, which was first proposed in 2012. According to the American Bankers Association (ABA), bank regulators have described CECL as the “biggest change to bank accounting ever.”
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SCOTUS’ Spokeo decision may extend to class actions
Posted Date: Friday, June 10, 2016
The Supreme Court ruled on Spokeo, Inc. v. Robins on May 16, holding that plaintiffs who bring class actions must suffer a particularized and concrete injury in order to establish standing. Plaintiffs cannot base claims solely on technical statutory violations. Spokeo involved the Fair Credit Reporting Act but may have implications for the Real Estate Settlement Procedures Act, Truth in Lending Act, Electronic Fund Transfer Act, Fair Debt Collection Practices, and the Fair Housing Act, among others. Read on to learn more.
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Loan officer: I was bullied into settling with CFPB
Posted Date: Friday, June 3, 2016
The loan officer named within the Consumer Financial Protection Bureau’s consent order claims that he was “bullied” into entering the settlement, issuing a statement through his attorney that “the extraordinary cost of fighting these allegations in prolonged litigation against such a powerful federal agency was not possible.” The order alleged that he had been engaged in a fee-shifting scheme in violation of the Real Estate Settlement Procedures Act (RESPA).
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FCC proposal undercuts current regulations
Posted Date: Tuesday, June 14, 2016
The American Bankers Association and Consumer Bankers Association have responded to the Federal Communications Commission’s request for comment regarding its proposal to exempt autodialed and prerecorded calls “made solely to collect a debt owed to or guaranteed by the United States” from the Telephone Consumer Protection Act’s prior express consent requirement.
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FDIC: First quarter shows decline in net income
Posted Date: Friday, June 3, 2016
Commercial banks and savings institutions insured by the Federal Deposit Insurance Corp. reported aggregate net income of $39.1 billion in the first quarter of 2016, down $765 million (1.9 percent) from a year earlier, according to the FDIC’s latest Quarterly Banking Profile. Read on to learn more about the FDIC’s finding.
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Neugebauer bill aims to repeal Durbin Amendment
Posted Date: Friday, June 17, 2016
On June 14, Rep. Randy Neugebauer (R-Texas) introduced H.R. 5465, a bill that aims to repeal the Durbin Amendment (Section 1075 of the Dodd-Frank Act). The Durbin Amendment required the Federal Reserve to limit the interchange fee that a card issuer could collect from merchants for debit card transactions. Read on to find out more about the bill that has received strong support from more than five industry groups.
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You are covered under the CFPB’s payday proposal – Now what?
Posted Date: Tuesday, June 28, 2016
You’ve determined that your loan products would be covered under the Consumer Financial Protection Bureau’s sweeping payday lending proposal. What does this mean? What are some of the possible limitations and liabilities? In Part 2 of this two-part series, Dodd Frank Update explores the bureau’s ability-to-repay requirements and the alternative lending options for short-term and longer-term loans.
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CFPB files petition to enforce CID against structured settlements purchaser
Posted Date: Tuesday, June 21, 2016
The Consumer Financial Protection Bureau filed a petition to enforce a civil investigative demand against J.G. Wentworth, LLC on June 7 in the U.S. District Court for the Eastern District of Pennsylvania. Wentworth purchases structured settlements and annuities from consumers for lump sums and received the initial demand in September 2015. Despite communications back and forth, Wentworth ultimately decided not to respond to the bureau’s demands. Read on to learn more.
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Here’s what NCUA spent training its staff
Posted Date: Tuesday, June 21, 2016
The National Credit Union Administration held its biennial training program, providing more than 900 NCUA staffers with training in cybersecurity, member-business lending, managing examinations, interest-rate risk and consumer protection issues. The administration has released a line-item breakdown of its expenses. Read on to learn more about what the administration spent on training.
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Keep these new thresholds in mind for compliance
Posted Date: Tuesday, June 21, 2016
The Federal Reserve Board, Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. have issued information on the host state loan-to-deposit ratios and the latest list of distressed or underserved nonmetropolitan middle-income geographies. Additionally the Consumer Financial Protection Bureau has announced the annual adjustments to the dollar amounts of various consumer credit transactions under the Truth in Lending Act. Read on to learn more.
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Gruenberg discusses regulations’ impacts to Exchequer Club
Posted Date: Friday, June 17, 2016
In a speech before the Exchequer Club on June 15, Federal Deposit Insurance Corp. Chairman Martin J. Gruenberg discussed credit availability, bank profitability, market liquidity and the distribution of financial activity between banks and nonbanks – topics that often are mentioned in questions regarding how post-crisis financial regulations have affected banks’ ability to support U.S. economic growth and market functioning.
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Final rule issued on swap data recordkeeping, reporting
Posted Date: Friday, June 17, 2016
To provide clarity to swap counterparties and registered entities regarding their reporting obligations for cleared swap transactions, the Commodity Futures Trading Commission approved a final rule June 14 that amends existing swaps reporting regulations. The rule amends the definition of original swap and clearing swap, among other things. Read on to find out more about the rule CFTC Chairman Timothy Massad says will “significantly enhance data quality and reduce reporting costs.”
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CFPB adds auto loan tools to KBYO resources
Posted Date: Tuesday, June 14, 2016
The Consumer Financial Protection Bureau has added an auto loan shopping toolkit to its available consumer resources as part of its Know Before You Owe initiative. The tool is a step-by-step guide aimed at helping consumers understand the total cost of the loan, not just the monthly payment; comparison shop and detect other financing features and add-ons. Read on to learn more about the report that shaped this latest shopping tool.
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NCUA releases latest data on state-level loan balances
Posted Date: Tuesday, June 14, 2016
The National Credit Union Administration has found more than half of federally insured credit unions in every state reported loan balance growth over the year ending in the first quarter of 2016. The administration’s findings are from state-level data it compiled and are presented within its Quarterly U.S. Map Review, which also tracks state-level unemployment rates and home price changes. Read on to learn more.
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SEC names senior advisor for cybersecurity policy department
Posted Date: Tuesday, June 14, 2016
The Securities and Exchange Commission announced June 2 that Christopher R. Hetner will become senior advisor to the chair for cybersecurity policy, and will serve as a senior advisor to SEC Chair Mary Jo White on all cybersecurity policy matters. Read on to learn more.
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Financial Choice Act: What you need to know
Posted Date: Friday, June 10, 2016
House Financial Services Committee Chairman Rep. Jeb Hensarling (R-Texas) unveiled an outline of the Financial Choice Act, which is being proffered as a replacement to the Dodd-Frank Act. The bill would eliminate the Volcker Rule and the Financial Stability Oversight Council’s SIFI designation process, among other things, and may lead to prominent adjudicative changes, such as eliminating Chevron deference. Read on to learn more.
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CFTC approves supplement to position limits proposal
Posted Date: Friday, June 10, 2016
The Commodity Futures Trading Commission issued a supplement to its December 2013 position limits proposal, which is now available for public comment. The supplement will modify the procedures proposed for persons seeking exemptions from speculative position limits for non-enumerated bona fide hedging. Read on to learn more about what CFTC Commissioner J. Christopher Giancarlo believes is a “positive step forward” to devising a final rule.
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NS3: Make a Child Smile brings ‘simple pleasures’ to Charlotte
Posted Date: Tuesday, June 7, 2016
For the fifth year in a row, attendees at October Research, LLC’s National Settlement Services Summit got together to help make a difference in the lives of area children. Read on for details of the charity presentation, and how the “simple pleasures help our children and families feel a sense of normalcy.”
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NS3: Regulator Open Forum prompts insightful discussions
Posted Date: Tuesday, June 7, 2016
The National Settlement Services Summit in Charlotte, N.C., opened with a forum discussion on today’s hot regulatory and compliance topics. With state and federal regulators on stage, the discussion included dispute resolution with the Consumer Financial Protection Bureau, TRID, marketing services agreements and more. Read on for the details.
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NS3: Industry’s best honored with OR Awards
Posted Date: Tuesday, June 7, 2016
For the fifth year, October Research, LLC, presented its annual awards for leadership, innovation and philanthropy, with some of the brightest stars in the title industry recognized for their work. Read on to find out who is receiving this special recognition at October Research’s annual National Settlement Services Summit (NS3).
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Madden v. Midland: Why this case on state usury laws should concern you
Posted Date: Tuesday, June 7, 2016
In response to a request from the U.S. Supreme Court, the Solicitor General filed a brief recommending that the Supreme Court should hear Madden v. Midland Funding, Inc., a case centering on the question of whether the National Bank Act’s preemption of state usury laws still applies after a national bank sells or assigns a loan to a non-national bank entity. Read on for more details about the case as well as its next steps.
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NAFCU responds to CFPB report on sample bankruptcy statements
Posted Date: Tuesday, June 7, 2016
On April 26, the Consumer Financial Protection Bureau released a report detailing the testing results for its proposed bankruptcy periodic statement forms for mortgage servicing. Section 1420 of the Dodd-Frank Act amended the Truth in Lending Act to require creditors, assignees or servicers of any residential mortgage loan to provide a periodic statement to the borrower for each billing cycle. Read on to learn more about the National Association of Federal Credit Unions’ feedback on the bureau’s proposed statements.
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NS3: Summit opens with lender oversight focus
Posted Date: Monday, June 6, 2016
Hoping to keep the industry on a fast track to compliance and business building, the 12th annual National Settlement Services Summit (NS3) opens its doors today at the Sheraton and Le Meredien hotels in Charlotte, N.C. Read on for a preview of this year’s NS3.
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CFPB Ombudsman seeks to ease communications, address processes
Posted Date: Monday, June 6, 2016
At the Consumer Bankers Association’s annual conference, members of the Consumer Financial Protection Bureau Ombudsman’s Office – an independent, impartial and confidential resource for industry stakeholders, participants and consumers – discussed the ways in which it informally resolves issues arising from bureau activities. Read on to learn more.
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A first look at the CFPB’s long-awaited payday lending proposal
Posted Date: Friday, June 3, 2016
At its June 2 field hearing, the Consumer Financial Protection Bureau unveiled its long-awaited rulemaking proposal on payday, vehicle title and other high-cost installment loans. The proposal would require lenders to assess consumers’ ability to repay loans or follow alternative lending conditions. The proposal also contains data furnishing and recordkeeping requirements. Read on to learn more.
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Trade associations express strong support for Durbin Amendment’s debit reform
Posted Date: Friday, June 3, 2016
More than 140 national and state retail trade associations signed a letter to House Financial Services Committee Chairman Rep. Jeb Hensarling (R-Texas) and Ranking Member Rep. Maxine Waters (D-Calif.) in strong support of the debit reforms included within the Dodd-Frank Act’s Durbin Amendment. The letter had been sent May 18 amid reports of Hensarling’s plan to unveil sweeping Dodd-Frank changes. Read on to learn more.
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DOJ ruling against Bank of America reversed on appeal
Posted Date: Tuesday, May 24, 2016
The Second Circuit Court of Appeals this week reversed a $1.2 billion ruling against Bank of America in a lawsuit brought by the Department of Justice for mortgage fraud related to Countrywide Home Loans’ “Hustle” program in 2007-2008. The appellate court said the key issue focused on whether a breach of contract supported a claim for fraud. Read on for details of how the court came to its decision.
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House passes transitional licensing act
Posted Date: Tuesday, May 24, 2016
The House of Representatives passed a bill this week which would allow more flexibility for mortgage loan officers to move between jobs. The bill now moves to the Senate. Read on for details on the bill and reaction from the Mortgage Bankers Association.
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Fed to propose capital requirements for large insurers
Posted Date: Tuesday, May 24, 2016
In a speech at the National Association of Insurance Commissioner’s International Insurance Forum, Federal Reserve Board Gov. Daniel Tarullo discussed plans for an advance notice of proposed rulemaking on capital requirements for large insurers. The Dodd-Frank Act gave the Fed regulatory responsibilities for insurance holding companies that own a federally insured bank or thrift and for insurance companies designated as systemically important by the Financial Stability Oversight Council. Read on to learn more.
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Groups push for passage of data security bill
Posted Date: Tuesday, May 24, 2016
The Financial Services Roundtable and other trade associations are pushing for Congress to pass the Data Security Act of 2015 (H.R. 2205, S.961), a bill with strong bipartisan support that would require all entities to protect consumer data as part of a data breach notification law. Read on to learn more.
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Here are the CFPB’s plans for the rest of Obama’s term
Posted Date: Friday, May 20, 2016
As part of its Regulatory Flexibility Act requirements, the Consumer Financial Protection Bureau has released its latest rulemaking agenda, detailing the progress it has made and expects to make regarding arbitration; payday, auto title and similar lending products; prepaid accounts; mortgage servicing; the TRID rule; overdraft; debt collection; larger participants and non-depository lender registration; and women-owned, minority-owned and small business data collection.
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Is payday lending rulemaking finally here?
Posted Date: Friday, May 20, 2016
For more than three years, the Consumer Financial Protection Bureau (CFPB) has been looking into potential rulemaking to provide consumer protections for small-dollar credit loans, including payday loans and vehicle title loans. After announcing a field hearing on the issue the day that it released findings of its fourth report on the industry, it appears the CFPB may finally be prepared to propose a rule. What has the CFPB been looking into since releasing an outline of proposals to a Small Business Review Panel last year? How will the industry and its supporters react? Read on for more.
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LRES whitepaper addresses small lender vendor management
Posted Date: Friday, May 20, 2016
LRES Corp. announced that it now offers a free whitepaper, “How to Select and Manage Mortgage Service Vendors for Credit Unions and Community Banks.” The paper explains why fewer vendors with broader service offerings are one of the most effective best practices for credit unions, community banks.
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ABA challenges CFPB’s generic collection request
Posted Date: Friday, May 20, 2016
The American Bankers Association, in response to a generic data collection request by the Consumer Financial Protection Bureau (CFPB), said it was concerned the CFPB had misused its authority to conduct data collection on overdraft practices without having to go through a notice-and-comment process first. Read on to see why the association is taking issue with the CFPB’s request to extend its generic data collection.
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Bankers questions lending practices of Farm Credit System
Posted Date: Friday, May 20, 2016
Testifying before the Senate Agriculture, Nutrition and Forestry Committee, members of the American Bankers Association and Independent Community Bankers of America expressed concerns about the expanding Farm Credit System and its potential impact on rural lenders. Both took issue with the System’s nonfarm lending, asking Congress to conduct an examination of its practices. Read on to learn more.
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Agencies release guidance on deposit-reconciliation
Posted Date: Friday, May 20, 2016
The Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve Board (FRB), the Consumer Financial Protection Bureau (CFPB), the National Credit Union Administration (NCUA) and the Office of the Comptroller of the Currency (OCC) have issued a joint guidance on deposit-reconciliation practices – when deposits made by consumers do not match the bank’s records. Read on to learn more.
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Waters aims for fixing credit reporting system
Posted Date: Friday, May 20, 2016
Rep. Maxine Waters (D-Calif.), the ranking member for the House Financial Services Committee, has introduced the “Comprehensive Consumer Credit Reporting Reform Act of 2016” (H.R. 5282). Credit reporting has been a particular area of interest from the Consumer Financial Protection Bureau and other federal financial regulators because of the inability of consumers to determine who furnishes information to creditors. Read on to learn more about the proposed protections.
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