News By Edition

The Consumer Financial Protection Bureau released a report on a rule regarding collecting data on small-businesses and women- and minority-owned businesses. The report is part of the rulemaking process required by Section 1071 of the Dodd-Frank Act.

The panel’s findings and recommendations will be used to prepare the notice of proposed rulemaking to implement Section 1071.

Read on for details and industry reactions.

The Consumer Financial Protection Bureau has issued a consent order against a mortgage servicer for violating the Consumer Financial Protection Act of 2010 and Regulation X.

The consent order requires the servicer to pay redress to harmed consumers, imposes a civil money penalty, and injunctive relief that would apply should the company engage in mortgage servicing in the future.

For more details, read on. 

The Federal Housing Finance Agency has finalized the Enterprises’ housing goals for 2021. Because of uncertainty caused by the COVID-19 pandemic, the agency did not set benchmarks beyond next year.

In addition to this final rule, the agency also issued an advanced notice of proposed rulemaking seeking comment on what factors the FHFA may consider when determining future housing goals.

Read on for more details.

The Federal Housing Finance Agency has issued a notice of proposed rulemaking (NPR) detailing the liquidity requirements for Fannie Mae and Freddie Mac.

The proposed rule contains four liquidity requirements meant to ensure the companies are able to act as a “source of strength” in the mortgage market during economic downturns.

For details on the NPR, read on.

Top of Mind Networks has announced an integration with Sales Boomerang to help loan officers uncover new business opportunities and outperform customer retention benchmarks.

Read on for more information.

ACES Quality Management released its quarterly mortgage quality control report, covering the second quarter of 2020.

For details from the report, read on.

LBA Ware, a company that provides incentive compensation management and business intelligence software solutions for the mortgage industry, has joined the American Credit Union Mortgage Association as an affiliate member.

Read on for details.

Freddie Mac released a report detailing the vital role the Low-Income Housing Tax Credit program serves in rural persistent poverty counties.

The white paper – the first of three – is part of Freddie Mac’s three-year “Duty to Serve” plan to increase rental and homeownership opportunities in historically underserved markets.

For details from the report, read on. 

The Office of the Comptroller of the Currency has released the Project REACh Minority Depository Institution (MDI) pledge for large and midsize banks.

The MDI pledge is meant to encourage banking organizations to develop meaningful partnerships with MDIs to help them remain a part of the economic landscape and better promote the project’s mission.

Read on for more details.

The Government Accountability Office (GAO) reported that the programs established by the Federal Reserve and the Treasury and funded by the CARES Act have not been used much.

“While the programs likely improved some corporate and municipal credit markets, state and local governments and small businesses still face financial challenges,” the GAO stated.

Read on for more details.

Black Knight has launched a new interactive data dashboard called Mandatory Analytics.

For more details, read on.

The National Credit Union Administration announced enhancements to the agency’s fraud hotline, including electronic submissions.

Read on for more details. 

The National Credit Union Administration has expanded its educational opportunities on its learning management service.

Read on for details.

Another lawsuit has been filed concerning the Consumer Financial Protection Bureau’s (CFPB) payday loan rule.

The complaint challenges the 2020 repeal of the underwriting provision of the rule and alleges the CFPB relied on “arbitrarily truncated analysis” and executed the repeal without observance of the rulemaking procedure required by the Administrative Procedures Act.

To learn more about the plaintiff’s argument, read on.

The U.S. Department of Housing and Urban Development (HUD) is awarding $46 million in rental assistance and housing vouchers to help veterans who are at risk for homelessness.

“Ending veteran homelessness has been a top priority for the Trump Administration since day one,” HUD Secretary Ben Carson said.

For more on the award, read on.

Evolve Mortgage Services has acquired the appraisal platform assets of Veptas Technology Solutions, Inc.

Read on for more details.

The Federal Housing Finance Agency announced the extension of the Enterprises’ loan origination flexibilities until Jan. 31, 2021.

Read on for more details.

Kyle Hauptman has been sworn-in as the 24th board member of the National Credit Union Administration.

Read on for details. 

The Consumer Financial Protection Bureau granted a no action letter (NAL) to Upstart Network, Inc. The NAL addresses the company’s automated model for underwriting and pricing applicants for unsecured, closed-end loans.

The model uses artificial intelligence techniques and alternative data. Upstart was unsure how certain provisions of the Equal Credit Opportunity Act and its implementing regulation B would apply to this product.

Read on for more details.

U.S. Representative Maxine Waters wrote a letter to President-elect Joe Biden about actions she hopes his administration will take during the first year of his presidency.

Among other topics in her 45-page letter, Waters requests Biden replace the current director of the Consumer Financial Protection Bureau and outlines regulations she recommends be repealed or replaced.

For details on her letter, read on. 

Promontory MortgagePath, LLC has hired Elisha Werner as chief compliance officer, mortgage relations.

“Compliance is the foundation on which our solution is built, and Elisha’s demonstrated experience in mortgage compliance will directly support us in equipping lenders with best-in-class technology at the highest level of compliance adherence,” Debora Aydelotte, Promontory MortgagePath chief operating officer, said.

Read on for more details.

Ginnie Mae announced it will extend relief from the acceptable delinquency threshold from Dec. 31, 2020 through July 31, 2021.

Read on for more details.

The Mortgage Bankers Association has hired a new associate vice president of legislative affairs.

For more details, read on.

The National Credit Union Administration has hired its first chief ethics counsel.

Read on for more details.

The Consumer Financial Protection Bureau has issued two final rules on qualified mortgage (QM) loans.

The bureau said these new rules will support a smooth and orderly transition away from the Government Sponsored Enterprises patch when it expires and maintain access to responsible, affordable mortgage credit. One rule replaces the debt-to-income ratio requirement, the other creates seasoned QMs.

For more details, read on.

The Office of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corp. issued an interim final rule to temporarily mitigate transition costs related to COVID-19.

The rule applies to community banks with total assets of less than $10 billion as of Dec. 31, 2019.

Read on for more details.

The Office of the Comptroller of the Currency (OCC) has published instructions and technical specifications for preparing and submitting quantitative measurements relating to the Volcker rule.

The compliance date for the final rule that was passed in November 2019 is Jan. 1, 2021. The OCC noted some community banks are exempt from these requirements.

Read on for more details.

SimpleNexus and Unify have announced a two-way integration to streamline the loan application process.

Read on for more details.

Kyle Hauptman was confirmed to serve on the National Credit Union Administration Board.

Read on for more details. 

The Federal Housing Finance Agency announced Principal Deputy Director Adolfo Marzol will be retiring Dec. 18, 2020. Marzol’s successor has been named.

Read on for details.

The Consumer Financial Protection Bureau (CFPB) filed a complaint and a proposed stipulated judgment and order against Nationstar Mortgage, LLC.

The CFPB alleges the company violated multiple federal consumer financial laws. The complaint is a coordinated effort with attorneys general from all 50 states and the District of Columbia, as well as state bank regulators from several jurisdictions.

Read on for more details.

The National Association of Federally-Insured Credit Unions (NAFCU) issued its annual report on credit unions.

“The coronavirus pandemic posed many challenges for our nation,” NAFCU President and CEO Dan Berger said. “The 2020 NAFCU Report on Credit Unions shows how credit unions proactively and successfully adjusted their daily operations to help Americans nationwide.”

For details from the report, read on.

The Consumer Financial Protection Bureau has filed a lawsuit against DMB Financial, LLC, of Beverly, Mass., a debt settlement company, alleging violations of the Telemarketing Sales Rule and the Consumer Financial Protection Act of 2010.

The bureau is requesting an injunction, redress to consumers, “disgorgement of ill-gotten gains”, and civil money penalties.

Read on for more details. 

The Office of the Comptroller of the Currency announced three individuals to fill executive positions. They are set to transition into their new roles by the end of the year.

Read on for details.

The Consumer Financial Protection Bureau has added five people in various leadership positions.

Read on for more details.

The Federal Housing Finance Agency has announced Fannie Mae and Freddie Mac will extend foreclosure and real estate owned eviction moratoriums, which were set to expire Dec. 31, 2020.

Read on for more details.

The Consumer Financial Protection Bureau has finalized its advisory opinions policy.

In addition, the bureau issued two new advisory opinions regarding earned wage access products, and whether certain education loan products are covered by the definition of “private education loan” in the Truth in Lending Act and Regulation Z.

For more details on the policy, read on.

President-elect Joe Biden announced members of his economic team in a press conference held in Wilmington, Del., including Janet Yellen, former Federal Reserve chair, to fill the role of treasury secretary.

The National Association of Federally-Insured Credit Unions, Independent Community Bankers of America, and the Community Bankers Association issued responses to Yellen’s nomination.

To see what they had to say, read on.

Consumer Financial Protection Bureau Director Kathleen Kraninger spoke to the bureau’s academic research council about small-business lending data and research, the accuracy of credit reporting, and the use of alternative credit data.

During her speech, she requested feedback from stakeholders regarding the small-business data collection outline released by the bureau.

Read on for more details.

The Federal Housing Finance Agency has increased the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac.

Read on for more details.

The Consumer Financial Protection Bureau has refreshed its public website to improve functionality and access.

For more details read on.

The Federal Reserve Board and the Consumer Financial Protection Bureau have announced the dollar thresholds that will apply for determining exempt consumer credit and lease transactions in the coming year.

Read on for more details. 

The Office of the Comptroller of the Currency announced a proposed rule that would ensure fair access to banking services provided by national banks, federal savings associations, and federal branches and agencies of foreign bank organizations.

“Fair access to financial services, credit, and capital are essential to our economy,” acting Comptroller of the Currency Brian Brooks said.

Read on for details.

The Federal Housing Finance Agency (FHFA) has issued a final rule to establish a new regulatory capital framework for Fannie Mae and Freddie Mac (the Enterprises).

The rule, originally proposed in 2018 and based on the previous conservatorship capital framework, fulfills Congress’s mandate that the FHFA establish risk-based capital requirements for the Enterprises.

Read on for more details.

Quantarium and Valligent Technologies announced the launch of QVM-Insights, an AI-powered, automated valuation model for equity lending, broker price opinions, and real estate owned valuations.

Read on for more details.

A Freddie Mac analysis found its forbearance program and the one installed by the CARES Act were a substantial benefit to homeowners during the pandemic.

The analysis compared pandemic forbearance rates to those during a 14-month “baseline” period prior to the COVID-19 crisis, and to rates in areas affected by severe storms in 2017.

For more details, read on.

QuestSoft Corp. has added a new digital compliance tool to its Compliance EAGLE platform to assist lenders in the loan prequalification process.

Read on for details.

The Federal Housing Finance Agency approved the classic FICO credit score model for use by Fannie Mae and Freddie Mac.

Read on for more details.

The Federal Reserve Board adjusted the terms of the Main Street Lending Program in an effort to increase access for small businesses as revenue shortfalls continue.

Read on for details.

In a survey conducted on behalf of the American Bankers Association, Americans of all age ranges said they trust banks the most to protect their information.

Moreover, nine in 10 Americans with a bank account are highly satisfied with their banks and approve of the institutions’ COVID-19 response.

For more details about the survey, read on.

The Office of the Inspector General (OIG) announced Guild Mortgage Co. of San Diego, Calif. has agreed to pay $24.9 million to resolve allegations that it violated the False Claims Act and common law.

The company was accused of “knowingly breaching material program requirements,” OIG stated in a release.

Read on for details. 

HR 8675 was introduced in Congress, and if passed will require federal banking agencies to exclude paycheck protection program loans from certain asset calculations.

Read on for more details. 

The Office of the Comptroller of the Currency issued a new rule some say will allow predatory lenders to evade state interest caps.

The regulation, known as the True Lender Rule, clarifies what entity is considered the ‘true lender’ when determining which compliance obligations apply. Groups like the Americans for Financial Reform disagree with this rule and predict legal challenges.

Read on for details.

The Federal Trade Commission has launched a new platform for consumers to report scams, fraud, and bad business practices.

Read on for details.