News By Edition

About two years ago, Lenders One cooperative was presented with an opportunity. Nationwide retailer Walmart was looking to fill space in its stores with services that create value to its customers in the financial services realm. Lenders One President Justin Demola spoke with Dodd Frank Update about how this deal came about and how it’s going. Read on for more details.

California-based lender American Mortgage Network (AMNet) filed a lawsuit in the U.S. District Court for the Northern District of Georgia charging CrossCountry Mortgage of racketeering in association with the poaching of employees and loans. AMNet also names a former employee and a CrossCountry executive as defendants in the lawsuit. Read on for more details.

The Consumer Financial Protection Bureau created what it is calling a “repeat offender unit” that is tasked with the review and monitoring of activities by large banks that are accused of often violating consumer financial protection laws. The new unit will recommend and pursue remedies to hold companies accountable for failing to comply with federal laws and agency or court orders. Read on for more details.

The Consumer Financial Protection Bureau (CFPB) issued a blog post offering advice for supervised institutions that might be interacting with or finding themselves under examination by the bureau for the first time. The blog post outlines what newly supervised institutions can expect from a supervisory relationship with the CFPB. Read on for more details.

The Consumer Financial Protection Bureau (CFPB) proposed a new rule establishing a public registry of supervised nonbanks’ terms and conditions in “take it or leave it” form contracts claiming to waive or limit consumer rights and protections. The proposed rule would require supervised nonbanks to routinely submit information on their terms and conditions to the CFPB. Read on for more details.

The Independent Community Bankers of America sent a comment letter to the Small Business Administration (SBA) urging it to maintain its long-standing moratorium on the number of non-federally regulated, non-depository institutions that can make loans under its 7(a) program. The 7(a) loan program is SBA’s most popular loan program for small businesses, but also significantly caps the number of non-federally regulated, non-depository institutions which may make these loans. Read on for more details.

In a joint statement from the Federal Reserve, the Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency, the three banking regulators sought to highlight some of the major vulnerabilities and risks of the crypto-assets sector which may pose additional risks to banking organizations. Read on for more details.

The Department of Justice (DOJ) announced it reached an agreement to resolve allegations that Los Angeles-based City National Bank engaged in patterns or practices of lending discrimination by “redlining” in Los Angeles County. The settlement agreement, which is part of the DOJ’s Combat Redlining Initiative, is the largest redlining settlement in its history. Read on for more details.

While serving as chair of the House Financial Services Committee, now-ranking member Maxine Waters (D-Calif.) sent a letter to Federal Trade Commission Chair Linda Khan urging the “robust review” of Intercontinental Exchange’s proposed acquisition of Black Knight. Read on for more details.

As one of his first acts as chair of the House Financial Services Committee, Rep. Patrick McHenry (R-N.C.) announced the chairs of the Financial Services subcommittees, including creating a new subcommittee focused on cryptocurrency. Read on for more details.

House Financial Services Ranking Member Maxine Waters (D-Calif.) criticized committee Chair Patrick McHenry (R-N.C.) and other committee Republicans for eliminating the first diversity and inclusion subcommittee. Read on for more details.

As mortgage lenders are adjusting to an economic downturn, maintaining good personnel is key to maintaining good business. Over the past few months there have been a flurry of lawsuits filed by mortgage lenders across the country accusing other mortgage lenders of engaging in the “poaching” of dozens, and sometimes more than 100, employees in coordinated schemes. Read on for more details.

Six consumer advocacy groups filed an amici curiae brief in support of the Consumer Financial Protection Bureau (CFPB) in a lawsuit brought against the bureau by the U.S. Chamber of Commerce. The Chamber and other trade groups brought the suit challenging the CFPB’s expansion of the unfair, deceptive, or abusive acts or practices section of its examination manual to include discrimination. Read on for more details.

Community Financial Services Association of America filed its brief in opposition to the Consumer Financial Protection Bureau’s petition for certiorari to be heard by the Supreme Court. The opposition brief asks the court to let the Fifth Circuit decision stand; or, if the court does decide to hear the case, the brief implores the court not to examine the constitutional question. Read on for more details.

The U.S. Supreme Court turned away four appeals from shareholders of Fannie Mae and Freddie Mac who claimed they were entitled to compensation after the U.S. Treasury Department collected more than $100 billion in profits from the two government-sponsored enterprises. The rejection follows the 2021 Collins v. Yellen decision which denied other legal arguments attempting to invalidate the profit sweep. Read on for more details.

Fannie Mae announced changes to its automated underwriting system designed to provide new benefits to borrowers with no credit score. Read on for more details.

The 22nd chair of the Federal Deposit Insurance Corp. (FDIC) board of directors has been sworn in. An FDIC board vice chair and director also were sworn in. Read on for more details.

The Department of Housing and Urban Development announced the publication of a notice of proposed rulemaking for the Affirmatively Furthering Fair Housing provision of the 1968 Fair Housing Act. The rule, initially promulgated in 2015, then rescinded in 2020, is a major part of President Joe Biden’s housing initiatives. Read on for more details.

Following months of deliberation and public hearings, the Office of the Comptroller of the Currency and the Federal Reserve gave approval for Chicago-based BMO Harris Bank to merge with San Francisco-based Bank of the West despite vocalized concerns from the public regarding potential negative impacts from the merger. Read on for more details.

A lawsuit filed by former employees of First Guaranty Mortgage Corp. was granted class action status by a federal bankruptcy judge. The suit contends that the lender failed to comply with federal law when it laid off 471 employees “without cause” or notice in June 2022. Read on for more details.

Fannie Mae announced its selection of five organizations to receive “deliverable-based contracts” as part of the Sustainable Communities Innovations Challenge, a nationwide competition to help advance racial equity in housing. Read on for more details.

Crypto exchange Coinbase announced it would lay off approximately 20 percent of its workforce in its second round of job cuts in less than a year. Read on for more details.

Patrick McHenry (R-N.C.) introduced his first piece of legislation as the chair of the House Financial Services Committee for the 118th Congress. The legislation aims to rein in inflation but also leans heavily into partisan politics. Read on for more details.

Cryptocurrency exchange Coinbase agreed to a consent order with the New York Department of Financial Services (DFS) after an investigation found “significant failures” in Coinbase’s compliance program which violated the New York Banking Law and DFS regulations. As part of the consent order, Coinbase agreed to pay $50 million in penalties as well as invest an additional $50 million in its compliance functions over the next two years. Read on for more details.

New data from ATTOM’s year-end 2022 U.S. Foreclosure Market Report found a significant increase in the number of foreclosures compared with the year prior. Read on for more details.

BM Technologies’ $23 million deal to acquire a Seattle-based bank has been called off, citing increased interest rates and a worsening economic outlook. Read on for more details.

The House Financial Services Committee, now being led by Chair Patrick McHenry (R-N.C.), released the names of the Republican members of Congress who will be sitting on the committee during the 118th Congress. Read on for more details.

Wells Fargo announced plans to exit the correspondent lending business and shrink its home mortgage servicing portfolio, narrowing its focus to bank customers and those in minority communities.

The move continues work the company has done over the past three years to “simplify this business,” Wells Fargo said in a statement.

Read on for more details.

Cryptocurrency exchange Coinbase agreed to a consent order with the New York Department of Financial Services (DFS) after an investigation found “significant failures” in Coinbase’s compliance program which violated the New York Banking Law and DFS regulations. As part of the consent order, Coinbase agreed to pay $50 million in penalties as well as invest an additional $50 million in its compliance functions over the next two years. Read on for more details.

Following the Federal Housing Finance Agency’s update to the baseline conforming loan limit in high-cost areas to over $1 million, more than 2 million homes no longer require a jumbo mortgage, according to new analysis by Zillow Home Loans. Read on for more details.

According to new data from Redfin, houses are staying on the market for more than twice as long as they were during the record low set in May 2022. Read on for more details.

The Securities and Exchange Commission appointed a new director of the office of the investor advocate. Read on for more details.

The Consumer Financial Protection Bureau recently released its annual Making Ends Meet report for 2022 which covers the financial health of American households. Since 2019, the survey has seen improvements in financial health, in part from pandemic-related relief programs, reductions in consumer spending, and a tight labor market. The data from 2022, however, shows a decline in several key measures of financial health. Read on for more details.

The Securities and Exchange Commission charged eight individuals for involvement in a fraudulent investment scheme which raised more than $45 million from the sale of unregistered securities for a fake crypto company. Read on for more details.

According to an economic forecast released by the Mortgage Bankers Association, total commercial and multifamily borrowing and lending is expected to fall to $700 billion in 2023. Read on for more details.

Advocacy group New Jersey Citizen Action sent a letter to the Federal Reserve Bank of New York requesting that the merger of two financial institutions only receive approval with a forward-looking New Jersey-specific Community Reinvestment Act agreement. Read on for more details.

Recent data from Redfin found that all-cash home sales in October 2022 had reached the highest level in over eight years. Read on for more details.

Following a number of crypto bankruptcies and federal investigations into alleged misappropriation of crypto assets, the U.S. Securities and Exchange Commission’s Division of Corporate Finance announced new guidance for public company disclosures regarding crypto investments. Read on for more details.

A recent report from the National Community Reinvestment Coalition ranked KeyBank last on its racial inclusion metric. The report states that KeyBank appears to have engaged in activities that disfavor lending to low-income and Black homebuyers and households despite making routine promises to increase efforts to support lending in these communities. Read on for more details.

The House Financial Services Committee heard testimony from FTX CEO John Ray III regarding the collapse and ongoing bankruptcy of the cryptocurrency exchange. Former CEO Sam Bankman-Fried, who was originally supposed to testify before the committee, was not present due to his arrest in the Bahamas. Read on for more details.

The Federal Deposit Insurance Corp. (FDIC) issued a notice of proposed rulemaking to amend part 328 of its regulations to modernize the rules governing use of the official FDIC sign and insured depository institutions’ advertising statements. These changes are part of FDIC’s response to the increasing number of nonbanks that are using language and signage falsely claiming a relationship with FDIC. Read on for more details.

A lawsuit filed by a whistleblower against mortgage lender Academy Mortgage Corp. was settled for $38.5 million despite the Department of Justice wanting the case dismissed. Read on for more details.

The Federal Trade Commission announced it is extending the public comment period for its advanced notice of proposed rulemaking regarding junk fees. Read on for more details.