News By Edition

In the case of Community Financial Services Association of America Ltd., et al. v. CFPB, the Fifth Circuit determined the Consumer Financial Protection Bureau's funding structure was in violation of the Article I appropriations authority given to Congress and a violation of the separation of powers. This case is expected to lead to a Supreme Court decision in the next term for a final ruling. Read on for more details.

KPMG’s Annual CEO Outlook report for 2022 indicated a majority of bank CEOs are anticipating a recession in the next 12 months. The report, which surveyed over 1,300 global CEOs, including 141 in the banking sector, draws on their perspective to provide a 3-year outlook on the business and economic landscape. Read on for more details.

Crypto think tank Coin Center has filed a lawsuit against the Department of Treasury and the Office of Foreign Assets Control (OFAC) over the decision to place sanctions on crypto mixer Tornado Cash. Coin Center claims Treasury and OFAC do not have the legal authority to sanction a smart contract like Tornado Cash. Read on for more details.

Crypto lending platform Moon Mortgage has raised a $3.5 million seed round which will be used to finance Moon’s mortgage-lending product, CryptoMortgage. Read on for more details.

Acting Comptroller of the Currency Michael Hsu described the crypto industry as “immature” and full of conflict and risks in remarks given at DC Fintech Week. Read on for more details.

Top Republicans from the House Financial Services Committee and the Task Force on Financial Technology sent a letter to the Office of the Comptroller of the Currency and the Acting Comptroller Michael Hsu urging the agency to clarify its position on partnerships between banks and fintech firms. Read on for more details.

The Sixth Circuit Court of Appeals reinstated a lawsuit brought by Fannie Mae and Freddie Mac (GSEs) shareholders against the Federal Housing Finance Agency and the Department of the Treasury regarding the 2012 amendment to the 2008 conservatorship of the GSEs. The shareholders maintain that following a 2021 Supreme Court case, the FHFA’s unconstitutional removal restrictions inflicted harm. Read on for more details.

The White House released a fact sheet entitled the “First-Ever Comprehensive Framework for Responsible Development of Digital Assets” which provides insight into the federal government’s current assessment of the digital asset space. The fact sheet has been part of the White House and President Joe Biden’s efforts to develop regulatory standards for digital assets in the U.S. Read on for more details.

The U.S. Treasury Department has fined Washington-based crypto trading platform Bittrex $29.3 million for violating multiple sanctions, including those prohibiting U.S.-based companies from engaging in business with individuals operating in Iran, Sudan, Syria, Cuba and the Crimea region of Ukraine, as well as violating the Bank Secrecy Act (BSA). Read on for more details.

Data from Zillow’s 2022 Consumer Housing Trends Report indicated first-time buyers have made up nearly half of the homebuying market this year. This is an increase from last year, and a return to pre-pandemic norms. Read on for more details.

The Department of Justice announced an agreement with a Florida apartment complex and related entities to resolve allegations the apartment discriminated against families with children in violation of the Fair Housing Act. Read on for more details.

The Federal Housing Administration has published a request for information seeking input on ways it can facilitate increased access to smaller-balance mortgages. Read on for more details.

The White House Office of Science and Technology Policy has published blueprints for an artificial intelligence (AI) bill of rights designed to instruct banks and other companies on the kinds of consumer protections they must build into their AI-based programs. The blueprint laid out five rights consumers should have as companies deploy AI in their businesses. Read on for more details.

A long-anticipated report from the Financial Stability Oversight Council (FSOC) on the financial stability risks and regulation of digital assets has been presented to Congress. The report urges Congress to pass legislation to curb the “systemic risks” that digital assets present to the financial system. Read on for more details.

The Federal Trade Commission and the California Department of Financial Protection and Innovation have shut down various companies operating “sham” mortgage-relief operations which led to consumers losing millions. The action targeted four companies, as well as the two individuals who own them. Read on for more details.

Secretary of the Treasury Janet Yellen announced the inaugural members of the Treasury Advisory Committee on Racial Equity. The committee will provide advice and recommendations to Yellen and Deputy Secretary Wally Adeyemo on efforts to advance racial equity in the economy and address acute disparities for communities of color. Read on for more details.

The California Department of Financial Protection and Innovation announced a series of desist-and-refrain orders against 11 different entities for violation of state securities laws. Read on for more details.

The Federal Housing Finance Agency, Office of the Inspector General has published a memo identifying major challenges the agency, namely Fannie Mae and Freddie Mac, expects to face in 2023. Read on for more details.

The U.S. Chamber of Commerce, joined by six other trade groups, have filed a lawsuit in a Texas federal district court against the Consumer Financial Protection Bureau (CFPB). The suit challenged the CFPB’s recent update to the unfair, deceptive, or abusive acts or practices (UDAAP) section of its examination manual to include discrimination. Read on for more details.

In a recent blog post from the Federal Trade Commission (FTC), the commission said buy now, pay later (BNPL) must comply with the FTC Act “immediately.” The FTC reminded nonbank participants in the BNPL market that they could be liable for FTC Act violations based on the information they communicate to consumers and how they communicate that information. Read on for more details.

According to updated baseline forecasts from the Mortgage Bankers Association, total commercial and multifamily mortgage borrowing and lending is expected to fall in 2022. Read on for more details.

During an event titled “Opportunities and challenges of the tokenization of finance” hosted by Banque de France, Federal Reserve Chair Jerome Powell said decentralized finance (DeFi) needs “appropriate regulation” before it can achieve mainstream, retail use. Read on for more details.

In a speech by Federal Reserve Vice Chair Lael Brainard at a research conference organized by the Federal Reserve Bank of New York, Brainard warned that high inflation and global rate hikes “highlight the importance of paying attention to financial stability considerations for monetary policy.” She added that actions of individual central banks may have “cross-border spillover” which might affect financial vulnerabilities. Read on for more details.

The National Community Reinvestment Coalition and the U.S. Department of Housing and Urban Development have partnered to launch the #WelcomeMe #FairHousingMatters challenge to raise awareness of housing discrimination. Read on for more details.

A federal judge in the D.C. district court has ruled in favor of a coalition of community housing groups against the Consumer Financial Protection Bureau (CFPB), vacating part of a Trump-era rule that changed the reporting obligations of certain mortgage lenders. The judge found the CFPB, under Trump appointee Kathy Kraninger, acted in an “arbitrary and capricious” manner. Read on for more details.

The Consumer Financial Protection Bureau (CFPB) has filed suit against MoneyLion Technologies and 38 of its subsidiaries for imposing illegal and excessive charges on servicemembers and their dependents. This is the CFPB’s fourth enforcement action related to the Military Lending Act in the past two years. Read on for more details.

Fannie Mae has appointed Priscilla Almodovar as CEO and member of its board of directors, effective Dec. 5, 2022. Almodovar will succeed David Benson, who has served as interim CEO and a member of the board of directors since May 2022. After her arrival, Benson will continue in his role as president. Read on for more details.

Cryptocurrency lender Nexo has entered an agreement to buy an undisclosed stake in Hulett Bancorp, which owns Summit National Bank. Summit National Bank is regulated by the Office of the Comptroller of the Currency. Through this acquisition, Nexo will be able to merge its crypto-lending services with traditional banking services offered by Summit. Read on for more details.

The Committee for Better Banks, a coalition of bank workers, community and consumer advocacy groups and labor organizations, released a study showing that new U.S. bank branches are leaving behind minority communities despite racial equality pledges. Read on for more details.

The Consumer Financial Protection Bureau has ordered Regions Bank to pay $191 million for what it calls “illegal, surprise overdraft fees.” Read on for more details.

A new report from Redfin showed that nearly one-third of U.S. home purchases were paid with all cash in July. This is up more than 27 percent from one year earlier. The Southeast saw the largest increase in percentage of all-cash offers, while western states tended to see lower occurrences of all-cash offers.

Read on for more details.

The U.S. Department of Justice has announced two new developments in its efforts to enforce new digital asset laws. First, the release of a report fulfilling President Joe Biden’s March executive order on cryptocurrency. The second was the establishing of the Digital Asset Coordinator (DAC) Network, designed to connect legal and technical experts for cases involving digital assets.

Read on for more details.

A federal judge in the U.S. District Court for the Southern District of New York has granted the Internal Revenue Service’s (IRS) ex parte petition for leave to serve summons to M.Y. Safra Bank following an investigation into the crypto trading platform SFOX. This comes as the IRS and the U.S. Department of Justice have begun cracking down on crypto dealers and trading platforms that are believed to not be in compliance with federal laws.

Data from the RE/MAX National Housing Report showed that homesellers were accepting offers below their initial listing price. This has led to an increase in closings but has done nothing to offset the recent declines in home inventory on the market, RE/MAX said.

Read on for more details.

The Consumer Financial Protection Bureau recently released 2021 Home Mortgage Disclosure Act (HMDA) data. The 2021 data showed that purchase application denial rates remained higher for Blacks and Hispanic whites in 2021 than for any other ethnic demographic. The data also showed that each ethnic group saw an overall smaller share of denials compared with each group’s 2020 numbers.

Read on for more details.

The Commodity Futures Trading Commission has issued an order simultaneously filing and settling charges against bZeroX, LLC and its founders Tom Bean and Kyle Kistner for illegally offering leveraged and margined retail commodity transactions in digital assets as well as other federal charges.

Read on for more details.

The Consumer Financial Protection Bureau has issued a request for information (RFI) regarding mortgage servicing rules. The RFI is focused on inquiries regarding refinancing, particularly for consumers with small-loan balances, and ways to reduce risks for consumers who experience disruptions in their financial situations.

It includes 37 specific requests and allows 60 days for the public to submit comments and responses.

Read on for more details.

Sen. Bill Hagerty (R-Tenn.) and Rep. French Hill (R-Ark.) introduced companion legislation entitled the Federal Reserve Loss Transparency Act. The bill is designed to inhibit the Federal Reserve from transferring money to the Consumer Financial Protection Bureau (CFPB) if the Fed incurs an operating loss.

The proposed legislation brings forward the ongoing debate of the constitutionality of the CFPB’s finding structure.

Reads on for more details.

In a letter to Consumer Financial Protection Bureau Director Rohit Chopra, Congressmen Patrick McHenry (R-N.C.) and James Comer (R-Ky.) are demanding the bureau show the clear statutory authorization which granted it the power to engage in rulemaking on certain matters.

The letter comes following the Supreme Court decision in West Virginia v. EPA invoked the major questions doctrine to limit agency action without “clear congressional authority.”

Read on for more details.

California Gov. Gavin Newsom vetoed a bill that would have required crypto financial services businesses to have a special license to operate. Newsom regarded the bill as being “premature and costly.”

Read on for more details.

PNC Bank announced a strategic partnership with Blend, a cloud banking software company, to digitally optimize the company’s end-to-end online mortgage application process.

Read on for more details.

The White House announced President Joe Biden’s two nominees to serve on the board of directors of the Federal Deposit Insurance Corp. (FDIC). The two nominees, both Republicans, will join the three Democrats currently on the FDIC board.

Read on for more details.

In SEC v. Cochran, a case coming from the Fifth Circuit, the respondent (Cochran) is asking the court to determine whether a federal district court has jurisdiction to hear a suit in which the respondent in an ongoing administrative proceeding seeks to enjoin that proceeding.

The respondent also seeks to have the high court determine the constitutionality of administrative law judges (ALJ) as executive officers and in-house adjudicators.

Read on for more details.

The Consumer Financial Protection Bureau has released a report meant to begin the process of developing “interpretive guidance or rules” to cover gaps and consumer risks in the “buy now, pay later” (BNPL) market.

The CFPB began monitoring market activity related to BNPL earlier this year and confirmed guidance and rules would be likely.

Read on for more details.

Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam testified before the Senate Committee on Agriculture, Nutrition and Forestry to discuss the agency’s role as regulator of digital assets and the Digital Commodities Consumer Protection Act (DCCPA).

Behnam told the committee that the CFTC was the “right regulator” to oversee digital assets trading.

Read on for more details.

Crypto exchange and lending firm Abra announced plans to launch Abra Bank, the first U.S. state-chartered, regulated crypto bank.

Read on for more details.

Fitech, a subsidiary of payments and business technology company Deluxe, has announced its sponsorship of Bankers Helping Bankers, an exclusive online platform that promotes innovation among community bankers.

Read on for more details.

The Federal Reserve Federal Open Market Committee (FOMC) announced an additional 75 basis-point increase to the federal funds rate following its September meeting. The increase brings the federal fund rate to 3-3.25 percent, the highest since 2008, following the third consecutive 75 basis-point increase this year.

 

Read on for more details.