|
Section 1071 data collection rule blocked by federal judge in Texas
Posted Date: Tuesday, August 1, 2023
The Consumer Financial Protection Bureau’s (CFPB) new rule requiring lenders to collect demographic data – one it was required to issue under the Dodd-Frank Act as well as a court order – has been blocked by a federal judge in Texas while the bureau waits to make its funding structure argument before the Supreme Court.
The injunction in the Southern District of Texas barred the CFPB from requiring Rio Bank of McAllen, Texas, and members of the Texas Bankers Association (TBA) and American Bankers Association (ABA) to comply with the small-business lending rule until the Supreme Court (SCOTUS) rules on the bureau’s funding.
Read on for more details.
|
|
|
Loan Vision welcomes Paul Loftus as CEO
Posted Date: Tuesday, September 5, 2023
Embarking on a new era, the arrival of the latest member to the Loan Vision team signifies a catalyst for unprecedented growth and transformation.
The leading mortgage accounting software company Loan Vision has added Paul Loftus to its executive team. This CEO appointment comes at an exciting time in Loan Vision’s growth trajectory.
|
|
|
Moburst partners with NewDay USA to revolutionize veteran digital experience
Posted Date: Thursday, August 31, 2023
Moburst, a premier full-service marketing agency, has entered into a strategic partnership with NewDay USA, a VA home loan mortgage company that helps veterans achieve their American Dream of homeownership.
NewDay’s impressive track record of serving veterans, coupled with Moburst’s unparalleled expertise in digital marketing, is set to transform media performance and enhance the customer experience for NewDay users.
|
|
|
FDIC chair outlines tougher regulations for large regional banks
Posted Date: Friday, August 25, 2023
In a recent speech before the Brookings Institution in Washington, D.C., Federal Deposit Insurance Corp. Chairman Martin Gruenberg reviewed the lessons learned from the failures of Silicon Valley Bank, Signature Bank, and First Republic Bank this spring.
He called for “important changes to capital regulation” of large regional banks to prevent future financial stability risks.
|
|
|
NFHA recommends policy changes to address AI in mortgage industry
Posted Date: Friday, August 25, 2023
The National Fair Housing Alliance made recommendations of necessary policy and practice shifts to address the risk of discriminatory lending through the use of artificial intelligence and other enhanced technologies.
The housing organization stated it was concerned about how algorithmic decision-making and its lack of transparency could prevent individuals from protecting their rights when applying for a home loan.
|
|
|
|
California DFPI issues new UDAAP rule
Posted Date: Friday, August 25, 2023
California’s Department of Financial Protection and Innovation (DFPI) issued a new rule expanding its authority to regulate unfair, deceptive, and abusive acts and practices (UDAAP).
The rule implements a provision of the state’s consumer financial protection law passed in 2020 that authorizes the DFPI to define UDAAPs for commercial financing with the intention to strengthen consumer protections and promote access to responsible credit. It also grants the DFPI the power to govern UDAAPs in a manner similar to the authority granted to the Consumer Financial Protection Bureau by the Dodd-Frank Act.
Read on for more details.
|
|
|
Waters cautions FTC over Black Knight, ICE merger
Posted Date: Friday, August 25, 2023
The proposed merger between Black Knight and Intercontinental Exchange has had its ups and downs since it was announced last year.
Most recently, Ranking Member of the House Financial Services Committee Maxine Waters (D-Calif.) penned a letter to the Federal Trade Commission voicing her lingering concerns about the two companies merging.
|
|
|
|
Trade orgs respond to FHFA RFI on single-family pricing framework
Posted Date: Tuesday, August 22, 2023
In May, the Federal Housing Finance Agency requested input on its updated single-family pricing framework. As the comment period ended, both sides of the argument made their concerns known.
The updates have had a mixed reception from the industry, as some say it penalizes borrowers with strong credit profiles to subsidize loans to borrowers with weaker credit profiles, while others say the reduction of certain fees will help historically underserved borrowers gain footing in the housing market.
|
|
|
CFPB considers rulemaking for data broker practices
Posted Date: Tuesday, August 22, 2023
Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra announced the bureau’s plans for new rulemaking aimed at how data brokers treat consumer data and to ensure it complies with the Fair Credit Reporting Act.
The plans are part of the CFPB’s efforts to address the risks associated with technology like artificial intelligence.
|
|
|
KeyCorp faces stockholders class action suit
Posted Date: Tuesday, August 22, 2023
KeyCorp, the holding company for KeyBank, is facing a class action suit alleging it downplayed concerns regarding its liquidity.
The stockholder rights law firm that filed the action encouraged investors to contact the firm if they believed they were impacted by the company’s actions.
Read on for more details.
|
|
|
Number of mortgage loans in forbearance dips in July
Posted Date: Tuesday, August 22, 2023
The Mortgage Bankers Association’s (MBA) Loan Monitoring Survey for July showed the number of loans in forbearance decreased by 5 basis points from June.
MBA estimated 195,000 homeowners are in forbearance plans.
|
|
|
Increased financing costs top concern for small-business owners
Posted Date: Tuesday, August 22, 2023
The National Federation of Independent Business Research Center recently surveyed small-business owners about their banking activities and experience in accessing credit.
The top area of concern cited by those surveyed is the rising cost of financing due to high interest rates.
|
|
|
CFPB issues filing instruction guide for Section 1071 data
Posted Date: Tuesday, August 22, 2023
The Consumer Financial Protection Bureau issued a filing instruction guide for those lenders who must submit small-business lending data beginning in 2024.
The guide is for lenders who will be filing data from Oct. 1, 2024, to Dec. 31, 2024, in 2025. Staff who collect, prepare, and submit data; technology support staff, and compliance offers should find the guide helpful, the bureau stated.
Read on for more details.
|
|
|
GSE stockholders awarded $612M by jury in conservatorship case
Posted Date: Friday, August 18, 2023
After a decade of judicial back and forth, Fannie Mae and Freddie Mac (GSEs) stockholders were awarded $612 million by a jury.
A three-week trial resulted in the jurors finding the Federal Housing Finance Agency improperly amended stock purchase agreements and “shortchanged” stockholders $27 billion when it transferred ownership shares to the U.S. in 2012.
Read on for more details.
|
|
|
Production losses recorded in Q2 smaller than in Q1
Posted Date: Friday, August 18, 2023
The Mortgage Bankers Association found independent mortgage banks and mortgage subsidiaries of chartered banks recorded a net loss of $534 for each loan originated during the second quarter, an improvement over the quarter before, which saw a reported loss of $1,972 per loan.
Over 50 percent of companies were profitable in the second quarter, also an improvement from the first quarter of this year.
Read on for more details.
|
|
|
Data breach affected 873,000 bank customers
Posted Date: Friday, August 18, 2023
Fidelity National Information Services had a data breach in May that affected about 873,000 bank customers, according to a data breach notification filed with the Maine Attorney General’s office.
Customers’ names and Social Security numbers were involved.
|
|
|
Coinbase secures regulatory approval for crypto futures trading
Posted Date: Friday, August 18, 2023
Coinbase Financial Markets, Inc. secured regulatory approval from the National Futures Association, a Commodity Futures Trading Commission-designated organization, to offer access to crypto futures through its platforms.
|
|
|
Fed doesn’t rule out another rate hike
Posted Date: Friday, August 18, 2023
Federal Reserve members indicated that another interest rate hike is a possibility, according to recently released minutes from the July 25-26 Federal Open Market Committee meeting.
|
|
|
FDIC releases 2023 risk review, ARMs becoming more popular as interest rates rise
Posted Date: Tuesday, August 15, 2023
Each year, the Federal Deposit Insurance Corp. (FDIC) releases its risk review, an assessment of risks related to the U.S. economy, financial markets, and the banking industry, with a particular focus on community banks because of the FDIC’s status as the primary regulator for those entities.
This year’s review provided an overview of the banking conditions for 2022 through early 2023, noting the risks highlighted by the failure of three large banking institutions in the spring.
Read on for more details.
|
|
|
October Research welcomes Mary Schuster as Chief Knowledge Officer
Posted Date: Tuesday, August 15, 2023
October Research announces that 25-year title and settlement services industry veteran Mary Schuster has joined the company as Chief Knowledge Officer.
“Stay tuned for some exciting new developments we will be rolling out to assist our partners in the real estate transaction,” CEO and Publisher Erica Meyer said in the announcement.
Read on for more.
|
|
|
Fannie Mae makes condo repair guidelines permanent
Posted Date: Tuesday, August 15, 2023
Following the collapse of a condominium tower in Surfside, Fla., that left nearly 100 people dead, Fannie Mae introduced temporary requirements aimed at protecting borrowers from physically unsafe condo and co-op projects.
In its most recent Selling Guide Announcement, the government-sponsored enterprise made many of those provisions permanent.
Read on to learn what provisions have been updated.
|
|
|
RTP network’s RfP availability expands
Posted Date: Tuesday, August 15, 2023
More financial institutions and technology providers participating in RTP network, The Clearing House’s instant payment system, are using the platform’s request for payment (RfP) capability.
Read on for more details.
|
|
|
|
Lending standards tighten for residential real estate loans
Posted Date: Tuesday, August 15, 2023
The Federal Reserve’s Senior Loan Officer Opinion Survey, a survey of up to 80 large domestic banks and 24 U.S. branches and agencies of foreign banks, asked questions about the changes in standards and terms of the banks’ lending and the state of business and household demand for loans.
Conducted every quarter, the one released for the second quarter showed lending standards are tightening across the board, including in the residential real estate loan sector.
Read on for more details.
|
|
|
MBA Opens Doors Foundation Raises Nearly $235,000 During MBA’s Chairman’s Conference
Posted Date: Tuesday, August 15, 2023
The Mortgage Bankers Association's (MBA) Opens Doors Foundation today announced it raised $234,536 at its annual charity wine auction held during MBA’s June Chairman’s Conference in Manalapan, Fla.
The funds raised will support the foundation’s mission of providing mortgage and rental assistance grants to families with critically ill or injured children, allowing parents and guardians to be by a child’s side during treatment without fear of losing their home.
|
|
|
GSEs release stress test results
Posted Date: Friday, August 11, 2023
Fannie Mae and Freddie Mac (GSEs) released their annual stress test results. The organizations cited significant improvement since the implementation of the requirements in the aftermath of the Great Recession.
The stress test required the GSEs to assess capital adequacy over a nine-quarter projection period from Q1 2023 to Q1 2025.
Read on for more details.
|
|
|
Mortgage originations rise in Q2
Posted Date: Friday, August 11, 2023
Mortgage originations, including refinances, rose 22 percent from the first to second quarter, according to the Federal Reserve Bank of New York’s Center for Microeconomic Data quarterly report on household debt and credit.
The mortgage debt is part of the $17.06 trillion in total household debt reported in the second quarter.
Read on for more from the report.
|
|
|
Work messages on personal devices cost 11 broker-dealers $289M
Posted Date: Friday, August 11, 2023
The Securities and Exchange Commission announced charges against 10 broker-dealers and one dually registered broker-dealer and investment adviser for violating recordkeeping provisions of the federal securities laws by not preserving electronic “off-channel” communications.
The firms agreed to pay combined penalties of $289 million and implement improvements to their compliance policies and procedures to address the violations.
Read on for more details.
|
|
|
Fed creates novel activities supervision program
Posted Date: Friday, August 11, 2023
The Federal Reserve Board is providing additional information on its program to supervise novel activities, including technology-driven partnerships with non-banks, crypto-assets and blockchain technology, in the banks it oversees.
The goal of the program is to advance the benefits of financial innovation while addressing risks to the safety and soundness of the banking system.
Read on for more details.
|
|
|
Mortgage payoff fraud attempts soar from Q1 to Q2
Posted Date: Friday, August 11, 2023
Wire fraud protection company CertifID tracked a five times’ increase in mortgage payoff fraud attempts from the first quarter to the second quarter.
The company predicts the trend to continue, based on July’s numbers.
|
|
|
Dems push for big bank merger policy review
Posted Date: Friday, August 11, 2023
A group of Democratic senators urged the Federal Reserve to review and reconsider its approach to big bank mergers, especially how the agency determines a bank merger’s impact on financial stability.
This comes after the failure of four large banks this year.
|
|
|
Summit Funding, Inc. hires three former Movement Mortgage leaders
Posted Date: Thursday, August 10, 2023
Summit Funding, Inc., a privately held nationwide mortgage banker and servicer, announced it has expanded its East Coast footprint by hiring three former leaders from Movement Mortgage.
As divisional leaders based in North Carolina, Deran Pennington, Chris Shelton, and Matt Schoolfield bring more than half a century of experience recruiting and building highly successful mortgage sales teams.
|
|
|
FTC agrees to dismiss case seeking to block ICE, Black Knight deal
Posted Date: Tuesday, August 8, 2023
The Federal Trade Commission (FTC), Intercontinental Exchange, Inc. (ICE) and Black Knight, Inc. filed a joint stipulation for dismissal of the FTC’s complaint and temporary restraining order against the proposed $11.7 billion agreement for ICE to acquire Black Knight.
The stipulation was filed without prejudice, meaning the matter could be brought back to court again.
Read on for more details.
|
|
|
Lawmakers, trade orgs respond to Basel III proposed rule
Posted Date: Tuesday, August 8, 2023
After an interagency request for comment on modifying large bank capital requirements, lawmakers and industry trade organizations provided their input on the issue.
The proposed changes would implement the final components of the Basel III agreement and would strengthen the banking system, in light of the bank collapses earlier this year.
Read on for more details.
|
|
|
Fintech partnerships bring new questions to old practices
Posted Date: Tuesday, August 8, 2023
Third-party relationships are nothing new for banks and lenders, but working with financial technology (fintech) firms has brought about a new set of problems, and regulations, that all parties should be aware of.
In June 2023, regulators issued a long-anticipated joint update to the OCC’s 2013 guidance on risk management for banks engaging in third-party relationships. This new guidance provides risk management expectations when working with third parties, including fintechs.
|
|
|
Record high number say it’s a ‘bad time’ to buy a home
Posted Date: Tuesday, August 8, 2023
Fannie Mae’s Home Purchase Sentiment Index (HPSI) increased slightly in July (0.8 points) to 66.8. That is up 4 points year-over-year. Three of the HPSI’s six components increased month-over-month, including job security and home price expectations.
However, a record high 82 percent of consumers reported it’s a “bad time to buy” a home, up from 78 percent in June.
Read on for more details.
|
|
|
Homeowners twice as willing to sell if mortgage rate is above 5 percent
Posted Date: Tuesday, August 8, 2023
Homeowners with a mortgage rate above 5 percent are nearly twice as likely to say they plan to sell their home than those paying a rate below 5 percent, according to a Zillow survey.
About 80 percent of mortgage holders reported having a mortgage rate of less than 5 percent and about 90 percent have a rate of less than 6 percent. Almost one-third reported a rate of less than 3 percent.
Read on for more details.
|
|
|
Waters blames ‘MAGA Republicans’ for U.S. credit rating downgrade
Posted Date: Tuesday, August 8, 2023
Congresswoman Maxine Waters (D-Calif.), ranking member of the House Financial Services Committee, blamed “the radical and unjustifiable actions of extreme MAGA Republicans” for Fitch Ratings’ decision to downgrade the United States’ long-term foreign currency issuer default rating (IDR) to AA+ from AAA.
In a statement, Fitch Ratings said its downgrade of the U.S. long-term foreign currency IDR “reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to ‘AA’ and ‘AAA’ rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions.”
Read on for more details.
|
|
|
CFPB offers guidance on Section 1071 data collection rule
Posted Date: Friday, August 4, 2023
In an effort to help the industry implement the data collection requirements outlined in Section 1071, the Consumer Financial Protection Bureau offered a regcast answering many of the common questions about the rule’s implementation.
The focus of the broadcast was on determining what is a covered origination, a covered transaction, and a covered entity under the small-business data collecting rule.
|
|
|
CFPB report highlights UDAAPs caused by weak IT controls
Posted Date: Friday, August 4, 2023
The Consumer Financial Protection Bureau’s summer Supervisory Highlights report found several unfair, deceptive, and abusive acts and practices across many consumer financial products, including mortgage origination and servicing.
Specifically, the report noted several federal consumer financial law violations were caused by insufficient information technology controls.
|
|
|
CUNA, NAFCU plan to merge, create new association
Posted Date: Friday, August 4, 2023
The Credit Union National Association (CUNA) and the National Association of Federally-Insured Credit Unions intend to merge and form a new organization, subject to approval by both groups’ members.
Should the merger move forward, the president and CEO of CUNA will serve as the president and CEO of the new association.
|
|
|
Dream First Bank to take over failed Kansas bank
Posted Date: Friday, August 4, 2023
The Kansas Office of the State Bank Commissioner closed an Elkhart, Kan., bank, appointing the Federal Deposit Insurance Corp. (FDIC) as receiver.
The FDIC, in turn, entered into a purchase and assumption agreement with Dream First Bank, to assume all deposits of the failed bank.
|
|
|
SEC charges Hex founder with fraud surrounding $12M in crypto investments
Posted Date: Friday, August 4, 2023
The Securities and Exchange Commission charged the founder of three unincorporated entities with conducting unregistered offerings of crypto asset securities that raised more than $1 billion in crypto assets from investors and with fraud for misappropriating at least $12 million of proceeds to buy, among other things, the largest black diamond in the world.
|
|
|
SEC awards $104M to seven whistleblowers
Posted Date: Friday, August 4, 2023
The Securities and Exchange Commission awarded more than $104 million to seven people whose information led to a successful enforcement action. The combined award is the fourth largest for the agency’s whistleblower program.
|
|
|
Deutsche Bank hit with two Fed enforcement actions
Posted Date: Tuesday, August 1, 2023
The Federal Reserve Board (the Fed) took two enforcement actions against Deutsche Bank, its New York branch, and other U.S. affiliates related to consent orders dating back to 2015 and 2017.
The Fed stated the bank engaged in unsafe and unsound practices, made insufficient remedial progress under the prior consent orders, and had deficient anti-money laundering internal controls and governance processes.
Read on for more details.
|
|
|
Fintech veteran to take the helm at Rocket Mortgage
Posted Date: Tuesday, August 1, 2023
A fintech executive with more than 20 years of experience, including at Intuit and PayPal, will take over as CEO of Rocket Companies after interim CEO Bill Emerson steps down in September and assumes the role of president and chief operating officer.
The new Rocket Companies CEO also will take over as CEO of Rocket Mortgage when current CEO Bob Walters retires in September.
Read on for more details.
|
|
|
Banc of California, PacWest plan to merge
Posted Date: Tuesday, August 1, 2023
Banc of California and PacWest Bancorp signed an agreement to merge under the Banc of California name.
The combined company is expected to have approximately $36.1 billion in assets, $25.3 billion in total loans, $30.5 billion in total deposits and more than 70 branches in California.
Read on for more details.
|
|
|
Home equity lending soared in 2022
Posted Date: Tuesday, August 1, 2023
Home renovations fueled a strong demand for home equity lines of credit and home equity lines last year, according to the Mortgage Bankers Association.
Its Home Equity Lending Study showed such loans increased 50 percent compared with 2022.
Read on for more details.
|
|
|
Fed announces large bank capital requirements
Posted Date: Tuesday, August 1, 2023
The Federal Reserve Board announced the individual capital requirements for all large banks, effective Oct. 1.
The Fed’s stress test results help determine those requirements.
Read on for more details.
|
|