News By Edition

The banking oversight committees of both chambers of Congress held hearings to investigate and review the cause of the collapse and failure of four regional banks over the past two months, as well as the actions taken by regulators leading up to the collapses and in the aftermath. Both Democrats and Republicans had critical remarks for regulators, though with wildly different expectations. Read on for more details.

The Consumer Financial Protection Bureau released its spring 2023 rulemaking agenda. This latest agenda includes new plans for rulemaking pursuant to Section 1024 of the Dodd-Frank Act. The rule would create new oversight for larger nonbank participants in the consumer payments market. The agenda gives an estimate of July 2023 for the issuance of the notice of proposed rulemaking. Read on for more details.

The 19th annual National Settlement Services Summit (NS3) in St. Louis, the yearly conference hosted by October Research, LLC., featured a noteworthy presenter whose keynote address inspired the audience with his tips necessary for success. Ed Molitor, founder and CEO of The Molitor Group and host of the podcast “The Athletics of Business,” brought much energy and passion to the main ballroom stage. Read on for more details.

The Consumer Financial Protection Bureau (CFPB) announced in a blogpost it plans to identify ways to simplify and streamline existing mortgage service rules. The announcement comes after the CFPB issued a request for information seeking input from the public and other participants about, among other things, streamlining loss mitigation options. Read on for more details.

EDX Markets, a new digital markets exchange backed by financial giants Charles Schwab, Fidelity Digital Assets, and Citadel Securities, officially launched with trading in four crypto assets. Read on for more details.

The Community Development Financial Institutions Fund awarded two grants to El Paso, Texas-based Raiz Federal Credit Union. The awards of over $5.7 million will be used to help Raiz in its mission of providing affordable financial services and fostering economic growth in the El Paso area. Read on for more details.

House Financial Services Committee Chair Patrick McHenry (R-N.C.) delivered remarks on the floor of the House of Representatives in support of H.R. 3564, the Middle Class Borrower Protection Act. Read on for more details.

The U.S. Supreme Court agreed to hear the government’s appeal of a case against the U.S. Department of Agriculture (USDA) brought under the Fair Credit Reporting Act (FCRA). The plaintiff in the case alleged the USDA’s Rural Housing Service inaccurately reported information to credit reporting bureaus in violation of the FCRA. The government is claiming sovereign immunity shields it from any liability in the matter. Read on for more details.

The Consumer Financial Protection Bureau, Office of Servicemember Affairs released its annual report on the top financial concerns facing military servicemembers and their families. The report highlighted the growth of digital payment app usage in the military community, the unique risks to servicemembers from these services, and the potential abuse from bad actors. Read on for more details.

As part of ongoing litigation between crypto exchange Binance and its founder and the U.S. Securities and Exchange Commission, the parties have reached an agreement to hold in the United States. The order also prohibits BAM Trading Services – Binance’s parent company – from engaging in spending outside the ordinary course of business. Read on for more details.

The National Football League secured $78 million in loans from 16 minority depository institutions, community development financial institutions, and minority- and women-owned banks as part of the league’s efforts to support diverse enterprises across the U.S. Read on for more details.

International Monetary Fund Managing Director Kristalina Georgieva stated the organization is developing a platform for central bank digital currencies which will facilitate transactions between countries utilizing the digital monetary tool. Read on for more details.

Sen. John Kennedy (R-La.) sponsored a resolution of disapproval in the Senate opposing the Consumer Financial Protection Bureau’s rulemaking on Section 1071 of the Dodd-Frank Act. Read on for more details.

The U.S. Court of Appeals for the Eleventh Circuit has upheld the U.S. District Court for the Northern District of Georgia’s sanctions against the Consumer Financial Protection Bureau (CFPB) for failure to comply with a court order requiring the bureau sit for Rule 30(b)(6) depositions. The district judge found the CFPB engaged in misconduct and abuse of the discovery process by refusing to be deposed. Read on for more details.

The Consumer Financial Protection Bureau issued a compliance guide for small entities that are to be subject to Section 1071 small business lending rule. The guide provides a detailed summary of the final rule’s requirements and provides details and examples when necessary to clarify and explain the different components and requirements of the final rule as it affects small entities. This is a continuation of a previously posted article. Read on for more details.

During Consumer Financial Protection Bureau Director Rohit Chopra’s two-day testimony before committees of each chamber of Congress, it was disclosed the Section 1033 rule proposal would likely be released in October, ahead of the previously announced schedule. The Section 1033 rule grants consumers access and control over the data financial institutions collect and store about them. Read on for more details.

The Federal Trade Commission brought action against a Florida-based online business that offered allegedly fraudulent real estate investment training targeted to primarily Spanish-speaking consumers. Read on for more details.

Comerica Inc. announced it will close its mortgage banker finance business as part of a plan to enhance liquidity and improve its loan-to-deposit ratio. Read on for more details.

The Federal Reserve decided not to further increase interest rates during its June 13-14 Federal Open Market Committee meeting. Fed Chair Jerome Powell stated there would likely be additional rate increases before the end of 2023. Read on for more details.

The U.S. Supreme Court issued a unanimous decision in Slack Technologies, LLC v. Pirani, holding that, under Section 11 of the Securities Act of 1933, plaintiffs must plead and prove that they purchased securities that were traceable to the registration statement that plaintiffs claim contained a material misstatement or omission. Read on for more details.

The Securities and Exchange Commission has continued its assault on crypto firms with newly announced enforcement actions against crypto-exchange Coinbase. The charges are related to the unregistered offer and sale of securities in connection with its “staking-as-a-service” program. These actions were announced within days of enforcement actions being taken against crypto firm Binance and its founder. Read on for more details.

The Federal Trade Commission (FTC) provided its annual report to the Consumer Financial Protection Bureau (CFPB) on its enforcement and related activities in 2022 on the Truth in Lending Act, Consumer Leasing Act, and the Electronic Fund Transfer Act. The CFPB, under its authority granted by the Dodd-Frank Act, requests this report from the FTC annually as part of the bureau’s preparation for its annual report to Congress. Read on for more details.

The Securities and Exchange Commission finalized its rule amendment removing references to credit rating from existing exceptions provided in Rule 101 and Rule 102 of Regulation M, which consists of rules that prohibit activities that could artificially influence the market for offered securities. Read on for more details.

The Mortgage Bankers Association analysis of ICE Mortgage Technology data found that mortgage credit availability decreased in May. Read on for more details.

Rep. Patrick McHenry (R-N.C.), chair of the House Financial Services Committee, introduced two pieces of legislation to reform the Financial Crimes Enforcement Network and create “much-needed” transparency and accountability within the agency. Read on for more details.

The Consumer Financial Protection Bureau issued a compliance guide for small entities that are to be subject to Section 1071 small business lending rule. The guide provides a detailed summary of the final rule’s requirements and provides details and examples when necessary to clarify and explain the different components and requirements of the final rule as it affects small entities. This is a continuation of a previously posted article. Read on for more details.

This year’s winners of October Research, LLC’s annual awards for Leadership, Innovation and Philanthropy include a forward-thinking employer, a title-decisioning pioneer, and a fisherman-turned-fundraiser. CEO and Publisher Erica Meyer presented the awards at the 19th annual National Settlement Services Summit (NS3). Read on to learn who received this year’s awards.

For 10 years, attendees at the National Settlement Services Summit (NS3) have helped make a positive impact on each host city by participating in Make a Child Smile. This year, attendees at the Hyatt Regency at The Arch in St. Louis filled hundreds of bookbags with school supplies for children at the Saint Louis Crisis Nursery. Read on for more details.

Five federal regulatory agencies issued a request for public comment on proposed guidance addressing reconsiderations of value for residential real estate transactions. Read on for more details.

New data from the Federal Trade Commission shows bank impersonation was the most-reported text message scam in 2022. Read on for more details.

Rep. Patrick McHenry (R-N.C.), chair of the House Financial Services Committee, and Rep. Glenn Thompson (R-Pa.), chair of the House Committee on Agriculture, released a discussion draft of legislation providing a statutory framework for digital asset regulation. Read on for more details.

The Consumer Financial Protection Bureau published an issue spotlight regarding digital payment apps used by consumers and businesses which allow for the storing of funds. The bureau warned that the funds stored on these apps may not be protected by federal deposit insurance coverage, making them vulnerable in the event of financial distress. Read on for more details.

Sens. Kevin Cramer (R-N.D.) and Elizabeth Warren (D-Mass.) introduced the Failed Bank Executives Clawback Act, a bill that would require federal regulators to claw back up to three years of compensation given to executives following a bank’s failure. Reps. Ruben Gallego (D-Ariz.), Katie Porter (D-Calif.), Ken Buck (R-Colo.) and Victoria Spartz (R-Ind.), have jointly introduced companion legislation in the House of Representatives. Read on for more details.

The U.S. Securities and Exchange Commission announced 13 charges against Binance.com, its U.S.-based affiliate, BAM Trading Services – which, together with Binance operated the U.S.-affiliate Binance.US – and its founder Zhao Changpeng. The charges include operating unregistered exchanges, broker-dealers, and clearing agencies; as well as misrepresenting trading controls and oversight on the Binance.US platform and the unregistered offer and sale of securities. Read on for more details.

The Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, the Federal Reserve Board, Federal Deposit Insurance Corp., National Credit Union Administration, and the Federal Housing Finance Agency, issued a joint notice of proposed rulemaking related to automated valuation models (AVMs). Read on for more details.

The Consumer Financial Protection Bureau ordered nonbank installment lender OneMain Financial to pay $20 million in redress and penalties for deceptive sales practices and its handling of refunds relating to additional products customers were led to believe were necessary to receive a loan as part of a push for employees to reach sales targets. Read on for more details.

Sens. Cory Booker (D-N.J.) and Sherrod Brown (D-Ohio) sent a letter to Consumer Financial Protection Bureau Director Rohit Chopra praising the bureau’s final small business lending rule. Read on for more details.

The Consumer Financial Protection Bureau issued a compliance guide for small entities that are to be subject to Section 1071 small business lending rule. The guide provides a detailed summary of the final rule’s requirements and provides details and examples when necessary to clarify and explain the different components and requirements of the final rule as it affects small entities. This is a continuation of a previously posted article. This part will cover the specific reportable data points required under the final rule. Read on for more details.

The U.S. Supreme Court overturned a Sixth Circuit decision which upheld the Federal Deposit Insurance Corp. (FDIC) finding and penalties applied to the former CEO of a Michigan community bank. The high court found two legal errors had been made in the adjudication of the case and that the Sixth Circuit should have remanded the case back to the agency for reconsideration so the errors could be corrected. Read on for more details.

Federal Housing Finance Agency (FHFA) Director Sandra Thompson provided testimony before the House Financial Services Committee at a hearing entitled “FHFA Oversight: Protecting Homeowners and Taxpayers.” In addition to addressing matters of housing policy, the members of Congress pressed Thompson on the issue of Fannie Mae and Freddie Mac’s conservatorship. Read on for more details.

During the 19th annual National Settlement Services Summit (NS3) in St. Louis, June 6-8, Ruth Dillingham, owner, Dillingham Consulting LLC, and a representative of the MISMO Title and Closing Community of Practice, will share about new initiatives MISMO is engaged in that will make a difference in the working relationship between and among mortgage and title professionals. Read on for more details.

The Federal Housing Finance Agency House Price Index quarterly report for the first quarter of 2023 showed the price of houses in the U.S. has continued to rise, marking the 45th quarter of year-over-year increases. Read on for more details.

The Federal Reserve and California’s Department of Financial Protection and Innovation have issued a joint consent order with Silvergate Capital and Silvergate Bank for its self-liquidation announced on March 8. Read on for more details.

Data privacy is an ever-evolving area of concern for any industry that handles personal data, and this is especially important for those industries that handle individual’s financial data. Data privacy experts Ryan Cabrita of The Gulotta Grabiner Law Group and Greg Szewczyk of national law firm Ballard Spahr will discuss some of the big up-and-coming topics. Read on for more details.

The Consumer Financial Protection Bureau entered into a settlement agreement which would include a $9 million penalty ordered against Citizens Bank for “unlawful credit card servicing” activity. This unlawful activity, according to the bureau, included Citizens Bank failing to properly manage and respond to customers’ credit card disputes and fraud claims. Read on for more details.

The Mortgage Bankers Association’s Builder Application Survey data for April showed mortgage applications for new home purchases increased 4.1 percent compared with one year prior. Read on for more details.

Rocket Mortgage introduced its new ONE+ program – which will allow homebuyers to pay only 1 percent as a down payment – in an effort to increase access to homeownership for millions of low- to moderate-income earning Americans. Read on for more details.

The Federal Reserve Board issued its Economic Well-Being of U.S. Households in 2022 report which examines the financial lives of U.S. adults and their families. Read on for more details.