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Detailing plans to lay groundwork for housing reform
Posted Date: Friday, September 13, 2019
One thing has become abundantly clear with regard to the prospect of reforming the county’s housing finance policy – Congress needs to act. However, that does not mean that regulators can only sit on their hands in the meantime.
Regulatory leaders tactfully noted during a recent Senate Banking Committee hearing that although there are actions they can take in the interim, their ability to act ultimately is limited by the willingness of Congress to reach a comprehensive bipartisan solution.
Get an in-depth look at how federal regulators plan to get the ball rolling.
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Court ruling invalidates FHFA structure, implicates CFPB
Posted Date: Friday, September 13, 2019
The Fifth Circuit Court of Appeals recently handed down a ruling on the Federal Housing Finance Agency’s (FHFA) single-director structure that could hold implications as significant for the Consumer Financial Protection Bureau (CFPB) as they are for FHFA.
Notably, the Fifth Circuit’s opinion directly contradicts the D.C. Circuit’s ruling in the case of PHH Corp. v. CFPB that the bureau’s structure is constitutional.
Find out more details about the implications of the latest court ruling on the matter.
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Duncan: Low supply remains issue despite record volumes
Posted Date: Tuesday, September 17, 2019
With the unprecedented second-quarter mortgage origination volumes posted by some of the country’s largest mortgage lenders, coupled with persistent declines in mortgage rates, one might expect that qualified borrowers have been lining up to snatch up homes as they hit the market.
However, Fannie Mae Chief Economist Doug Duncan told Dodd Frank Update that despite the record mortgage origination numbers posted in the first half of this year, the mortgage market continues to battle a shortage of affordable housing options.
Get an insider’s view of the current state of the mortgage industry.
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Administration could force Supreme Court’s hand on CFPB debate
Posted Date: Thursday, September 19, 2019
The constitutionality of the Consumer Financial Protection Bureau’s (CFPB) leadership structure recently came under fire yet again. But this time is different because the party challenging the Dodd-Frank Act provision that created the bureau with a single director removable only for-cause is the director herself.
Director Kathy Kraninger announced Tuesday that she has joined with the Department of Justice, calling for the Supreme Court to review a circuit court ruling by the Ninth Circuit Court on the constitutionality of the for-cause removal provision.
Get a comprehensive view of how this latest development fits into the ongoing debate over the validity of the bureau’s structure.
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CFPB reveals three policies to promote innovation
Posted Date: Friday, September 13, 2019
Promoting innovation has been one of the Consumer Financial Protection Bureau’s (CFPB) primary goals in recent years. The agency recently announced three new policies intended to move the needle in that regard and facilitate compliance by clearing up regulatory uncertainty pertinent to new products.
The bureau proposed the new policies in 2018, accepting comments from a variety of stakeholders. They consist of: a new No-Action Letter (NAL) policy, the Trial Disclosure Program (TDP) policy and the Compliance Assistance Sandbox (CAS) policy.
Learn more about the policies and their intended impacts on the marketplace.
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Industry, consumer groups agree on GSE patch
Posted Date: Tuesday, September 17, 2019
The Consumer Financial Protection Bureau’s proposal to allow its temporary rule providing a conditional exemption to its Qualified Mortgage (QM) standard, commonly known as the GSE or QM patch, to expire has revealed rare synergy among financial sectors and consumer rights organizations.
A coalition of 23 of the largest industry trade groups, civil rights organizations and individual financial institutions wrote a comment letter detailing shared recommendations for the bureau to consider regarding its advance notice of proposed rulemaking on the QM patch.
Learn more about the groups and their shared views on the issue.
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CFPB charges mortgage relief firm with deceptive, abusive acts
Posted Date: Tuesday, September 10, 2019
The Consumer Financial Protection Bureau (CFPB) recently filed charges in federal court alleging that a company engaged in deceptive and abusive activities in marketing its services targeted at consumers seeking to avoid foreclosure.
The bureau filed a proposed final judgment calling for the firm’s sole auditor to pay a civil money penalty for his role in the matter.
Learn more details about the complaint and recommended judgment.
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CFPB orders debt collector to pay restitution, record calls
Posted Date: Wednesday, August 28, 2019
A debt collection firm has been ordered to redress consumers harmed by its allegedly deceptive collection tactics per a settlement with the Consumer Financial Protection Bureau (CFPB). The company was charged with falsely threatening consumers with wage garnishment, arrest and other repercussions for failing to pay their debts.
The company agreed to pay at least $236,800 in restitution to affected consumers and penalties, and to record calls with consumers to prevent future false statements to consumers.
Find out more about the terms of the settlement.
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Bankers call for ‘full and indefinite’ CECL delay
Posted Date: Tuesday, September 17, 2019
The banking sector’s opposition to the new current expected credit loss (CECL) standard developed by the Financial Accounting Standards Board has been unrelenting, leading to a series of proposals to partially and temporarily delay implementation of the standard. The American Bankers Association has contended that such a delay should be “full and indefinite.”
The trade association reiterated previously expressed concerns about the potential negative impacts of CECL and detailed new ones as well, supporting its conclusion that regulators should re-evaluate the standard.
Find out more about the association’s argument.
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Banks see record-breaking profits again
Posted Date: Thursday, September 5, 2019
For the second time in a span of a year the banking industry has recorded a new record for profits in a single quarter. Profits for the second quarter of 2019 surpassed the previous record set in the third quarter of 2018, according to the Federal Deposit Insurance Corp.’s latest Quarterly Banking Profile.
FDIC Chairwoman Jelena McWilliams attributed the most recent net income gains to a $4.9 billion (3.7 percent) uptick in net interest income, and community banking groups were pleased at findings showing that community banks performed particularly well during the quarter.
Find out more details about the report’s results.
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Bowman confirmed to full term with Fed
Posted Date: Friday, September 13, 2019
The Senate has voted to extend Michelle “Miki” Bowman’s tenure as the first person to hold the Federal Reserve Board’s seat designated for a person with community banking experience for a full 14-year term.
The Independent Community Bankers of America (ICBA) welcomed the news, having strongly supported Bowman’s nomination to join the Fed prior to her confirmation in November 2018 and urged the president to renominate her to a full term.
Find out more about Bowman’s renomination and her views on regulation.
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CFPB launches ACFIN network to enhance coordination
Posted Date: Friday, September 13, 2019
Seeking to enhance coordination among federal and state regulators to drive financial innovation, the Consumer Financial Protection Bureau (CFPB) partnered with multiple state regulators to launch the American Consumer Financial Innovation Network (ACFIN).
Through ACFIN, the bureau hopes to enhance shared objectives among regulators, such as competition, consumer access and financial inclusion.
Find out more details about the new network.
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ARMCO names Gauthier CEO
Posted Date: Tuesday, October 1, 2019
ACES Risk Management (ARMCO), the leading provider of enterprise financial risk management solutions, announced that Trevor Gauthier has been appointed as CEO and board member of ARMCO.
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FHFA, Treasury sign plan to recap Fannie, Freddie
Posted Date: Monday, September 30, 2019
Fannie Mae and Freddie Mac would be allowed to recapitalize under an agreement signed by the Federal Housing Finance Agency and the Treasury Department allowing both government-sponsored enterprises (GSEs) to retain billions of dollars in dividend payments once every 12-month dividend period.
Allowing the GSEs to build capital was among the more than 50 recommendations included in Treasury’s plan for reforming the secondary housing market, and aligns with industry advocacy efforts.
Learn more details about the signed agreement.
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Wells Fargo’s new CEO wants to put reg issues in past
Posted Date: Monday, September 30, 2019
Wells Fargo’s search for a new CEO ended with the announcement that Charles Scharf has been hired to succeed Tim Sloan in the role. Per settlements with federal regulators, Wells Fargo was required to receive approval from the Office of the Comptroller of the Currency (OCC) before its new CEO hiring could become official.
Scharf said that one of his top priorities as CEO is to “make sure we get the regulatory issues behind us,” and that he is grateful for the opportunity to lead the company as it continues to transform.
Find out more details about his appointment.
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Agencies boost residential appraisal threshold
Posted Date: Monday, September 30, 2019
In a move that has major implications for mortgage lenders and appraisers, the Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency finalized a joint rule to increase the threshold for residential real estate transactions requiring an appraisal from $250,000 to $400,000.
The Consumer Financial Protection Bureau’s required letter weighing in on the measure closely reflected contentions put forth by financial institutions and the trade associations.
Learn more details about the final rule and stakeholder reactions.
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Petitioners make Supreme Court argument
Posted Date: Monday, September 30, 2019
Arguing that they have precedent to petition the Supreme Court to rule on the Federal Housing Finance Agency’s (FHFA) constitutionality, multiple FHFA stakeholders filed a writ of certiorari petitioning the nation’s highest court for relief that was not provided in the Fifth Circuit Court’s ruling on the agency’s constitutionality.
Specifically, the petitioners argued that the court should have provided relief pertaining to the net worth sweep, stipulating that all dividends received by Fannie Mae and Freddie Mac must be submitted to the Treasury Department.
Find out more details about the petitioners’ argument.
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Bill would subject FASB to APA process
Posted Date: Monday, September 30, 2019
In light of concerns over the perceived lack of supporting evidence behind the implementation of the current expected credit loss (CECL) standard, legislation has been proposed that would rein in the unique independence of the agency that promulgated it – the Financial Accounting Standards Board (FASB).
Rep. Blaine Luetkemeyer (R-Mo.) introduced the measure, which would direct regulators to create a rule forcing FASB to abide by the same rulemaking guidelines under which all other federal financial regulators operate.
Read on to learn more about the legislation.
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House passes cannabis banking bill, Senate urged to act
Posted Date: Thursday, September 26, 2019
After months of advocacy from the financial and cannabis industries, the Secure and Fair Enforcement (SAFE) Act passed the House with strong bipartisan support.
The bill’s passage is a major step forward in the push to allow financial entities to bank the cannabis industry without fear of legal repercussions. However, it still needs Senate approval to become law, which could prove to be a tall order.
Find out what obstacles to adoption remain ahead for the legislation.
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Takeaways from latest Supervisory Highlights
Posted Date: Thursday, September 26, 2019
The Consumer Financial Protection Bureau’s (CFPB) Supervisory Highlights report represents the second edition published during Kathy Kraninger’s tenure as CFPB director.
The report includes observations by the bureau’s examiners about issues related to automobile loan origination, credit card account management, debt collection, credit information furnishing and mortgage origination.
Read on to learn details that could help your business ensure its compliance.
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CFPB appoints five new executives
Posted Date: Thursday, September 26, 2019
Amid an onslaught of legal turmoil surrounding the agency’s constitutional standing, the Consumer Financial Protection Bureau (CFPB) moved forward with business as usual in regards to its executive leadership team.
The CFPB announced the addition of five new executives to positions overseeing supervisory and enforcement matters pertaining to fair lending, as well as roles geared toward facilitating the bureau’s consumer education and research efforts.
Learn more about the bureau’s new executives.
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Senate BSA/AML bill would create beneficial ownership registry
Posted Date: Thursday, September 26, 2019
The financial industry, which has been clamoring for a modernized approach to Bank Secrecy Act/anti-money laundering (BSA/AML) compliance policies, has expressed support for a bipartisan bill recently introduced in the Senate.
The Illicit Cash Act (S. 2563), introduced by Sens. Mark Warner (D-Va.) and Tom Cotton (R-Ark.), would create a beneficial ownership registry within the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) to help eliminate illegal activities perpetrated by anonymous shell corporations.
Find out more details about the legislation.
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Credit unions, banks disagree on NDAA provision
Posted Date: Thursday, September 26, 2019
Credit union advocates recommended that lawmakers amend legislation intended to expand military members’ access to banking services by eliminating a provision that would allow banks to operate on military bases essentially rent-free – a benefit which currently applies to credit unions.
Banking trades specifically have advocated that the provision be included in the final, combined version of the legislation to facilitate a level playing field between the two types of entities.
Find out more about the difference of opinion between the two.
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CFPB announces complaint database decision
Posted Date: Tuesday, September 24, 2019
Contrary to previous indications floated by her processor, Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger has said that the bureau will continue to keep its Consumer Complaint Database publicly accessible and is planning to roll out a series of enhancements to the online website consumers use to submit complaints.
Many industry advocates have taken issue with the lack of vetting the information published in the database undergoes to ensure accuracy, fearing that companies could suffer unfair scrutiny as a result.
Find out more details about the planned database changes.
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Takeaways from CFPB symposium on behavioral economics
Posted Date: Tuesday, September 24, 2019
The question of how consumers will react to products and services in the financial marketplace is a task that numerous industry professionals and regulators grapple with on a daily basis, whether they are crafting effective policies or developing a compliant marketing plan.
That question was at the heart of the Consumer Financial Protection Bureau’s symposium titled “Behavioral Economics and Consumer Financial Services Policy.”
Find out more details about the insights the panelists provided.
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Trades weigh in on CFPB debt collection rule
Posted Date: Tuesday, September 24, 2019
Numerous financial trade associations weighed in on the Consumer Financial Protection Bureau’s (CFPB) proposed rule placing limitations on the frequency with which covered entities could contact consumers in an effort to collect debts.
The trade groups asked for clarity regarding the rule’s scope of coverage and its cap on debt collector communications, among other recommendations. More than 200 consumer advocacy groups panned the rule as being too friendly to debt collectors.
Find out more about arguments for altering the rule’s various provisions.
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FHFA ends volume-based GSE discounts
Posted Date: Tuesday, September 24, 2019
Fannie Mae and Freddie Mac no longer will provide volume-based discounts for guarantee fees charged to lenders, per a recent directive from the Federal Housing Finance Agency (FHFA) intended to level the playing field in the mortgage marketplace.
FHFA Director Mark Calabria, speaking at an industry event, characterized such “G-fee” discounts as attributable for market distortions in the lead-up to the financial crisis.
Learn more about the directive.
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House passes bill to outlaw forced arbitration
Posted Date: Tuesday, September 24, 2019
The House recently passed legislation seeking to prohibit companies from including forced arbitration clauses in product and service agreements.
The Forced Arbitration Injustice Repeal (FAIR) Act seems unlikely to gain support in the Senate, which voted to nullify the Consumer Financial Protection Bureau’s rule outlawing forced arbitration nearly two years ago.
Find out more about the bill’s chances of adoption or lack thereof.
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Bank of America challenged CFPB over CID
Posted Date: Thursday, September 19, 2019
Bank of America’s sales practices are apparently the subject of an ongoing investigation by the Consumer Financial Protection Bureau, as revealed by a letter in which Director Kathy Kraninger denied the bank’s petition to discontinue the probe or modify its scope.
The bureau’s response offers insights into how the bureau evaluates arguments presented in CID petitions, as well as regarding the meet-and-confer process.
Find out more details revealed by the bureau’s response to the bank’s petition.
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NCUA finalizes PALs II final rule
Posted Date: Thursday, September 19, 2019
The National Credit Union Administration voted 2-1 Thursday to finalize its final rule on payday alternative loans (PALs). Products covered by the rule are intended to provide a better option to consumers in need of short-term, small-dollar loans compared to traditional payday loans.
Rather than replacing existing PAL products, the PAL II final rule enables federal credit unions to offer additional short-term, small-dollar options.
Learn more about the newly approved rule.
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Bankers applaud FHFA for ending MSR pilot program
Posted Date: Thursday, September 19, 2019
The Federal Housing Finance Agency recently signaled the conclusion of the mortgage servicing rights (MSR) financing pilot program for Fannie Mae and Freddie Mac, drawing praise for community bankers who questioned the agency’s authority to enact such a program in the first place.
The MSR pilot began in 2018 to provide financing to non-bank servicers to enable them to help account for a growing percentage of the overall servicing portfolio of the government-sponsored enterprises.
Learn more about the initiative and why community bankers objected to it.
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Bankers, legislators in sync on leverage ratio
Posted Date: Thursday, September 19, 2019
To enact the level of regulatory relief intended by Congress, several legislators and the Independent Community Bankers of America (ICBA) have demonstrated that they are in sync in believing federal banking regulators should finalize joint rulemaking setting the community bank leverage ratio (CBLR) at 8 percent.
Eighteen Republicans on the House Financial Services Committee wrote to federal regulators, urging them to enact the 8 percent CBLR, rather than the 9 percent ratio the agencies proposed in November 2018.
Read on for more details about their reasoning.
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CFPB offers insights on tax-time consumer saving habits
Posted Date: Wednesday, September 18, 2019
A pilot study conducted by the Consumer Financial Protection Bureau with H&R Block found that getting consumers to engage in better saving habits, specifically with regard to taxes, can be as simple as showing them that there is something in it for them (besides simply improving their own financial situation).
The study concluded that simple, timely messages and small incentives can be effective at encouraging consumers to utilize non-traditional savings vehicles to save, according to a report on the findings.
Find out more information about the findings.
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Trades suggest tweaks to certification statement proposal
Posted Date: Tuesday, September 17, 2019
The Federal Housing Administration’s (FHA) proposal for revising annual lender certification statements has drawn support from financial and housing trade advocates industry, who also recommended that regulators consider clarifying certain aspects of the proposal.
The suggested clarifications were endorsed by the American Bankers Association, the Bank Policy Institute, the Housing Policy Council and the Mortgage Bankers Association.
Find out more details.
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Advocates press Congress to approve cannabis banking bill
Posted Date: Tuesday, September 17, 2019
The pressure for legislators to provide a legal safe harbor that would allow financial institutions to serve the cannabis industry without fear of regulatory penalties has gotten stronger since the beginning of the year, causing Congress to seriously consider the matter.
The Independent Community Bankers of America (ICBA) and 43 state banking associations recently wrote to House leaders, urging them to take the issue up on the floor.
Learn more about the arguments contained in the associations’ letter.
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Lender Price expands pricing engine through partnership
Posted Date: Monday, September 16, 2019
Lender Price, a provider of mortgage loan pricing and origination technology, recently added American Financial Resources Inc. (AFR) loan products to the company’s pricing engine library. AFR is a national residential lender that supports correspondent and brokered relationships, and the partnership with Lender Price expands their ability to engage with mortgage originators, according to a press release making the announcement.
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CUNA commends House for passing appraisal bills
Posted Date: Friday, September 13, 2019
The House passed two bipartisan bills addressing appraiser requirements and diversity within the appraisal industry with expressed support from the Credit Union National Association (CUNA).
The Homebuyer Assistance Act (H.R. 2852) and the Ensuring Diverse Leadership Act (H.R. 281) faced little opposition.
Read on for more details about the legislative pieces.
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NS3: Regulators discuss priorities, being there to help
Posted Date: Tuesday, September 10, 2019
Regulators at all levels of government share certain common traits and obligations to the industries they oversee and the consumers they are tasked with protecting.
A panel of regulators took the stage at the 2019 National Settlement Services Summit (NS3) in Phoenix to discuss their priorities for the foreseeable future and how they can be a resource for the professionals they supervise.
Find out what insights they had to share.
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CFPB schedules second symposium in series
Posted Date: Tuesday, September 10, 2019
The Consumer Financial Protection Bureau (CFPB) has set a date for the second event in its symposium series exploring various topics pertaining to consumer protection policies and their impact on the current financial services marketplace.
The event will feature a panel discussion on Behavioral Economics and Consumer Financial Services Policy and will be webcast on the CFPB’s website.
Read on for more details about when the event will take place and who is set to speak.
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Court retains stance in fintech charter lawsuit
Posted Date: Tuesday, September 10, 2019
For the second time in the span of a year, a federal court has ruled that the Conference of State Bank Supervisors lacked standing in its legal challenge of the Office of the Comptroller of the Currency’s (OCC) authority to accept charter applications from non-bank entities.
The organization’s decision to re-file the case in the same court was driven by its hope for a different outcome given that the OCC since has come under new leadership and released policy guidance on fintech charters.
Find out more details about the ruling.
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Treasury unveils massive GSE reform proposal
Posted Date: Thursday, September 5, 2019
The plan to reshape the nation’s housing finance marketplace devised by President Donald Trump’s administration appears to be perhaps every bit as huge as the industry may have expected, with almost 50 recommended legislative and administrative actions. A key word to note there is “recommended.”
The sweeping reforms listed in the plan are termed as merely recommendations and do not set any hard timetables for tangible actions toward their implementation and assume a great deal more bipartisan cooperation than has been displayed in recent memory.
Learn more details about the administration’s recommendations and look for more insight about the plan to come.
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Hood: NCUA will phase in FOM rule
Posted Date: Thursday, September 5, 2019
Having recently cleared some major legal hurdles regarding its provisions, National Credit Union Administration (NCUA) Chairman Rodney Hood announced that the agency plans to begin phasing in its 2016 field of membership (FOM) rule.
As part of that “phased approach,” Hood said it will propose a rulemaking to address concerns over potential redlining risk associated with the rule.
Find out more details about the agency’s plans for the rule’s implementation.
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Trades press Congress, OMB to prevent 7(a) shutdown
Posted Date: Thursday, September 5, 2019
Financial industry groups have joined small business advocates to urge Congress and the Trump administration to reconsider proposed budget figures for 2020 that could jeopardize the future of the Small Business Administration’s (SBA) 7(a) business lending program.
The Small Business Access to Capital Coalition called upon congressional leaders to address a potential funding gap that could cause the program to shut down Oct. 1 without intervention.
Learn more about the situation and what needs to be done to prevent a shutdown.
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Judge who stayed payday rule to hear updates in December
Posted Date: Thursday, September 5, 2019
The federal judge who stayed the compliance date Consumer Financial Protection Bureau’s (CFPB) small-dollar lending rule will review joint status updates about the rule and litigation challenging its provisions due by Dec. 6, according to official court records.
In November 2018, Texas District Court Judge Lee Yeakel reversed a previous court ruling and ordered that the rule’s Aug. 19, 2019, compliance date to be stayed pending a review of the rule’s provision requiring payday lenders to determine a borrower’s ability to repay a loan.
Read on to learn more about the ongoing case.
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