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News By Edition
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Dodd Frank Update Monthly Edition
Dodd Frank Update February 2017
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Credit unions lay out priorities for 2017
Posted Date: Thursday, February 2, 2017
In the financial world, credit unions are a unique breed with a unique structure. They operate along many of the same guidelines as banks although their missions and needs are often quite different, which many have argued warrants policies that acknowledge those differences.
Carrie Hunt, executive vice president of government affairs and general counsel at the National Association of Federally-Insured Credit Unions, and Ryan Donovan, chief advocacy officer at the Credit Union National Association, spoke to Dodd Frank Update about their primary focuses for 2017. Read on to find out what they had to say.
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Regulatory freeze delays key rules, maybe
Posted Date: Wednesday, January 25, 2017
President Donald Trump issued an executive order Jan. 20 instituting a regulatory freeze, affecting multiple regulations published in the Federal Register, which have yet to take effect, including rule put forth by agencies including the Consumer Financial Protection Bureau, National Credit Union Administration and Department of Labor.
All regulations affected by the freeze will have their effective dates delayed 60 days from the date of the order to allow all newly appointed department heads sufficient time to review them. Read on to learn about some of the noteworthy regulations which could be affected by the freeze, and whether bureau Director Richard Cordray believes the orders apply to independent agencies such as his.
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House favors REINS Act for rulemaking approval
Posted Date: Thursday, January 12, 2017
The House of Representatives recently voted 243-165 in favor of H.R. 26, known as “the Regulations from the Executive in Need of Scrutiny (REINS) Act,” which would require Congress to approve any rule deemed “major” by the administrator of the Office of Management and Budget’s Office of Information and Regulatory Affairs (OMB/OIRA).
Proponents of the act view it as a way of giving a voice to the American people regarding federal regulation, which has proven to be a consistently costly and burdensome matter. Read on to learn more about the bill, its supporters and its detractors.
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Trump suspends FHA insurance premium reductions
Posted Date: Wednesday, January 25, 2017
In one of his first official acts as president, Donald Trump issued an executive order suspending the Federal Housing Administration’s (FHA) plans to reduce its annual mortgage insurance premium (MIP) by 25 basis points for most new mortgages with a closing/disbursement date on or after Jan. 27, 2017. Read on to learn more.
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House approves amendment to fast-track CRA
Posted Date: Monday, January 9, 2017
The House of Representatives recently voted 238-184 in favor of H.R. 21, also known as “the Midnight Rules Relief Act of 2017,” which would allow Congress to repeal at once every rule passed in the past 60 legislative days of the final year of a president’s term via the Congressional Review Act.
This means, if the bill passes the Senate and is signed by president-elect Donald Trump, all rules passed since May 26, 2016, could face the chopping block. Read on to learn more details about the bill.
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Trump considers new CFPB director
Posted Date: Friday, January 13, 2017
President-elect Donald Trump met with former Rep. Randy Neugebauer (R-Texas) and is considering him to replace Richard Cordray as director of the Consumer Financial Protection Bureau (CFPB), Trump spokesman Sean Spicer confirmed during a conference call with reporters.
As a member of Congress, Neugebauer was vocal in his criticism of the CFPB’s actions and its structure. He has expressed support for Rep. Jeb Hensarling’s (R-Texas) Financial Choice Act, which includes provisions to reform the bureau’s leadership structure and undo multiple rules enacted by the bureau. Read on to learn more about Neugebauer’s stances related to Dodd-Frank and the CFPB.
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CFPB report highlights harassment by debt collectors
Posted Date: Tuesday, January 17, 2017
A report released by the Consumer Financial Protection Bureau (CFPB) examines reports by consumers, nationwide, claiming to have felt harassed and even threatened by debt collectors or creditors in the past year.
In prepared remarks delivered during a CFPB event in Washington, D.C., CFPB Director Richard Cordray highlighted some of the problems within the multi-billion dollar debt collection industry, as reported by consumers, and how they often result in consumer harm.
Read on to find out what actions by debt collectors left consumers feeling harassed as well as other findings included in the report.
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CFPB appoints five new senior leaders
Posted Date: Thursday, January 12, 2017
The Consumer Financial Protection Bureau announced the addition of five new staff members to its senior leadership team. Read on to find out who the new appointees are and what kind of experience each one brings to the table for the bureau.
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CFPB suit could bring $4 billion in redress
Posted Date: Friday, January 20, 2017
The Consumer Financial Protection Bureau is suing Navient, the nation’s largest servicer of federal and private student loans, for 10 counts of unfair, deceptive or abusive acts or practices (UDAAP) and one count of violating the Fair Credit Reporting Act. Attorneys general from Illinois and Washington also are suing Navient over their lending practices.
The bureau’s lawsuit claims Navient’s actions may have cost consumers up to $4 billion in interest they likely would not have incurred had they been offered lower-cost options with which they were entitled. Read on to find out more details about the lawsuits.
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CFPB fines Equifax, TransUnion for deceiving consumers
Posted Date: Monday, January 9, 2017
The Consumer Financial Protection Bureau (CFPB) recently ordered Equifax, Inc. and TransUnion to pay a total of $17.6 million in restitution and $5.5 million in fines for deceiving consumers about the relevance and actual cost of credit scores the companies marketed and sold.
Consent orders issued to both companies allege that specific advertisements for their credit-related products were not “clear and conspicuous,” which resulted in consumers being misled about the usefulness of those products.
Read on to learn what the CFPB means by “clear and conspicuous” in this instance and reaction from Equifax.
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U.S. Bank names new CEO
Posted Date: Tuesday, January 17, 2017
U.S. Bancorp, parent company of U.S. Bank, has announced that Andy Cecere, will succeed former National Settlement Services Summit keynote speaker Richard Davis as CEO, effective April 18, the date of the company’s annual meeting of shareholders.
Davis has been CEO since December 2006 and will remain executive chairman at the company, U.S. Bancorp stated. As CEO, Cecere will be responsible for day-to-day management, financial performance, long-term growth strategy, and the reinforcement of U.S. Bank’s “culture of ethics and integrity.” U.S. Bank is the fifth-largest commercial bank in the United States
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White House report details fintech framework
Posted Date: Wednesday, January 18, 2017
The White House recently published a whitepaper, “A Framework for FinTech,” outlining administration policy objectives to help regulators and other federal operatives in their efforts to interact with fintech organizations in an effective, productive manner.
Read on to learn about the benefits and risks associated with fintechs as well as the 10 principles that comprise the framework for ongoing collaboration between policymakers and stakeholders in the fintech ecosystem.
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CFPB fines Citi entities for RESPA violations
Posted Date: Friday, January 27, 2017
The Consumer Financial Protection Bureau (CFPB) recently took separate enforcement actions against CitiFinancial Servicing and CitiMortgage, Inc. requiring a combined $28.8 million in payment for misleading struggling homeowners about options for potentially saving their homes.
The bureau filed two separate consent orders against the companies, which are both subsidiaries of different Citi entities detailing violations of multiple federal regulations. Read on to learn specifics about the charges.
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Court dismisses ICBA lawsuit over NCUA rule
Posted Date: Monday, January 30, 2017
A district court has dismissed the Independent Community Bankers of America’s lawsuit against the National Credit Union Administration over its member business lending rule, stating that the suit lacked standing and timeliness.
The court provided a detailed description of what it meant in its assessment that the suit lacked standing in its memorandum opinion regarding its decision. Read on to find out more about those details, along with reactions from both sides of the issue.
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TCF disputes CFPB enforcement for overdraft practices
Posted Date: Monday, January 30, 2017
Alleging the bank tricked consumers to get them to opt in for expensive overdraft services, the Consumer Financial Protection Bureau (CFPB) recently filed suit against TCF National Bank. The company announced it intends to challenge the allegations.
During a conference call with members of the press, CFPB Director Richard Cordray noted that TCF employees had incentive to persuade customers to opt in for such services in the form of bonuses for hitting certain sales goals, similar to allegations raised against Wells Fargo in 2016. Read on to learn more about what practices the bureau claims were deceptive and harmful to customers.
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Study highlights tax exemption benefits
Posted Date: Friday, January 27, 2017
The National Association of Federally-Insured Credit Unions (NAFCU) has released a study supporting its argument that credit unions should remain exempt from the federal corporate income tax by highlighting how the exemption benefits, not only credit unions, but their customers, the economy and even bank customers.
Read on to find out how far-reaching the benefits of the credit union tax exemption are, according to the study, and the potential implications of repealing the exemption.
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CFPB employees support bureau’s work
Posted Date: Wednesday, January 25, 2017
The fifth annual Consumer Financial Protection Bureau (CFPB) employee survey indicated that a significant number of bureau employees believe in the CFPB’s mission and have favorable views of their supervisors. The highest degree of dissatisfaction expressed in the results relates to the handling of raises, promotions and management’s handling of underperforming coworkers. Read on to learn more about the results.
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FTC brings charges over fake payday loan debt portfolios
Posted Date: Wednesday, January 25, 2017
The Federal Trade Commission (FTC) recently charged a Kansas man and his business holding companies with selling fake payday loan debt portfolios, which debt collectors used to elicit payments from people under the false pretense the loans were real.
A federal court ordered the man and his companies to cease operation while litigation is pending in the U.S. District Court of Kansas. The man’s brother recently paid a settlement to the FTC over similar charges. Read on to learn more about the case.
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ICBA nominates new board of directors for 2017-18
Posted Date: Tuesday, January 24, 2017
The Independent Community Bankers of America (ICBA) announced the nominees for its 2017-18 board of directors. ICBA’s board of directors will vote on the nominations during the 2017 ICBA national convention, “ICBA Community Banking LIVE,” which will be held March 15-19 in San Antonio, Texas. Read on to learn more.
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Virginia considers crackdown on Internet lenders
Posted Date: Monday, January 23, 2017
The Virginia State Senate recently voted in favor of a bill which would require online lenders who do business in Virginia to be licensed according to state regulations and follow the state’s interest rate limits.
Currently, consumer finance loans in Virginia are subject to a limit on the amount of interest that can be charged, annually. Read on to learn more about the bill and other related legislation that has been proposed that could affect how some lenders do business in the state.
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Senators press Wells Fargo to explain spike in overdraft profits
Posted Date: Monday, January 23, 2017
A group of Senate Banking Committee Democrats recently sent Wells Fargo CEO Tim Sloan a letter requesting an explanation for the significant spike in profits from overdraft fees during a three-month period prior to the company’s settlement over its unfair and deceptive sales practices.
The senators are seeking to find out if there is a connection between the practices listed in the settlement and the influx in overdraft income. Read on to find out what specific information the senators are requesting.
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Fleming: Why Day 1 Certainty, automation can lower risk
Posted Date: Friday, January 20, 2017
Risk is an ever-present reality in the lending industry and lenders are well aware that the ability to effectively mitigate risk is critical to long-term financial success.
Using automated verification tools to reduce risk, particularly from fraud, is still a relatively new concept, but it also is one which First American Chief Economist Mark Fleming believes can have profoundly positive effects on the industry. Fleming discussed some of the benefits of automated verification with Dodd Frank Update. Read on to learn more about what he had to say.
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Growth ahead, ABA economists say
Posted Date: Friday, January 20, 2017
The Economic Advisory Committee of the American Bankers Association is predicting steady growth for the U.S. economy in 2017 and 2018, with more jobs, higher wages and a healthy housing industry, despite increasing mortgage rates.
The committee, which includes 17 chief economists from among the largest North American banks, made multiple projections about what could be in store over the next couple of years. Read on to learn more about the group’s most recent forecast.
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Castle & Cooke Mortgage reports 28 percent growth in 2016
Posted Date: Friday, January 20, 2017
Castle & Cooke Mortgage, LLC experienced a 28 percent year-over-year increase in loan production in 2016, and is looking at further growth in 2017 as the company plans to continue opening new branches and adding employees. Read on to learn more.
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Altavera to expand operations for outsourced mortgage services
Posted Date: Wednesday, January 18, 2017
Altavera Mortgage Services, a provider of outsourced residential mortgage origination services, has announced expansion plans for 2017 along with highlights from the company’s last 12 months of growth. Read on to learn more.
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CFTPC announces 115th Congress co-chairs
Posted Date: Tuesday, January 17, 2017
The Congressional Fintech and Payments Caucus (CFTPC) announced that Congressman Patrick McHenry (R-NC) and Congressman Randy Hultgren (R-IL) will join Congresswoman Kyrsten Sinema (D-AZ) and Congressman David Scott (D-GA) as caucus co-chairs for the 115th Congress. Read on to learn more.
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PCLender names Joseph Langner president
Posted Date: Tuesday, January 17, 2017
PCLender, a loan origination system (LOS) provider, has named Joseph (Joe) Langner president. Langner, who was previously the chief sales officer and COO of Ellie Mae, brings 12 years of loan origination system experience to PCLender. Langer will supervise PCLender’s growth initiatives. Read on to learn more.
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HMDA at the heart of tech compliance today
Posted Date: Tuesday, January 17, 2017
Plenty around the mortgage technology compliance space feels different today than it did two weeks before Election Day. But Wipro Gallagher Solutions’ Scott Dunn said the primary focus for his company and its clients remains the same – HMDA, HMDA and a little more HMDA.
There’s some UCD compliance getting attention today as well, while compliance with the proposed TRID amendments does remain a concern. But the biggest key point, he said, is readiness for HMDA actions taken after Jan. 1, 2018.
Read on for more of our exclusive interview with the head of product management and strategy, compliance.
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FTC chairwoman announces resignation
Posted Date: Tuesday, January 17, 2017
Federal Trade Commission (FTC) Chairwoman Edith Ramirez has announced her resignation from the commission, effective Feb. 10, 2017. Ramirez has served as a commissioner at the FTC since April 5, 2010, following her appointment by President Barack Obama, and became chairwoman on March 4, 2013. Read on to learn more about her accomplishments during her tenure.
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Lender fined $48 million for violating False Claims Act
Posted Date: Tuesday, January 17, 2017
To resolve allegations of violating the False Claims Act by knowingly originating and underwriting mortgage loans that did not meet applicable requirements, United Shore Financial Services, LLC recently agreed to pay a settlement of $48 million, plus 1 percent interest, to the United States.
The company was not required to submit loans to the Federal Housing Administration for review prior to approving them as a participant in the direct endorsement lender program. Read on to learn what violations are specified in the settlement.
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HUD secretary details accomplishments in exit memo
Posted Date: Tuesday, January 17, 2017
In his exit memo to the American people, Department of Housing and Urban Development (HUD) Secretary Julián Castro highlighted a plethora of programs and accomplishments for which HUD has been responsible over the duration of the Obama administration.
Castro noted the ways in which each item cited in the memo has helped to further the housing market and offered recommendations for how the work done during the past eight years could be built upon in the future. Read on to learn more of what he had to say.
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Wells among 12 fined for cybersecurity deficiencies
Posted Date: Monday, January 16, 2017
The Financial Industry Regulatory Authority (FINRA) recently imposed sanctions against 12 firms, fining them a total of $14.4 million for “significant deficiencies” in their cybersecurity systems.
Federal securities laws and FINRA rules require companies to keep electronic records related to business in “write once, read many,” also known as WORM, format to prevent alteration or destruction of records stored electronically.
Read on to find out what these companies did to get sanctioned.
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Fed study highlights rise in card use
Posted Date: Monday, January 16, 2017
Credit and debit card transactions account for more than two-thirds of all primary noncash payment in the United States, according to a recent Federal Reserve study of U.S. noncash payments.
Read on to find out how prevalent the use of prepaid and non-prepaid cards has become in recent years along with other trends in noncash payments.
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New phone app tracks federal regulations
Posted Date: Monday, January 16, 2017
The Obama administration has launched the first mobile phone app designed to offer people an intuitive way to track and stay educated about federal regulation. Read on to find out what features this app has to offer that could make it handy for anyone needing to stay current with the regulatory environment.
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CUNA works to keep MBL rule in place
Posted Date: Friday, January 13, 2017
Among the nearly 200 regulations the House Freedom Caucus listed for consideration of congressional disapproval under the Congressional Review Act (CRA) was the National Credit Union Administration’s member business lending regulation.
However, conversations between the Credit Union National Association and members of the caucus may keep the rule from being caught in the CRA process.
Chief Advocacy Officer Ryan Donovan talked with Dodd Frank Update about those discussions. Read on for the latest.
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FHA reducing mortgage insurance premium
Posted Date: Friday, January 13, 2017
The Federal Housing Administration (FHA) will reduce its annual mortgage insurance premium (MIP) for most new mortgages with a closing/disbursement date near the end of January, according to a recent announcement by Housing and Urban Development Secretary Julián Castro.
The rate reduction reflects the fact that the FHA’s Mutual Mortgage Insurance Fund is showing “improved economic health” for the fourth consecutive year. Read on to learn more about the decision and how HUD expects it to affect borrowers.
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PathSoftware announces integration with FraudGuard
Posted Date: Thursday, January 12, 2017
PathSoftware, a highly-configurable, cloud-based mortgage loan origination software (LOS) from CalyxSoftware, has announced its integration with First American Mortgage Solutions’ FraudGuard, a data-driven decision-support tool that increases the speed and accuracy of application reviews to help mitigate risk and improve loan quality. Read on to learn more.
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CFPB opens nominations for advisory groups
Posted Date: Thursday, January 12, 2017
The Consumer Financial Protection Bureau (CFPB) has invited members of the public to apply for membership in its Credit Union Advisory Council (CUAC), Consumer Advisory Board (CAB) and Community Bank Advisory Council (CBAC). Nominations are due March 1 and the CFPB plans to announce newly appointed members, who will serve two-year terms, sometime in August. Read on to learn more.
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Banks settle with DOJ over ‘redlining’ practices
Posted Date: Wednesday, January 11, 2017
Two Ohio-based banks recently reached a $9 million settlement with the Department of Justice over allegations of “redlining” practices, which allegedly violated the Fair Housing Act and Equal Credit Opportunity Act.
Both banks will open new branches in previously underserved areas as part of their multiple new requirements for remedying the allegations outlined in a recent complaint filed with the District Court for the Southern District of Ohio.
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CUNA president wants credit unions exempt from CFPB rules
Posted Date: Wednesday, January 11, 2017
Credit Union National Association (CUNA) President and CEO Jim Nussle recently outlined CUNA’s regulatory relief priorities with the new Congress in place via a letter addressed to all members of the Senate and House of Representatives.
The letter included several thoughts on the Consumer Financial Protection Bureau’s role in regulating credit unions. Read on to learn more about what Nussle wrote.
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ICBA selects Wolters Kluwer E-Sign as preferred e-signature provider
Posted Date: Wednesday, January 11, 2017
The Independent Community Bankers of America (ICBA) recently announced it has expanded Wolters Kluwer’s Preferred Service Provider relationship to cover Wolters Kluwer E-Sign, the company’s SaaS-based e-signature platform. The addition recognizes Wolters Kluwer E-Sign as the preferred e-signature solution for ICBA members. Read on to learn more.
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Ellie Mae launches Encompass Loan Officer Connect
Posted Date: Monday, January 9, 2017
Ellie Mae, a provider of innovative on-demand software solutions and services for the residential mortgage industry, announced the launch of Encompass Loan Officer Connect, which is designed specifically to enable loan officers to be more effective and efficient when serving their borrowers. Read on to learn more.
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FFIEC finalizes new call report form
Posted Date: Monday, January 9, 2017
The Federal Financial Institutions Examination Council (FFIEC) recently finalized the reporting requirements for a new, streamlined call report intended to help small financial institutions.
The FFIEC proposed the trimmed down report after reviewing several comments from industry representatives in last year’s Economic Growth and Regulatory Paperwork Reduction Act process. Read on to find out what the streamlined reports will look like and what the commenters had to say.
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Barclays sued over faulty RMBS sales
Posted Date: Monday, January 9, 2017
The Department of Justice (DoJ) recently filed a civil complaint alleging that Barclays Bank PLC personnel repeatedly sold residential mortgage-backed securities (RMBS), supported by defective and misrepresented mortgage loans, to investors throughout the world from 2005 to 2007.
Read on to learn more details about the lawsuit.
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Pew report examines effects of overdraft fees
Posted Date: Monday, January 9, 2017
A recent Pew report noted that the continuous increase in the amount and frequency of overdraft fees over the past several decades has disproportionately affected consumers commonly referred to as “financially vulnerable.” The report offered advice on how financial institutions can help to curb this trend. Read on to find out what recommendations the report suggested.
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CFTC chairman announces resignation
Posted Date: Friday, January 6, 2017
Commodity Futures Trading Commission (CFTC) Chairman Timothy G. Massad has announced his resignation, effective Jan. 20, 2017.
The CFTC press release announcing Massad’s resignation also included a statement from the outgoing chairman, highlighting the commission’s accomplishments during his tenure. Massad took over the chairmanship of the agency in June 2014. Read on to find out what he had to say about his time atop the agency.
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FSR announces 2017 Board of Directors
Posted Date: Thursday, January 5, 2017
The Financial Services Roundtable (FSR) recently announced its 2017 Board of Directors. Chairman and CEO of Bank of America Brian Moynihan will serve as FSR’s Board Chairman and Michael Tipsord, Chairman, President and CEO of State Farm Mutual Automobile Insurance Company is FSR’s chairman-elect, slated to lead the board in 2018. Read on to learn more.
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AmCap Mortgage names Michael Goldman COO
Posted Date: Thursday, January 5, 2017
AmCap Mortgage, a privately held national mortgage banker based in Houston, has named Michael Goldman chief operating officer of the company. Read on to learn more.
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Deutsche Bank agrees to $7.2 billion settlement over RMBS
Posted Date: Wednesday, January 4, 2017
Deutsche Bank AG recently agreed to a settlement with the Department of Justice (DoJ), in principle, requiring the bank to pay a civil penalty of $3.1 billion and provide $4.1 billion in consumer relief over claims regarding certain activities between 2005 and 2007 that contributed to the 2008 financial crisis.
The total settlement amount is roughly half the $14 billion the DoJ initially requested.
Read on to learn more about the settlement.
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Built Technologies appoints new quality assurance manager
Posted Date: Wednesday, January 4, 2017
Built Technologies recently announced that it has appointed Tyler Matheny as the company’s quality assurance manager, effective immediately. Built produces web-based and mobile software that is used by lenders, builders, borrowers and inspectors to simplify the way construction loans are managed. Read on to learn more.
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CFPB details debt collection complaints in November report
Posted Date: Wednesday, January 4, 2017
Debt collection took the spotlight for the Consumer Financial Protection Bureau’s November complaint snapshot, which also honed in on complaint trends in Arizona, a state that accounted for 23,300 of the 1,058,100 total complaints the bureau handled through Dec. 1, 2016. Read on to find out what else the report included.
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FDIC approves 2017 operating budget
Posted Date: Tuesday, January 3, 2017
For the seventh consecutive year, the Federal Deposit Insurance Corp. (FDIC) approved an operating budget that reflects a year-to-year reduction in operating costs, at a recent board meeting.
The 2017 FDIC Operating Budget, which accounts for the current state of the financial environment and banking industry, totals $2,157,822,764. This represents a 2.4 percent ($53 million) decrease from 2016 and a decrease of approximately 46 percent since the peak of the financial crisis, when the operating budget nearly reached $4 billion.
Read on to learn more details about the new budget.
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