|
News By Edition
|
Dodd Frank Update Monthly Edition
Dodd Frank Update December 2017
|
|
Cordray walks away
Posted Date: Thursday, November 16, 2017
Consumer Financial Protection Bureau (CFPB) Director Richard Cordray has announced he will resign from the CFPB, bringing an end to Cordray’s controversial leadership of the bureau.
The bureau often has touted the amount of money it has returned to harmed consumers – nearly $12 billion – along with the success of its mortgage market reforms. Yet its critics have pointed to tightened credit markets, increased regulatory burdens on companies, its methodology used to hold indirect auto lenders accountable for discriminatory lending practices, and new rulemaking that critics say far exceed mandates from Congress.
What’s the future of the CFPB? Who’s in charge? Read on for more.
|
|
|
Industry reacts to Cordray’s resignation
Posted Date: Thursday, November 16, 2017
The announcement that Consumer Financial Protection Bureau (CFPB) Director Richard Cordray will step down at the end of November is one that numerous industry leaders and members of Congress view as an opportunity to enact drastic change to the bureau and federal regulations.
Although the bureau’s critics want to see its power curtailed and policies loosened once a new director is named, Cordray’s supporters want to see the bureau’s work continue much as it has.
Find out more about what various trade associations and legislators have had to say in the wake of Cordray’s announcement.
|
|
|
Trump expected to name Mulvaney interim CFPB director
Posted Date: Thursday, November 16, 2017
President Donald Trump has tapped Mick Mulvaney to replace Consumer Financial Protection Bureau Director Richard Cordray on an interim basis once he steps down at the end of November, according to published reports.
Under the Federal Vacancies Reform Act of 1998, because Mulvaney, an outspoken critic of the bureau already received Senate approval when he was confirmed as director of the Office of Management and Budget in February 2017, he does not have to go through the process again to be named the temporary head of another federal agency.
Find out more details about Mulvaney and his views about the bureau.
|
|
|
Black hole at top of CFPB on Black Friday
Posted Date: Saturday, November 25, 2017
On Black Friday, the Consumer Financial Protection Bureau was left in the dark about its leadership.
Director Richard Cordray announced early in the day that he would resign his position, effective at midnight, and named a deputy director to take over as Cordray’s replacement.
Hours later, President Donald Trump announced that he officially named Office of Management and Budget Director Mick Mulvaney as the acting director, a move the president believes he can make under the Federal Vacancies Reform Act. So who is in charge, and can the CFPB function while two acting directors appear to be in place?
|
|
|
Trump sides with Senate, ignores Cordray on arbitration rule
Posted Date: Friday, November 3, 2017
President Donald Trump signed a Senate-approved resolution nullifying the Consumer Financial Protection Bureau’s (CFPB) final rule banning mandatory arbitration agreements in financial contracts on Nov. 1.
The announcement comes despite a letter CFPB Director Richard Cordray wrote to Trump following the Senate vote, in a last-ditch effort to convince the president to uphold the arbitration rule.
Find out more about the circumstances leading up to Trump’s decision to instead uphold the Senate’s recent vote in favor of the resolution of disapproval, nullifying the arbitration rule.
|
|
|
Senate bill alters TRID, QM, SIFI
Posted Date: Monday, November 13, 2017
The Senate Banking Committee released the framework on a bipartisan financial regulation bill, with nine co-sponsors from each side of the aisle signing onto the agreement.
The package includes changes which would affect the TRID three-day rule, QM status for portfolio loans, and capital standards for Systemically Important Financial Institutions.
Democrats led by Joe Donnelly (D-Ind.), Heidi Heitkamp (D-N.D.), Jon Tester (D-Mont.) and Mark Warner (D-Va.) joined Chairman Mike Crapo (R-Idaho) and other Republicans in announcing the package. Read on for details and initial reactions from industry trade associations.
|
|
|
Industry reacts to passage of House tax bill
Posted Date: Thursday, November 16, 2017
The House passed the Republican tax reform bill, H.R. 1, also known as the “Tax Cuts and Jobs Act,” by a 227-205 vote, with numerous provisions that have met with both support and concern from the financial industry.
The bill would cut taxes by approximately $1.5 trillion over 10 years if adopted and includes many provisions that are also included in the Senate’s tax bill, which has passed out of committee.
Find out what the industry is saying about the tax reform proposals that are working their way through Congress.
|
|
|
How important is Single Source Validation?
Posted Date: Tuesday, November 7, 2017
Fannie Mae’s Single Source Validation (SSV) program promises to bring mortgage lenders one step closer to being able to verify all borrower information relevant to a crediting decision through a single report.
Shortly after third-party service provider FormFree announced that it will participate in the pilot for SSV, the company’s founder and CEO Brent Chandler and Chief Strategy and Industry Relations Officer Ann Fulmer sat down with Dodd Frank Update to discuss its potential impact at the Mortgage Bankers Association’s Annual Convention in Denver.
Find out what they had to say about the program, based on their company’s own experience working to streamline the data verification process.
|
|
|
Fannie Mae announces new API, Servicing Marketplace
Posted Date: Tuesday, November 7, 2017
Fannie Mae CEO Timothy Mayopoulos detailed the intended benefits of his company’s newly developed Application Programing Interface (API), Servicing Marketplace and Single Source Validation in front of a packed conference hall at the 2017 Mortgage Bankers Association’s Annual Convention and Expo in Denver.
Compared to the rollout of the government-sponsored enterprise’s most anticipated 2018 innovation, Single Source Validation, which allows lenders to validate information about a borrower’s income, assets and employment in a single report, Mayopoulos said its new API solution “is on a faster track.”
Read on to find out more about how the new offerings are expected to help lenders.
|
|
|
MBA survey shows rise in delinquencies
Posted Date: Tuesday, November 28, 2017
Findings detailed in the Mortgage Bankers Association’s (MBA) National Delinquency Survey for the third quarter of 2017 indicate that the rate of delinquencies increased for all mortgage loan types from the second quarter.
MBA Vice President of Industry Analysis Marina Walsh said that Hurricanes Harvey and Irma likely played a significant role in the uptick.
Find out more details about the survey’s findings and what the mortgage industry can expect in the near future.
|
|
|
FDIC chair plans to stay put, cautions against complacency
Posted Date: Wednesday, November 22, 2017
Recapping lessons he’s learned throughout his years at the Federal Deposit Insurance Corp. (FDIC), Chairman Martin Gruenberg told an audience at the Brookings Institution in Washington, D.C. that although he thinks some regulations could benefit from review, the industry should resist the urge to become complacent.
Gruenberg also said he plans to stay in his role beyond the end of his term until a successor is named.
Find out more about what regulations he said could use more analysis and what the industry and regulators should keep in mind as they consider future reforms.
|
|
|
CFPB sues online company over illegal debt collection
Posted Date: Wednesday, November 22, 2017
Alleging that the company has been illegally collecting on loans that don’t comply with state laws, the Consumer Financial Protection Bureau (CFPB) filed suit against Think Finance in a Montana district court.
The bureau asserted in its complaint that many loans for which the Texas-based online service provider collects payments are void under state laws governing interest rate caps or lender licensing. The CFPB seeks to recoup relief for harmed consumers and impose a penalty.
Read on to find out more details about the lawsuit.
|
|
|
Company challenges CID, cites second CFPB order
Posted Date: Wednesday, November 22, 2017
After receiving two unrelated orders for information from the Consumer Financial Protection Bureau, a financial company used the latter of the two as evidence to a support its contention that the bureau was subjecting the company to undue burden, which it argued upon receiving the first order.
The company petitioned to have the CID set aside or modified, then cited a second CFPB information inquiry it received to support its position.
Find out details about the company’s argument and the bureau’s response.
|
|
|
Bill to clarify HVCRE classifications awaits Senate vote
Posted Date: Wednesday, November 22, 2017
The House recently passed legislation intended to clarify and amend parts of the Basel III high volatility commercial real estate banking regulation.
The legislation distinguishes what loans should and should not be classified as HVCRE loans.
Find out more details about the bill and the industry’s reaction.
|
|
|
ABA criticizes NCUA over FOM expansions
Posted Date: Wednesday, November 22, 2017
The on-going lawsuit between the American Bankers Association (ABA) and the National Credit Union Administration (NCUA) over the agency’s field-of-membership (FOM) rule recently intensified.
The ABA responded to the NCUA’s approval of multiple FOM expansions with a court filing reiterating its contention that the rule violates federal law.
Get up to speed with the latest development in this long-running debate between bankers and credit unions.
|
|
|
Report shows uptick in housing starts
Posted Date: Wednesday, November 22, 2017
The number of housing started trended up in October, according to a report published by the U.S. Department of Commerce.
Data highlighted in the report also shows month-over-month and year-over-year figures for new building permits issued, housing completions and a regional breakdown of growth in housing activity.
Read on to find out more about the report’s findings.
|
|
|
Navy Federal Credit Union ranks highest in customer satisfaction
Posted Date: Tuesday, November 21, 2017
Navy Federal Credit Union has earned the highest satisfaction ratings among banks and credit unions for the second year in a row, according to the 2017 American Customer Satisfaction Index Finance and Insurance report.
|
|
|
Yellen resigns from Fed board
Posted Date: Monday, November 20, 2017
Federal Reserve Board of Governors Chair Janet Yellen has submitted her resignation from the board, effective upon the swearing in of her successor.
In her resignation letter, Yellen expressed optimism regarding the state of the financial system, and lauded her peers, including her predecessor as chair, Ben Bernanke, and her successor, Jerome Powell.
Find out what she had to say in her letter announcing her resignation.
|
|
|
FHA report shows declining MMI Fund health
Posted Date: Monday, November 20, 2017
Findings included in the Federal Housing Administration’s (FHA) 2017 Annual Report to Congress on the economic condition of the agency’s Mutual Mortgage Insurance Fund (MMI Fund) indicate the fund’s fiscal health is declining.
The financial industry and some members of Congress believe that reverse mortgages are negatively impacting the fund, and that it would be in worse shape if not for the suspension of a planned reduction to mortgage insurance premiums.
Find out more details about the fund’s condition and what factors may affect it going forward.
|
|
|
Wells Fargo fires head of Consumer Lending
Posted Date: Monday, November 20, 2017
Wells Fargo has fired the senior executive vice president of its Consumer Lending division, Franklin Codel for unspecified actions that the company deemed in violation of its policies and expectations of its senior leaders.
The company has announced interim plans for its Consumer Lending business lines until Codel’s successor is named.
Find out more details about the company’s decision and its plans for the future.
|
|
|
Banks, credit unions support committee-approved bills
Posted Date: Monday, November 20, 2017
The House Financial Services Committee recently approved multiple regulatory relief bills that have gained support from financial trade associations. Several of the bills are mortgage-related and others seek to better acknowledge size variances between financial institutions.
The American Bankers Association and National Association of Federally-Insured Credit Unions were among the trade organizations to express support for many of the legislative pieces.
Read on to learn more about the bills the committee approved.
|
|
|
CFPB seeks comments on overdraft RFI
Posted Date: Monday, November 20, 2017
The Consumer Financial Protection Bureau is seeking comments on its plan to survey consumers regarding their understanding of ATM and debit card overdraft disclosures.
The request for information also would gauge consumers’ financial product usage, behavioral traits and other characteristics that might influence their use of overdraft programs and disclosure forms.
Learn more about the bureau’s plan and what the financial industry has said about it.
|
|
|
Senate confirms Otting to head OCC
Posted Date: Thursday, November 16, 2017
The Senate voted to confirm Joseph Otting as the next head of the Office of the Comptroller of the Currency.
Otting will replace Acting Comptroller Keith Noreika, who took up the role in May after Thomas Curry resigned.
Find out more details about Otting and what the industry has to say about his confirmation.
|
|
|
OCC revises CRA policies, procedures
Posted Date: Thursday, November 16, 2017
The Office of the Comptroller of the Currency recently issued a revised policies and procedures manual regarding its approach to licensing applications from banks that have non-satisfactory Community Reinvestment Act ratings.
The revisions allow applicants to document how certain acquisitions, branch relocations and other actions would “help the bank to achieve its CRA objectives,” as well as other factors the OCC will take into consideration when issuing CRA ratings.
Find out what the industry had to say about the revisions.
|
|
|
CFPB launches delinquency trend tracker
Posted Date: Thursday, November 16, 2017
The Consumer Financial Protection Bureau has launched a new Mortgage Performance Trends tool that tracks nationwide delinquency rates, and also can break down delinquency information on a state-by-state basis.
The online tool features interactive charts and graphs, displaying data on mortgage delinquency rates for 50 states and the District of Columbia at the county and metro-area level.
Find out more about what insight the tool can provide regarding nationwide delinquency rates.
|
|
|
House tax bill passes committee, Senate unveils plan
Posted Date: Monday, November 13, 2017
The House Republicans’ tax bill passed the House Ways and Means Committee around the same time that the Senate Finance Committee introduced its plan for tax reform.
Many of the changes the House bill underwent have implications for financial institutions if adopted into law, and financial trade associations have not been quiet regarding their concerns over certain provisions in both bills.
Find out more about the proposals and the industry’s reaction.
|
|
|
Treasury names new FinCEN director
Posted Date: Monday, November 13, 2017
The Treasury Department has appointed Ken Blanco to direct the Financial Crimes Enforcement Network (FinCEN).
FinCEN is a bureau in Treasury’s Office of Terrorism and Financial Intelligence (TFI). Blanco, who has been serving as acting assistant attorney general for the Justice Department’s Criminal Division, is expected to transition into the position in December.
Read on to find out more about Blanco’s background and qualifications.
|
|
|
CBA supports ‘Student Loan Disclosure Modernization Act’
Posted Date: Monday, November 13, 2017
Bipartisan legislation calling for clearer, universally understood language in student loan disclosures has gained support from the financial industry.
H.R. 4119, also known as the “Student Loan Disclosure Modernization Act,” would require the Department of Education to adjust the language in disclosure forms to more clearly and more concisely explain the costs and terms associated with federal student loans.
Read on to learn more about what the bill proposes to do and why the Consumer Bankers Association supports it.
|
|
|
CFPB consent order references technology
Posted Date: Monday, November 13, 2017
Among the notable points in a recent consent order issued by the Consumer Financial Protection Bureau (CFPB) against a settlement services provider are the bureau’s directions ordering the company to go beyond paying restitution and updating its policies and procedures.
As part of the CFPB’s consent order requiring Meridian Title Corporation to establish and implement an adequate compliance management system, the bureau stipulated that the company must ensure that its technology is reasonably designed to facilitate that requirement.
Read on to learn more about the specifics of what the CFPB ordered the company to do.
|
|
|
ICBA president recognized as top lobbyist
Posted Date: Friday, November 10, 2017
Independent Community Bankers of America President and CEO Camden Fine recently was named a top lobbyist by The Hill as part of the political blog’s annual list of the most influential advocacy leaders. Fine has been named to the list every year since 2008.
|
|
|
National MI integrates with PCLender
Posted Date: Friday, November 10, 2017
National Mortgage Insurance Corporation, a subsidiary of NMI Holdings, Inc., recently made its private mortgage insurance available to lenders through the PCLender loan origination system from Fiserv to enable lenders to quote and order the company’s mortgage insurance directly from within the PCLender platform.
|
|
|
Trades call for data security standard
Posted Date: Friday, November 10, 2017
Seven financial trade organizations wrote to lawmakers, urging them to create a national standard for data security and breach notification.
The letter’s submission coincided with the House Financial Services Committee’s recent hearing on data security.
Find out what the organizations had to say about the matter.
|
|
|
Bank regulators propose Call Report revisions
Posted Date: Friday, November 10, 2017
In an effort to reduce data reporting burdens for financial institutions, the three banking regulators comprising the Federal Financial Institutions Examination Council have proposed Call Report revisions intended to streamline the process.
The Federal Reserve Board, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency recently published a notice of proposed rulemaking, detailing their plan to remove or consolidate numerous data items and add new or raise certain existing reporting thresholds.
Find out more about how the latest proposed revisions could affect various institutions.
|
|
|
Bankers, Noreika trade views on Volcker, Glass-Steagall
Posted Date: Friday, November 10, 2017
Financial professionals hoping for a revamp of the Dodd-Frank Act provision that restricts banks from making certain speculative investments, commonly known as the “Volcker Rule,” may see change in the spring of 2018, according to Acting Comptroller of the Currency Keith Noreika.
Two of the country’s largest bank trade associations weighed in on the matter of how to regulate the business of investment banking.
Find out what viewpoints and recommendations are being pushed on different sides of the matter.
|
|
|
ABA report shows rising credit card usage
Posted Date: Friday, November 10, 2017
The American Bankers Association’s latest “Credit Card Market Monitor” report indicates that credit card use continued to rise during the second quarter of 2017, with monthly purchase volumes increasing across all risk tiers.
The October 2017 edition consists of credit card data recorded between April and June, taken from proprietary industry databases and publicly available government sources. It details information about various risk types, consumer purchasing behavior, debt-to-income ratios and distribution of different account types, among other information.
Find out what determinations the report revealed, based on available data.
|
|
|
Special counsel clears Cordray of Hatch Act allegations
Posted Date: Friday, November 10, 2017
The Office of Special Counsel (OSC) wrote to Consumer Financial Protection Bureau Director Richard Cordray last month to inform him that he had been cleared of any possible violations of the Hatch Act.
House Financial Services Committee Chairman Jeb Hensarling (R-Texas), among others, raised the issue as speculation circulated in August about the possibility that Cordray would announce a run for the Ohio governor’s race at Labor Day events.
Find out what the OSC uncovered during its investigation.
|
|
|
Mr. Cooper partners with Matic Insurance Services
Posted Date: Tuesday, November 7, 2017
Mr. Cooper, the nation’s largest non-bank mortgage servicer, recently announced that it has led the Series A funding round in Matic Insurance Services, a digital insurance agency whose technology helps homebuyers obtain homeowner’s insurance during the mortgage process.
|
|
|
|
Tax reform bill gets mixed reaction from trades
Posted Date: Tuesday, November 7, 2017
House Republicans have introduced legislation proposing tax cuts which could total $1.5 trillion, including several provisions affecting the housing market, lenders, bankers and credit unions.
H.R. 1, also known as the “Tax Cuts and Jobs Act,” immediately was referred to the House Ways and Means Committee, upon its introduction, where it is expected to undergo amendments as the committee began markup work Monday before the bill moves forward.
Find out what financial trade organizations representing various institutions had to say about the bill.
|
|
|
OFR director to step down
Posted Date: Tuesday, November 7, 2017
The Office of Financial Research will need a new leader as of the first of the year as OFR Director Richard Berner has decided to step down.
Berner, who was confirmed by the Senate on Jan. 1, 2013, cited family as a motivating factor in his decision to resign.
Read on to find out what Berner and Treasury Secretary Steven Mnuchin had to say about the decision for the office’s only director to leave.
|
|
|
Treasury, OFR reports recommend recalibrating regs
Posted Date: Tuesday, November 7, 2017
The Treasury Department’s recent report on asset management and insurance policy has gained favor with financial trade organizations for its recommendations to recalibrate or delay certain regulations to benefit financial markets and the economy.
A viewpoint paper published by the Office of Financial Research, around the same time, explores similar topics, eliciting similar support.
Read on to find out what aspects of both reports resonated with industry professionals.
|
|
|
NAMB details position on housing reform
Posted Date: Tuesday, November 7, 2017
NAMB President Fred Kreger outlined numerous positions on the housing finance system that the organization believes the Federal Housing Finance Administration and Congress should consider when enacting changes to the secondary market.
Some of NAMB’s positions are similar to those previously expressed by other industry professionals and trade associations, and others are unique to NAMB.
Find out what stances the organization is advocating for that could have dramatic effects on the industry if incorporated into policy.
|
|
|
1st Tribal Lending products available to Calyx customers
Posted Date: Monday, November 6, 2017
Calyx Software, a leading provider of comprehensive mortgage software solutions for banks, credit unions, mortgage bankers, wholesale and correspondent lenders and brokers, announced that all Calyx Point users can now access products and pricing information for 1st Tribal Lending programs, regardless of whether they have registered to broker loans with 1st Tribal Lending.
|
|
|
Trump nominates Powell as Fed chairman
Posted Date: Friday, November 3, 2017
Advocates for a tailored, modernized approach to financial regulation are pleased about President Donald Trump’s nomination of Jerome Powell to chair the Federal Reserve Board of Governors.
If confirmed by the Senate, Powell would take over for Janet Yellen in February 2018. Powell has worked alongside Yellen in recent years to try to keep interest rates low.
Find out more about Powell and what experience he would bring to the position.
|
|
|
Regulator, GSE perspectives on market reform
Posted Date: Friday, November 3, 2017
The perceived need for reforming the secondary mortgage market was a hot topic at the 2017 Mortgage Bankers Association’s Annual Convention and Expo in Denver, which featured multiple speakers at the forefront of the conversation.
Federal Housing Finance Agency Director Mel Watt and Freddie Mac CEO Donald Layton both addressed the subject during separate general sessions.
Find out what insight they provided about secondary market reforms currently under consideration, as well as changes that already have taken effect.
|
|
|
HMDA platform beta now open
Posted Date: Friday, November 3, 2017
The Federal Financial Institutions Examination Council has launched a beta version its new platform for filing Home Mortgage Disclosure Act (HMDA) data.
The beta platform is intended to give financial institutions an opportunity to familiarize their compliance staffs with the platform and determine whether they are able to comply with all HMDA reporting requirements.
Find out more about how this launch can help financial institutions ensure they are prepared for the implementation of the new HMDA expansion.
|
|
|
QuestSoft partners with Specialized Data Systems’ RemoteLender
Posted Date: Thursday, November 2, 2017
As mortgage compliance becomes more complex, QuestSoft, a leading provider of comprehensive mortgage compliance automation, recently partnered with Specialized Data Systems (SDS) to offer end-to-end digital mortgage compliance.
|
|
|
PathSoftware integrates with ComplianceAnalyzer from ComplianceEase
Posted Date: Thursday, November 2, 2017
PathSoftware recently announced that Path, its highly-configurable, multi-channel, cloud-based mortgage loan origination software (LOS), has been integrated with ComplianceAnalyzer with TRID Monitor from ComplianceEase, an automated compliance solutions provider for the financial services industry.
|
|
|
Cross Media completes SOC 2 examination
Posted Date: Thursday, November 2, 2017
Cross Media, which offers a complete mortgage CRM solution, Unify, announced it has successfully completed a Service Organization Control (SOC) 2 Type I examination, providing Unify clients with confidence that their data is protected by one of the toughest standards that exist in the financial services industry.
|
|
|
Fremont Bank renews contract for Black Knight LoanSphere system
Posted Date: Wednesday, November 1, 2017
Black Knight, Inc. recently announced that Fremont Bank, the only independent and locally owned full-service bank in the San Francisco Bay Area, has renewed its agreement to use Black Knight’s LoanSphere MSP system for seven years, according to a press release.
|
|
|
Hensarling to retire from Congress
Posted Date: Wednesday, November 1, 2017
One of the most vocal opponents of the government-sponsored enterprises and the Consumer Financial Protection Bureau, Rep. Jeb Hensarling (R-Texas), has announced he won’t seek re-election when his term expires at the end of 2018.
Despite his assertion that he intends to spend more time with his family, some speculate that Hensarling will be a contender to move into one of the soon-to-be vacant leadership roles at a federal regulatory body.
Find out more about what industry professionals are saying about the possible implications of his announcement.
|
|
|
Cordray to Trump: Uphold arbitration rule
Posted Date: Tuesday, October 31, 2017
In a last-ditch effort to save his agency’s regulation banning mandatory arbitration agreements, Consumer Financial Protection Bureau Director Richard Cordray wrote to President Donald Trump, imploring him to uphold the controversial final rule.
The arbitration rule’s fate hinges on whether Trump signs a resolution of disapproval the Senate recently passed by a 51-50 margin, with Vice President Mike Pence casting the deciding vote.
Find out how Cordray tried to appeal to the president’s interests in an effort to convince him of the rule’s importance.
|
|
|
Monthly Newsletter |
Cover Story:
|
|