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Nearly a half century has passed since the enactment of the Community Reinvestment Act. Given the major evolutions within the financial services industry since then, the updates contained in the nearly 1,500-page final rule recently issued by the Federal Reserve, Federal Deposit Insurance Corp., and Office of the Comptroller of the Currency came with a great deal of anticipation.

With such a large regulatory package, Dodd Frank Update sought insight from an expert with 35 years of federal regulatory experience and 12 years’ experience as a regulatory consultant – Wolters Kluwer Senior Advisor Timothy Burniston.

FormFree recently appointed former hip-hop/rap recording artist-turned-techpreneur Victor D. Lombard, professionally known as DIVINE, to be the company’s head of culture, according to a company press release.

Bank of America learned a $12 million lesson about the importance of reporting accurate mortgage data after the Consumer Financial Protection Bureau ordered the nation’s second-largest bank to pay for four years of misreported borrower information.

Hundreds of loan officers at Bank of America violated the Home Mortgage Disclosure Act and Regulation C by allegedly failing to report demographic information for mortgage applicants.

Federal bank regulatory agencies announced the comment period for their proposed rule on long-term debt has been extended until Jan. 16, 2024. The proposal is intended to improve the resolvability of large banks and enhance financial stability and was created with input from the Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency.

Advisors from STRATMOR Group recently reflected on what they identified to be the most important lessons learned during the past year, with their insights published in the November InFocus article titled “Lessons Learned in a Down Mortgage Market” in its November Insights Report.

CMG Financial recently announced the addition of Shamrock Home Loans, expanding its presence across the Northeast. The well-capitalized and privately held mortgage banking firm, based in San Ramon, Calif., revealed the integration of Shamrock Home Loans’ origination team, according to a company press release. The sales and support professionals will be branded as Shamrock, Powered by CMG Home Loans.

The recent establishment of a special assessment for certain federally insured depository institutions by the Federal Deposit Insurance Corp. (FDIC) is more than just a means of replenishing funds drained from the Deposit Insurance Fund by the most recent bank failures.

It marks the second move in as many years deemed necessary to stay on track for meeting the FDIC’s goal to restore the fund’s reserve ratio to its statutorily required, pre-pandemic level by Sept. 30, 2028.

The Consumer Financial Protection Bureau ordered Toyota Motor Credit Corp. to pay $60 million in penalties and consumer redress for violating the Consumer Financial Protection Act and the Fair Credit Reporting Act.

The bureau accused Toyota’s lending arm of an illegal scheme that prevented borrowers from canceling product bundles that increased their monthly car loan payments and damaged their credit reports with false information.

The California Department of Financial Protection and Innovation issued a cease and desist order against a purported cryptocurrency investment platform for violating the state’s securities laws. The enforcement action was part of a coordinated effort with other states’ regulators.

Homebuyers are applying for mortgages on new home purchases at a notably higher rate than they were a year ago, according to data reported in the Mortgage Bankers Association’s latest Builder Application Survey.

The survey shows new home purchase applications in October were up significantly compared with the same month last year and have increased since September as well.

Private money lender CV3 Financial Services, LLC, recently appointed two new executives to key positions on the company’s team – Robert Callaway as chief financial officer and Ken Jacobson as Senior Vice President, Capital Markets. On the heels of the company’s recent launch, the company explained the move as a strategic one intended to reflect its commitment to bolstering its financial leadership in the industry and drive sustainable growth, according to a press release.

Open banking is a topic getting more attention as consumers grow increasingly aware of the importance of monitoring their personal financial data. The Consumer Financial Protection Bureau’s (CFPB) “Personal Financial Data Rights” rulemaking, implementing Sec. 1033 of the Dodd-Frank Act, is viewed by many experts as a potential catalyst for a large-scale shift in favor of open banking, also known as open finance.

Speaking to Dodd Frank Update during the 2023 Mortgage Bankers Association’s Annual Conference in Philadelphia, Truv CEO and co-founder Kirill Klokov and Truv Vice President of Product, Analytics and Design Darshana Shetty offered insight as to how open banking systems can be beneficial in verifying lender data.

The collapse of Silicon Valley Bank and Signature Bank in March shed light on a statutory mechanism meant to shield “uninsured” depositors from harm when their bank fails. The mechanism is called the Systemic Risk Exception and it is the subject of a new final rule recently approved by the Federal Deposit Insurance Corp.

The rule requires covered entities to pay a special quarterly assessment based on their estimated uninsured deposits to recoup losses from the recent bank failures.

The Federal Reserve recently published its November 2023 Supervision and Regulation Report, detailing key policy actions and supervisory developments, as well updating the overall health of the stability of the financial system.

Although banks remain largely well capitalized, Fed examiners remain intent on monitoring the impact of high interest rates and other factors which could negatively impact liquidity over time.

Federal regulatory agencies recently announced annual threshold adjustments for determining appraisal requirements for “higher-priced” mortgage loans. Such mortgages are deemed to be associated with higher risks than others by the Truth in Lending Act and Regulation Z.

The Consumer Financial Protection Bureau, the Federal Reserve and the Office of the Comptroller of the Currency included details about the adjustments in a joint press release.

Shortly after Veterans Day, the National Credit Union Administration Board unanimously approved a final rule adding “war veterans’ organizations” to the definition of a “qualified charity,” which federal credit unions are permitted to contribute to via a charitable donation account.

Repeat offenders have become a common theme in enforcement actions issued by the Consumer Financial Protection Bureau. For the second time in four years, the bureau has ordered Enova International Inc. to cease ongoing illegal conduct and pay a multi-million-dollar penalty to redress affected consumers.

The bureau’s latest action against Enova calls for the online lender to pay a $15 million civil money penalty for actions which violated the Consumer Financial Protection Act.

The Biden-Harris administration recently issued an executive order intended to address both the potential benefits and risks associated with artificial intelligence (AI), including those applicable to federal agencies and competition within the business community.

The aim of the executive order is to position the U.S. as a frontrunner in harnessing the potential of and mitigating the risks associated with AI.

ICBA Bancard, the payments subsidiary of the Independent Community Bankers of America (ICBA), recently announced its decision to rebrand as ICBA Payments. The name change is intended to reflect its expanded offerings beyond card services and a broader focus on the larger payments ecosystem, according to an ICBA press release.

Large technology firms offering digital wallets and payment apps could eventually find themselves under the jurisdiction of the Consumer Financial Protection Bureau (CFPB) via the agency’s latest rulemaking proposition.

The CFPB recently introduced a proposal to extend its supervisory reach to larger nonbank companies which offer certain types of financial products to consumers, noting the sizable role such products play in the country’s financial infrastructure.

To shed light on the process for determining the level of risk a financial entity may pose to the U.S. economy, the Financial Stability Oversight Council (FSOC) unanimously approved final versions of a new analytic framework for making such determinations, as well as updated guidance on the council’s determination process tailored for nonbank financial entities.   

The FSOC Analytic Framework details the vulnerabilities and transmission channels which most frequently contribute to financial stability risks, whether these activities stem from widely conducted activities or individual firms.

Marking the first expansion of the Small Business Administration’s program designed to facilitate growth in underserved markets in more than 40 years, the Biden-Harris administration recently granted three new Small Business Lending Company (SBLC) licenses.

SBLC licenses are intended to empower non-depository lenders to leverage government guarantees when underwriting small business loans in historically underserved markets.

Heavy loan losses linked to the trucking industry were enough to cause a nearly 100-year-old Iowa bank to shut its doors this month, according to information released by federal and state agencies, as well as various media reports.

Citizens Bank, Sac City, Iowa, became the fifth U.S. bank to fail this year, when the Iowa Division of Banking directed the institution, which had served the area since 1929, to surrender all its assets.

Citing evidence of discrimination against Armenian Americans, the Consumer Financial Protection Bureau ordered Citibank to pay $25.9 million in fines and consumer redress. The bureau found the bank intentionally discriminated against credit card applicants with surnames suspected to indicate they were of Armenian origin from 2015 through 2021.

In the third quarter, commercial and multifamily mortgage loan originations plummeted 49 percent compared with the same period last year, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

MBA Head of Commercial Real Estate Research Jamie Woodwell noted the drop in originations was not limited to any one type of property. On a quarterly basis, some loan types have shown signs of recovery.

Speaking before the Securities Industry and Financial Markets Association, Securities and Exchange Commission Chair Gary Gensler delved into recent reforms aimed at enhancing the efficiency and resilience of Treasury markets.

Perhaps one of the most anticipated conversations during the Mortgage Bankers Association’s (MBA) 2023 convention occurred between Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra and MBA President and CEO Bob Broeksmit.

The relationship between banks and mortgage lending was the primary topic of conversation. Chopra and Broeksmit discussed concerns over new Basel III requirements, as well as the need for regulation in the nonbank financial sector.

In a move aimed at bolstering data security within the financial sector, the Federal Trade Commission (FTC) greenlit an amendment to its Safeguards Rule, requiring nonbank financial institutions to report data security breaches to the agency.

The amendment also will lessen the number of affected customers requiring a breach to be reported and impose a shortened time frame for reporting such a breach to the FTC.

Expressing concerns about the agency’s approach to enforcement within the cryptocurrency marketplace, one Securities and Exchange Commission (SEC) commissioner recently explained her dissent in a contentious ruling against LBRY, Inc.

Commissioner Hester Pierce raised questions about the impact of the SEC’s litigation regarding the demise of LBRY, a company which developed a functional blockchain with real-world applications.

The landscape of the single-family mortgage origination and servicing business has transformed significantly since the housing crisis. Commercial banks are no longer the dominant players in the marketplace, with many exiting the space, which has allowed independent mortgage banks (IMBs) to take center stage.

A recent report by the Urban Institute’s Housing Policy Center describes the transition, which has seen IMBs facilitate two record-breaking origination years in 2020 and 2021, despite challenges presented by the COVID-19 pandemic.

The Mortgage Bankers Association (MBA) kicked off its 2023 annual conference with a general session filled with insightful analysis and projections about what lies ahead for the U.S. economy and the mortgage industry from three of MBA’s top subject matter experts. Although the overall outlook for the coming year is not stellar, the speakers indicated it is not all doom and gloom either.

The session began with an economic analysis from Mike Fratantoni, MBA chief economist and senior vice president of research and industry technology, followed by a mortgage industry outlook courtesy of Joel Kan, MBA deputy chief economist and senior vice president, and then Marina Walsh, MBA vice president of industry analysis, who broke down what it all means.

The Federal Trade Commission (FTC) and the state of Wisconsin took action against an auto dealer group for allegedly charging illegal hidden fees and discriminating against Native American customers. The first charge aligns with the FTC’s recent joint statement with the Consumer Financial Protection Bureau to root out practices involving illegal “junk” fees charged to consumers.

In a move aimed at increasing the nation’s housing supply and improving housing affordability, the U.S. Department of Housing and Urban Development and the Biden-Harris administration announced a partnership with other federal agencies to make critical updates to applicable policies.

The development has gained support from the mortgage industry’s largest trade organization, which has made expanding affordable homeownership a top priority for the next year.

The Federal Reserve recently initiated a request for comment on a proposal to reduce the maximum interchange fee receivable by large financial institutions for debit card transactions. The proposal also aims to establish a regular biennial process for updating the maximum fee amount in line with changing issuer costs.

Interchange fees are set in accordance with the Electronic Fund Transfer Act and its implementing regulation, commonly known as Regulation II.

Consumer Financial Protection Bureau Enforcement Director Eric Halperin highlighted the bureau’s recent achievements and ongoing efforts to protect consumers in the financial industry, during a speech at the National Compliance Law Center’s Consumer Rights Litigation Conference.

The director emphasized the importance of the agency’s mission and the positive impact it has had on the consumer marketplace, despite challenges to the agency’s statutory authority, constitutionality and funding structure.

The Federal Reserve recently announced it will extend the comment period for its proposed Basel III Endgame capital proposal to Jan. 16, 2024.

The Fed stated the extended submission deadline is intended to increase the amount of data gathered from banks affected by the agency’s new capital proposal, which was announced earlier this year.

In its biennial report to Congress, the Consumer Financial Protection Bureau data indicating outstanding credit card debt in 2022 surpassed $1 trillion for the first time since the bureau began tracking this data.

Credit card companies collected more than $130 billion – $105 billion in interest and $25 billion in fees – from consumers in 2022, the report states.

The Mortgage Bankers Association (MBA) announced at its 2023 Annual Convention & Expo that five companies have been recognized as 2023 Diversity, Equity, and Inclusion (DEI) Residential Leadership Award recipients. The annual awards recognize MBA members for their leadership efforts in DEI in three award categories: organizational DEI, market outreach strategies, and non-lender.