The federal banking agencies recently published a letter to covered banks and savings institutions with instructions for submitting 2018 fourth quarter consolidated reports of condition and income (Call Report). The letter applies to institutions with total assets less than $1 billion supervised by the Federal Deposit Insurance Corp., including community institutions.

Federal websites used to publish regulations for public review and comments have been handicapped by the partial government shutdown. The Federal Register , a website where federal agencies archive daily rulemaking activities, is not being supported during the shutdown. The site was updated to include links to alternative websites where regulatory documents can be found.

Good-faith assessments are a key feature of the Consumer Financial Protection Bureau’s (CFPB) ability-to-repay/Qualified Mortgage (ATR/QM) rule. Approximately half a decade after its effective date, the rule was the subject of its own good faith assessment of sorts to ensure its effectiveness in preventing the issuance of subprime mortgage loans. Section 1022(d) of Dodd-Frank requires the CFPB to conduct what could be assessment of its significant rules and order and publish a report of each assessment within five years of their of their effective dates rule or order.

The Supreme Court has declined to hear the longest running case of many challenging the Consumer Financial Protection Bureau’s (CFPB) constitutionality. Justice Brett Kavanaugh, who previously ruled on the CFPB’s constitutionality as a member of the D.C. Circuit Court, recused himself from the vote on whether to hear the case.

Wells Fargo did more than kill the proverbial two birds with one proverbial stone when it agreed to pay $575 million to cover damages across all 50 states caused by the bank’s previously disclosed improper retail sales practices, as well as those pertaining to automotive insurance products and mortgage interest rate locks. In addition to being the largest multistate settlement on record, the matter highlights which states were more affected by the company’s improper practices than others and how some states have chosen to use settlement proceeds to try and prevent consumers from falling victim to similar practices in the future.

More than two years after reaching the first of many high-profile settlements with federal and state regulators, Wells Fargo once again has agreed to pay a monetary sum to settle charges involving illicit activity similar to those revealed involving retail sales at Wells Fargo Community Bank – charging customers for products or services without consent.   Few companies can speak to how heavily the burden of past mistakes can weigh on a company with more authority than Wells Fargo and how long the remediation process can take.

To help the industry prepare for mandatory use of the redesigned Uniform Residential Loan Application, also known as form 1003, Fannie Mae and Freddie Mac recently highlighted “new” and “updated” sections of their existing FAQ on URLA requirements set by the government-sponsored enterprises. The updated FAQ includes six updated sections and four newly added ones, giving it 26 collectively. 

There are enough hurdles and potential hangups that can delay the mortgage process under normal circumstances, but many can be avoided with the help of an experienced loan officer or settlement agent. However, when a delay is caused by an unrelated political dispute at the highest levels of the government, it’s out of their hands. Jessica Herdman, a Pittsburgh-based loan officer with Victorian Finance, LLC, has a home sale that was set to close Jan. 4. Unfortunately for everyone involved, the transaction required approval from an agency affected by the partial government shutdown – the U.S. Department of Agriculture.

Michael Bright, President Donald Trump’s nominee to become Ginnie Mae’s first president in more than two years, has withdrawn his name from consideration and announced his intention to leave the government-owned securitizer to become CEO of the Structured Finance Industry Group. In his new leadership role, Bright will oversee an organization with policy priorities focused on secondary market reform, financial accounting, marketplace lending, mortgage loan level disclosure rules, regulatory capital and liquidity and the Volcker Rule.