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  Report: CFPB focused on fair lending for mortgages, small bizTuesday, July 16, 2019 The Consumer Financial Protection Bureau (CFPB) recently issued its first annual Fair Lending Report to Congress under Director Kathy Kraninger, highlighting its efforts to prevent and address discriminatory activity and advance its new initiatives in connection with that mission throughout 2018. Within the report, the bureau broadly describes progress it has made implementing new initiatives intended to allow companies to test new, innovative approaches to providing consumer credit, as well as the agency's activities in supervision and enforcement fair lending laws. |
 Trades support CFPB reg review planTuesday, July 16, 2019 Numerous financial trade associations indicated that they strongly support the Consumer Financial Protection Bureau’s plan to review all rules issued over the last decade in line with the Regulatory Flexibility Act. At least one commenter suggested that the bureau conduct even more frequent reviews than required by law. |
 Trump Fed picks face distinctly different approval oddsTuesday, July 16, 2019 President Donald Trump recently announced his intention to nominate Judy Shelton and Christopher Waller to fill open governor seats at the Federal Reserve. Waller is regarded by many to be a safe, moderate choice to join the Fed. Shelton, on the flipside, could face an uphill battle to being confirmed by the Senate despite having already received Senate approval once. |
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Consumer confidence in banks unchanged in past yearFriday, July 12, 2019 Americans’ confidence level in banks has not wavered over the past years, according to an annual Gallup poll, which indicates that the percentage of people who have high regard for the institutions that protect their financial assets is the same as it was in last year’s survey. Respondents were asked whether they have a “great deal,” “quite a lot,” “some” or “very little” confidence in various institutions. |
 Trade urges CFPB to replace QM patchTuesday, July 16, 2019 Reiterating arguments expressed by community banks and credit unions, the National Association of Hispanic Real Estate Professionals recently urged the Consumer Financial Protection Bureau to extend the use of the temporary provision allowing certain loans with high debt-to-income (DTI) ratios to be deemed qualified mortgages (QMs). The group proposed an alternative model for granting QM status to high-DTI loans based on their Average Prime Offered Rate.
 AG cites deceptive ‘drip pricing’ in suit, orders redressTuesday, July 16, 2019 A recent case involving one of the world’s largest multinational hotel organizations highlights the types of add-on charges that regulators may determine to be intended to deceive consumers, resulting in hefty fines for the businesses responsible. The interpretation relying upon by the state attorney general in this case is similar to that used in crafting many federal laws concerning consumer financial protection.
 House passes bills to protect VA, FHA borrowersFriday, July 12, 2019 The House recently voted overwhelming in favor of six bipartisan bills, two of which would better protect borrowers seeking loans secured by the Department of Veterans Affairs (VA) and would provide increased access to housing counseling, respectively. The Mortgage Bankers Association (MBA) and Ginnie Mae expressed strong support for two of the bills – H.R. 1988, the “Protecting Affordable Mortgages for Veterans Act,” and H.R. 2162, the “Financial Literacy Act.”
 CFPB details ‘abusive’ reasoning in debt-relief settlementFriday, July 12, 2019 Alleging that the company acted “abusively” by taking “unreasonable advantage of consumers’ lack of understanding,” the Consumer Financial Protection Bureau (CFPB) reached a $25 million settlement with a debt-relief company in a lawsuit that also included allegations of deceptive acts and practices in its communications with consumers and its telemarketing practices. The bureau’s reasoning in determining that the company acted abusively references the Dodd-Frank Act definition of an abusive act or practice – a hotly contended subject of debate.
 FHFA reverses stance in constitutionality caseFriday, July 12, 2019 In a reversal from its previous stance under former acting director Joseph Otting, the Federal Housing Finance Agency (FHFA) recently decided to defend the validity of the agency’s single-director structure against a lawsuit challenging its constitutionality in the Fifth Circuit Court of Appeals. The change in position comes six months after FHFA filed a supplemental brief under Otting saying the agency would not defend the question over its constitutionality.
 Rule simplifies Basel III requirementsFriday, July 12, 2019 Financial regulatory agencies have issued a joint final rule addressing numerous concerns community bankers have expressed about the applicability of certain Basel III advanced approach capital approach requirements geared toward the nation’s largest banks. The new rule implements a section of the Economic Growth, Regulatory Relief, and Consumer Protection Act.
 Agencies exempt community banks from Volcker RuleFriday, July 12, 2019 A new rule adopted by five federal financial regulatory agencies would exempt community banks from Volcker Rule requirements, implementing a section of the Economic Growth, Regulatory Relief, and Consumer Protection Act, which passed in May 2018. Under the final rule, which does not vary from the proposal, regulators exempt from Volcker Rule compliance obligations community banks with $10 billion or less in total consolidated assets and total trading assets and liabilities of 5 percent or less of total consolidated assets.
 Trades urge FHA to ditch lender certification mandatesTuesday, July 9, 2019 Numerous financial professionals have urged the Federal Housing Administration to remove loan-level certification requirements from its defect taxonomy and standardize loan-level compliance monitoring and enforcement processes nationwide. Four trade groups endorsed a letter to the Department of Housing and Urban Development, expressing concerns that proposed changes to the certification requirements and the defect taxonomy would fail to mitigate certain compliance risks.
 Trades urge CFPB action on remittance ruleTuesday, July 9, 2019 Numerous trade associations representing banks and credit unions responded to the Consumer Financial Protection Bureau’s request for information about its proposed changes to the Electronic Fund Transfers Act that would impact how institutions perform remittances. The trades offered numerous suggestions pertaining to the remittance rule, which was crafted to protect consumers when sending funds overseas electronically and includes exemptions for institutions that meet certain criteria.
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Host State Loan-to-Deposit Ratios 2016The Federal Reserve Board, Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. have issued information on the host state loan-to-deposit ratios, which are used to determine compliance under Section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. Review the ratios in Dodd Frank Update’s Library. Fed, FDIC, OCC, Riegle-Neal |
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