News By Edition

One of the main critiques of the Consumer Financial Protection Bureau’s efforts to address data privacy issues has been the perceived lack of third-party oversight measures. The bureau’s newly proposed rule to redefine what companies would be considered data brokers subject to Fair Credit Reporting Act standards could help address this issue. Garris Horn Senior Partner John Levonick spoke with Dodd Frank Update about what the bureau’s proposal could mean for companies downstream of financial institutions and other traditional credit reporting agencies if implemented.

The Senate voted 85-11 to extend current government funding levels to avoid a government shutdown and to implement a one-year extension to the 2018 Farm Bill, which includes a $10 billion farm aid package in the year-end continuing resolution.

As many economists anticipated, the Federal Reserve voted to lower the federal funds rate one last time before the end of the year following the December meeting of the Federal Open Markets Committee. The committee agreed to lower rates by 25 basis points to 4-1/4 to 4-1/2 percent, marking the third rate reduction of the year.

The practice of charging illegal upfront fees has cropped up in several enforcement actions issued by the Consumer Financial Protection Bureau over the past year. The bureau recently banned Student Loan Pro and its owner from offering or providing consumer financial products over this practice.

The Ombudsman’s Office (OMB) of the Consumer Financial Protection Bureau released its fiscal year 2024 annual report to the director. The OMB assisted in resolving CFPB process issues, offering feedback and suggestions on draft CFPB materials.

KeyCorp and the Bank of Nova Scotia (Scotiabank) received approval from federal regulators to complete a strategic minority investment through which Scotiabank will increase its share holdings in KeyCorp.

As the end of the year inches closer, federal agencies continue to publish in-depth analysis of their activities and data collected over the past 12 months. Learn about one banking regulator’s budgetary plans for 2025 and what information federal regulators had to share about small business lending, among other insights, in this regulatory roundup.

The National Credit Union Administration issued a warning to credit unions about overdraft and non-sufficient funds fee practices that may violate consumer protection laws. The agency described practices that create reputational, compliance, and legal risks for institutions and potential unavailable harm for consumers.

The Consumer Financial Protection Bureau issued its long-awaited final rule to bring overdraft services under the umbrella of existing lending laws. The rule is controversial among financial industry advocates who have argued such a rule would limit consumer access to overdraft services, causing them to turn to risky alternatives to cover unexpected expenses.

Three top economists for the Mortgage Bankers Association offered a detailed account of how economic conditions are likely to shape the housing market in the foreseeable future. Citing a wealth of supporting data and meticulous analysis of current conditions affecting rates and lending institutions, MBA Chief Economist Mike Fratantoni, MBA Vice President of Industry Analysis Marina Walsh and MBA Deput Chief Economist Joel Kan took turns covering virtually every angle the packed house of mortgage professionals might have been curious to know more about.

Rocket Mortgage filed a lawsuit against the U. S. Department of Housing and Urban Development in federal court alleging conflicts between the government’s regulations requiring appraiser independence and its enforcement actions seeking to hold lenders liable for the conduct of independent licensed appraisers.

The Consumer Financial Protection Bureau plans to make limited amendments to five rules to reflect a recent organizational restructuring within the agency. The reorganization will include splitting the bureau’s enforcement arm and its supervision arm into separate divisions.

To help the organization attract more private capital liquidity sources in the event of a severe market downturn, the Mortgage Bankers Association proposed Ginnie Mae develop a new early-buyout securitization option designed to help withstand such an event.

The Securities and Exchange Commission obtained a record $8.2 billion in financial remedies for fiscal year (FY) 2024 despite issuing fewer enforcement actions than the previous year, according to the agency’s annual report detailing the results of its enforcement activity.

Days after the Consumer Financial Protection Bureau (CFPB) issued an order establishing supervisory authority over Google Payment Corp. (GPC), the Google LLC subsidiary filed suit against the CFPB in the U.S. District Court for the District of Columbia. The tech company claimed the bureau attempted to coerce GPC into not contesting the designation with the threat of negative publicity.

As part of its effort to better utilize its supervisory authority over nonbank entities that pose risks to consumers, the Consumer Financial Protection Bureau issued an order establishing supervisory authority over Google Payment Corp. It is the second designation order issued by the bureau invoking its previously dormant authority to supervise nonbank entities under the Dodd-Frank Act.

Citing studies on the substantial, long-lasting harm of inaccurate credit reporting on abuse survivors, the Consumer Financial Protection Bureau announced an advance notice of proposed rulemaking to gather public input on potential amendments to the Fair Credit Reporting Act to help those impacted.

Regulatory agencies have increased their attention on the impact certain types of financial abuse can negatively impact not only people’s credit scores but their quality of life. Learn what several regulatory bodies have to say about one common form of financial abuse, and how one agency reimbursed consumers harmed by misuse of their personal credit information in this roundup.

The Federal Reserve issued a consent order against First of Murphysboro Corp. (FMC) citing the bank holding company for operational deficiencies related to its oversight of the First Bank and Trust Company of Murphysboro.

For the third time this year, the federal bank regulatory agencies announced a notice requesting comment on their statutorily required efforts to reduce regulatory burdens on the financial services system. The latest notice was focused on gathering comments about three categories of regulations: rules of procedure, safety and soundness, and securities.

Days after the Consumer Financial Protection Bureau (CFPB) issued an order establishing supervisory authority over Google Payment Corp. (GPC), citing reason to believe its products and services posed a possible risk to consumers, the Google LLC subsidiary filed suit against the CFPB in the U.S. District Court for the District of Columbia.

The Consumer Financial Protection Bureau sued Comerica Bank for impeding federal benefit payments to elderly consumers and people with disabilities by deliberately disconnecting customer service calls, charging illegal fees, and mishandling fraud complaints.

In what amounts to the largest distribution from its victims relief fund since the agency’s inception, the Consumer Financial Protection Bureau plans to distribute $1.8 billion to consumers harmed by deceptive and illegal practices by a conglomerate of credit repair companies. The bureau will reimburse 4.3 million people who were charged illegal advance fees or subjected to deceptive “bait-and-switch” tactics.

A coalition of industry trade groups argued against the legality of the Consumer Financial Protection Bureau’s small business lending rule, implementing Sec. 1071 of the Dodd-Frank Act, in an appellate brief filed in the Fifth Circuit Court of Appeals.

The U.S. Department of Justice and the Consumer Financial Protection Bureau issued a joint letter intended to remind financial services providers of their responsibility to honor interest rate protections for servicemembers, recent veterans and their spouses as stipulated in the Servicemembers Civil Relief Act.

Entering the home-stretch of the year, mortgage applications are trending in a positive direction and the financial industry remains busy making sure regulators know where banks and credit unions stand on a number of issues. Learn more about these matters in this roundup.

Twenty House Republicans called for the Federal Deposit Insurance Corp. (FDIC) to withdraw its proposed rule to expand the definition of brokered deposits in a letter to FDIC Chair Martin Gruenberg. They claimed that expanding the rule would result in capturing many deposits that do not pose major liquidity or other risks.

The Consumer Financial Protection Bureau (CFPB) announced it intends to reimburse 4.3 million people who were charged illegal advance fees or victimized by deceptive advertising practices. The bureau said it plans to distribute $1.8 billion from its victims relief fund – the largest such distribution in the agency’s history.

The Consumer Financial Protection Bureau (CFPB) is being challenged over its newly proposed rule governing data brokers. U.S. Chamber of Commerce claimed the bureau exceeded its statutory authority with the rulemaking by basing the proposed rule on an overly broad interpretation of the Fair Credit Reporting Act.

The Consumer Financial Protection Bureau took another step as part of the federal government’s broader initiative to protect consumers’ personal data by introducing a proposed rule to limit the types of personal identifying information data brokers can sell and to clarify the criteria for qualifying as a “consumer reporting agency” under the Fair Credit Reporting Act.

The Federal Housing Finance Agency detailed its strategic plans to expand affordable housing opportunities for underserved communities through efforts to be undertaken by government-sponsored enterprises Fannie Mae and Freddie Mac over the next three years.

Home sales may not bounce back as much in 2025 as previously expected, according to the latest forecast by Fannie Mae’s Economic and Strategic Research Group. The group expects sales to increase less than predicted earlier.

Upon receiving all necessary regulatory approvals, United Bankshares, Inc., can move forward with its merger with Piedmont Bancorp, increasing United’s presence in the Mid-Atlantic and Southeast regions.

Inflation is certainly a topic that, despite recent reductions in interest rates and other positive economic factors, economists and financial professionals are unlikely to get away from anytime soon. Learn what one Federal Reserve governor had to say on the matter recently, along with other recent developments in this regulation roundup.

The Farmer Assistance and Revenue Mitigation Act, legislation intended to provide targeted relief to farmers struggling from the impact of circumstances beyond their control, has received expressed support from the community banking sector. The bill includes language intended to support farmers who have suffered economic losses due to adverse weather conditions and low commodity prices.

The Consumer Financial Protection Bureau introduced a proposed rule to limit the types of personal identifying information data brokers can sell and to clarify the criteria for qualifying as a “consumer reporting agency” under the Fair Credit Reporting Act.