House Financial Services Committee Chairman Jeb Hensarling, R-TX, has written CFPB Director Richard Cordray to assert that the recent Supreme Court decision in National Labor Relations Board vs. Noel Canning raises questions about the validity of the actions Cordray took prior to his July 16, 2013, confirmation by the Senate. The congressman also said he is seeking “a complete and proper accounting of the CFPB’s exposure to legal challenges.” The correspondence to Cordray was also signed by Senate Banking, Housing and Urban Affairs Ranking Member Mike Crapo, R-ID. In the Canning case, the Supreme Court of the United States held that President Barack Obama’s appointment of directors to the NLRB violated the Recess Appointment Clause of the U.S. Constitution. Although ...
The CFPB recently began accepting consumer complaints about prepaid cards (such as gift cards, benefit cards, and general purpose reloadable cards) as well as additional nonbank products, including debt settlement services, credit repair services, and pawn and title loans. Consumers can now submit prepaid card complaints to the bureau about problems managing, opening or closing their account; overdraft issues and incorrect or unexpected fees; and frauds, scams or unauthorized transactions. They can also file gripes about prepaid card advertising, disclosures and marketing practices; as well as issues relating to adding money and savings or rewards features associated with such cards. In the coming months, the bureau plans to issue a proposed rule aimed at increasing federal consumer protections for general ...
The Mortgage Bankers Association, in a bit of a surprise move, is pressing the CFPB, the Conference of State Bank Supervisors and members of Congress for changes to the Secure and Fair Enforcement of Licensing Act and other regulations that would provide uniform testing standards for all mortgage loan officers. The development is somewhat unexpected in that the trade group is calling for regulators and lawmakers to increase the compliance load for its members. Under the SAFE Act, there are two regimes for loan officers. Loan officers who work for nonbank lenders have to be licensed. That includes testing, pre-licensing and continuing education requirements, as well as extensive criminal and financial background reviews by state regulators. Additionally, they also must ...
The Government Accountability Office has found that “opportunity exists” for the CFPB to improve the transparency of its civil penalty fund activities. On the positive side of the equation, the bureau has implemented a number of internal controls for managing the Consumer Financial Civil Penalty Fund. The CFPB has also implemented controls for tracking the collection of penalty funds, determining the allocation amount to classes of eligible victims, and monitoring the third-party vendors that distribute the funds, GAO found. In addition, the bureau has written policies that describe roles and the process related to making allocations to consumer education and financial literacy programs. “However, according to officials, the CFPB did not document the factors the fund administrator considered in determining ...
Another CFPB Official Heads for the Private Sector. CFPB Enforcement Attorney Manuel Alvarez has been hired away by Affirm, a young financial services company based in San Francisco, to be its first chief compliance officer and general counsel. In his new role at Affirm, Alvarez will oversee and manage the company’s regulatory compliance program and related actives to prevent illegal, unfair or deceptive conduct. He will also take charge of the firm’s working relationships with regulators and Affirm’s service providers. “Consumers often don’t understand the fees or interest they pay on a revolving account. That has to change,” said Alvarez. “Affirm’s commitment to delivering honest and transparent financial products totally aligns with my long-standing commitment to consumer protection.” Alvarez was ...
The seller, which IMA would not identify, hopes to close the sale by Sept. 30. Just over 5,050 loans are in portfolio, which is top heavy in California.
A solid increase in non-agency commercial MBS issuance during the second quarter of 2014 provided most of the lift in new income-property securitizations, according to a new Inside MBS & ABS market analysis. A total of $36.69 billion of commercial mortgages were securitized during the second quarter, up 16.1 percent from the first three months of the year. At the midway point in 2014, new CMBS issuance remained 24.7 percent behind the heady levels recorded over the same period last year, which ended up being the market’s highest point since the financial crisis. Fannie Mae, Freddie Mac and Ginnie Mae saw...[Includes two data charts]
At the midway point this year, agency multifamily issuance was off 36.9 percent from the first half of 2013, and production was essentially flat in the second quarter.
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