In another sign that more regulatory scrutiny could be brought to bear upon financial institutions that market bank accounts, prepaid and debit cards and other products to college students, the CFPB recently highlighted concerns about how such products are marketed and how transparent the related agreements between financial institutions and colleges and universities are. Recently, the bureau alerted financial institutions about what it thinks is the potentially risky practice of not readily disclosing arrangements with colleges and universities to...

Financial institutions that provide deferred-interest credit cards offered by health-care providers appear to be in the CFPB’s crosshairs, likely as a result of complaints from consumers. Earlier this month, the bureau posted a blog on its website spelling out four things it said consumers should know about health-care credit cards.“Recently, many patients facing medical procedures have seen their health-care providers suggest deferred-interest rate credit cards as a payment option,” the CFPB said. “Unfortunately, health-care providers...

Most private student-loan servicers are trying to elevate their game, but are meeting with mixed results so far, the CFPB found. Back in November, CFPB Student Loan Ombudsman Rohit Chopra wrote to a number of private student-loan servicers to learn more about their payment processing policies, ostensibly “in order to inform the CFPB’s market monitoring and consumer education initiatives.” However, any time the bureau finds weaknesses or problems, it is sure to follow up, one way or the other. Among the key findings of the voluntary disclosures...

Federal regulators have yet to finalize their qualified residential mortgage rulemaking, but housing finance experts are already trying to figure out how lending is going to be affected by the interplay of the QRM rule and the qualified mortgage standard as per the CFPB’s ability-to-repay rule. As the new lending environment unfolds, the liability risks associated with non-QM and QRM loans is one of the things that is particularly troublesome to some. “The worse-case scenario that I worry about is that we see a repeat of what we saw in...

A number of industry trade groups told the CFPB and other financial regulators that they generally agreed with the regulators’ use of voluntary self-assessments in the interagency diversity standards proposed last fall. However, the American Bankers Association, the Consumer Bankers Association, the Financial Services Roundtable and the Independent Community Bankers of America offered some cautions on vendor diversity standards and confidentiality of reports. Although some commentators had called for incorporating diversity assessments...

The Federal Reserve Office of Inspector General will be initiating some sort of audit or evaluation of the reasons the renovation costs for the CFPB’s headquarters building in Washington, DC, have soared to more than three times their original estimate, Inside the CFPB has learned. The OIG responded to a request from Rep. Patrick McHenry, R-NC, a key subcommittee chairman within the House Financial Services Committee structure. “We have received a request from Chairman McHenry of the House Financial Services Subcommittee on Oversight and...

HMDA Rulemaking on Consumer Advisory Board Agenda. The CFPB has scheduled a Consumer Advisory Board meeting for Feb. 26-27, at the Constitution Center (Auditorium), 400 7th Street SW, Washington, DC. The first day of the event is closed to the public. A close look at the agenda indicates an hour has been set aside for some discussion on a possible Home Mortgage Disclosure Act rulemaking. Speakers scheduled during that session include Mortgage Data Assets Team Lead Ren Essene and Senior Counsel Joan Kayagil. A session later in the day will be...

New Document Delivery Solution Aims to Boost Lenders’ Efforts to Meet CFPB Appraisal Delivery Requirements. Black Knight Financial Services of Jacksonville, FL, recently launched its Document Delivery Service to help lenders deliver CFPB-mandated appraisals to consumers. “The service enables lenders to securely and reliably deliver the documents in both electronic and paper formats, helping lenders comply with the bureau’s recent amendment to Regulation B, which implements the provisions of the Equal Credit Opportunity Act,” the company said...

Issuance of agency and non-agency commercial MBS increased 13.5 percent in 2013, according to a new analysis by Inside MBS & ABS, although production dropped sharply in the fourth quarter. Industry participants expect that volume will continue to grow as investor demand for commercial MBS remains strong despite some loosening of underwriting standards. Ken Cheng, a managing director at Morningstar Credit Ratings, said...[Includes one data chart]

Industry participants expect that volume will continue to grow as investor demand for commercial MBS remains strong despite some loosening of underwriting standards.