The CFPB and the Department of Justice are seeking $35 million in damages from PNC Bank to settle allegations that one of its acquisitions – National City Bank – discriminated against African Americans and Hispanic borrowers during the housing boom by charging them higher rates. The alleged activity took place between 2002 and 2008, the government said. PNC, though, did not buy National City until the fall of 2008, agreeing to pay roughly $5.8 billion for the bank. Based on their joint investigation, which began in 2011, the...

ITT Educational Services, Inc., a for-profit postsecondary education provider based in Carmel, IN, revealed it has received a CFPB “early warning” letter indicating that the bureau’s Enforcement Office is likely to recommend that the agency take legal action against the firm. At issue is whether the company engaged in any unlawful acts or practices relating to the advertising, marketing, or origination of private student loans. “On Dec. 23, 2013, the company received a letter from the CFPB, confirming that the CFPB has notified the...

The Federal Reserve Board Office of Inspector General, as had been hinted at previously, issued a report last month critical of the CFPB’s practice of bringing enforcement attorneys to regular examinations. Numerous industry representatives privately said it was having a chilling effect on lenders during the exam process. The bureau recently decided it would cease the practice, and some industry insiders suspected the OIG’s then-pending report had a good bit to do with that decision. The OIG had already finished with the...

The CFPB called on financial institutions last month to publicly disclose agreements they have with colleges and universities to market debit, prepaid, and other products to students – even as the agency noted a continued decline in college credit card agreements.Currently, institutions only make the desired disclosures about college credit cards. The bureau is particularly apprehensive about what it characterizes as the lack of transparency regarding the marketing partnerships between colleges and lenders. “Students and...

The CFPB continues to grow as a young federal agency, going from 58 employees at the beginning of fiscal year 2011 to 1,335 employees at the end of fiscal year 2013, an increase of 2,201 percent, according to the agency’s financial report for FY 2013. “At the end of fiscal year 2013, the CFPB was still below the full employment levels and funding it estimates for its steady state in future years,” the report stated. The lion’s share of CFPB staff – 45 percent – is dedicated to supervision, enforcement and fair lending, while 29...

In a recent report, the Government Accountability Office found that the CFPB financial statements as of and for the fiscal years ended Sept. 30, 2013, and 2012, were presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles. Also, the CFPB maintained, in all material respects, effective internal control over financial reporting as of Sept. 30, 2013, “although internal control deficiencies related to recording year-end accounts payable and accounting for property and equipment...

The CFPB is seeking consumer comments on the mortgage closing process, specifically asking consumers to identify the key “pain points” associated with mortgage closing and how those pain points might by addressed by market innovations and technology. Specifically, the agency said it wanted comments on how to increase the use of technology and promote inventions that encourage a more streamlined mortgage closing process while also improving consumer knowledge. The agency said it is seeking information from market...

Realtors to Make Another Appeal to CFPB Leadership. The National Association of Realtors plans to host CFPB Director Richard Cordray and other housing policy experts Tuesday, Jan. 7, to discuss the effects the bureau’s game-changing mortgage rules will have on lenders, consumers and the overall housing market. Chief among the focal points of discussion will be the bureau’s new ability-to-repay/qualified mortgage rule, which establishes strong consumer protections that aim to ensure qualified homebuyers have access to...

While activity plummeted in the second half of the year, jumbo MBS production in 2013 was nearly four times the level from the previous year.

Chief among the focal points of discussion will be the bureau's new ability-to-repay/qualified mortgage rule, which establishes strong consumer protections that ensure qualified homebuyers have access to safe, affordable home loans they can pay back.