Many financially struggling consumers echoed the American Bankers Association in arguing that the CFPB’s proposed rules on prepaid products could hurt the so-called underbanked and those who sometimes have more month than they do money. “The CFPB’s proposed rules for prepaid products include some onerous provisions that could create insurmountable compliance barriers for banks offering the cards,” the ABA said in a comment letter. “This would be particularly harmful for ‘underbanked’ individuals, many of whom rely on prepaid accounts as an alternative to traditional deposit products.” One barrier is the CFPB’s proposed treatment of overdrafts, which “effectively prohibits linking prepaid cards to overdraft services ... and prohibits imposing any fee when an account is in overdraft status,” the trade group ...
The Independent Community Bankers of America told the CFPB that it strongly supports some of the key proposed changes to the ability-to-repay/qualified mortgage rule. However, more must be done, including the establishment of a safe harbor for community bank mortgages held in portfolio. “[W]e strongly believe community bank loans that are held in portfolio, including balloon mortgage loans, should be considered QM loans that receive automatic legal safe harbor protections and an exception from any escrow requirements for higher-priced mortgage loans,” the trade group said in a comment letter. When a community bank holds a loan in portfolio, it has 100 percent of the credit risk, a direct stake in the loan’s performance and every incentive to ensure it is ...
Shortly before the U.S. Congress vacated the nation’s capital for its spring recess, the House Financial Services Committee passed, with varying levels of bipartisan support, a package of regulatory relief bills, including a handful related to rulemakings from the CFPB. Most notable among them is H.R. 685, the Mortgage Choice Act, sponsored by Rep. Bill Huizenga, R-MI. H.R. 685 aims to assist banks that originate mortgages through the wholesale channel by modifying the points-and-fees formula in the CFPB’s ability-to-repay rule. The measure would exclude from the calculation insurance and taxes held in escrow and fees paid to affiliated companies as a result of participating in an affiliated business arrangement. The committee approved the bill by a 43-12 vote, despite a ...
Truman Capital alleged that Nationstar backed out of the transaction after realizing that the sale price for the NPLs was lower than fair market value.
The unusual appointment of a senior advisor to replace Acting FHA Commissioner and Assistant Secretary of Housing Biniam Gebre is causing Republicans to sit up and take notice. Last week, Housing and Urban Development Secretary Julian Castro tapped Edward Golding to head the FHA, not in an acting capacity, but as a “principal deputy assistant secretary.” The new title grants Golding broad powers to manage the FHA’s daily operations but does not come with the full authority of an FHA commissioner. For example, Golding is restricted from issuing final rules or notices of funding availability. He may not endorse mortgages for insurance that exceed $50 million, such as loans for hospitals and other multifamily structures. Moreover, it is unclear how much enforcement power Golding can wield. More interestingly, however, the process that facilitated Golding’s appointment allows ...
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