A North Carolina federal judge announced from the bench this week he is considering dismissing a Justice Department fraud case against Bank of America, citing a less than overwhelming preponderance of evidence. U.S. District Judge Max Cogburn said during a hearing that he is leaning toward shutting down the DOJ’s case as per the March recommendation of U.S. Magistrate Judge David Cayer, who found that the Justice Dept. has failed to prove the bank made “material” false statements to the Federal Housing Finance Board. “DOJ may not have...

Rohit Chopra, the CFPB’s student loan ombudsman, appeared before the Senate Budget Committee last week and indicated the bureau remains intent on holding student loan servicers to account for their treatment of struggling borrowers. “Like many of the improper and unnecessary foreclosures experienced by many homeowners, I am concerned that inadequate servicing has contributed to America’s growing student loan default problem, now topping 7 million Americans in default on over $100 billion in balances,” Chopra said. “To ensure that we do not see a repeat of the breakdowns and chaos in the mortgage servicing market, it will be...

Rep. Maxine Waters, D-CA, the ranking member of the House Financial Services Committee, is among those leading a legislative push by House and Senate Democrats to protect college students from what they see as unfair banking practices involving campus-sponsored financial products. The legislation would extensively rely upon the CFPB to help accomplish lawmakers’ objectives in this regard. The House bill, entitled the Curbing Abusive Marketing Practices with University Student Debit Cards Act (otherwise known as the CAMPUS Debit Cards Act), would end...

A handful of Democrat Senators are urging CFPB Director Richard Cordray to bring an end to what they consider to be predatory small-dollar storefront and online payday lending. “Sadly, the evidence shows that these loans trap consumers in a cycle of debt in which consumers end up owing more than the initial loan amount, an appalling practice that exploits the financial hardship of hard working families and exhibits a deeply flawed business model that does not consider borrowers’ ability to repay the loan,” the senators said in a letter to the director. “The CFPB was established...

As last month drew to a close, the leadership of the House Financial Services Committee decided to postpone a May 29 markup of a number of pending bills, including six related to the CFPB, after the death of the mother of Rep. Maxine Waters, D-CA, the ranking member of the committee. The markup has been rescheduled for Tuesday, June 10, the committee announced late last week. Among the CFPB-related bills pending before the committee is...

The CFPB recently convened a small business review panel as per the Small Business Regulatory Enforcement Fairness Act of 1996 to discuss potential amendments to the Home Mortgage Disclosure Act, Kelly Thompson Cochran, acting assistant director for regulations at the CFPB, said in a recent blog posting. The amendments made by the Dodd-Frank Act expand the scope of information relating to mortgage applications and loans that must be compiled, maintained and reported under HMDA, including the ages of loan applicants and mortgagors, information relating to the points and fees payable at origination, and the difference between the annual percentage rate associated with the loan and benchmark rates for all loans. Other new inclusions are...

The Federal Reserve Office of Inspector General has begun an evaluation of the CFPB’s controversial headquarters renovation budget in response to a request from Rep. Patrick McHenry, R-NC, chairman of the House Financial Services Subcommittee on Oversight and Investigations, the OIG revealed in its semi-annual report to Congress. “To address this congressional request, our objectives are to evaluate, with respect to the CFPB’s headquarters renovation project, (1) the capital budgeting and approval process, (2) the scope and justification for cost estimates, and (3) the use of competitive procedures,” the OIG said. It expects...

Director Cordray to Deliver Report to Senate Banking. CFPB Director Richard Cordray is scheduled to deliver his agency’s semi-annual report to the Senate Banking, Housing and Urban Affairs Committee on Tuesday, June 10, 2014. Cordray is the only person scheduled to appear before the committee during this event. His remarks will be posted on the committee’s website the day of the hearing, which will also be available for viewing live online. Look for coverage of the event in the next issue of Inside the CFPB. Bureau Plans Public Field Hearing on Mobile Financial Services. The CFPB plans...

How Not to Run a Website. The “links” section of the website of the Senate Banking, Housing and Urban Affairs Committee is so outdated, not only does it not have a link to the CFPB, arguably the majority’s favorite regulatory agency, it also has links to the Federal Housing Finance Board and the Office of Federal Housing Enterprise Oversight. Both of those agencies were subsumed and replaced by the Federal Housing Finance Agency back in 2008. Not surprisingly, there also is no link on the committee’s website to the FHFA’s website. Meanwhile, neither fhfb.gov nor ofheo.gov have...

Congressional legislative action – something likely out of reach for at least the next two years – is either a part of the problem or the only solution to unraveling the final fate of Fannie Mae and Freddie Mac, according to two distinctly different schools of thought being argued this week. The rhetorical boxing match pitted Urban Institute Fellow Jim Parrott’s thesis that only a legislative fix by Congress can free the two government-sponsored enterprises from the status quo against Jim Millstein, CEO of Millstein & Co., who contends that the GSEs should emerge recapitalized from conservatorship forthwith, a feat that can and should be executed via “administrative reform.” Parrott fired...