The CFPB has come out with a report highlighting problems that the agencyfs examiners found during their reviews of nonbanks and banks with more than $10 billion in assets that were conducted from July 2011 through September 2012. The deficiencies they found included improper procedures related to credit line increases for credit card holders under the age of 21, inadequate training on fair credit reporting requirements, and violations of mortgage disclosure requirements...
The CFPB has issued a new appeals process by which institutions under its supervision can contest certain adverse findings. However, industry attorneys are both skeptical and concerned. gThe bureau recently began issuing examination reports and supervisory letters to financial service providers that it supervises,h the bureau said in Bulletin 2012-07. gToday we are implementing a policy that would allow our supervised entities to appeal certain supervisory findings in those examination reports and supervisory letters.h...
Wells Fargo is contesting a complaint filed by the federal government that alleges the bank falsely certified loans under the FHA’s Direct Endorsement Lender Program in violation of the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act. The Department of Justice and the Department of Housing and Urban Development are asserting that from May 2001 through October 2005, Wells regularly and knowingly participated in the reckless origination and underwriting of FHA loans...
The CFPB recently refused to modify or set aside a civil investigative demand (CID) issued to Next Generation in connection with an investigation of the companyfs debt settlement services business. The bureau indicated in its decision and order that the probe was trying to ascertain whether companies engaged in unlawful acts or practices in the advertising, marketing or sale of debt settlement services. The CID, which the CFPB issued on Aug. 3, 2012, instructed Next Generation to appear for an investigational...
CFPB Director Richard Cordray seemed to suggest recently the bureau is open to tightening restrictions on the mortgage servicing industry’s practice of “dual tracking,” by which servicers move forward with foreclosure proceedings while simultaneously evaluating a homeowner for possible loss mitigation alternatives. Appearing before attendees at a recent National Consumer Law Center Conference, Cordray conceded that the bureau has received pointed criticism from consumer advocates about its mortgage...
The CFPB and the Federal Housing Finance Agency, the regulator and conservator of Fannie Mae and Freddie Mac, have agreed to work together on setting up a National Mortgage Database, something officials hope will be the first comprehensive repository of detailed mortgage loan information. The National Mortgage Database is to include information spanning the life of a mortgage loan from origination through servicing and incorporate a variety of borrower characteristics. Specifically, the database will feature...
From 2009]2011, the number of college credit card agreements, total number of accounts open at year]end, amount of payments by issuers to the university, and number of new card accounts opened during the year all declined, according to the CFPBfs recently released 2012 Annual Report to Congress on College Credit Card Agreements. FIA Card Services, N.A., a subsidiary of Bank of America Corp., submitted 633 agreements, which represents nearly 80 percent of all agreements in effect during 2011, the report indicates...
The CFPB has put out the second iteration of its Supervision and Examination Manual, the guide bureau examiners use in overseeing companies that provide consumer financial products and services. The manual describes how the CFPB supervises and examines these providers and gives its examiners direction on how to determine if companies are complying with consumer financial protection laws. The bureau updated the supervision manual to reflect the renumbering of the consumer financial protection regulations for which the CFPB...
Dodd-Frank Repeal? No. Corrections? Maybe. There will be no repeal of 2010’s landmark Dodd-Frank Wall Street Reform and Consumer Protection Act as a result of President Barack Obama’s re-election and the Democratic Party’s retention of control of the U.S. Senate, according to a post-election briefing by Wolters Kluwer. “However, a bipartisan Dodd-Frank Act corrections bill is very likely to pass in the 113th Congress that will convene in January 2013,” the firm continued, citing recent remarks by Sen. Mark Warner, D-VA...
The United States just concluded an electoral campaign season that involved the expenditure of billions of dollars and resulted in no change in the balance of power on the federal level, beyond strengthening Democrats’ control in the U.S. Senate. But that doesn’t mean nothing important is going to happen over the next four years. Securitization industry officials, Washington insiders, political observers and policy wonks all expect hard financial realities to compel policymakers into responding to a host of issues that will significantly affect housing finance and securitization. “We don’t think the ‘status-quo election,’ as some have called it, means status quo for residential mortgage finance,” said Karen Shaw Petrou, a managing partner at Federal Financial Analytics, a Washington, DC, think tank. She thinks...
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