The Consumer Financial Protection Bureau officially began functioning as a banking regulator last week, and even though it doesn’t yet have a director confirmed by the Senate, it’s already one of the most powerful regulators in the federal government, having both complete regulatory authority over the entire industry and supervisory responsibility for large banks. Among the laws the CFPB will now be in charge of enforcing are the Alternative Mortgage Transaction Parity Act, the Community Reinvestment Act, the Equal Credit Opportunity Act, the Fair Credit Billing Act, the Fair Credit Reporting Act (except sections 615(e), 624 and 628),and the Fair Debt Collection Practices Act. ...
The Senate Banking Committee plans a hearing on Thursday to consider President Barack Obama's nomination of Richard Cordray, the former Ohio attorney general and current chief of enforcement at the Consumer Financial Protection Bureau, to be the first official director of the CFPB. “With [this] hearing, I will begin the process of moving Mr. Cordray’s nomination forward to confirmation,” said Sen. Tim Johnson, D-SD, chairman of the committee. “The CFPB opened its doors as an independent agency on July 21st, and it is off to a strong start promoting an equitable and transparent consumer financial marketplace. However, until it has a director, the CFPB will not be able to use its full powers to protect consumers and level the playing field for community banks and credit unions.” ...
Elizabeth Warren last week ended her controversial term as special advisor to the Treasury and President Obama’s point person for the Consumer Financial Protection Bureau to return to academia, to be replaced by one of her top deputies, Raj Date. Date currently is the CFPB’s associate director of research, markets and regulations, where he is responsible for the management of several offices, such as research, regulations, credit card markets, mortgage markets, credit…
The Federal Trade Commission issued a final rule to strengthen consumer protections by banning deceptive claims about consumer mortgages in advertising or other types of commercial communications. The new rule lists 19 examples of prohibited deceptive claims, including misrepresentations about the existence, nature, or amount of fees or costs to the consumer associated with the mortgage; the terms, amounts, payments, or other requirements relating to taxes or insurance associated with the mortgage; and the variability of interest, payments, or other terms of the mortgage. ...
The Federal Trade Commission announced last month that it will not enforce most provisions of its Mortgage Assistance Relief Services rule against real estate brokers and their agents who help struggling homeowners obtain short sales from their lenders or servicers. The stay applies only to real estate professionals who are licensed and in good standing under state licensing requirements; comply with state laws governing the practices of real estate professionals; and assist or attempt to assist consumers in obtaining short sales in the course of securing the sales of their homes. ...
The new Consumer Financial Protection Bureau has issued a number of interim final rules in just its first week of official business as a new federal regulator, including one that establishes the procedures for the public to obtain information under the Freedom of Information Act, the Privacy Act and in legal proceedings. This interim final rule also establishes the CFPB’s rules regarding the confidential treatment of information obtained from persons in connection with the exercise of its authorities under federal consumer financial law. ...
Massachusetts. State Attorney General Martha Coakley reportedly plans to obtain documentation filed by Mortgage Electronic Registration Systems as part of the broader investigation by a 50-state coalition of attorney generals into potentially unlawful foreclosure practices. New Jersey. Former mortgage broker Ara Mesropian, 39, of Paramus, NJ, pleaded guilty to charges that he participated in a mortgage fraud scheme which defrauded lenders and generated millions of dollars in fraudulent mortgage loans. ...
Federal Deposit Insurance Corp. Martin Gruenberg nomination. The Senate Banking, Housing and Urban Affairs Committee considered the nomination of Martin Gruenberg to be the chairman and a member of the Board of Directors of the Federal Deposit Insurance Corp. on Tuesday, July 26. A vote on his nomination has yet to be scheduled. Federal Housing Finance Agency. Suit against UBS, related defendants. The Federal Housing Finance Agency has sued UBS Americas, Inc., and related defendants in federal district court alleging violations of federal securities laws in the sale of residential non-agency mortgage-backed securities to Fannie Mae and Freddie Mac. ...
MBS and ABS investors would have an easier time organizing to press deal sponsors to address potential problems under a revised proposed rule on shelf registration that was approved by the Securities and Exchange Commission this week. The agency made several major changes to its proposed overhaul of shelf eligibility requirements that was aired back in 2010 and put the revised package out for public comment. Most of the changes reflect public comment on the original proposal as well as the passage of the Dodd-Frank Act. Under the latest proposal, MBS and ABS issuers would be required to ...
Trustees of residential MBS should consider themselves “on notice” that they need to be much more attentive and aggressive in meeting their obligations under the pooling and servicing agreements governing MBS trusts, according to a trade group representing investors. Last week, the Association of Mortgage Investors sent letters to several major MBS trustees – including JPMorgan Chase, Deutsche Bank, US Bank, Wells Fargo and Bank of New York – remind-ing them of their legal obligations to RMBS certificate holders. The AMI letter also informed trustees that ...
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