The state of Washington recently tightened its rules for mortgage servicers, another indicator that state regulators may pick up the slack from a perceived pullback by federal regulators regarding mortgage servicing. The Washington Department of Financial Institutions earlier this month amended its regulations under the Consumer Loan Act, requiring servicers to inform the DFI if the company’s capital falls below levels required by Fannie Mae or Freddie Mac, or if their ...
Experts disagree on whether the CFPB would pull back in the enforcement of mortgage servicing. Jaret Seiberg, a financial services and housing policy analyst for Cowen Washington Research Group, said there is a huge shift in regulating financial services since Republicans gained control of the White House. Loan servicers, particularly, could see “material differences” in the way federal agencies treat their businesses. “We have seen far less enforcement ...
Kathy Kraninger’s nomination to head the CFPB is expected to be approved by the Senate Banking, Housing Urban Affairs Committee this week, but the outlook for a floor vote is iffy, said attorneys. The Senate banking panel has scheduled a vote on the Trump administration’s CFPB nominee for Aug. 23. The committee had delayed the vote earlier this month because of a short Senate summer recess. Despite the contentious confirmation hearing in ...
All 49 Democratic senators last week signed a letter to Acting CFPB Director Mick Mulvaney, urging him to continue protecting servicemembers and their families under the Military Lending Act. The letter follows reports that Mulvaney plans to suspend examining lenders for MLA compliance. The senators called on Mulvaney not to halt military lending checks or take steps that would potentially harm servicemembers and their families. “The CFPB should not be abandoning ...
The Conference of State Bank Supervisors recently announced that all states and U.S. territories now use a single, common exam to assess mortgage loan originators. In the past, a mortgage license candidate would need to take the national exam and a separate test for each state license. Now, MLOs only need take a national test – the National SAFE MLO Test with Uniform State Content – to hold a license. State regulators started to test a uniform national exam five years ago ...
The CFPB recently finalized its proposed amendment to allow certain financial institutions to be exempt from sending annual privacy notices to their customers. The Gramm-Leach-Bliley Act generally requires financial institutions to provide customers with annual notices regarding their privacy policies. If the institution shares consumer information with third parties, the annual notice must provide customers with an opportunity to opt out of such sharing. The CFPB issued ...
The CFPB recently signaled it will seek to appeal the constitutionality ruling by a New York federal judge. The CFPB has filed a letter with Judge Loretta Preska of the U.S. District Court for the Southern District of New York, requesting the court to “enter a final judgement” in the RD Legal Funding case. If this request is granted, the CFPB will be able to appeal Preska’s ruling that the CFPB’s structure is unconstitutional to the U.S. Court of Appeals for the Second Circuit ...
The CFPB recently joined with a group of foreign regulators to cooperate on the regulation of fintech, with the aim to facilitate responsible cross-border experimentation of new ideas. The group proposed to create the Global Financial Innovation Network to help new technology grow in a more relaxed regulatory environment worldwide. “The network will seek to provide a more efficient way for innovative firms to interact with regulators, helping them navigate ...
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