Regardless of the outcome of the struggle for control over the CFPB in the wake of former Director Richard Cordray’s departure, lenders are being conservatively advised to maintain compliance practices that can withstand the ebb and flow of political appointees, according to one top compliance attorney.“While the Trump administration is pushing for deregulation and removing the independence of the CFPB, if it is successful, it may be risky and costly for the financial industry to abandon all of the concepts of fairness to consumers that have been embodied in the CFPB’s actions,” Maria Macoubrie, of counsel in the Kansas City, MO, office of the Stinson Leonard Street law firm, said in a recent online blog. She conceded that less ...
Democrat Sens. Dianne Feinstein and Kamala Harris of California, Elizabeth Warren of Massachusetts and Richard Blumenthal of Connecticut recently introduced legislation to allow state attorneys general and other state law enforcers to issue subpoenas during the course of investigations regarding compliance with state law by national banks. The Accountability for Wall Street Executives Act of 2017 would clarify that state attorneys general have authority to conduct visitorial oversight of federally-chartered national banks. It also would revise language in the National Bank Act that the Supreme Court interpreted as limiting the visitorial powers of state law enforcers when addressing compliance with state law by national banks. Additionally, the measure would permit subpoenas for suspected violations of real estate lending laws. “With ...
Consumer complaints overall continued their downward trajectory in the fourth quarter, but it was a different story when it came to areas such as student loans and credit reports, both of which shot upwards on an annual basis. Overall, total gripes from end users of the financial system fell 24.1 percent year over year and 23.1 percent from the third quarter of 2017 to the fourth. But criticisms about student loans surged 109.9 percent on an annual basis, despite a drop of 30.1 percent from 3Q17 to 4Q17. Credit reports were similarly slammed, with a 99.8 percent leap in complaints year over year, a 32.2 percent fall off quarter to quarter notwithstanding. On the other hand [includes exclusive data chart] ...
New Chief of Staff at CFPB was Staff Director of the House Financial Services Committee. The CFPB named a new chief of staff Jan. 5: Kristen Sutton Mork, who’s leaving her post as staff director of the House Financial Services Committee. The announcement did not come from the CFPB – it came from Rep. Jeb Hensarling, R-TX, chairman of the HFSC, who mentioned it in an email sent to members of the media.... Republican Senator Wants Leandra English Investigated. Sen. Ron Johnson, R-WI, reportedly has asked the U.S. Office of Special Counsel to probe Leandra English’s move to “burrow” into a “career position” at the CFPB. One major broadcast news organization, citing a letter from Johnson, reported last week that Johnson asserted her move was “hastily approved” as part of “a flawed vetting process” in the wake of President Trump’s election. The report could not be immediately confirmed.
Kristen Sutton Mork will leave her post as staff director of the House Financial Services Committee to become chief of staff at the Consumer Financial Protection Bureau.
Both GSEs are expected to need a draw from the U.S. Treasury, thanks to the passage of the Tax Cuts and Jobs Act that will reduce the corporate tax rate and result in $15.3 billion in one-time charges for the pair. With the tax rate being reduced from 35 percent to 21 percent, the GSEs now have to measure their net deferred tax assets using the new rate. According to recent Securities and Exchange Commission filings, Fannie Mae expects to take a one-time charge of $10.0 billion and Freddie Mac is bracing for a $5.3 billion charge.
Some observers think that resolving the long-running conservatorship of Fannie Mae and Freddie Mac this year is closer than it has ever been, but they also say political differences present a number of challenges. There has been an uptick in momentum the past few months and the recent deal between the Federal Housing Finance Agency and the Treasury that allows the GSEs to retain $3 billion in capital is an optimistic sign of progress to many. Moreover, the Senate Committee on Banking, Housing, and Urban Affairs is working on a draft of a GSE reform bill, and the House Financial Services Committee has held a handful of hearings on GSE reform issues in the fourth quarter in preparation for drafting legislation.
RSS