The U.S. Chamber of Commerce wrote CFPB Director Richard Cordray to take issue with the bureau’s increasing number of requests that companies provide huge quantities of data about individual consumers’ financial transactions on an ongoing, real-time basis. “We agree with you that data are important in determining whether there is a sound basis for regulation and how regulation should be structured, and recognize that Congress conferred specific authority on the bureau to collect data to inform the bureau’s use of its regulatory...
Last week, the CFPB came out with a final rule that establishes procedures to extend its supervision to certain nonbanks whose activities it has reasonable cause to determine pose risks to consumers. Nonbanks subject to the rule are companies that offer or provide consumer financial products or services but do not have a bank, thrift or credit union charter. The CFPB has the authority under the Dodd-Frank Wall Street Reform and Consumer Protection Act to supervise, after following certain procedures, any nonbank...
The CFPB issued a bulletin last week that details the kind of “responsible conduct” by a regulated institution that the agency may “favorably consider in exercising its enforcement discretion.”The factors include the nature, extent and severity of the violations identified; the actual or potential harm from those violations; whether there is a history of past violations; and a party’s effectiveness in addressing violations. The bureau said the guidance was being issued to inform those subject to its enforcement...
On Tuesday the Fed will hold an open meeting to discuss final rule-making tied to the Basel III accords, which affects the value of mortgage servicing rights.
Now that the U.S. Supreme Court has decided to take on the presidential recess appointment issue in Noel Canning v. National Labor Relations Board, the odds are high that Richard Cordray’s appointment will also be reviewed and perhaps declared unconstitutional, according to the consensus expectations of a number of industry representatives. And if that happens, it could be a real mess for the mortgage lending community, according to one top industry lobbyist. In Canning, the D.C. Circuit Court of Appeals...
Reverse mortgage lenders, consumer groups and certain advocates for the elderly are urging Congress to enact legislation passed recently by the House of Representatives granting the FHA additional authority to govern its reverse mortgage program. Testifying before the Senate Banking Subcommittee on Housing, Transportation and Community Development, the groups said the most productive action Congress can take is to pass H.R. 2167 to allow HUD to make expeditious changes to the Home Equity Conversion Mortgage program through mortgagee letters. The bill, which the House approved on June 12, would ...
The Department of Veterans Affairs will soon seek comments on certain proposed rules that would allow VA underwriting guidelines to remain independent of the Consumer Financial Protection Bureau and to also implement a lender scorecard. After a lengthy discussion with the CFPB regarding the “qualified mortgage” rule, the VA said it will propose a rule that would prohibit CFPB’s new underwriting guidelines from superseding existing VA guidelines. The VA feels there is no need for any significant change to its current underwriting rules due to ...
The FHA’s tiered system for assessing servicers’ use of loss mitigation tools should serve more as a red flag for increased supervision rather than as a basis for terminating servicing rights, said the Mortgage Bankers Association. Commenting on the FHA’s proposed enhancements to its servicer scorecard, the MBA acknowledged the agency’s responsibility to monitor and hold servicers accountable for poor performance. But while tiered ranking is a good enforcement tool, it can be misapplied, the group indicated. Any ranking system is a good first ...
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