The CFPB recently announced changes in how it communicates with lenders about supervisory events and how it will articulate supervisory expectations to institutions in the future. The bureau plans to continue sending examination reports and supervisory letters to institutions after exams are completed, according to a bulletin. These reports and letters will include two categories of findings: the matters requiring attention (MRAs) and supervisory ...

The Mortgage Bankers Association last week suggested the CFPB provide more clarity in the trial disclosure program. The CFPB in September issued a proposed rule to revise its trial disclosure policy. The new policy would reduce the application burden, clarify timing requirements, establish procedures for extending successful trial disclosure programs, and facilitate coordination with state regulators. “The proposed revision of the [trial disclosure program] ...

A top CFPB official last week touted the agency’s strategy on fintech and innovation in financial services as a perfect fit with its emphasis on cooperating with state regulators. Paul Watkins, director of the CFPB’s Office of Innovation, said the bureau is taking unique steps to coordinate with state regulators in creating regulatory sandboxes for financial technology companies. He joined other government officials in making remarks at the Bank Policy Institute’s ...

CFPB Acting Director Mick Mulvaney is resisting outside pressure to dump the controversial political appointee who now leads the agency’s fair lending activities. Eric Blankenstein has come under fire for racially tinged blogs he posted in 2004, where he stated that using the n-word may not necessarily be racist and a great majority of hate crimes were hoaxes. Senate Democrats are pushing Mulvaney to explain how Blankenstein was hired to be head of …

FHA Issues Waiver of Property Inspections in Disaster-Stricken California Counties. FHA has issued a waiver of its timing policy for completing property inspections prior to closing or endorsing a loan for FHA insurance. The waiver is in effect in presidentially declared major disaster areas in Lake and Shasta Counties, CA, that were ravaged by wildfires and high winds. FHA believes that the wildfires and high winds have stabilized so as not to cause any further damage to properties, even though FEMA has not declared “all clear” in the affected areas. The waiver allows damage inspections to be completed after Oct. 2, for properties located in the PDMDA. NC Commissioner of Banks Amends State Reverse Mortgage Rules. The North Carolina Commissioner of Banks recently amended its ...

Observers say the Consumer Financial Protection Bureau has changed its approach in fighting against lending discrimination under a new fair lending chief who has recently drawn heavy criticism for his controversial comments. “In the recent past, [the CFPB is] probably more supervision-oriented than enforcement action-oriented,” said Marshall Bell, a partner at Buckley Sandler, who advises companies on fair lending enforcement actions by the CFPB. “There has been a greater ...

CFPB to Open Office in Atlanta, Likely to Relocate Over 100 Employees. The CFPB recently announced plans to open a new office in Atlanta as its southeast regional headquarters. The relocation is expected to take place in late 2019. The southeast regional team is currently housed in the bureau’s DC headquarters. The CFPB said the relocation will align the bureau with its regulatory partners that already have a regional presence in Atlanta [Includes two briefs] ...

The CFPB is creating a “disclosure sandbox” as its most recent step to encourage fintech innovation. Many are expecting the bureau to tackle the flawed no-action letter policy next. The CFPB recently published a revised policy for its trial disclosure program in the Federal Register. The new policy would streamline the application process, establish procedures for extending successful trial disclosure programs, and allow the CFPB to coordinate with sandbox ...

The CFPB, together with four other federal agencies, last week affirmed it will not take enforcement action based on supervisory guidance. The Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corp., National Credit Union Administration, Office of the Comptroller of the Currency and the CFPB said supervisory guidance does not have the force and effect of law and cannot lead to enforcement actions. “Examiners will not criticize a supervised ...

The latest CFPB supervisory highlights report found violations in the loss mitigation process and some foreclosure practices which officials determined are unfair or deceptive acts or practices. The report released earlier this month is the first one since Acting CFPB Director Mick Mulvaney took the reins of the agency. The most recent supervisory highlights report was the summer 2017 edition issued a year ago. Attorneys said the report indicates that the supervisory ...