Justices appointed by Republican presidents were among those who expressed some skepticism about arguments offered by the Community Financial Services Association of America.
A coalition of consumer groups, including the National Consumer Law Center, recommend that lenders adopt a reconsideration of value process “as close to mandatory as possible outside a formal rule.”
Delaware Supreme Court Chief Justice Collins Seitz wrote that ACE’s argument against making an insurance payout would effectively exclude “just about anything remotely connected to the professional service” from receiving insurance coverage.
The Supreme Court will hear oral arguments Oct. 3 in a case challenging the structure of the CFPB. Lenders are hoping that the CFPB emerges willing to collaborate on regulatory issues.
Proposed guidance from the CFPB and other regulators on reconsiderations of value was welcomed by many industry participants. Still, consumer advocates and lenders have divergent views on the matter.
The CFPB plans to issue a proposed rule in early 2024 to revise standards for loss mitigation. Separately, rising costs for homeowners insurance are a concern.
The DOJ sees its latest redlining settlement as sending a strong message to banks. Washington Trust downplayed the matter, noting no civil monetary penalty was required.