Regulators

Browse articles from all of our Newsletters related to Regulators.

November 20, 2017 - Inside the CFPB

Other News in Brief/More Industry Advice for a Post-Cordray CFPB

More Industry Advice for a Post-Cordray CFPB. Competitive Enterprise Institute financial policy expert John Berlau said last week, “Richard Cordray’s impending resignation as director of the CFPB is long overdue.... Growth of CFPB Leveling Off. The total number of employees at the CFPB came to 1,668 for fiscal year 2017, up 20 positions from the year before, according to the bureau’s latest financial statements for the last two years.... GAO Signs Off on CFPB Financial Statements. The Government Accountability Office audited the CFPB’s financial statements for fiscal years 2016 and 2017, and found they are “presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles.”...


November 20, 2017 - Inside the CFPB

Some Servicers Think CFPB Proposed Change Must Go Further

Back in October, the CFPB issued a proposed rule to clarify the timing for mortgage servicers to transition to providing modified or unmodified periodic statements and coupon books in connection with a consumer’s bankruptcy case. Since its 2016 mortgage servicing rule was adopted, the bureau said it has received significant input that certain aspects of the single-billing-cycle exemption and timing requirements may be more complex and operationally challenging than it realized, and that the relevant provisions may be subject to different interpretations. Therefore, the CFPB proposed several revisions to replace the single-billing-cycle exemption with a single-statement exemption. More specifically, the bureau proposed to revise the single-billing-cycle exemption to instead provide a single-statement exemption for the next periodic statement or coupon ...


November 20, 2017 - Inside the CFPB

CFPB, Ocwen Tit for Tat Continues, Thanks to DOJ’s Absence

The CFPB recently told a U.S. District Court it opposes Ocwen Financial’s motion to submit the Department of Justice’s brief filed in another case in lieu of the department’s inaction when it comes to weighing in on Ocwen’s dispute with the bureau. Ocwen recently asked the U.S. District Court, Southern District of Florida, West Palm Beach Division, for permission to file a supplemental memorandum (an earlier brief by the DOJ in PHH Corp. v. CFPB as to the unconstitutionality of the bureau) in defense of the company’s motion to dismiss the consumer regulator’s case against it. The common thread in both cases is that Ocwen and PHH similarly assert that the CFPB’s structure is unconstitutional. During the Obama administration, the ...


November 20, 2017 - Inside the CFPB

Trump Reportedly Set to Name Mulvaney as CFPB Acting Director

Major news outlets have reported that President Trump intends to choose current Office of Management and Budget Director Mick Mulvaney as acting director of the CFPB upon Richard Cordray’s departure as chief of the consumer bureau. Attorneys with the Buckley Sandler law firm in Washington, DC, said in an online blog post that Mulvaney, a former Republican member of the House from South Carolina, would keep his current position and serve as both the director of OMB and acting director until the president nominates and the Senate confirms a permanent replacement for Cordray. Mulvaney, a long-time critic of the bureau, would be able to step into the acting director position since he has already passed muster with the Senate. As ...


November 20, 2017 - Inside the CFPB

For Mortgage Lenders, Servicers, Enforcement is the New Focus

It’s unlikely the mortgage lending and servicing industry will see any big changes at the CFPB right away – at least in terms of new regulations and rule-makings – once Richard Cordray formally exits the stage as director of the bureau, most experts said. “Until the president installs a new director, it should be business as usual,” former CFPB official Benjamin Olson, now a partner with Buckley Sandler in Washington, DC, told Inside the CFPB. As excited as some mortgage industry representatives were upon hearing the news, all of the bureau’s rulemakings related to mortgage lending and servicing have already been issued and finalized, so that’s all water under the bridge. A new director will not be able to willy-nilly revoke or ...


November 20, 2017 - Inside the CFPB

With Cordray Set to Depart, Industry Pushes for a Commission

Upon last week’s news of CFPB Director Richard Cordray’s resignation, a number of industry representatives urged Congress and the White House to enact legislation to convert the leadership structure of the bureau to that of a multi-member, bipartisan board or commission. Rob Nichols, president and CEO of the American Bankers Association, said, “While we haven’t always agreed with Director Corday on issues, we have always shared his goal of wanting to help consumers and appreciated his willingness to engage with us. “Consumers are our customers, and nothing is more important to America’s banks than maintaining their trust and confidence,” he added. “We will continue to work with the CFPB under its new leadership to ensure consumers have access to the ...


November 20, 2017 - Inside the CFPB

The Rumors Were True: Cordray to Step Down by Month’s End

CFPB Director Richard Cordray last week informed bureau staff that he is resigning. He made no mention of his future plans, but it has been widely expected for months, if not years, that he would run for governor of Ohio. Cordray is the first officially named and confirmed director of the bureau, but he encountered controversy from the start, as President Obama tried to make him a recess appointment, which was later declared to be an unconstitutional move on Obama’s part. However, the Democrat-controlled Senate at the time reaffirmed the president’s selection of Cordray, rendering various legal challenges moot. He was preceded at the helm by Raj Date, who served as a special advisor after being chosen by then-Harvard professor ...


November 6, 2017 - Inside the CFPB

Other News in Brief/Provident, Ocwen, HMDA, Winter Park National

African-American and Hispanic Borrowers Allegedly Harmed by Provident Will Receive $9 Million in Compensation. Last week, Garden City Group, the settlement administrator for Provident Funding Associates, mailed out checks to African-American and Hispanic borrowers to compensate them for having been unlawfully charged higher interest or broker fees on their mortgages from Provident.... Ocwen Enters Into Agreement with Hawaii to Resolve Regulatory Action. Ocwen Financial settled some outstanding issues with regulatory authorities in Hawaii last week, continuing a streak the nonbank servicer has been on for the last two months or so....


November 6, 2017 - Inside the CFPB

CSBS Frets CFPB Rule Threatens Relationship Lending Model

The Conference of State Bank Supervisors recently told the CFPB it is concerned that a rule expected from the bureau could erode the relationship lending model that community banks use with small businesses. “The proposed new data collection requirements will require lenders to compile and report a variety of data points regarding small business applications and loans,” the state regulators said in a recent comment letter to the bureau. “At a minimum, these new data collection requirements will impose additional and disproportionate compliance costs on smaller financial institutions with limited resources and unnecessarily raise the cost of originating small business loans by all lenders.” According to the CSBS, community banks exercise a substantial amount of discretion and expertise in the ...


October 23, 2017 - Inside the CFPB

Reverse Mortgages: More Disclosures Forthcoming?

It looks like the CFPB might be contemplating new disclosures for Home Equity Conversion Mortgages, otherwise known as reverse mortgages. The agenda for the Nov. 2 meeting of the bureau’s Consumer Advisory Board, which was posted online recently, indicates the panel “will discuss Know Before You Owe: Reverse Mortgages, financial well-being, trends and themes, and payday, vehicle title, and certain high-cost installment loans.” The use of the phrase “Know Before You Owe” suggests a new disclosure regime for reverse mortgages could be in the offing. The CAB meeting announcement also indicates that written comments will be accepted from interested members of the public. They should be sent to CFPB_CABandCouncilsEvents@cfpb.gov at least seven days before the meeting. “The comments will be ...


October 23, 2017 - Inside the CFPB

CFPB Enforcement Chief Alexis to Depart at a Time to be Determined

In a development likely to further fuel speculation that his boss is on his way out the door, Anthony Alexis, the head of enforcement at the CFPB, will leave the agency for parts unknown after more than five years at the bureau. The exact date of his departure is to be determined, as he plans to remain until his successor is chosen. No official announcement was made, but a bureau official confirmed the news. CFPB Director Richard Cordray noted: “As our chief of enforcement, Tony has been my strong right arm, just as he was to Kent Markus who preceded him in that role. Together, they have earned the respect and admiration of many – including me – for their fierce integrity ...


October 20, 2017 - Inside The GSEs

OIG Lists FHFA Recommendations Still Open, Unimplemented

Since the Federal Housing Finance Agency Office of the Inspector General was launched in 2013, the OIG said it has made more than 375 recommendations to the FHFA to improve efficiency and reduce fraud. To keep track of its long-running list of recommendations, including those that are currently opened and those that were rejected and not implemented by the agency, the OIG published a compendium of recommendations that covers up to Oct. 1, 2017. “OIG typically relies on materials and representations from the agency to close its recommendations and may close some recommendations based on the agency’s representations as to the corrective actions it has...


Poll

With originations expected to drop in 2018, will your shop turn to non-QM/non-prime mortgage products as a way to bolster volumes?

Yes, definitely. We’re planning a launch.
No. It’s still difficult compliance/regulatory-wise.
Maybe. It’s under consideration.
Not now. But things could change as 2018 progresses.

vote to see results