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Entries in CFPB (16)

Thursday
Aug272015

Financial Institutions . . . in the News

  • Moody’s gives Maine State Housing Authority Mortgage Purchase Bonds the rating designation of Aa1. (Moodys 8.5.2015)
  • Husson University College of Business and Bangor Savings Bank partner to create accelerated leadership program. (Mainebiz 8.10.2015)
  • Small banks and credit unions should have less regulation according to Rep. Bruce Poliquin. (PPH 8.11.2015)
  • Citizens Bank fined $20 million and order to pay back $11 million to consumers after failing to give customers their full deposits. (The Hill 8.12.2015)
  • US Senators Mike Rounds, of South Dakota, and Angus King, of Maine, submit legislation to give community banks, small businesses, and credit unions an voice in Consumer Financial Protection Bureau rulemaking process. (DSNews 8.14.2015)
  • Ethan Strimling and Phil Harriman interview on various topics include the Dodd-Frank regulations for small banks and credit unions. (PPH 8.16.2015)
  • Citibank to pay $700 million to customers for misrepresented products and identity theft protections and $70 million to CFPB for fine. (BDN 8.26.2015)
Monday
Jul062015

FDIC issues TRID Exam Procedures: Integrating TILA and RESPA

On June 30th of this year, the FDIC issued guidelines for banks related to compliance examination procedures for Truth-in-Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA).  The Integrated Disclosure Rule for the two acts is commonly referred to as “TRID."  

The TRID rules were issued by the Consumer Financial Protection Bureau (CRPB) in late 2013, and further revised in February of this year.  The rules are slated to go into effect on August 1, although the CFPB is currently taking comments on delaying the effective date to October 3, 2015.  The comment period closes on July 7.

Briefly, the TRID rules sought to integrate the RESPA and TILA disclosures for certain closed-end mortgages, excluding certain loans such as reverse mortgages, home equity lines of credit, and mobile home loans.  The new rules also modified the timing of disclosures and revised the definition of “application” triggering the disclosure requirements.  The new definition is a 6-factor test requiring the following information from the consumer:  name, income, social security number, property address, estimated value of property, and loan amount sought. 

To assist banks with compliance, the CFPB developed a comprehensive set of online resources for TILA-RESPA Integrated Disclosure Rule implementation, which is available here.  The resources include a compliance guide, a guideline to forms, a closing factsheet, a disclosure timeline, and sample disclosure forms. 

Thenew examination procedures also addressed changes to the following rules: 

  • Higher Priced Mortgage Loan Appraisal Rule, which exemps certain transactions from appraisal requirements;
  • Mortgage Servicing Rules, which modified the definition of “small servicer” to include nonprofit entities servicing fewer than 5000 mortgages;and
  • Ability to Repay/Qualified Mortgage Rule, which added a “cure provision” allowing creditors or assignees a set amount of time to refund to the consumer excess points, fees, or interest on either as necessary to allow the mortgage to maintain Qualified Mortgage (QM) status.

The examination guidelines were issued as part of Financial Institution Letter FIL-27-2015, which can be found here

Monday
Aug252014

CFPB Issues Advisory on Bitcoin, Virtual Currencies

On August 11, 2014, the Consumer Financial Protection Bureau released a Consumer Advisory about virtual currencies.  The Advisory followed a directive by the U.S. Government Accountability Office for the CFPB to conduct a close examination of the world of virtual currencies.  The complete Advisory can be found here.

The Advisory includes a description of virtual currencies (which include the ubiquitous Bitcoin) and how virtual currency exchanges and investments work.  It goes on to provide multiple warnings and risk factors relating to investments in Bitcoin and similar currencies, including:

  • The lack of government and regulatory oversight and protection,
  • Volatile exchange rates and extreme price fluctuations, and
  • The dangers posed by computer hackers and investment scams. 

Even where an investment in digital money is “legitimate,” there may still be hidden costs involved.

In the Advisory, the CFPB notes that the SEC has already released warnings about fraudulent virtual currency investment schemes, including a virtual currency alert and an investor alert regarding bitcoin.

The CFPB will now be accepting consumer complaints relating to virtual currency issues.

Wednesday
Apr242013

CFPB Issues Bulletin On ECOA Risks In Indirect Auto Lending

The Consumer Financial Protection Bureau (“CFPB”) recently issued a compliance bulletin warning financial institutions that they may face potential liability as indirect lenders for fair lending violations in the process of making indirect loans through automobile dealerships (the “Bulletin”). Indirect auto lending is a process where an automobile dealership will typically collect credit information from a consumer seeking financing and then forward the information to prospective lenders....

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Friday
Apr122013

CFPB Issues Small Entity Compliance Guide on Ability-to-Repay and Qualified Mortgage Rule

The Consumer Financial Protection Bureau (“CFPB”) recently issued a Small Entity Compliance Guide on the Ability-to-Repay and Qualified Mortgage Rule (the “Rule”). The Rule was issued under Dodd-Frank. The Guide provides an overall summary of the Rule and discusses application of the Rule in a Q&A format. The CFPB issued the final rule on January 10, 2013, with an effective date of January 10, 2014.

Click to read more ...