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Entries in Consumer Financial Protection Bureau (10)

Wednesday
Oct252017

Financial Institutions . . . In the News

  • Bangor Savings Bank’s acquisition of Granite Bank of New Hampshire was unanimously approved by the boards of directors.  (Central Maine 10.24.2017)
  • Toronto-Dominion Bank (TD Bank) is a top 10 US bank and has plans for future growth.  (Bloomberg 10.23.2017)
  • The Maine Supreme Court ruled in favor of the Defendant in the National Mortgage Association (Fannie Mae) v. Deschaine case opening a path for other cases to be appealed.  (The Free Press  10.12.17)
  • McCrillis & Eldredge Insurance, a subsidiary of Bar Harbor Bankshare, has been sold to Cross Insurance.  (Business Wire 10.11.2017)
  • Camden National Bank offers digital mortgages with help from Blend, a San Francisco cloud-based software company.  (National Mortgage News 9.29.17)
  • Equifax is developing a free, new, user-friendly service to give the consumer control over access to their personal credit data.  (Maine Public 9.28.2017)
  • Equifax’s interim CEO, Mr. Rego Barros, apologizes for security breach.  (Wall Street Journal 9.17.17)
  • Richard Cordray, Director of the Consumer Financial Protection Bureau, plans to strengthen oversight for credit rating agencies.  (BDN  9.28.17)
  • Upgraded ATMs replace four Skowhegan Bank branches beginning January 19, 2018.  (Central Maine 9.25.17)
  • Class action lawsuits by consumers against banks and credit card companies was voted to be repealed by US Senate.  (BDN 10.25.17)
Tuesday
Oct112016

Financial Institutions . . . In the News

  • Acadia Trust merges with Camden National Bank and will now be called Camden National Wealth Management.  (Central Maine 9.14.2016)
  • Senate Committee prepares to question Wells Fargo CEO on high-pressure sales tactics. (Central Maine 9.19.2016)
  • Wells Fargo CEO Stumpf receives harsh criticism from members of the Senate Banking Committee.  (Central Maine 9.21.2016)
  • Some the $300 million Wells Fargo top executives received in bonuses may be returned because of Wells Fargo banking scandal.  (Central Maine 9.27.2016)
  • Portlander Michael Bopp to represent Wells Fargo with government investigations at congressional hearings.  (Washington Post 9.29.2016)
  • York County sees skimming devices at three locations:  Wells, Sanford, and Waterboro.  (Central Maine 10.2.2016)
  • Concerns arise from community banks and credit unions with potential new regulations because of the Wells Fargo scandal. (The Hill 10.3.2016)
  • Five of the largest U.S. banks submitted their new financial distress plans (“living wills”) as required by the Federal Reserve.  (The Hill 10.4.2016)
  • The Consumer Financial Protection Bureau issued new rules for prepaid cards.  (The Hill 10.5.2016)
  • Bangor Savings Bank’s customers being targeted with text scam. (BDN 10.6.2016)
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.