Banker Compliance News

Banking compliance professionals require hot-topic news on consumer and regulatory compliance updates, decisions, amendments, changes and launches from across a wide spectrum of news agencies and federal websites. Not only do we update our News pages with individual news items and their links, but these are sent to members in a Daily Bank Compliance email that can be signed up for once new members log-in. Compliance Alliance monitors these agencies for bank compliance news updates throughout the day—posting relevant information to our News page. This is a valuable resource for Bank Managers and their employees.

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  • Senator seeks GAO investigation of CFPB payday loan rulemaking

    June 29, 2015 / Source: Ballard Spahr

    In a letter to the Government Accountability Office (GAO), Senator David Vitter questioned “the adequacy and thoroughness of the CFPB’s analysis of small business impacts” in connection with its payday lending rulemaking process and asked the GAO to conduct an investigation and issue a report on its findings. Senator Vitter chairs the Senate Committee on Small Business and Entrepreneurship. In March 2015, in preparation for convening a small business review panel required by the Small Business Regulatory Enforcement Fairness Act (SBREFA) and Dodd-Frank, the CFPB released its contemplated proposals taking aim at payday (and other small-dollar, high-rate) loans. As Mark Furletti reported, a SBREFA panel met in April 2015 to discuss the proposals. (Mark participated at the SBREFA panel as an advisor to a small entity representative (SER).) In his letter, Senator Vitter listed seven issues he wants the GAO to examine. Those issues include whether: -the CFPB conducted the selection of SERs in a way that guarantees adequate input from a reasonable distribution and representation of small entities that would likely be impacted by the CFPB’s proposals; -the SBREFA panel process allows the CFPB to adequately consider the SERs’ views, concerns and data prior to issuing a proposed rule; and -the CFPB, in the materials distributed to the SERs of how its proposals would impact the cost of credit for small business, provided an adequate analysis. Senator Vitter also asked the GAO to interview SERs who participated in the SBREFA panels to gauge their views on the panel process, including whether they believe (1) their respective industry was adequately represented in the selection of participants, and (2) the materials distributed to them adequately prepared them to provide constructive input.

  • OCC: Counterfeit Cashier’s Checks of Citizens Savings Bank, Clarks Summit, Penn.

    June 29, 2015

    The above-named bank has reported that counterfeit cashier’s checks using a correct routing number of 231375151 are being presented for payment nationwide in connection with a mystery shopping scam.

  • OCC: Counterfeit Cashier’s Checks of CenterState Bank of Florida, N.A., Winter Haven, Fla.

    June 29, 2015 / Source: OCC

    The above-named bank has reported that counterfeit cashier’s checks using a correct routing number of 063114030 are being presented for payment nationwide in connection with various Internet-based employment and overpayment scams.

  • CFPB seeks comments on new information collections

    June 29, 2015 / Source: Ballard Spahr

    The CFPB published notices in the Federal Register seeking comments on information collections. “Consumer Response Government and Congressional Boarding Forms.” The notice states that the CFPB has developed portals for state and federal agencies and congressional offices to view and search consumer complaint data. While not expressly stated in the notice, based on the CFPB’s use of other boarding forms, it would appear that the boarding forms would have to be completed by an agency or office seeking access to the portals. Comments are due on or before August 24, 2015. A generic information collection plan to conduct surveys of people about their experiences in consumer credit markets using the Consumer Credit Panel (a proprietary sample dataset from one of the national credit reporting agencies). The notice states that survey responses “will be used for general, formative, and informational research on consumer financial markets and consumers’ use of financial products and will not directly provide the basis for specific policymaking at the Bureau.” Comments are due on or before July 27, 2015. A generic information collection plan to conduct research to improve the quality of data collection by examining the effectiveness of data collection procedures and processes, including potential psychological and cognitive issues. The notice states that the research is intended to “improve [the CFPB’s] understanding of how consumers engage with financial marketplaces.” Comments are due on or before July 27, 2015.

  • Register Now! July Compliance Huddle

    June 25, 2015

    Registration is now open for the July Compliance Huddle.

  • CFPB Delays TRID Two More Days to Schedule Saturday Launch

    June 25, 2015 / Source: National Mortgage News

    The Consumer Financial Protection Bureau's new mortgage disclosure rules will now take effect Saturday, Oct. 3, two days later than the previously rescheduled Oct. 1 deadline.

  • CFPB Issues their Supervisory Highlights Summer Report with Servicing Rule Lapses as the Focus

    June 25, 2015 / Source: CFPB

    In this eighth edition of Supervisory Highlights, the Bureau shares recent supervisory observations in the areas of consumer reporting, debt collection, student loan servicing, mortgage origination, mortgage servicing, and fair lending. The findings reported here reflect information obtained by Supervision at the time of issuance of an examination report or supervisory letter. Areas of focus include servicing, consumer reporting, debt collection, mortgage origination, and fair lending.

  • Supreme Court Keeps Key Housing Discrimination Protections Intact

    June 25, 2015 / Source: Huffington Post

    The Supreme Court ruled 5-4 on Thursday that housing policies and practices with discriminatory outcomes can be challenged under the Fair Housing Act, even if there was no intent to discriminate.

  • FTC follows in CFPB footsteps with GLBA privacy notices

    June 24, 2015 / Source: Ballard Spahr

    The FTC recently proposed amendments to its Gramm-Leach-Bliley Act (GLBA) rules requiring motor vehicle dealers to send their customers an annual privacy notice. The amendments would allow motor vehicle dealers to notify their customers that a privacy policy is available on their website, subject to certain conditions. Comments on the proposal are due on or before August 31, 2015.

  • CFPB update on student loan complaints continues to highlight co-signer release issues

    June 24, 2015 / Source: Ballard Spahr

    he CFPB has issued a “Mid-year update on student loan complaints” that analyzes the approximately 3,100 private student loan complaints received by the CFPB between October 1, 2014 and March 31, 2015. The update also analyzes the approximately 1,100 debt collection complaints related to student loans during the same period. There is no indication as to whether there was any overlap in these complaints which, in any event, represent a miniscule percentage of student loan borrowers. According to the CFPB, it received 34 percent more private student loan complaints during this period as compared to the same period last year, perhaps not surprising given the efforts it has made over the past year to stimulate complaints.

  • Basel Committee on Banking Supervision Finalized Disclosure Standards

    June 23, 2015 / Source: Basel Committee on Banking Supervision

    The Basel Committee on Banking Supervision yesterday finalized a common format for internationally active banks to disclose the Net Stable Funding Ratio standard that is expected to take effect in January 2018 following rulemaking in individual countries. The NSFR is to be reported quarterly, concurrently with financial reports.

  • Final Rule for Flood Insurance on Escrow, Detached Structures, and LPI.

    June 23, 2015 / Source: Federal Reserve

    The agencies are amending their regulations regarding loans in areas having special flood hazards to implement certain provisions of the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA), which amends some of the changes to the Flood Disaster Protection Act of 1973 mandated by the Biggert-Waters Flood Insurance Reform Act of 2012 (Biggert-Waters). Specifically, the final rule requires the escrow of flood insurance payments on residential improved real estate securing a loan, consistent with the changes set forth in HFIAA. The final rule also incorporates an exemption in HFIAA for certain detached structures from the mandatory flood insurance purchase requirement. Furthermore, the final rule implements the provisions of Biggert-Waters related to the force placement of flood insurance. Finally, the final rule integrates the OCC’s flood insurance regulations for national banks and Federal savings associations. The Agencies plan to address the private flood insurance provisions in BiggertWaters in a separate rulemaking

  • FTC Provides Enforcement Report to CFPB Covering Regulations Z, M, and E.

    June 12, 2015 / Source: Ballard Spahr

    The FTC submitted their annual enforcement report to the CFPB covering their enforcement activities in 2014 related to Regulation Z, Regulation M, and Regulation E.

  • CFPB files amicus brief in U.S. Supreme Court ECOA case

    June 11, 2015 / Source: Ballard Spahr

    The CFPB, together with the Solicitor General, has submitted an amicus brief in Hawkins v. Community Bank of Raymore, the case in which the question before the U.S. Supreme Court is whether the Equal Credit Opportunity Act (ECOA) applies to loan guarantors. The Court agreed to hear the case in March 2015 and is expected to hear oral argument in the Court’s term that begins in October 2015.

  • Focal Points for Banks and Nonbanks in the CFPB’s New Auto Finance Exam

    June 11, 2015 / Source: Ballard Spahr

    the CFPB finalized its larger participant rule for nonbank auto finance companies, making them subject to supervision after the effective date of the rule. But the Bureau’s press release and newly-released auto finance examination procedures, to me, are even more significant, because they signal areas of future concentration for the Bureau in examinations of both banks and nonbanks in the auto finance space.

  • Agencies Issue Final Standards for Assessing Diversity Policies and Practices of Regulated Entities

    June 09, 2015 / Source: OCC

    Federal agencies today issued a final interagency policy statement establishing joint standards for assessing the diversity policies and practices of the entities they regulate. Compliance Alliance will be creating a toolkit to assist you with compliance as soon as the final rule is made available.

  • 32 Democratic Senators Call for Strong Payday Lending Rules

    June 08, 2015 / Source: Ballard Spahr

    A group of 32 Democratic U.S. senators sent a letter to Director Cordray last week regarding the CFPB’s efforts to address payday lending in which they urged him “to issue the strongest possible rules to end the damaging effects of predatory lending.”

  • CFPB Issues Report on Reverse Mortgage Ads and Consumer Risk

    June 08, 2015 / Source: CFPB

    The CFPB reviewed a variety of advertisements for reverse mortgages. In their report, they call many of the ads confusing, incomplete, and inaccurate.

  • Office of Inspector General Note Some Opportunities for Improvement in Regulator Coordination

    June 05, 2015 / Source: Federal Reserve

    A report was released covering a review conducted by the inspectors general for the prudential regulatory agencies and the CFPB. Generally, it was determined that the agencies were coordinated consistent with the Dodd-Frank Act, but the report did note some opportunities for improvement. One of the recommended improvements included more simultaneous exams.

  • Mortgage Rates Reach 2015 High

    June 05, 2015 / Source: Freddie Mac Newsroom

    Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates moving higher amid positive housing data and pushing fixed mortgage rates to their highest level of the year.

  • CFPB Says They Will be “Sensitive” When Enforcing TRID to Members of Congress

    June 04, 2015 / Source: CFPB

    Consumer Financial Protection Bureau Director Richard Cordray told members of Congress yesterday that when enforcing the TILA-RESPA integrated mortgage disclosures starting on Aug. 1, the bureau would be “sensitive” to good-faith efforts by lenders to comply. “I have spoken with our fellow regulators to clarify that our oversight of the implementation of the Rule will be sensitive to the progress made by those entities that have been squarely focused on making good-faith efforts to come into compliance with the Rule on time,” Cordray wrote. This falls short of the grace period that was requested by congress and lobbyists.

  • Committee Democrats Announce Support for Measure to Aid Main Street Banks, Protect Consumers

    June 04, 2015 / Source: U.S. House Committee on Financial Services - Democrats

    The Democratic proposal would allow mortgages held in portfolio to receive the Qualified Mortgage safe harbor (but only for banks with less than $10 billion in assets), reduce the burden of unnecessary privacy notice paperwork and extend the exam cycle for more institutions. The bill would also give the Consumer Financial Protection Bureau authority to enforce the Servicemember Civil Relief Act and permanently extend provisions relating to tenants in a property being rented when it is foreclosed upon.

  • Comptroller Discusses Payment Technology, Innovation and Cybersecurity

    June 03, 2015 / Source: OCC

    Comptroller of the Currency Thomas J. Curry today discussed emerging payment systems technology, innovation, access, and cybersecurity in banking during a speech at the 2015 BITS Emerging Payment Forum.

  • Agencies Release Statement on Company-run Stress Tests at Medium-sized Financial Companies

    June 03, 2015 / Source: Federal Reserve

    Agencies issued a statement intended to clarify the disclosure requirements for the annual stress tests conducted by financial institutions with total consolidated assets between $10 billion and $50 billion.

  • The Supreme Court Rules In Favor of Banks

    June 02, 2015 / Source: Supreme Court

    The Supreme Court ruled against borrowers who sought to void second mortgages in Chapter 7 bankruptcy when their houses were worth less than the balance owed on the first mortgages yesterday.