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The dos and don'ts of vendor management
Posted Date: Thursday, October 25, 2018
Lenders and title agents increasingly are working together to manage services they offer to consumers.
Meanwhile, lenders have been under more regulatory scrutiny to watch over their third-party vendors.
RESPA News spoke with attorney/shareholder Brian Nettleingham of Maddin, Hauser, Roth & Heller, P.C. about the different factors financial institutions must consider when negotiating vendor management agreements from both business and regulatory perspectives.
Read on for more details from Nettleingham.
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NAFCU issues regulatory alert on data collection
Posted Date: Thursday, October 25, 2018
In response to the Consumer Financial Protection Bureau’s (CFPB) Request for Information (RFI) on its data collection practices, the National Association of Federal Credit Unions (NAFCU) has issued a regulatory alert to its members.
The NAFCU is seeking feedback on how to reduce credit unions’ burdens while ensuring adequate data collection.
Read on for details on the regulatory alert, which will be taking comments from NAFCU members until Dec. 7.
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HUD charges Ohio, Wisconsin landlords with discrimination
Posted Date: Thursday, October 25, 2018
The U.S. Department of Housing and Urban Development (HUD) has targeted landlords in Ohio and Wisconsin for alleged discrimination violations due to tenants’ disabilities and familial status.
One of the landlords is accused of refusing a resident’s request to have a designated parking space at her own expense. Another allegedly refused to rent to a married couple with five children.
Read on for details from both charges of discrimination.
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Illinois Realtors: Broker/title agent not mutually exclusive
Posted Date: Thursday, October 25, 2018
Can someone be both a real estate broker and a title insurance agent?
The answer is … it depends, according to the Illinois Realtors Legal Team.
Read on to learn why it may be possible for a registered title agent, who is also a real estate broker, to do work on behalf of a title company in exchange for compensation under both Illinois law and federal RESPA regulations.
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RESPA claim follows allegations of break in
Posted Date: Thursday, October 25, 2018
An Alabama woman claimed her mortgage servicers falsely claimed her husband’s life insurance policy would not require renewal, and then failed to conduct investigations after receiving qualified written requests (QWRs) about her account being in error.
A federal judge recently found the defendants did not violate RESPA, which requires loan servicers to provide written responses to QWRs within 30 business days.
Read on for details from the opinion.
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ALTA wants trial TRID disclosures
Posted Date: Monday, October 22, 2018
The American Land Title Association (ALTA) is asking the Consumer Financial Protection Bureau to allow trial disclosures for what it calls the accurate disclosure of simultaneous issue title fees.
ALTA was among 32 entities that responded to the bureau’s request for comment on a proposed policy to change its process for trial disclosures.
Read on for details on the proposed policy, which would create a Disclosure Sandbox to carry out the bureau’s authority under Section 1032(e) of the Dodd-Frank Act.
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Mulvaney: Regulators need to do more to stop elder abuse scams
Posted Date: Monday, October 22, 2018
Consumer Financial Protection Bureau acting director Mick Mulvaney used a personal family story to illustrate the tough task which regulators have to stop scammers.
Mulvaney’s comments came at a field hearing in Baton Rouge, La., to discuss elder abuse. He also responded to audience questions about the Military Lending Act.
Read on for more about Mulvaney’s own story from the field hearing and other highlights from questions he was asked.
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FTC making consumer complaint data more accessible
Posted Date: Monday, October 22, 2018
The Federal Trade Commission (FTC) now is making aggregated consumer complaint data available every quarter in a new interactive online format.
Previously, the FTC released data about fraud, identity theft and other consumer problems on an annual basis.
Read on for details on the agency’s new tool, which the regulator said will provide a more timely snapshot of consumer complaints, and separate the data by category, including types of fraud and state.
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RESPA claim denied after multiple loss mitigation applications
Posted Date: Monday, October 22, 2018
A Texas man claimed his servicer violated Regulation X by starting foreclosure proceedings while his loss mitigation application remained pending.
The servicer argued they were under no obligation to comply with RESPA because it was not the plaintiff’s first loss mitigation application.
A federal magistrate agreed, and recommended the defendants’ motion for summary judgment be granted. Read on for highlights of the magistrate’s opinion.
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FFIEC launches new BSA/AML site
Posted Date: Monday, October 22, 2018
The Federal Financial Institutions Examination Council (FFIEC) has redesigned its website aimed at sharing bank examination procedure information with examiners, financial institutions, the public and other stakeholders.
The Bank Secrecy Act/Anti-Money Laundering (BSA/AML) InfoBase website was redesigned to improve the overall experience for users.
Read on for details about the redesign, which will improve site navigation, enhance search capabilities and provide mobile-friendly capability.
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Labor shortages causing higher home prices
Posted Date: Monday, October 22, 2018
A record number of single-family builders are reporting shortages of labor and subcontractors. That’s according to a recent survey by the National Association of Home Builders (NAHB).
The survey respondents said the most widespread effect of the labor shortages was that builders were forced to pay higher wages and/or subcontractor bids.
Read on for more from the survey, which is used to generate the Wells Fargo Housing Market Index (HMI).
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Leading financial services regulatory partner joins Cooley
Posted Date: Monday, October 22, 2018
Kenneth Juster is joining Cooley’s Boston office as a partner in the financial services regulatory practice.
He was formerly a partner at White & Case. Juster focuses his practice on all aspects of laws and regulations applicable to broker‐dealers, investment advisers, alternative trading systems and securities trading.
He has also advised emerging and established companies on the development and operation of funding portals and online capital-raising platforms, including in the venture capital, angel investing, crowdfunding and private and public securities markets.
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CFPB rulemaking stagnant; RESPA rule re-assessments updated
Posted Date: Thursday, October 18, 2018
The Consumer Financial Protection Bureau (CFPB) once again has pushed back the timeline to issue rules on a variety of items. But it also mentioned work on re-assessments of RESPA –related rules.
Of 12 rules on the agency’s Fall 2018 rulemaking agenda list, only three are listed in final stages. Two of those already have been finalized.
Read on to learn which items on the agenda are a priority, and the status of RESPA-related rules which are going through, or soon will go through, re-assessments.
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MBA, NAR urging CFPB to regulate PACE loans
Posted Date: Thursday, October 18, 2018
The Mortgage Bankers Association , the National Association of Realtors and other industry trade groups are asking the Consumer Financial Protection Bureau to issue regulations for consumer and lender protections for Property Assessed Clean Energy (PACE) loans.
The bureau is required to initiate a rulemaking process to implement the statute's “Ability to Repay” requirements for PACE loans.
Read on for more details on the proposed regulations.
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CFPB wants to define ‘abusive’ practices
Posted Date: Thursday, October 18, 2018
The Consumer Financial Protection Bureau will likely issue a rule to define what kinds of practices it considers “abusive” under the Dodd-Frank Act to provide greater clarity to the unfair, deceptive or abusive acts or practices standard created by the statute.
Read on to learn what the National Association of Federally-Insured Credit Unions has to say on the rule, designed to prevent regulatory uncertainty.
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Deutsche Bank awarded attorneys' fees for failed RESPA case
Posted Date: Thursday, October 18, 2018
A borrower claimed his servicer violated RESPA by failing to respond to qualified written requests (QWRs) requesting a chain of title after his mortgage was transferred.
An Arizona federal judge not only dismissed the case, but ordered the plaintiff to pay the servicers’ costs and attorneys’ fees for filing the suit.
Read on for more details from the judge’s opinion, which found the plaintiff was provided with the new servicer’s name and address.
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MBA: Mortgage originations up, refinances down
Posted Date: Thursday, October 18, 2018
Purchase mortgage originations are expected to rise 4.2 percent in 2019 over last year, the Mortgage Bankers Association (MBA) announced at its 2018 Annual Convention and Expo in Washington, D.C.
The MBA expects to see $1.24 trillion in purchase mortgage originations in 2019, while refinance originations are expected to decrease by 12.4 percent, to $395 billion.
Read on for other predictions from the MBA, including mortgage rates and home price growth.
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Waters introduces bill to undo CFPB's anti-consumer changes
Posted Date: Monday, October 15, 2018
The House Financial Services Committee has introduced legislation that would undo many of the Trump administration’s anti-consumer changes designed to dismantle the Consumer Financial Protection Bureau (CFPB).
Ranking member Maxine Waters (D-Calif.), recently announced H.R. 6972, the Consumers First Act, to reverse efforts by Mick Mulvaney, director of the Office of Management and Budget, to do away with the bureau.
Read on for highlights of the bill, which accuses Mulvaney of being unlawfully appointed.
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Judge dismisses loan assumption RESPA, TILA claims
Posted Date: Monday, October 15, 2018
After a borrower failed to convince his servicer to add their spouse to mortgage loan documents or send loan statements directly to their home address, an Illinois resident sued for RESPA and TILA violations.
The servicer argued they responded to the plaintiffs in writing that the spouse’s name had not been placed on the mortgage statements because the loan is “not assumable.”
Read on for details about why the complaint was dismissed.
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Regulators: Banks, credit unions can share in AML compliance
Posted Date: Monday, October 15, 2018
Financial institutions will be allowed to share resources to help comply with Bank Secrecy Act (BSA) and anti-money laundering (AML) requirements.
The National Credit Union Adminstration (NCUA), the Fed and other agencies recently issued a joint statement to address instances in which credit unions and banks may wish to share resources.
Read on for details from the joint statement discussing the benefits and risk of collaborative arrangements.
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Regulators issue joint CIP exemption order
Posted Date: Monday, October 15, 2018
There is a new exemption for Customer Identification Program (CIP) requirements for certain property and casualty finance contracts provided by financial institutions to small businesses.
The exemption order provides relief from requirements implementing Section 326 of the USA Patriot Act for loans extended by banks and subsidiaries to commercial customers to facilitate purchases of property and casualty insurance policies.
Read on for more details from the exemption order.
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New ARMCO report finds loan defects up due to downsizing, understaffing
Posted Date: Monday, October 15, 2018
The latest review of loan quality findings by ACES Risk Management shows a 25 percent increase in the number of defects attributed to the loan package documentation category.
These defects are often associated with downsizing and understaffing.
Meanwhile, the ARMCO Mortgage QC Trends Report for the first quarter of 2018 also showed a drop in defects in the borrower and mortgage eligibility category. Read on for more highlights from the report.
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Los Angeles housing provider settles discrimination claims
Posted Date: Monday, October 15, 2018
A Los Angeles housing provider accused of threatening a disabled woman with eviction for having a support animal has resolved discrimination claims with the U.S. Department of Housing and Urban Development (HUD).
The conciliation agreement settles claims against owner, 4147 McClung Drive, LLC, Keeton Property Management, LLC and the manager of one of its properties.
Read on for details about the complaint, which was filed in July.
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Senators want to expand BSA to real estate partners
Posted Date: Thursday, October 11, 2018
Do vulnerabilities in anti-money laundering laws present an increased risk of criminal activity in the luxury real estate market?
A pair of lawmakers is hoping to find out.
Senators Chris Van Hollen (D-Md.) and Sheldon Whitehouse (D-R.I.) recently wrote to the Government Accountability Office (GAO) asking it to further study the issue. Read on for details, including the potential for criminal activity in the real estate market.
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Borrower sues for HAMP RESPA violations
Posted Date: Thursday, October 11, 2018
A Tennessee woman who sued her servicer for wrongful foreclosure also alleged RESPA violations resulting from the Home Affordable Modification Program (HAMP).
However, the district court determined the plaintiff, who was not personally obligated to repay the note, cannot bring a plausible claim because she was not a “borrower” under RESPA and Regulation X.
Read on for highlights of the judge’s decision.
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How to handle escrow surpluses, deficiencies
Posted Date: Thursday, October 11, 2018
Each year, RESPA requires mortgage servicers to conduct an escrow account analysis to determine whether a surplus or deficiency exists.
If one exists, the rule provides requirements for how the funds are to be returned to or collected from the borrower.
Read on to learn how Jennifer Aguilar, regulatory compliance counsel for the National Association of Federally-Insured Credit Unions, advises how to handle each of these scenarios.
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Wilson begins new term as FTC commissioner
Posted Date: Thursday, October 11, 2018
Christine Wilson officially has replaced Maureen Ohlhausen’s seat as a Federal Trade Commission (FTC) commissioner – five months after being confirmed.
Wilson was confirmed as a commissioner in April, Wilson’s swearing in was delayed because of Ohlhausen’s decision to remain in her position as the FTC’s acting chairman while awaiting Senate approval for a federal judge seat.
Read on for more details about the announcement.
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Stratmor: Lenders must adapt process strategies
Posted Date: Thursday, October 11, 2018
Housing inventory shortages, slow market growth, excess origination capacity, compressed margins and continuing pressure to invest in technology are a reality of today’s mortgage marketplace.
So what’s a proactive lender to do? Incorporating process improvements in your strategic planning is a must, according to Stratmor Group Principal Jennifer Fortier.
Read on for details of how lenders can compete by making process a priority throughout the entire loan process.
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Court rules Zillow co-marketing does not violate RESPA
Posted Date: Monday, October 8, 2018
First, the Consumer Financial Protection Bureau (CFPB) ended its investigation into Zillow Group’s co-marketing program.
Now, a federal judge has ruled that Zillow’s co-marketing program complies with RESPA. In dismissing a securities fraud class action lawsuit against Zillow, a Washington district court judge ruled that Zillow’s co-marketing program complied with RESPA.
Read on to learn what RESPA experts told RESPA News about the decision and its impact on co-marketing programs.
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25 Years Later: First RESPRO leader reflects on how it all began
Posted Date: Monday, October 8, 2018
Twenty-five years ago, a small but determined group of residential real estate companies were focused on getting a unified voice to make sure the one-stop-shopping business model could prosper nationwide.
And that is how the Real Estate Services Providers Council (RESPRO) was born.
Read on to see what Sue Johnson, the trade association’s longtime president, had to say about why the group was formed and how members have fought for the real estate services industry throughout the years.
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Webinar answers RESPA marketing questions
Posted Date: Monday, October 8, 2018
In a recent October Research, LLC webinar titled “RESPA Roundup Featuring Phil Schulman,” the Mayer Brown LLC partner told attendees the do’s and don’ts of co-marketing arrangements and discussed marketing and advertising in a post-PHH world.
Schulman warned those in the settlement services industry against becoming complacent about RESPA enforcement.
Read on to learn more of what Schulman had to say from the September webinar.
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Email determined to be QWR in Maryland case
Posted Date: Monday, October 8, 2018
A Maryland couple who alleged their servicer failed to properly acknowledge and respond to multiple qualified written requests (QWR) sued for RESPA violations when payments allegedly were not applied under their forbearance agreement.
A federal judge ruled the servicer may have violated RESPA by not acknowledging an email which met the standards of a QWR within five days and not responding to it within 30 days.
Read on for highlights of the judge’s opinion.
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McGahn joins NAR as senior VP of government affairs
Posted Date: Monday, October 8, 2018
Shannon McGahn, who most recently served as the staff director for the House Services Committee, has joined the National Association of Realtors’ (NAR) senior management team.
McGahn will become NAR’s senior vice president of government affairs Oct. 15.
Read on to learn more about McGahn and Victoria Gillespie, who also is joining NAR as its new chief marketing and communications officer.
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Bureau issues RFI to consider data collections changes
Posted Date: Monday, October 1, 2018
The Consumer Financial Protection Bureau’s (CFPB) latest Request for Information (RFI) looks for public feedback on its sources for data and how data is used.
The CFPB issued a recent report and RFI addressing questions about the sources of the bureau’s data and its use.
Read on for details from the report, and highlights of what the bureau is seeking from the RFI to address its use of data.
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Webinar answers TRID 2.0 questions
Posted Date: Monday, October 1, 2018
In a recent October Research, LLC webinar titled “Your TRID Questions Answered Featuring Richard Horn,” the leading expert of the final TRID rule told attendees what to expect before the Oct. 1 mandatory compliance date.
Horn, partner at Garris Horn PLLC, discussed the many technical and detailed changes in the Consumer Financial Protection Bureau’s (CFPB) final rule, which provisionally took effect Oct. 10, 2017.
Read on for details as the latest TRID rules go into place.
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RESPA claim survives motion to dismiss
Posted Date: Monday, October 1, 2018
A Maryland woman claimed her servicer misled her to believe she was not at risk of losing her home, to ensure she would fail to defend herself in a foreclosure action. She sued for RESPA violations after the sale was ratified.
A federal judge found the plaintiff clearly stated a RESPA claim against one of the servicers.
Read on for highlights of the judge’s opinion.
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OCC updates TILA, RESPA handbook
Posted Date: Monday, October 1, 2018
The Office of the Comptroller of the Currency (OCC) has issued the “Truth in Lending Act” (TILA) booklet of the Comptroller’s Handbook to reflect recent changes to TRID.
The updated OCC booklet includes procedures implementing the Consumer Financial Protection Bureau’s (CFPB) rule: the Integrated Mortgage Disclosures under the RESPA (Regulation X) and TILA (Regulation Z), which became effective in October 2015.
Read on for more details about the changes to the handbook.
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New CFPB advisory councils hold first joint meeting
Posted Date: Monday, October 1, 2018
The Consumer Financial Protection Bureau (CFPB) recently had its first meeting with members of its leaner Consumer Advisory Board (CAB), Community Bank Advisory Council (CBAC) and Credit Union Advisory Council (CUAC).
The Sept. 27 meeting in Washington, D.C. was the first time the bureau had all three advisory councils together at the same time.
Read on to learn what acting CFPB director Mick Mulvaney had to say about the joint meeting.
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HUD announces $243 million grant for Virgin Islands hurricane relief
Posted Date: Monday, October 1, 2018
Citizens of the U.S. Virgin Islands affected by Hurricanes Irma and Maria are about to get some help in the way of a $243 million grant.
The U.S. Department of Housing and Urban Development (HUD) says the grant is necessary to restore damaged and destroyed homes, businesses and infrastructure.
Read on for details about the grant, which will allow the government to offer faster assistance to homeowners and construct new housing for senior citizens and others in need.
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Industry mixed on regulators' guidance statement
Posted Date: Thursday, September 27, 2018
RESPA experts have mixed feelings about the recent joint statement by federal bank regulators and the Consumer Financial Protection Bureau (CFPB) that regulatory guidance does not have the force of law.
Attorneys Robert Jaworski, Marx Sterbcow and Brian Levy addressed the interagency statement that explained the role of supervisory guidance for regulatory institutions.
Read on to hear what they each had to say about the Sept. 11 announcement.
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loanDepot.com, appraisal firm settle discrimination claims
Posted Date: Thursday, September 27, 2018
LoanDepot.com LLC and Appraisal Management Services of America, Inc. have agreed to pay more than $240,000 for allegedly refusing to refinance loans because of race and the location of homes on Native American lands.
The U.S. Department of Housing and Urban Development (HUD) has approved a conciliation agreement resolving claims brought by three homeowners, a couple and an individual, against the companies.
Read on for details from the agreement.
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Louisiana judge dismisses force-placed insurance claim
Posted Date: Thursday, September 27, 2018
A Louisiana buyer who claimed his monthly payments increased after his servicer wrongfully obtained force-placed insurance on the property filed suit against Ditech Financial for a violation of section 2605(m) of RESPA.
The servicer filed for summary judgment on a motion to dismiss, arguing the increase in the man’s monthly escrow payments were bona fide and reasonable.
Read on to see why the judge dismissed the case.
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Illinois first to adopt MBA state disclosures protocol
Posted Date: Thursday, September 27, 2018
The Mortgage Bankers Association (MBA) is working to create uniform rules on ad licensing disclosures at the state level.
The MBA is asking state regulators to implement a uniform licensing disclosure protocol that directs consumers to the NMLS Consumer Access Website. If done nationally, reliance on such a protocol is expected to improve consumer disclosures regarding company licensing information.
Read on for details about the protocol, which Illinois already has adopted.
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Is affordable multifamily development overregulated?
Posted Date: Thursday, September 27, 2018
Members of the U.S. House Subcommittee on Housing and Insurance recently met to discuss regulatory barriers that inhibit or prevent the development of affordable multifamily housing.
Multifamily housing development can be subject to high regulatory costs in terms of fees, standards and other requirements at different stages of the development and construction process.
Read on to see what speakers had to see about the future of multifamily housing.
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Butler Snow attorney appointed to NCLCPA
Posted Date: Wednesday, September 26, 2018
Butler Snow is pleased to announce that Randall McClanahan has been appointed by the president of the American Bar Association to a three-year term to the National Conference of Lawyers and Certified Public Accountants (NCLCPA). The NCLCPA is the official liaison body between the American Bar Association and the American Institute of Certified Public Accountants, consisting of nine members of each profession appointed by the presidents of the respective organizations.
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Report: Fintech charters could add to state regulatory burden
Posted Date: Monday, September 24, 2018
Recent fintech banking announcements by federal agencies will have widespread state regulatory burdens for institutions, according to a new Wolter Kluwer whitepaper.
The Office of the Comptroller of the Currency has begun accepting applications for special purpose national bank charters “from non-depository financial technology companies engaged in the business of banking.”
Read on to find out what a regulatory expert at Wolter Kluwer told RESPA News about how the changes could impact the banking and fintech industries.
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Comments sought on proposed CFPB Disclosure Sandbox
Posted Date: Monday, September 24, 2018
The Consumer Financial Protection Bureau (CFPB) is seeking comments from institutions on a proposed policy to change its process for trial disclosures.
The new policy would streamline the application period, set a 60-day deadline to grant or deny an application, specify that a two-year testing period would be the norm and clarify that the CFPB’s trial disclosure program will coordinate with state regulatory “sandboxes.”
Read on for details about the bureau’s latest mission.
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Maryland consumer amendments effective Oct. 1
Posted Date: Monday, September 24, 2018
Starting Oct. 1, Maryland will join a growing list of states ramping up enforcement efforts in consumer finance laws.
The Maryland General Assembly passed the Financial Consumer Protection Act of 2018 in May, which is expected to bridge the gap left from a less enforcement-oriented Consumer Financial Protection Bureau (CFPB).
Read on for more details about the act, which will alter the definition of “unfair or deceptive trade practice” to include “abusive” practices.
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CFPB: PHH case proves we are constitutional
Posted Date: Monday, September 24, 2018
The Consumer Financial Protection Bureau (CFPB) is arguing that a lawsuit against a Mississippi payday loan company cannot be dismissed because the bureau is constitutional.
The CFPB is claiming All-American Check Cashing’s constitutional challenge fails under binding Supreme Court precedent, as the en banc D.C. Circuit held in the PHH v. CFPB case.
Read on to see more details on the bureau’s brief, which was recently filed in the Fifth Circuit Court of Appeals.
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Couple sues servicer for failures in payment accounting
Posted Date: Monday, September 24, 2018
A Washington couple who were granted a temporary restraining order to prevent a servicer from foreclosing on them alleged their servicer violated RESPA.
The plaintiffs claimed the company failed to correct their loan information even after they sent a qualified written request and were current on the loan following a bankruptcy.
Read on to see why a federal judge dismissed the claim.
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HUD details $1.5 billion grant for Puerto Rico relief
Posted Date: Monday, September 24, 2018
U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson and Puerto Rico Governor Ricardo Rossello have announced the formal execution of a $1.5 billion grant agreement to help citizens in Puerto Rico to recover from Hurricanes Irma and Maria.
The money will go toward speeding recovery dollars needed to restore damaged and destroyed homes, businesses and infrastructure.
Read on for details about the grant and comments from Carson and Rossello.
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