Regulation

CFPB proposes revisions to international money transfer rules

The CFPB proposed revisions on Tuesday to its international remittance rule as part of an effort to ensure financial institutions have adequate time to provide the required disclosures. “It is critical that we are able to protect consumers who send money abroad and that we preserve access to such services,” CFPB Director Richard Cordray... Read More...

IRS ramps up efforts to combat identity, tax refund fraud

The IRS announced last week that it has initiated approximately 300 new investigations into identity theft and refund fraud ahead of the April 15 tax deadline. Since January, the IRS’ criminal investigation unit has launched 295 new investigations, pushing the number of active cases under investigation to more than 1,800. “Identity theft... Read More...

SECURE Act would protect consumers from inaccurate credit reports

Sens. Sherrod Brown (D-Ohio) and Brian Schatz (D-Hawaii) unveiled major legislation - the Stop Errors in Credit Use and Reporting Act - on Wednesday that would protect consumers from inaccurate credit reports and credit scores. “Errors in a credit report can make the difference between whether someone can live the American dream and buy a... Read More...

Coats introduces bill to protect credit unions, banks from CFPB overreach

Sen. Dan Coats (R-Ind.) introduced a bill on Thursday to give credit unions and community banks some relief from what he called "crippling financial regulations" enacted following the 2008 financial crisis. Coats' bill, supported by the Indiana Credit Union League and the Credit Union National Association, would modify how the CFPB requests... Read More...

Sens. Warner, Kirk introduce bill to cap consumer debit fraud liability

Sens. Mark Warner (D-Va.) and Mark Kirk (R-Ill.) introduced legislation last week that would expand current federal law and cap liability for consumers affected by debit card fraud at $50. Under current federal law, consumers can be liable for up to $500 or more if their debit cards are stolen or used fraudulently. “Debit card use has just... Read More...

CFPB to ramp up oversight of nonbank auto lenders

CFPB Deputy Director Steven Antonkes said last week the agency will move ahead with a proposal to expand the regulator’s supervisory authority to cover nonbank auto lenders as part of an effort to address fair lending risks. “For some time now, we have expressed concern that discretionary pricing in auto finance, coupled with financial... Read More...

Ohio Senate holds hearing on mortgage subrogation bill

The Ohio Senate Committee on Insurance and Financial Institutions held a hearing last week on legislation aimed at streamlining the mortgage process and providing lenders in the state with clarity on the priority of liens. The bill—Substitute H.B. 201, originally introduced last June by Republican State Rep. Jim Butler—was passed by the... Read More...

CUNA solicits input from credit unions on CFPB’s QM/ability-to-repay rules

The Credit Union National Association recently reached out to member credit unions asking for more information on how the CFPB’s new rules have impacted the institutions. CUNA posted a brief survey on its website urging members to provide information on the effects the qualified mortgage/ability-to-repay rule, which took effect in January,... Read More...

House hears testimony from witnesses on alleged discrimination at CFPB

The House Financial Services Subcommittee on Oversight and Investigations heard testimony from witnesses on Tuesday alleging that the CFPB has engaged in a culture of discrimination and retaliation against its employees. Last month, reports surfaced that CFPB managers had allegedly ranked employees of different races differently in performance... Read More...

NAFCU urges CFPB to lower safe harbor threshold for remittance transfers

The National Association of Federal Credit Unions urged the CFPB on Tuesday to lower the safe harbor threshold for remittance transfers to reduce the regulatory burden on credit unions that only offer the service on a limited basis. In January, the CFPB released a proposed rule that would define which nonbank entities would be considered larger... Read More...

Consumer complaints to CFPB rise by 80 percent in 2013

A report released by the CFPB on Monday showed consumer complaints reported to the bureau increased by 80 percent last year. The agency’s annual Consumer Response Report showed the CFPB received approximately 164,000 complaints last year, compared to 91,000 in 2012. Among the more than 310,000 complaints received by the agency since it... Read More...

Senate Banking Committee to mark up Johnson-Crapo housing proposal

The Senate Banking Committee will meet later this month to mark up the draft of the bipartisan Johnson-Crapo housing finance reform legislation. Last month, Sens. Tim Johnson (D-S.D.) and Mike Crapo (R-Idaho) introduced the legislation, which was based on a similar bill by Sens. Bob Corker (R-Tenn.) and Mark Warner (D-Va.). The legislation... Read More...

Regulatory inconsistencies hinder Native American housing programs

A report released by the Government Accountability Office last week found regulatory inconsistencies in federal housing programs for Native Americans have made it difficult for native tribes and tribal housing entities to administer the Indiana Housing Block Grant program. The program, which was established under the 1996 Native American... Read More...

FSC’s Waters releases draft housing finance reform proposal

Rep. Maxine Waters (D-Calif.), the ranking member of the House Financial Services Committee, recently released a proposal for housing finance reform just after the release of another discussion draft by Sens. Tim Johnson (D-S.D.) and Mike Crapo (R-Idaho). “Reforming a $10 trillion housing finance market is an immense undertaking that must... Read More...

House to examine allegations of discrimination at CFPB

The House Financial Services Subcommittee on Oversight and Investigations will hold a hearing next week to examine allegations of discriminatory behavior by managers at the CFPB. The hearing will discuss reports that agency managers have allegedly shown favoritism towards white employees in performance reviews used to issue raises and bonuses.... Read More...

CFPB: Consumers report being “hounded” by debt collection agencies

A report issued by the CFPB last week showed that many consumers submitted complaints regarding debt collectors that have “hounded” them about debts they do not actually owe. “We will not tolerate companies harassing consumers or threatening illegal actions in the debt collection market,” CFPB Director Richard Cordray said. “We will... Read More...

GAO report reveals lack of oversight in student loan rehabilitation program

A report released by the Government Accountability Office last week revealed “serious weaknesses” in the Department of Education’s oversight of a program intended to help financially troubled student loan borrowers. The student loan rehabilitation program allows student loan borrowers in default to “rehabilitate” their loans by making... Read More...

HFSC passes bill to protect small creditors under CFPB’s “rural” definition

The House Financial Services Committee passed legislation last Friday that would address the CFPB’s designation of “rural” areas as it relates to compliance with its qualified mortgage rule. The legislation—H.R. 2672, the CFPB Rural Designation Petition and Correction Act, introduced by Rep. Garland “Andy” Barr (R-Ky.)—would... Read More...

House committee examines bill to require online sales tax collection

The House Judiciary Committee held a hearing last week to examine legislation that would require online and mobile merchants to collect state and local sales tax. Under current law, online merchants cannot be forced to collect sales tax because they are required to have a physical presence in the states in which they do business—a clause... Read More...

Hensarling calls on CFPB to be transparent, end closed-door meetings

House Financial Services Committee Chairman Jeb Hensarling (R-Texas) called on the CFPB to end its closed-door meeting policy for its four advisory councils in honor of “Sunshine Week,” a national media initiative aimed at promoting open government. “Instead of operating behind closed doors, it’s time for the CFPB to live up to its... Read More...

Rep. Royce introduces bill to provide credit unions relief from MBL

Rep. Ed Royce (R-Calif.) of the House Financial Services Committee introduced legislation last week that would exempt loans for certain smaller apartment buildings from the member business lending cap, providing relief to credit unions. H.R. 4226—or the Credit Union Residential Loan Parity Act—is co-sponsored by Rep. Jared Huffman... Read More...

House committee clears credit union FHLB membership parity legislation

The House Financial services Committee voted 55-0 last week to pass legislation that would allow privately insured credit unions to become members of a Federal Home Loan Bank—government-sponsored banks that provide discount funding to financial institutions. H.R. 3584, which was introduced by Rep. Steve Stivers (R-Ohio), would expand credit... Read More...

CFPB’s Antonakes: Banks, CUs, nonbanks “should be treated alike”

CFPB Deputy Director Steve Antonakes told the National Community Reinvestment Coalition at its annual conference that banks, credit unions and nonbanks “should be treated alike… if they offer the same types of financial products and services.” “As a veteran of two banking crises, I can tell you unequivocally that, in my view,... Read More...

ABA urges support for bill to protect small creditors from CFPB rules

The American Bankers Association urged the House Financial Services Committee on Wednesday to support legislation that would ensure flexibility in the application of the CFPB’s definition of “rural” under its new mortgage rules. H.R. 2672, introduced by Rep. Garland “Andy” Barr (R-Ky.), is designed to ensure the establishment of an... Read More...

House committee threatens action against CFPB for delays

House Financial Services Committee Chairman Jeb Hensarling threatened last week to take measures against the CFPB—including issuing a subpoena—over its “delay” in providing the committee with information on the agency’s policies related to indirect auto lending. Democrats from the committee wrote to the CFPB in May requesting... Read More...

House to examine Fed’s role in credit allocation

The House Financial Services Subcommittee on Monetary Policy and Trade will hold a hearing on Wednesday on the Federal Reserve’s role in credit allocation. As the central bank loosened monetary policy in response to the 2008 financial crisis, it pushed the federal funds rate to zero, though sluggish economic growth led it to engage in... Read More...

Servicemembers submit Mortgage, debt collection complaints to CFPB

A report released by the CFPB on Thursday showed complaints from servicemembers regarding mortgages and debt collection practices were among the top received by the agency, followed by credit cards, bank accounts and credit reporting. From July 2011 to February 2014, the CFPB received more than 14,000 complaints from servicemembers, veterans... Read More...

NAFCU to host webinar on CFPB’s QM, ability-to-repay rules

The National Association of Federal Credit Unions will host a webinar next week on qualified mortgages and the CFPB’s ability-to-repay rule. The webinar will be broadcasted at 3 p.m. EST on Tuesday, March 11. The session will be open to all credit unions, regardless of charter type or membership. Executive leaders, including CEOs, CFOs, CAOs... Read More...

Financial services groups comment on CFPB’s debt collection ANPR

The American Bankers Association, Financial Services Roundtable and Consumer Bankers Association recently wrote a letter to the CFPB urging the agency to maintain the distinction between first- and third-party debt collectors as it moves forward in its regulation of the entities. The CFPB issued an advance notice of proposed rulemaking in... Read More...

NAFCU urges CFPB to consider debt collection ANPR impact on CUs

Angela Meyster, regulatory affairs counsel for the National Association of Federal Credit Unions, urged the CFPB last week to consider how its proposed rulemaking on debt collection practices may impact credit unions. The rulemaking proposed by the CFPB requests comment and information about how the debt collection system works for both... Read More...

House approves Rep. Duffy’s bill to reform CFPB, empower FSOC

The House voted 232-182 last week to pass Rep. Sean Duffy’s (R-Wis.) legislation to reform the CFPB and expand the Financial Stability Oversight Council’s ability to overturn agency rules. Under the legislation, the chairman of the FSOC would be authorized to set aside any regulation issued by the CFPB if two-thirds of the council’s... Read More...

CFPB urges credit card companies to provide customers with credit score

The CFPB urged credit card companies on Thursday to make credit scores and related credit information available to consumers, following the release of a bureau report that indicated accuracy issues were among consumers’ top credit reporting complaints. From October 22, 2012, and Feb. 1, the CFPB handled approximately 31,000 consumer... Read More...

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