Federal Agencies

Browse articles from all of our Newsletters related to Federal Agencies.

January 18, 2019 - Inside Nonconforming Markets

ATR Rule Curtails Non-Agency Lending

Originations of non-agency mortgages have taken a hit since the ability-to-repay rule came into effect, according to an analysis published by the Consumer Financial Protection Bureau last week. The CFPB report was based on assessment of application-level data from nine “larger” lenders, submissions and acquisitions data from Fannie Mae and Freddie Mac, and surveys of more than 190 lenders, among other sources. The ATR rule, which came into play in early 2014, established ...


January 17, 2019 - Inside Mortgage Finance

GSE Patch Fate Undecided Despite Its Importance

Uncertainty over the future of the so-called GSE patch — which the Consumer Financial Protection Bureau says helped Fannie Mae and Freddie Mac vastly boost mortgage market share — has industry watchers worried.


January 17, 2019 - Inside Mortgage Finance

Supreme Court Rejects CFPB Constitutionality Case

The U.S. Supreme Court Monday refused to hear a case challenging the constitutionality of the Consumer Financial Protection Bureau, turning away a legal challenge that could have led to more presidential power over the consumer watchdog.


January 14, 2019 - Inside the CFPB

In 2019, CFPB to Enforce the Law, Encourage Innovation

In a New Year’s message, Director Kathy Kraninger said the CFPB will “vigorously enforce the law” and encourage market innovation.


January 14, 2019 - Inside the CFPB

Other News in Brief

CFPB Receives Funding for Second Quarter of Fiscal 2019; CFPB Issues 2018 Annual Employee Survey; Mortgage Servicing Rules Apply to Servicers Only: Court Ruling.


January 14, 2019 - Inside the CFPB

Consumer Complaints Down in 4Q18, But Up Last Year

Consumer complaints across major categories saw double-digit declines in the fourth quarter, according to a new analysis by Inside the CFPB. [Includes one data chart.]


January 14, 2019 - Inside the CFPB

CFPB Must Prioritize Consumer Risks, Says GAO

The CFPB lacks a systematic process to prioritize consumer risks and use all of its tools to address them, the U.S. Government Accountability Office said in a recent report.


January 14, 2019 - Inside the CFPB

USAA to Pay $15.5 Million in Fines, Restitution to Clients

The CFPB has ordered USAA Federal Savings Bank to pay $15.5 million in restitution and fines to settle claims it neglected consumers’ stop payment requests and reopened accounts without consent. The consent order is the first one under the leadership of Director Kathy Kraninger.


January 14, 2019 - Inside the CFPB

Consumer Groups Seek Limits on Debt Collectors

Consumer advocacy groups have urged the CFPB to impose strict limits on debt collection agencies in order to protect consumers from abusive practices.


January 14, 2019 - Inside the CFPB

CFPB Should Clarify ATR for Non-QMs, Says Milken

The CFPB should clarify the ability-to-repay liability for non-qualified mortgages, the Milken Institute said in a recent report.


January 14, 2019 - Inside the CFPB

Judges Skeptical About CFPB For-Cause Removal

The CFPB defended its constitutionality in an oral argument last week before the U.S. Court of Appeals for the Ninth Circuit, but judges took issue with the for-cause removal provision.


January 14, 2019 - Inside the CFPB

Industry Says CFPB Should Protect Consumer Data

The CFPB should take steps to limit the data collection burden on industry and protect data security, industry groups said in response to a request for information regarding data collections.


January 14, 2019 - Inside the CFPB

CFPB Issues Rules on Public Release of Loan Data in 2019

The CFPB has restricted public disclosure of certain mortgage data collected by lenders in 2018 under the Home Mortgage Disclosure Act.


January 14, 2019 - Inside the CFPB

CFPB Assesses ATR/QMs, ‘GSE Patch’ and Servicing

The CFPB, in an assessment report last week, underscored the need to resolve the status of the temporary government-sponsored enterprises “patch” under the ability-to-repay and qualified mortgage rule.


January 11, 2019 - Inside Mortgage Trends

CFPB Report Calls Into Question the ‘GSE Patch’

The Consumer Financial Protection Bureau late this week issued two separate reports assessing the effectiveness of its Ability-to-Repay/Qualified Mortgage rule and Real Estate Settlement Procedures Act servicing rule. One critical question of the ATR/QM assessment is the fate of the so-called “GSE patch,” which exempts loans eligible for purchase by the two government-sponsored enterprises from the debt-to-income ratio limit of 43 percent. The exemption is set to expire by ...


January 10, 2019 - Inside Mortgage Finance

GAO Says CFPB Lacks Process to Prioritize Risks

The Consumer Financial Protection Bureau needs a systematic process to prioritize consumer risks and focus its resources to address them, the Government Accountability Office said in a new report.


January 4, 2019 - Inside Nonconforming Markets

ATR Rule Limiting Loans to Self-Employed Borrowers

Some self-employed workers are missing out on mortgages because of harsh standards included in the Consumer Financial Protection Bureau’s ability-to-repay rule, according to analysts at the Housing Finance Policy Center. “The mortgage market is not adequately meeting the needs of self-employed households,” the analysts said. The HFPC noted that in 2016, about 8.5 percent of U.S. households were headed by a self-employed person and 3.4 percent were salaried but earned some ...


January 3, 2019 - Inside Mortgage Finance

CFPB Decides Mortgage Data Disclosure for 2019

The CFPB mostly stuck to earlier guidance on how much 2019 HMDA data will be revealed to the public. Credit scores will not be revealed on a loan-level basis, and only certain DTI ratios will be disclosed. A key change is loan amounts will be disclosed in $10,000 cohorts.


December 21, 2018 - Inside the CFPB

Other News in Brief

Agencies issue guidance on 37 key data fields for HMDA examination; Rep. Maxine Waters formally nominated to chair the House Financial Services Committee.


December 21, 2018 - Inside the CFPB

DOJ Argues CFPB Unconstitutional, Waiting for Kraninger’s Comment

The U.S. Department of Justice in December filed a brief with the U.S. Supreme Court arguing that the CFPB’s leadership structure is unconstitutional.


December 21, 2018 - Inside the CFPB

Employee Satisfaction at CFPB Plunges, Leadership to Blame

Employee satisfaction at the CFPB has taken a big hit over the past year, according to a ranking by nonprofit organization Partnership for Public Service and Boston Consulting Group.


December 21, 2018 - Inside the CFPB

‘Suppressed’ CFPB Report on Student Loans Shows Fee Gaps

A “suppressed” CFPB report showing that the nation’s largest banks were ripping off students by charging high fees has now come to light.


December 21, 2018 - Inside the CFPB

Credit Union Trade Group Seeks Relief from CFPB Oversight

The National Association of Federally-Insured Credit Unions has called upon CFPB Director Kathy Kraninger to exempt credit unions from the agency’s supervisory and enforcement activity.


December 21, 2018 - Inside the CFPB

Industry Wants TRID Fix on Title Insurance Premium Disclosures

A dozen mortgage industry groups have asked the CFPB to update its integrated mortgage-disclosure rules in order to facilitate accurate disclosure of title insurance premiums and any potential available discounts to homeowners.


December 21, 2018 - Inside the CFPB

Democrats Take Issue With Mulvaney’s Past Moves at CFPB

House Democrats are calling for CFPB’s new Director Kathy Kraninger to resume supervisory examinations of financial institutions for compliance with the Military Lending Act.


December 21, 2018 - Inside the CFPB

Kraninger Makes Her First Move at CFPB – Halts Name Change Efforts

In one of her first acts in office, Director Kathy Kraninger has halted all ongoing efforts related to changing the CFPB’s name.


December 21, 2018 - Inside the CFPB

Under Kraninger, CFPB to Look at Enforcement, Rulemaking Afresh

In her first public remarks as CFPB director, Kathy Kraninger has signaled a fresh start for the consumer watchdog.


December 21, 2018 - Inside the CFPB

CFPB’s Plan to Ease ‘No-Action Letter’ Policy Draws Criticisms

The CFPB recently drafted a sweeping proposal seeking to expand benefits for companies obtaining a no-action letter.


December 21, 2018 - Inside the CFPB

CFPB Launches Beta Version of 2018 HMDA Data Platform

The CFPB recently made available a beta version of its Home Mortgage Disclosure Act platform for reporting data collected in 2018.


December 14, 2018 - Inside FHA/VA Lending

CFPB Hammers VA Lender for Deceiving Borrowers on IRRRLs

The Consumer Financial Protection Bureau has filed a complaint and a proposed settlement against a Nevada lender for misleading borrowers on the benefits of VA streamline refinancing.


December 14, 2018 - Inside Nonconforming Markets

News Briefs

The Consumer Financial Protection Bureau proposed new policies this week regarding no-action letters and the establishment of a “product sandbox.” The proposal aims to help financial services companies develop innovative products. Lauren Saunders, associate director of the National Consumer Law Center, was highly critical of the proposal, claiming that it could “wipe out consumer protection laws for entire industries.” She said the proposal is certain to ... [Includes four briefs]


December 14, 2018 - Inside Nonconforming Markets

Asset-Based Underwriting Prompts Warning

An increase in asset-based underwriting by banks prompted warnings from the Office of the Comptroller of the Currency last week. The OCC said its examiners have seen greater use of asset dissipation underwriting, a practice used to qualify borrowers using a hypothetical income stream from their asset liquidation rather than debt-to-income ratios. Banks are increasingly using asset dissipation or asset depletion as a response to “intense competition” from nonbanks, among other ...


December 13, 2018 - Inside Mortgage Finance

Kraninger Signals a More Moderate Tone After Being Confirmed as CFPB Director

The Senate late last week narrowly confirmed Kathy Kraninger as director of the Consumer Financial Protection Bureau. In her first public remarks, the new director set a more moderate tone for the watchdog agency than recently departed acting Director Mick Mulvaney did during his tenure.


December 10, 2018 - Inside the CFPB

Other News in Brief

CFPB Releases 2018 Financial Literacy Annual Report; Former CFPB Deputy Director Raj Date Joins a Fintech Company; Rep. Patrick McHenry Elected Top GOP Member of House Financial Services Committee.


December 10, 2018 - Inside the CFPB

CFPB Imposes Zero Civil Money Penalty for Violations, Again

The CFPB last week ordered State Farm Bank, a federal savings association in Bloomington, IL, to stop illegal credit reporting practices, without imposing a fine for its wrongdoings.


December 10, 2018 - Inside the CFPB

Fair Lending Activities to Gain Traction Next Year, Say Experts

The CFPB last week released a fair lending report covering the agency’s activity in 2017. The report generally summarized the bureau’s past fair lending efforts and laid out its priorities.


December 10, 2018 - Inside the CFPB

Mulvaney’s Rebranding Efforts Could be Costly for Companies

Changing the name of the CFPB seems a small step, but it could cost financial institutions roughly $300 million to make behind-the-scenes changes, according to an internal CFPB document.


December 10, 2018 - Inside the CFPB

Former CFPB Watchdog Launches Competing Student Loan Center

Seth Frotman, the former student loan ombudsman who dramatically quit the CFPB in August, has launched his own initiative to help solve the student debt crisis.


December 10, 2018 - Inside the CFPB

Cost-Benefit Analysis Likely a Focus of New CFPB Leadership

The CFPB is seeking an assistant director to head the office of cost-benefit analysis, indicating that the agency going forward would focus on the economic implication of its activities.


December 10, 2018 - Inside the CFPB

Deputy Director Explains CFPB’s Consumer Protection Approach

Since taking the reins of the CFPB last year, Acting Director Mick Mulvaney has changed its course. In a recent speech, the agency’s second in command, Acting Deputy Director Brian Johnson, explained how the current leadership defines consumer protection and principles behind its actions.


December 10, 2018 - Inside the CFPB

Top Senate Democrat Slams Mulvaney’s Leadership at CFPB

Sen. Sherrod Brown, D-OH, recently released a staff report accusing Acting CFPB Director Mick Mulvaney of undermining the agency’s mission to protect American consumers.


December 10, 2018 - Inside the CFPB

Kraninger Confirmed as CFPB Director. Will She Bring Change?

The Senate last week confirmed Kathy Kraninger as the second permanent director of the CFPB, on a 50-49 party-line vote.


Poll

Do mortgage lenders really need a new credit-scoring model or is the current FICO system adequate?

It’s fine. Stick with what works.
Time for a change. Borrowers are different today.
Undecided, still assessing the situation.

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