Bank Notes

  • March 23, 2017
    On Thursday, March 23, 2017, the CFPB took action against Experian and its subsidiaries for deceiving consumers about the use of credit scores it sold to consumers. Experian claimed the credit scores it marketed and provided to consumers were used by lenders to make credit decisions when in fact, lenders did not use Experian’s scores to make those decisions. The CFPB ordered Experian to pay a...
  • March 21, 2017
    On Tuesday, March 21, 2017, the House Financial Services Subcommittee on Oversight and Investigations examined whether the CFPB’s structure violates the “Separation of Powers Clause” in Article II of the Constitution. Members discussed possible changes to enhance the constitutionality and accountability of the Bureau, as it is not subject to checks and balances, such as a commission structure,...
  • March 21, 2017
    On Tuesday, March 21, 2017, the FDIC, OCC, and Federal Reserve published a Joint Report to Congress Economic Growth and Regulatory Paperwork Reduction Act indicating the issues yielding the most comments were capital, appraisals, frequency of safety and soundness exams, the Community Reinvestment Act (CRA), and the Bank Secrecy Act (BSA). Regarding exam frequency, the agencies indicated “support...
  • March 17, 2017
    On Friday, March 10, 2017, CBA and other trades, filed an amicus brief in the matter of PHH Corporation v. The Consumer Financial Protection Bureau by the D.C. Circuit Court. On Thursday, February 16, 2017, the Court granted a rehearing petition, which will be en banc, meaning the full circuit bench will hear the case. The Court scheduled oral arguments for May 24, 2017, and has provided for a...
  • March 17, 2017
    CFPB Seeks Comment on Remittance Rule | On Friday, March 17, 2017, the CFPB announced its five-year assessment of the remittance rule as required by section 22(d) of the Dodd-Frank Act. The Bureau must file a report on the effectiveness of the rule no later than five years after the rule’s October 28, 2013 effective date. Prior to issuing the report, the agency is required to seek public comment...
  • March 15, 2017
    On Wednesday, March 15, 2017, the CFPB ordered Nationstar Mortgage LLC to pay a $1.75 million civil penalty for violating HMDA by consistently failing to report accurate data about mortgage transactions in 2012 through 2014. Nationstar, a nationwide nonbank mortgage lender headquartered in Coppell, TX, is a wholly-owned subsidiary of Nationstar Mortgage Holdings Inc. With nearly three million...
  • March 15, 2017
    On Wednesday, March 15, 2017, the OCC issued a draft supplement to its licensing manual to provide Fintech companies guidance on applying for a special purpose national bank charter. In its charter evaluations, the OCC will consider the following principles: Maintaining a safe and sound banking system; Encouraging a national bank to provide fair access to financial services by helping to meet the...
  • March 10, 2017
    On Friday, March 10, 2017, CBA sent a letter of support to Reps. Scott Tipton (R-CO), Randy Hultgren (R-IL), Patrick McHenry (R-NC), Terri Sewell (D-AL), David Scott (D-GA) and Kyrsten Sinema (D-AZ). The lawmakers re-introduced H.R. 1457 – the Making Online Banking Initiation Legal and Easy (MOBILE) Act of 2017, which would provide the opportunity for consumers to open bank accounts in every...
  • March 10, 2017
    In a letter dated Friday, March 10, 2017, House Financial Services Committee Republicans expressed concern to the OCC over the potential for a special “Fintech” charter for companies. Citing the “importance and complexity of the issue,” the letter urged the OCC not to “rush this decision.” The lawmakers said, “The OCC should provide a full and fair opportunity for stakeholders to see the details...
  • March 9, 2017
    On Thursday, March 9, 2017, the CFPB released a proposal to delay by six months the effective date of its rule governing prepaid accounts. The agency proposed the delay after learning some industry participants would have difficulty complying with certain provisions of the rule by the current October 1, 2017 effective date. While the proposal would not change any other part of the prepaid...

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