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Posts Tagged ‘financial institutions’

CFPB Contemplating Clarifying TRID

May 3rd, 2016 Comments off

question_mark_houses__fotosearchDirector Richard Cordray, of the Consumer Financial Protection Bureau (CFPB), responding to complaints regarding complying with the so-called Know Before You Owe rule for homebuyers —formally, the TILA-RESPA Integrated Disclosure (TRID) rule implemented Oct. 3, 2015 –wrote a letter to financial trades members stating the bureau is considering making “adjustments” to provide more clarity in the regulation text.

Terming them “operational challenges,” he wrote, “We also recognize that implementation is particularly challenging because of the diversity of participants, from small to large financial institutions, mortgage brokers, real estate brokers, and title companies, through warehouse lenders, investors, due diligence firms, and ratings agencies, whose perspectives may vary as to what compliance under the rule requires.”

He said the CFPB is drafting a Notice of Proposed Rulemaking (NPRM) on the Know Before You Owe rule which should be issued by July, at which time the bureau will take comment.

MHPronews understands there have also been problems with software designed for the TRID rule. With this uncertainty, lenders in some cases may have opted to not issue a loan if they were not sure of compliance.

Cordray said, “We will continue to work with industry, consumers, and other stakeholders to support a smooth transition for the mortgage market.” ##

(Image credit: fotosearch–question mark houses)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Policy Institute says Dodd-Frank is a Bust

February 1st, 2016 Comments off

dodd_frank___bloombergbusinessweek___creditThe American Action Forum (AAF) has determined there has been a 20.5 percent drop in community banks with assets under $1 billion dollar in assets since Dodd-Frank became law five + years ago, according to data supplied MHProNews by the Federal Deposit Insurance Corp (FDIC). That is a substantial increase from the 13.1 percent drop during the five years leading up to Dodd-Frank, reports newsok.

A center-right policy institute, the AAF has also determined that the legislation that was designed to keep large financial institutions from causing a recession has resulted in the “too big to fail” banks are thriving while the smaller ones are not, despite the fact they were not the responsible ones causing the housing downfall. While this is not new information, AAF says D-F has led to a 14.5 percent decrease in consumer revolving credit, such as credit cards, since 2010, and cased mortgages to cost about $350 more.

Dodd-Frank’s regulatory burden must be borne by someone: financial institutions and their employees, shareholders, or consumers in the form of higher prices or less access to credit,” the AAF report states. “It appears the law has affected all three entities.”

While Dodd-Frank was supposed “to generate nothing but good,” according to AAF the rules of Dodd-Frank state creditors might consider adjusting the terms and conditions of loans to pass some or all of the price increase through to consumers. The final rule could increase the cost of credit or curtail access to credit for a small share of … consumers and purchase-money consumers.”

As the MHPro industry knows, Dodd-Frank also put a big crimp in the ability of individuals and retailers to finance the sale of manufactured homes, especially by consumers at the lower end.

The bottom line: consumers have fewer options for financing, less access to credit, and higher costs accessing credit. ##

(Image credit: bloomberbusinessweek)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Rep. Hensarling Notes Bipartisan Support for American Dream, Fighting Terrorism

March 26th, 2015 Comments off

jeb_hensarling__financialservice_house_gov__credit__rep_texasIn his opening statement to the full House Financial Services Committee considering 11 bipartisan bills “designed to promote a healthier economy, preserve consumer choice and help our fellow Americans achieve the American dream of financial independence, Committee Chairman Jeb Hensarling (R-TX) acknowledged they all passed the House and/or the Committee, nine with no opposition whatsoever.

Noting that more than one community financial institution closes each day somewhere in the U. S., the dreams of a family seeking credit also dies due to unnecessary governmental regulations. MHProNews understands Rep. Hensarling invites bipartisan regulatory relief legislation for community financial institutions to markup and send to the House floor.

As to the bipartisan Task Force to Investigate Terrorism Financing, he says, Republicans and Democrats alike on this committee are committed to making sure that our nation is doing everything possible to stop terrorists from using the global financial system to finance their acts of evil. Rep. Hensarling acknowledges that members from both sides of the aisle are working together to prevent terrorists from obtaining funds to carry out their attacks. ##

(Photo credit: Financial Services Committee.gov–Rep. Jeb Hensarling)

matthew-silver-daily-business-news-mhpronews-com   Article submitted by Matthew J. Silver to Daily Business News-MHProNews.

Rep. Neugebauer Questions Overreach of CFPB without Oversight

March 9th, 2015 Comments off

cfpb_credit_cfpbFinancial Institutions and Consumer Credit Subcommittee Chairman Rep. Randy
Neugebauer (R-TX), evaluating the five-year history of the Consumer Financial Protection Bureau (CFPB), informs MHProNews the agency does not perform in a sustainable manner, lacks transparency and accountability, and is “susceptible to political influence.” He sees value in the agency but would like to re-structure it. He says in a video, “We must reflect and focus on what consumer protection means for credit availability, the cost of credit, and consumer choice,” and notes the government should not make financial choices for the American people. He recounts the story of a constituent who does not want to lose her overdraft protection on her prepaid credit card. “Consumer protection does not happen in a vacuum. New regulations and regulatory actions have consequences for real people,” he says, suggesting the pendulum may be swinging too far towards paternalism in the amount of protection offered by the CFPB, which does not allow for innovation in the marketplace. ##

(Video credit: YouTube; image credit: Consumer Financial Protection Bureau)

matthew-silver-daily-business-news-mhpronews-com  Article submitted by Matthew J. Silver to-Daily Business News-MHProNews.

Michael Bloomberg says Dodd-Frank “Stupid,” slamming it and ObamaCare

November 12th, 2014 Comments off

former-nyc-mayor-bloomberg-credit-nypost-posted-daily-business-news-mhpronews-com0Former New York City Mayor Michael Bloomberg said harsh regulation on financial institutions are hurting Main Street. Speaking at a conference, Bloomberg lashed out at laws that are arguably helping his own firm, which provides servcies to the financial industry. It’s good for the terminal business,” he said. “Some of these firms have 10 or 15 thousand people working on [compliance]; if that’s not an opportunity to provide software, I don’t know what is.” BuzzFeed tells MHProNews.

CNNMoney reported Bloomberg saying, The trouble is if you reduce the risk at these institutions, they can’t make the money they did. If they can’t make the money they did, they can’t provide the financing that this country and this world needs to create jobs and build infrastructure.”

Bloomberg, is the founder of financial data company Bloomberg L.P., as well as a billionaire philanthropist.

What happens is every little group in Congress has to add something to that bill in return for their votes, and a lot of those things are just mutually exclusive,” Bloomberg said. “Years later now we don’t have the regulations that are required and complying with it is just really impossible.” The same goes for Obamacare, Bloomberg asserted.

The NewYorkPost stated the former mayor said, The world adjusts to stupid laws. They just don’t pay attention to it and you get burned later on. That really is what happens, like a 25-mile-an-hour speed limit.”

Bloomberg sounded off on a range of topics, the NSA, Google and the president being “a wuss” after his party lost the mid-terms so badly.

Google and Facebook and Twitter, they want to collect data on everything you do, everybody you sleep with, every place you eat and what you ordered at the venue, and then they’re going to sell it for their own personal profit,” he said. “And we’re complaining about the NSA?” ##

(Photo Credit: NYPost)

Legislator asks to Delay New Mortgage Rules

October 25th, 2013 1 comment

Representative Shelley Moore Capito (R-WV), who serves as Chairman of the House Financial Services Subcommittee on Financial Institutions and Consumer Credit, is garnering support to encourage Consumer Financial Protection Bureau (CFPB) Director Richard Cordray to postpone implementation of the new mortgage rules set to take effect in Jan. 2014, until Jan. 1, 2015. Noting financial institutions have 4,000 pages of new regulations to pore over, she says some smaller firms may only have one or two compliance officers, making it especially difficult for them to be in full compliance by the deadline. Included in the delay would be the HOEPA High Cost Mortgage Rules that impact manufactured housing. According to the Manufactured Housing Institute (MHI) newsletter to MHProNews, Cordray has made it known he does not want to forestall implementation of the mortgage rules.

(Image credit: HousingWire)

CFPB Issues Exam Procedures

June 5th, 2013 Comments off

According to mortgagenewsdaily, the Consumer Financial Protection Bureau (CFPB) has issued updates regarding what examiners will be checking lenders for when the new regulations go into effect Jan. 2014. Noting these are the first of what is anticipated will be numerous updates, the examination procedures concern the Truth in Lending Act (TILA) and the Equal Credit Opportunity Act (ECOA). “The CFPB recognizes that the easier we make it for financial institutions and mortgage companies to follow the new regulations, the better off consumers will be,” says CFPB Director Richard Cordray. “By releasing details of what our examiners will be looking for well in advance of the effective date of most of the rules, we are giving industry more time to adjust.” As MHProNews understands, the updates deal with compensation, appraisals, escrow accounts and qualifications for loan originators. The CFPB is coordinating its efforts with other federal government regulators that oversee financial institutions and mortgage companies to ensure there is a shared understanding of the rules.

(Image credit: HousingWire)

Legislative Update—U.S. House of Representatives

May 28th, 2013 Comments off

From the Manufactured Housing Institute (MHI)’s newsletter MHProNews learns Rep. Blaine Luetkemeyer (R-MO), a member of the House Financial Services Committee, has introduced the Community Lending Enhancement and Regulatory Relief Act (CLEAR Act). H. R. 1750 is designed to help smaller financial institutions obtain capital and provide loans to their clients. The newsletter says: “Among the changes included in the bill is an increase from $500 million to $5 billion in the threshold included in the Federal Reserve’s Small Bank Holding Company capital guidelines, relief from escrow requirements, mortgage relief for loans held in portfolio and an increase in the smaller servicer exemption threshold from 5,000 to 20,000 loans.”

(Image credit: Manufactured Housing Institute)

Are Loans Unsafe Outside QM?

April 18th, 2013 Comments off

According to nationalmortgagenews, bankers were relieved when the Consumer Financial Protection Bureau (CFPB) released its qualified mortgage rule (QM) in January, which gives the lender protection if a borrower defaults. But now some bank executives are hesitant to make loans outside the QM rule, and worry they could be rapped on the knuckles if they do not. In testimony before a House Financial Services subcommittee (financial institutions), Ken Burgess of First Bancshares of Texas says the risk is too high outside the QM rule, and his bank will no longer offer those loans. Other bankers noted tighter credit standards make it tougher to meet the Community Reinvestment Act requirements, which is lending to less creditworthy borrowers. Charles Kim of Commerce Bancshares representing the Consumers Bankers Association, says, “There’s a continual friction between safety and soundness regulation and then the need to make loans in underserved markets.” MHProNews has learned the panelists support a bill in both houses of Congress to create an independent appeals procedure for bank examinations.

(Image credit: foreclosuelistings)

AGs from Eight States Join Suit

February 18th, 2013 Comments off

American Banker informs MHProNews eight additional state attorneys general have requested to join a lawsuit originally filed by a Texas community bank and two conservative organizations challenging the constitutionality of the Dodd-Frank Act and the Consumer Financial Protection Bureau (CFPB). The suit focuses on the Orderly Liquidation Authority in Title II of Dodd-Frank, which permits the secretary of the Treasury to seize the assets of a financial institution without advanced warning. Texas Attorney General Greg Abbott says, “Under this law, unelected federal bureaucrats are empowered to unilaterally liquidate financial institutions in which the state invests taxpayer dollars. This unprecedented regime deprives the State of Texas of basic due process rights and places taxpayers’ resources at risk.” The lawsuit also challenges the structure of the CFPB, the president’s right to make a recess appointment to head the agency, and the authority of the Financial Stability Oversight Council. The attorneys general from Oklahoma, South Carolina and Michigan joined the case last Sept. The suit was originally filed in U.S. District Court for the District of Columbia in June, 2012. The defendants, essentially every federal financial regulator, have asked for dismissal of the case.

(Image credit: National Equity Fund)