Tag Archives: Dodd-Frank Reform Act

The Consumer Financial Protection Bureau (CFPB) released a bulletin and interim final rule Tuesday to provide greater clarity to the market concerning mortgage servicing rules that take effect in January 2014. The clarifications address contact with delinquent borrowers, communications with family members after a borrower dies, and treatment of consumers who have filed for bankruptcy.

As the calendar approaches September 15, marking the anniversary of the collapse of Lehman Brothers, the nation is reminded of that historical event which severed the very fabric of our financial system. It's been five years since that fateful day, and the Center for Responsible Lending (CRL) says Americans--regardless of political party, age, race, or locale--overwhelmingly support financial regulation, and in particular, increased consumer protections.

Six financial regulatory agencies issued on Wednesday a proposed rule to exempt a subset of higher-priced mortgage loans from certain appraisal requirements. In a joint release, the agencies proposed to provide exemptions from Dodd-Frank appraisal requirements for loans of $25,000 or less, certain streamlined refinancings, and certain loans secured by manufactured housing.

Legislators heard--or perhaps misheard--customers when they grumbled about ATM fees and clamped down even though there is a logical argument for them. Now, a new fee opportunity for major banks comes in the form of pay cards--debit cards loaded with your take-home pay each time you get paid. Workers must pay a fee to access their own wages and may be charged a fee for not using the card. The pay cards slither under, over, or around the definitions resulting from Dodd Frank for fees banks are permitted to charge for credit and debit cards or even for store cards.

The recent jump in home prices has led to speculation that the rapid surge in home prices could be the sign of a new housing bubble similar to the one that led to the Great Recession. Is it? The not-so-short answer is, not yet. An increase in prices itself does not signal a bubble. An unsustainable increase, not supported by other data, however, would. In the run-up to the 2006 collapse, the higher prices--which had been trending up for four years--led to a sharp uptick in construction wholly unsupported by demographics.

The Consumer Financial Protection Bureau (CFPB) plans to grow its staff in order to meet its strategic goals and stay in compliance with its mandate to protect consumers, according to a written testimony from Stephen Agostini, CFO at the bureau. Agostini, who gave testimony before the House Financial Services Committee Tuesday, stated that over the next two fiscal years, CFPB expects its staff to increase from 1,214 employees in the Fiscal Year 2013 to 1,545 employees in 2014.

From new regulations to increasing fines, financial institutions--both large and small--reported feeling more squeezed by compliance and risk management pressures since the start of the year, according to survey results from Wolters Kluwer Financial Services. In January, the Indicator began with a baseline score of 100 after the company surveyed 400 banks and credit unions. After surveying 430 similar institutions in April, Wolters Kluwer Financial Services reported a score of 136.

""Uncertainty"" is a term that has plagued the lending industry for some time. Since the introduction of Dodd-Frank three years ago, uncertainty about the future of industry regulation has been a source of concern among close to half of lenders, according to QuestSoft, a Laguna Hills, California-based software provider. QuestSoft's fifth annual compliance survey reveals at least 49 percent of lenders have ranked Dodd-Frank-related uncertainty as a high concern for the past three years.

Citing changes in regulatory reform due to Dodd-Frank as the driving factor, Edward Jones Mortgage, based in St. Louis Park, Minnesota, will close its doors permanently in April. Edward Jones Mortgage, which reportedly employs 214 people, is a joint venture between San Francisco-based Wells Fargo and Des Peres, Missouri-based Edward Jones. ""Regulatory reform stemming from the 2010 Dodd-Frank Act changed the rules for joint ventures of this type,"" said a spokesperson for Edward Jones.

The last few weeks have seen a deluge of new rules from the Consumer Financial Protection Bureau (CFPB) and other regulatory agencies, but a new report from the U.S. Government Accountability Office (GAO) says the reform process is still coming along slowly. As of the end of 2012, GAO estimates regulators have issued rules for approximately 48 percent of the Dodd-Frank provisions that call for them. Most of the effective deadlines for those rules have not yet been reached, the agency says.