Home / Media / DS News Webcast: Monday 8/29/2015
Print This Post Print This Post

DS News Webcast: Monday 8/29/2015

The 2015 Dodd-Frank Act Stress Test process is viewed as more important than the actual results, in that it guides banks to understand capital and credit risk management within their respective institutions. Fitch Ratings examined the Dodd-Frank Act Stress Test process and results, finding that steps taken to gather the data for mid-tier regional banks are a positive development. The stress test process reviewed 60 mid-tier banks and applied the severely adverse scenario which included a 50 percent decline in real estate prices and a nearly 60 percent decline in equity markets over a period of multiple years.

Of the 20 Fitch-rated mid-tier banks, most passed the Dodd-Frank Act Stress Test by comfortable margins, reporting average minimum common equity Tier 1 ratios in excess of the required capital minimums. The average minimum common equity Tier 1 ratio of the Fitch-rated banks over the nine-quarter evaluation period ending December 2016 is 9.9 percent, nearly double the minimum 5 percent threshold. As a comparison, the self-reported bank holding company minimum common equity Tier 1 ratio average for large regionals under stress testing in March 2015 was 9 point 1 percent.

The latest organization to air a grievance about the CFPB's Consumer Complaint Database is the National Association of Federal Credit Unions, which wrote a letter to the Bureau saying that the Database, quote, continues to have practical implications that undermine the complaint resolution process. Close quote. The NAFCU expressed concerns over potential privacy and reputational risks presented by the complaint narratives in the database.

About Author: Jordan Funderburk

x

Check Also

hurricane vortex

A Climate-Related Foreclosure Crisis?

The threat of a potential foreclosure crisis looms large over the nation’s mortgage industry. In this video spotlight, experts share their insights on the far-reaching impact of extreme weather conditions and the corrective measures to be taken to mitigate the effects of these cataclysmic events on the housing market.

GET YOUR DAILY DOSE OF DS NEWS

Featuring daily updates on foreclosure, REO, and the secondary market, DS News has the timely and relevant content you need to stay at the top of your game. Get each day’s most important default servicing news and market information delivered directly to your inbox, complimentary, when you subscribe.