Dodd-Frank News Center

Report finds Freddie Mac could reduce errors by reviewing more servicer claims

This story appeared in Bank Digest.

The Office of Inspector General for the Federal Housing Finance Agency has released a report indicating that Freddie Mac could further reduce reimbursement errors by reviewing more servicer claims. When Freddie Mac purchases a mortgage loan, it contracts with mortgage servicers, such as large banks or mortgage companies, to handle routine loan activities, such as collecting and fowarding mortgage payments. When borrowers become delinquent, a servicer may be required to maintain the property, pay taxes and insurance, and liquidate the loan. After the loan is liquidated, the servicer seeks reimbursement of its expenses from Freddie Mac.

CFPB urges companies to support workers’ financial health

This story appeared in Bank Digest.

Stating that seven out of 10 American workers say financial worries are their most common cause of stress, the Consumer Financial Protection Bureau has released a report to promote financial wellness in the workplace. The report contains case studies that are designed to educate employers about practices that can improve employees’ financial health and increase worker productivity.

CFPB enters agreement to protect student veterans

This story appeared in Bank Digest.

In a new blog post, the Consumer Financial Protection Bureau has announced that they are joining the Departments of Veterans Affairs, Defense, and Education to better protect servicemembers, veterans, and their family members who are attending college. The bureau has signed an agreement to carry out a comprehensive strategy to strengthen enforcement and compliance work as part of a larger effort to prevent abusive and deceptive recruiting practices by schools serving servicemembers, veterans, spouses and other family members. This includes working to ensure that these servicemembers and others have the right information to make informed choices about their education benefits and that colleges are providing these students high-quality academic and student support.

Fed requests comment on proposal to repeal Regulation AA

This story appeared in Bank Digest.

The Federal Reserve Board  is seeking input on a proposal to rescind Reg. AA—Unfair or Deceptive Acts or Practices (12 CFR Part 227) because the Dodd-Frank Act eliminated the Fed's authority to write rules that implement the Federal Trade Commission Act. However, the Fed and the other federal bank, thrift, and credit union regulatory agencies are warning that they retain supervisory and enforcement authority over unfair or deceptive acts and practices (UDAAP). The practices prohibited by Reg. AA still may be illegal under the FTC Act and the Dodd-Frank Act (CA 14-5). Comments must be submitted within 60 days from the date of publication in the Federal Register.

FHFA announces settlement with Goldman Sachs

This story appeared in Bank Digest.

The Federal Housing Finance Agency, as conservator of Fannie Mae and Freddie Mac, has reached a settlement with Goldman Sachs. The settlement addresses claims alleging violations of federal and state securities laws in connection with private-label mortgage-backed securities (PLS) purchased by Fannie Mae and Freddie Mac between 2005 and 2007.

CFPB says extending remittance rule exception benefits insured institutions

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has finalized revisions to its international remittance rule to extend the temporary exception under Regulation E that gives federally insured institutions additional time to provide exact disclosures in certain cases. The exception was set to expire on July 21, 2015.

Fed to repeal unfair lending rules

This story appeared in Bank Digest.

The Federal Reserve Board is proposing to rescind Reg. AA—Unfair or Deceptive Acts or Practices (12 CFR Part 227) because the Dodd-Frank Act eliminated the Fed's authority to write rules that implement the Federal Trade Commission Act. However, the Fed and the other federal bank, thrift, and credit union regulatory agencies are warning that they retain supervisory and enforcement authority over unfair or deceptive acts and practices (UDAAP). The practices prohibited by Reg. AA still may be illegal under the FTC Act and the Dodd-Frank Act.

CFPB fines auto finance company for distorting borrower credit reports

This story appeared in Bank Digest.

An auto finance company has been ordered to pay a $2.75 million fine, fix its errors, and change its business practices for providing inaccurate information to credit reporting agencies, according to findings by the Consumer Financial Protection Bureau. The consent order does not include any admission of wrongdoing by First Investors Financial Services Group, Inc.

CFPB bulletin states expectations for mortgage servicers when transferring loans

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau has released a bulletin outlining expectations for mortgage servicers that transfer loans. The bulletin includes information on how mortgage servicers should pay special attention to new rules protecting consumers applying for loss mitigation help or trial modifications. It also gives examples of some things CFPB examiners will look for when loans are transferred. In particular, CFPB examiners will carefully scrutinize transfers of loans with pending loss mitigation applications or approved trial and permanent modification plans. Examples of good practices by servicers include flagging those loans and taking special care to ensure that all relevant documents are transferred in a timely manner.

Fed urged to strengthen restrictions on emergency lending authority

This story appeared in Bank Digest.

A bipartisan group of senators and representatives have sent a letter to Federal Reserve Board Chair Janet Yellen calling for the Fed to strengthen restrictions on its emergency lending authority. The letter was signed by Sens. Elizabeth Warren (D-Mass) and David Vitter (R-La), Congressmen Scott Garrett (R-NJ) and Michael Capuano (D-Mass), and 11 additional members of the Senate and House.