Dodd-Frank News Center

Latest Home Affordable Program Performance Report released

This story appeared in Bank Digest.                                  

The Treasury Department has released the latest Making Home Affordable Program Servicer Performance Report, which contains detailed assessments of the performance of servicers participating in the Making Home Affordable program. Information about servicer performance is provided through two types of data: 1.) compliance data, which reflects servicer compliance with specific MHA guidelines; and 2.) program results data, which reflects how timely and effectively servicers assist eligible homeowners and report program activity.

CFPB receives funding for fourth quarter of FY 2017

This story appeared in Bank Digest.                                  

In a funding request letter to the Federal Reserve Board, Consumer Financial Protection Bureau Director Richard Cordray said that $84,600,000 would be necessary to carry out the authorities of the Bureau for the fourth quarter of fiscal year 2017. As required by law, each fiscal quarter the Fed transfers to the CFPB the amount of funds formally requested by the CFPB director in order to carry out Bureau activities as outlined in its budget.                                   

The Fed sent a letter to the CFPB's chief financial officer stating that the requested funds had been deposited into the Bureau of Consumer Financial Protection Fund at the Federal Reserve Bank of New York.

Warren expresses concerns about those marketing refinancing of VA-backed mortgages

This story appeared in Bank Digest.                                  

In a letter to Ginnie Mae, the government corporation responsible for approving lenders to securitize mortgages backed by the Department of Veterans Affairs and obtain a government guarantee, Sen. Elizabeth Warren (D-Mass) expressed concerns that certain companies may be aggressively and misleadingly marketing the refinancing of VA-backed mortgages. In the letter, Warren cited data suggesting that Ginnie Mae-approved companies were potentially mistreating veterans. She also noted market analysis showing that "certain VA mortgage servicers are significantly more likely to 'churn' loans--that is, successfully solicit an existing VA borrower to refinance her mortgage."                                   

The senator asked Ginnie Mae Acting President Michael Bright whether he believed any Ginnie Mae-approved companies were improperly taking advantage of VA refinancing programs, and if so, what the impact has been on taxpayers and what steps Ginnie Mae intends to take to address the issue.

House passes Financial Stability Oversight Council Insurance Member Continuity Act

This story appeared in Bank Digest.                                  

The House of Representatives has passed the Financial Stability Oversight Council Insurance Member Continuity Act (H.R. 3110) by a vote of 407 to 1. The bill, which was introduced by Reps. Randy Hultgren (R-Ill) and Maxine Waters (D-Calif), is intended to strengthen the work of the Financial Stability Oversight Council by permitting its independent member with insurance expertise to continue serving in the position beyond his or her term, according to Hultgren's press release.                                  

The release said that under the Dodd-Frank Act, it is currently unclear if someone can serve as the FSOC independent member with insurance expertise once the individual's term expires. The bill would allow this individual to remain past his or her term for the earlier of either: (1) 18 months; or (2) when a successor is confirmed.        

CFPB proposes new 'Student Loan Servicing' information collection

This story appeared in Bank Digest.                                  

The Consumer Financial Protection Bureau is proposing a new information collection entitled "Student Loan Servicing Market Monitoring." According to the CFPB's notice, the Bureau will require quarterly data collection on aggregated student loan servicing metrics and borrower outcomes from student loan servicers.                                   

The collection is intended to help the CFPB carry out its market monitoring goals and is pursuant to the Bureau's market monitoring authority under the Dodd-Frank Act. On Feb. 23, 2017, the Bureau issued a 60-day notice (2017 No. 600) in 82 Federal Register 11440 requesting comments on the proposal. Written comments on the current notice must be received by Oct. 6, 2017, and will be reviewed by the Office of Management and Budget as part of its review of this request.       

Waters says Wells Fargo 'must be held accountable' for additional fraudulent accounts

This story appeared in Bank Digest.                                  

House Financial Services Committee Ranking Member Maxine Waters (D-Calif) has issued a statement in response to what a press release described as "a report revealing that Wells Fargo opened an additional 1.4 million fraudulent bank accounts and 528,000 unauthorized online bill pay enrollments without their customers' knowledge or permission." Saying that "Wells Fargo's misdeeds are egregious" and that it "must be held accountable," Waters also asserted that the bank "has made a routine practice of ripping off and preying on their customers."                        

Waters added that she would be "introducing legislation that breaks up banks--like Wells Fargo--that repeatedly engage in consumer abuses."