In Circular 26-23-03 the U.S. Department of Veterans Affairs (VA) announced the elimination of the HUD/VA Addendum to Uniform Residential Loan Application (VA Form 26-1802a), as well as the Federal Collection Policy Notice (VA Form 26-0503). The VA advises in the Circular that it has consolidated those forms into VA Form 26-1820, which is used by lenders to report a loan to VA for guaranty upon closing.… Continue Reading
New York Department of Financial Services issues proposed guidance relating to management of material financial risks from climate change
By Michael Fausey on
The New York Department of Financial Services (DFS) recently issued proposed guidance (Guidance) related to climate change that applies to New York State-regulated banking organizations, New York State-licensed branches and agencies of foreign banking organizations, and New York State-regulated mortgage bankers and servicers. The Guidance is intended to address “material financial risks related to climate change” faced by covered entities in the context of “risk assessment, risk management, and risk appetite setting.” … Continue Reading
CFSA files opposition to CFPB’s certiorari petition seeking review of Fifth Circuit ruling that CFPB’s funding is unconstitutional and also files cross-petition for certiorari
Posted in CFPB, Litigation and Court Decisions
Community Financial Services Association (CFSA) has filed its brief in opposition to the CFPB’s certiorari petition seeking review of the Fifth Circuit panel decision in Community Financial Services Association of America Ltd. v. CFPB. In that decision, the panel held the CFPB’s funding mechanism violates the Appropriations Clause of the U.S.… Continue Reading
California DFPI releases modified proposed Student Loan Servicing Act regulations
By John L. Culhane, Jr. & John Georgievski on
On September 9, 2022, the California Department of Financial Protection and Innovation (DFPI) proposed to amend its student loan servicing regulations, which we previously covered here. After reviewing public comments, on January 6, 2023, the DFPI released a Notice requesting an additional round of public comments on a modified set of regulations. … Continue Reading
HUD Issues Draft Reconsideration of Value Guidance with FHA Loans
By Richard J. Andreano, Jr. on
The U.S. Department of Housing and Urban Development (HUD) recently issued a draft Mortgagee Letter on reconsideration of value (ROV) policies in connection with appraisals for FHA insured mortgage loans. The draft Mortgagee Letter follows up on action plan items set forth in the Property Appraisal and Valuation Equity action plan jointly issued by HUD and other federal agencies in March 2022. … Continue Reading
New CFPB report highlights increase in servicemember identity theft incidents
By Brian Turetsky on
On January 12, 2023, the Consumer Financial Protection Bureau (“CFPB”) issued a report highlighting an increase in reported incidents of identity theft by servicemembers. The report, titled “Servicemember reports about identity theft are increasing,” cited to data from the Federal Trade Commission (“FTC”) that showed nearly 50,000 cases of identity theft involving military consumers (including servicemembers, veterans, and their family members) in 2021. … Continue Reading
CFPB proposes registry for supervised nonbanks using form contracts containing arbitration provisions, waivers, or other limits
The CFPB has issued a proposed rule to establish a system for the registration of nonbanks subject to CFPB supervision that use “certain terms or conditions that seek to waive consumer rights or other legal protections or limit the ability of consumers to enforce their rights.” Arbitration provisions are among the terms that would trigger registration. … Continue Reading
New Jersey Attorney General settles lawsuit against merchant cash advance providers
By John Sadler & Ballard CFS Group on
Posted in Small Business, State Enforcement
The New Jersey Attorney General recently announced a settlement in its lawsuit against Yellowstone Capital LLC, its parent company, and various subsidiaries and affiliates alleging that the defendants violated the New Jersey Consumer Fraud Act (CFA) and the New Jersey Regulations Governing General Advertising (Advertising Regulations) in connection with marketing and providing merchant cash advances (MCAs). … Continue Reading
CFPB files amicus brief in Fourth Circuit arguing Regulation E protections apply to prepaid account loaded with pandemic-related unemployment assistance
The CFPB has filed an amicus brief in Mohamed v. Bank of America, N.A. in which it argues that a prepaid card loaded with pandemic-related unemployment benefits is a “prepaid account” subject to Regulation E, including its error resolution requirements for investigation of consumer disputes.
Regulation E, which implements the Electronic Fund Transfer Act, defines the scope of a covered “account” to include “a prepaid account,” and specifically identifies a “government benefit account” as a category of “prepaid account.”… Continue Reading
This week’s podcast episode: An update on diversity, equity, and inclusion in the consumer financial services industry, with special guest Naomi Mercer, Senior Vice President for Diversity, Equity, and Inclusion, American Bankers Association
By Barbara S. Mishkin on
Posted in Diversity and Inclusion, Podcasts
We first discuss the multiple benefits of diversity, equity, and inclusion (DEI) for financial institutions, the challenges and opportunities institutions face in implementing a DEI strategy, and how DEI applies beyond an institution’s workforce. We then consider the risk of discrimination claims arising from DEI programs and the role of legal counsel in the development and implementation of DEI strategies. … Continue Reading