The U.S. Department of Justice (DOJ) has filed a motion with a federal district court to terminate early the September 2022 consent order with Lakeland Bank (Lakeland) that settled allegations of redlining under the Fair Housing Act and Equal Credit Opportunity Act. The motion also seeks the dismissal with prejudice of the case that the DOJ brought that resulted in that consent order.… Continue Reading
Regulatory and Enforcement
CFPB Files Rulemaking Items With Office of Management and Budget
Posted in CFPB Rulemaking, Regulatory and Enforcement
The CFPB recently made filings with the Office of Management and Budget (OMB) regarding the following rules:
- Loan Originator Compensation Requirements Under the Truth in Lending Act (Regulation Z).
- Discretionary Servicing Rules under the Real Estate Settlement Procedures Act (Regulation X).
- Discretionary Mortgage Servicing Rules Under the Truth in Lending Act (Regulation Z).
Today’s podcast episode: The Impact of the Newly Established Priorities and Massive Proposed Reduction in Force (RIF) on CFPB Supervision
By Ballard CFS Group on
Our podcast show being released today features two former CFPB senior officers who were key employees in the Supervision Division under prior directors: Peggy Twohig and Paul Sanford. Peggy was a founding executive of the CFPB when the agency was created in 2010 and led the development of the first federal supervision program over nonbank consumer financial companies.… Continue Reading
Trustmark Redlining Consent Order Terminated
A federal district court recently granted the unopposed motion of the Department of Justice (DOJ) and the Consumer Financial Protection Bureau (CFPB) to terminate their October 2021 consent order with Trustmark National Bank (Trustmark) and to dismiss with prejudice the redlining case they brought that resulted in that consent order.
As previously reported, the agencies, along with the Comptroller of the Currency, announced the consent order at the same time that the DOJ announced its initiative to combat redlining.… Continue Reading
VA Winding Down VASP Program
By Richard J. Andreano, Jr. on
As previously reported, last year the U.S. Department of Veterans Affairs (VA) launched a Veterans Affairs Servicing Purchase (VASP) program, which VA characterized as a “last-resort tool” for VA home loan borrowers facing severe financial hardships. Pursuant to the program, VA purchases defaulted VA loans, modifies the loans, and then places them in the VA-owned portfolio as direct loans.… Continue Reading
Trump orders review of regulations to help the ‘deconstruction of the overbearing and burdensome administrative state’
By Ballard CFS Group on
Posted in Regulatory and Enforcement
President Trump has issued an Executive Order that requires agencies to review all regulations “for consistency with law and Administration policy.”
In issuing the order, Trump said, “It is the policy of my Administration to focus the executive branch’s limited enforcement resources on regulations squarely authorized by constitutional Federal statutes, and to commence the deconstruction of the overbearing and burdensome administrative state.”… Continue Reading
Podcast Episode: The Fall of The CFPB, The Rise of The State AG
By Ballard CFS Group on
In this episode of the Consumer Finance Monitor Podcast, Ballard Spahr partners Mike Kilgarriff and Joseph Schuster break down the seismic shifts in consumer financial regulation following the dramatic changes at the CFPB. With the Bureau’s enforcement and supervisory activities on hold, state attorneys general are stepping in to fill the regulatory void.… Continue Reading
This week’s podcast episode: Regulating Bank Reputation Risk
By Ballard CFS Group on
Posted in Podcasts, Regulatory and Enforcement
Today’s podcast show features a discussion with Julie Andersen Hill about her law review article titled “Regulating Bank Reputation Risk”, 54 GA. L. Rev. 523 (2023). Professor Hill is the Dean and Wyoming Excellence Chair of the University of Wyoming College of Law.
The abstract to Professor Hill’s article does an excellent job of summarizing her thesis:
This Article surveys reputation risk guidance and enforcement efforts.… Continue Reading
Trump Orders Regulatory, Hiring Freeze
By Ballard CFS Group on
President Trump on Monday issued an Executive Order that prohibits most federal agencies from issuing proposed rules until an administration-appointed agency head reviews the regulation.
The President also imposed a hiring freeze at most federal agencies through another Executive Order.
The Executive Orders do not expressly exclude independent agencies, such as the CFPB.… Continue Reading
American Bankers Association, state affiliates ask Trump to halt regulatory actions pending a review
By Ballard CFS Group on
Posted in CFPB, Regulatory and Enforcement
In a letter to President-Elect Donald Trump, the American Bankers Association and its 52 affiliates are calling for a halt to all regulatory actions affecting banks and an extension of all effective dates for final regulations impacting financial institutions.
Such a pause is needed “to ensure that the incoming teams in each of these [financial regulatory] agencies has the time and opportunity to review years of rulemaking, guidance, and other policy actions that have the effect of constraining market participants,” the 50 state banking associations and ones representing the District of Columbia and Puerto Rico, wrote, in their letter.… Continue Reading