The MReport Webcast: Thursday 10/16/2014

In a report released Wednesday, Wolters Kluwer Financial Services said its Regulatory & Risk Management Indicator increased again to 128, reflecting a 28 percent rise from its baseline score established in January 2013. The indicator gauges top compliance and risk management concerns at hundreds of lenders nationwide. Looking at compliance challenges, 72 percent of banker respondents listed "maintaining compliance with changing regulations" as one of their top concerns, while 69 percent said just keeping track of regulations is a major issue at this point.

On the topic of the Dodd-Frank Act and the Consumer Financial Protection Bureau (CFPB), the combined TILA and RESPA disclosure rule was the top concern, with 75 percent of respondents ranking it as a worrying issue. Underneath that are the new reporting requirements the CFPB demands under the Home Mortgage Disclosure Act. Sixty-three percent of bankers surveyed listed the amendments as a significant challenge compared to just 46 percent in January 2013. Challenges related to the CFPB’s qualified mortgage rule were also a major cause of concern, ranking third on the list.

Bank of America reported on Wednesday its earnings for the third quarter, revealing that profits tanked under the weight of a massive legal charge stemming from a recent mortgage settlement with the Justice Department. In its quarterly earnings release, the bank reported a net income of $168 million last quarter, down from two and a half billion a year ago. B of A's earnings took a major beating from a record $16.65 billion settlement with the Justice Department and other federal and state agencies to settle charges against the bank related to the sale of toxic mortgage-backed securities. Factoring in the settlement, the bank’s mortgage unit was the only one of its five businesses that didn't see income grow over the last year.