Tag Archives: Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau(CFPB) announced enforcement actions against four mortgage insurers who allegedly gave kickbacks to lenders in exchange for business. CFPB proposed consent orders against Genworth U.S. Mortgage Insurance Corporation (USMI), Mortgage Guaranty Insurance Corporation (MGIC), Radian Guaranty Inc., and United Guaranty Corporation (UGC) for their alleged roles in kickback arrangements. The proposed orders require the companies to pay $15.4 million in penalties to the bureau.

The Consumer Financial Protection Bureau (CFPB) went live Thursday with the nation's largest public database of federal consumer financial complaints. Thursday's launch expands the Consumer Complaint Database from about 19,000 credit card complaints to more than 90,000 complaints on mortgages, student loans, bank accounts and services, and other consumer loans.

With origination costs on the rise (Ellie Mae cited data from the Mortgage Bankers Association showing the average cost of origination climbing from $2,291 in 2008 to $3,353 in Q3 2012) and more than 350 federal, state, and local laws governing loans, the cost of doing business the right way is a major concern for those companies trying to turn a profit. However, while many of those costs can be measured and predicted, Ellie Mae points to a number of factors that some firms may not have thought about.

The Independent Bankers of America (ICBA) outlined its regulatory priorities for this year at the National Convention and Techworld in Las Vegas earlier this month. The organization addressed several industry reforms and pending regulations it asserts will negatively and unfairly impact community banks. For example, ICBA suggests any financial institution with $50 billion or less in assets be exempt from Basel III. Likewise, the group argues community banks should be exempt from new lending and servicing reforms.

Richard Cordray's nomination to continue leading the Consumer Financial Protection Bureau (CFPB) is headed to the Senate following a vote from the Committee on Banking, Housing, and Urban Affairs Tuesday. The committee confirmed Cordray's nomination by a party-line vote of 12-10, with Republican members keeping to their vow to not support any potential leader until CFPB's structure is fundamentally changed. Ranking member Sen. Mike Crapo specifically criticized the agency's spending, which he says is not as transparent as it should be.

Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB), sat once again on Tuesday in front of the Senate Banking Committee, this time to present his case to continue leading the consumer agency. While some had expected a contentious round of questioning from Republicans critical of CFPB in its current form, the proceedings were generally cordial, with Cordray and commitee members agreeing to work together to maximize transparency and accountability at the bureau.

As the industry prepares to implement the Consumer Financial Protection Bureau's (CFPB) new ability-to-repay rules, Federal Reserve Governor Elizabeth Duke warns new consumer protections may come at a cost to the industry as lower-quality-credit borrowers are precluded from the housing market. As the broader economy continues to improve, household formation will increase, according to Duke, "but if credit is hard to get, these will be rental rather than owner-occupied households."

Two fellows at the American Enterprise Institute (AEI) assert that the QM rule is "simply another and more direct way for the government to keep mortgage underwriting standards low."

Fannie Mae's Economic & Strategic Research Group is maintaining its outlook for slow and steady growth in 2013.

Two industry service-providers are teaming together to help servicers prepare for CFPB examinations and adjust procedures to comply with new regulations.