Links in “Agencies”

Well, for one thing, it might bring a civil money penalty of $45,000 as money services business Mian knows too well. The institution failed to satisfy crucial BSA/AML reporting requirements such as filing CTRs for all currency transactions exceeding $10,000. [7/16/14]

The FDIC proposed new changes that would affect the regulatory capital rules, capital ratios and ratio thresholds, the assessment base calculation for custodial banks, and more. [7/16/14]

Hanna & Associates, a Georgia-based debt collection agency, is facing penalties administered by the CFPB for deceptive debt collection practices. These practices included churning out over 350,000 lawsuits in a four-year period based on unsubstantiated or limited evidence that, although the result of an automated process, were signed by attorneys to increase the intimidation factor. [7/15/14]

Operation Choke Point, the controversial initiative targeting banks servicing payday lenders as well as other industries the administration deems problematic, is the subject of two House hearings this week. Both the House Financial Services Committee and the House Judiciary Committee are calling witnesses to appear. [7/14/14]

Federal Trade Commission settles with a Florida-based payday lender. According to the complaint, the defendant used consumers’ personal financial information it had collected through its websites on the pretense of helping them to get a loan to withdraw $30 from the bank accounts of tens of thousands of consumers, without authorization and without providing anything of value in return. [7/14/14]

Some mortgage brokers have been switching to a "mini-correspondent" model, and the CFPB is worried that these institutions—rather than intending to grow into a full correspondent model—believe that this status makes them exempt from consumer protection rules regarding broker compensation. Cordray stated that “they cannot avoid those rules by calling themselves by a different name.” [7/14/14]

The CFPB will hold a hearing regarding consumer complaints on July 17. Due to its track record of announcing related CFPB developments, it should be worth tuning in. [7/11/14]

According to NCUA Chair Debbie Matz, speaking at yesterday’s listening session in Chicago, the agency will be extending the implementation period for the risk-based capital rule beyond the proposed 18-month time frame. Matz also called CUNA’s estimated $7 billion dollar cost of the rule to be a “myth.”  [7/11/14]

The Consumer Financial Protection Bureau (CFPB) took enforcement action Thursday against ACE Cash Express, one of the United State's largest payday lenders. ACE Cash Express was charged with pushing payday borrowers into a cycle of debt through illegal debt collection tactics including harassment and false threats of lawsuits or criminal prosecution. ACE will pay $5 million in refunds and another $5 million as penalty for these violations. [7/11/14]

HUD has completed the required notice and comment processes for the FHA-insured multifamily rental closing documents, which has been reviewed and approved by the Office of Management and Budget (OMB). The intention behind the changes was to decrease and optimize the paperwork involved in related activities. Final versions of the closing documents, with comparisons to previous versions, are available for review. [7/11/14]