Links in “Banks”

The complaint alleges that RPM Mortgage and its CEO incentivized loan originators to steer consumers into costlier mortgages. In addition to $18 million in redress to consumers and a $1 million penalty, the complaint is also seeking $1 million in civil penalties from the CEO. [6/5/15]

Unnamed sources say the CFPB is leaning against subjecting banks to new rules capping the size and frequency of overdraft charges, but may instead focus on better disclosures and barring lenders from reordering transactions in a way that triggers overdraft. [6/5/15]

While the CFPB's pledge to be "sensitive" to good-faith efforts to comply with the TILA-RESPA Integrated Disclosure rule, ICBA calls for a more defined grace period through the rest of 2015. ABA concurs. [6/4/15]

The BitLicense puts in place guidelines for protecting consumers and preventing money laundering. [6/4/15]

The Hill speculates that the CFPB's forthcoming payday loans and Operation Choke Point are part of a larger plan. [6/3/15]

An exploratory working group looks at gaps, SWAMPS, common weakness enumeration, and mobile app security threats. [6/3/15]

An employee accidentally sent an Excel spreadsheet with customer information and redeemable codes for more than $1 million in gift cards to more than 1,000 customers. "Protecting yourself from human error is just as important as protecting yourself from hackers and malware." [6/2/15]

The CFPB and DOJ entered into a proposed consent order with Provident Funding Associates regarding its broker compensation policy, which resulted in higher fees to minority borrowers. While rules restricting loan originator compensation have reduced pricing variations in recent years, pricing variations continue to exist. Hence, even if your lending is compliant, pricing variations must be carefully assessed for fair lending risk. [6/2/15]

Following news that five large banks pled guilty to criminal actions, ICBA tells regulators that the fines amount to slaps on the wrist and demands that regulators adopt enforcement policies with the megabanks that are consistent with those enforced on smaller banks. "No bank should be too big to fail nor too big to jail." [6/2/15]

It's not just tech changes that are causing headaches for lenders as the Aug. 1 new disclosure deadline approaches. Hefty fines, growing legal exposure, rising costs, and a complicated workflow add to the pain. [6/2/15]