Links in “Banks”
- A Look at the Payment Collection Provisions of the CFPB’s Payday Lending Proposal
The CFPB's proposal doesn't just make it harder to make short-term, low-dollar loans; it makes collecting them harder, too. Here's a recap of the collection practices rules in the CFPB proposal. [4/6/15]
- Flood Insurance Rates in High-Risk Areas Skyrocket
Homeowners in high-risk areas will see their premiums rise by as much as 25% under new rates that took effect April 1 under the National Flood Insurance Program. [4/3/15]
- CFPB Skating on Thin Ice with its 36% Rate Trigger
Dodd-Frank explicitly denies the CFPB authority to set usury limits, but the 36% rate trigger for the CFPB's payday loan proposal does just that. [4/3/15]
- New Credit Scoring System for Underbanked Focuses on Utility, Phone Payment Record
With 25% of the U.S. population "unscorable" (because they have little or no credit payment history), a new FICO scoring system will take into account other measures, such as consumers who have faithfully paid their phone, oil, and gas bills, and haven't moved around too much. Whether bankers buy into this system remains to be seen. [4/3/15]
- Executive Order Enables Sanctions Against Entities Behind Cybercrimes
The White House has now authorized the Treasury, the Attorney General, and the Secretary of State to institute sanctions against entities behind cybercrime, cyber espionage, and cyber attacks. [4/2/15]
- HSBC: When the Corporate Culture is Resistant to Change
The New York Times has featured a piece on HSBC, which avoided criminal prosecution in 2012 by promising to clean up its act. However, it is now facing allegations that its ongoing weaknesses in spotting suspicious transactions and general sluggishness to fix its problems are because senior management is enabling a corporate culture resistant to change. [4/2/15]
- Compliance Officers and Their Crystal Balls
More than ever, compliance officers are being asked to be risk identifiers looking around the corner for their financial institutions, rather than just putting out fires. It's a tall order. [4/2/15]
- Short-term Loan Restrictions Could Kill Short-term Loans; CFPB: That’s the Idea
The onerous restrictions on short-term loans could virtually eliminate short-term loans through regulated financial institutions. The CFPB is aware that they would result in a "substantial reduction" and predicts lenders "may cease operations entirely." [4/2/15]
- So You’re Saying There’s a Chance of Delaying Integrated Mortgage Disclosure Rules?
A CFPB deputy director's comments at a conference that a delay of the planned Aug. 1 integrated mortgage disclosure rule deadline wasn't completely off the table, but an agency spokesperson subsequently squashed that notion. [4/1/15]
- Cyber Extortion
Study reveals that 30% of responding organizations would negotiate with cybercriminals for the safe recovery of stolen or encrypted data. And if the organizations had been victims of cyber-extortionists before, that number jumped to 55%. [4/1/15]
