Links in “Banks”
- Delving Into the CFPB’s “Unreasonable” Ally Bank Methodologies
A House report finds that the CFPB's methodologies of identifying minority borrowers harmed by Ally Bank and subject to compensation were dubious. One group of 200,000 borrowers was sent a notice explaining that they would receive remuneration unless they opted out. Another group of 200,000 borrowers received letters telling them they had to opt in if they wanted remuneration. Less than 1% opted out of the first group. Nearly half the respondents opted into the second group. [2/3/16]
- Dealer Spread Favored Non-Minority Borrowers: CFPB
Over the life of a loan, the discretionary spread that Toyota dealers applied to loans ended up costing African-American borrowers $200 more and Asian borrowers $100 more than their white, similarly situated non-minority counterparts. That doesn't make the CFPB happy. Toyota is looking at $22 million in restitution and implementing new caps on dealer markups. [2/3/16]
- QM: Regulatory Uncertainty Driving Players Out of Business
Threat of presidential veto thwarted a measure that would allow any mortgage held in a bank's portfolio to be considered a Qualified Mortgage. Now the added risks and expense are driving good players out of the mortgage lending business, leaving lenders and consumers frustrated. [2/2/16]
- When the Front Line Turns on You
Bank robbers have moved from one side of the counter to the other. The rich and elderly bank customers are particularly at risk. [2/2/16]
- Could This Be Operation Choke Point’s Last Gasp?
A measure that could end Operation Choke Point, a program that some federal agencies used to push banks to terminate relationships with legitimate â but "undesirable" â business entities, heads to the House floor this week. [2/2/16]
- How to Make Rules Without Those Tedious Rule-making Requirements
CFPB has taken the use of enforcement action as a way to shape industry practices to a whole other level. [2/2/16]
- How to Move Suspect Funds into the U.S.: New York Lawyers
Several New York real estate lawyers, including a recent president of the American Bar Association, have been caught providing advice on how to move suspect money into the United States. [2/1/16]
- Online Lender an Enormous Ponzi Scheme?
In what may be another signal that more regulatory oversight of online lenders is needed, a Chinese online finance company may have bilked investors out of more than $7.6 billion. [2/1/16]
- De Novo? Don’t Think So
Despite the optimism of some industry observers, this observer believes the de novo deep freeze of the past eight years isn't going away any time soon. [2/1/16]
- Survey: Regulatory Relief is Top Priority
Survey of bankers finds that reducing the compliance burden on small banks is the number one issue for 2016. Making online competitors subject to the same regulatory controls banks face came in second. [2/1/16]
