Links in “Lending”
- A Look at the Scope of TILA/RESPA
Which CUs and mortgage loans are covered by the integrated mortgage rules? [6/2]
- Rhode Island City Accuses Bank of Redlining
Providence, R.I., accuses Santander Bank of deliberatly cutting back on lending to qualified homebuyers in minority neighborhoods while increasing mortgage lending to predominantly white areas. Also see Bank Lawyer's take here. [6/2]
- Legislation Would Seek to Unplug “Disparate Impact”
Several trade associations are lending their support to an amendment to the appropriations bill for fiscal year 2015 that would prohibit any funds made available by the Act from being used in "disparate impact" litigation. Under the disparate impact theory, even a lender who takes every step to prevent discrimination and treat all consumers fairly and equally could be the target of serious claims if it impacts a protected group adversely. For example, the DOJ and CFPB recently entered into a $98 million settlement with a bank for its indirect auto lending program. [5/30]
- Forecasters Predict Declines in Purchase Mortgages
Credit unions that are expecting to see an increase in their purchase mortgages are likely to be disappointed. According to the Mortgage Bankers Association, it is estimated that purchase mortgages will decline by $31 billion in 2014. [5/28]
- The Peril of the Student Loan Debt Crisis
[Video] For CFPB director Raj Date takes a look at how mounting student loan debt could cripple the U.S. economy. [5/28]
- CFPB Plans to Step Up Activities 50% in 2014
CFPB's Spring 2014 report states that the agency conducted over 100 supervisory activities, such as full scope reviews and follow-up examinations in 2013 and plans to conduct about 150 in 2014. The report also addresses elements of a strong fair lending compliance management system. [5/23]
- Do the Crime, Pay the Fine… Non-Banks, Too
The CFPB issued a report highlighting illegal actions uncovered by the Bureauâs supervision within non-bank markets. These include payday, debt collection, and consumer reporting markets, which are being federally supervised for the first time. Recent non-bank supervisory activities have resulted in over $70 million in remediation. [5/23]
- Spate of Lawsuits Claim Financial Institutions are Helping Payday Lenders to Break the Law
A series of lawsuits against ten banks and one credit union claim that the financial institutions should have known that their online payday lending accountholders were breaking the law. Specifically, the suits filed in federal courts claim that by processing transactions for these companies the financial institutions helping them to exceed usury ceilings and break other laws. [5/22]
- High Student Loan Debt’s Impact on Future Housing Market
CFPB Director Cordray speaks on the effects of the growing $1.2 trillion student loan debt and its negative ramifications on the housing market of the future. [5/22]
- Bankers to Regulators: Don’t Drive Us Out of Mortgage Servicing Business
ICBA tells federal banking regulators that penalizing community banks for servicing the loans they originate will limit consumers' mortgage-servicing options and shift more business to riskier nonbank servicers. [5/22]
