Archive

MLA DATABASE MULTIPLE RECORD REQUEST ERROR

The Department of Defense (DOD) has posted a news update on its Military Lending Act (MLA) website informing users of the following: “Between February 9, 2017 and February 15, 2017 there was a problem with MLA Multiple Record Requests that prevented 149 request files from processing. If you submitted a Multiple Record Request file between 9 and 15 February that failed to process, please submit the file again for processing.” Under the MLA covered borrowers […]

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FINCEN PLANS TO TWEAK THE SAR FORM

On February 15, 2017, FinCEN publishes a notice in the Federal Register requesting comments on a proposed update and revision to the collection of information filed by banks in a SAR.  Most of these changes would be in Part II (Suspicious Activity Information). The good news is the proposal states there are no new regulatory requirements or triggering requirements related to SARs.  However, because new data fields will be added to the SAR form this likely will […]

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CFPB SEEKS INFORMATION ON ALTERNATIVES TO TRADITIONAL CREDIT REPORTS

On February 16, 2017 the Consumer Financial Protection Bureau (CFPB) issued a request for information (RFI) on the potential use of alternative data and modeling techniques in the credit process. The goal of the CFPB’s inquiry is to explore options that will expand access to credit for consumers who are credit invisible or who lack enough credit history to obtain a credit score. In May 2015 the CFPB released “Data Point: Credit Invisibles” which was […]

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KICKBACK SCHEME – PROSPECT MORTGAGE AND OTHERS

On January 21, 2017 the Consumer Financial Protection Bureau (CFPB) took action against Prospect Mortgage, LLC, a major mortgage lender, for paying illegal kickbacks for mortgage business referrals. The CFPB also took action against two real estate brokers and a mortgage servicer that took illegal kickbacks from Prospect. Under the terms of the action, Prospect will pay a $3.5 million civil penalty for its illegal conduct, and the real estate brokers and servicer will pay […]

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KLEINBANK – REDLINING CASE – WORTH WATCHING

On January 13, 2017 the Department of Justice (DOJ) filed a lawsuit against KleinBank alleging that the bank engaged in unlawful “redlining” of majority-minority neighborhoods in the Minneapolis-St. Paul metropolitan area. The lawsuit, filed in the U.S. District Court for the District of Minnesota, alleges that KleinBank violated the Fair Housing Act and Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race and color in their mortgage lending practices. […]

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