Archive

REMITTANCE TRANSFER RULE CONSENT ORDER

On August 27, 2019 the Consumer Financial Protection Bureau (CFPB) announced a settlement with Maxitransfers Corporation (Maxi), a company that serves consumers looking to send money overseas. This is the CFPB’s first enforcement action based on violations of the Remittance Transfer Rule, which implements the Electronic Fund Transfer Act (EFTA). Maxi provides remittance transfer services from more than 1,600 third-party locations in the U.S., such as grocery stores and pharmacies, to over 19,500 payment locations […]

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BOARD CONSIDERATION OF MUTUAL AID SOCIETY PLANS

The February 2019 revision to the flood insurance regulations provides a definition of a “mutual aid society” and describes the conditions under which a regulated lending institution may accept a flood protection plan issued by a mutual aid society. Within the Board’s Regulation H, 12 CFR 208.25(c)(3)(iv) enumerates those conditions. The first of the conditions for acceptability of a mutual aid plan requires that “the Board has determined that such plans qualify as flood insurance […]

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UPDATED FLOOD INSURANCE EXAMINATION PROCEDURES

Recently the OCC, the FRB, the FDIC, the FCA, and the NCUA, through the Task Force on Consumer Compliance of the Federal Financial Institutions Examination Council, revised the Interagency Examination Procedures for the Flood Disaster Protection Act. The revised procedures reflect the February 2019 final interagency rule that addresses the private flood insurance provisions of the Biggert-Waters Flood Insurance Reform Act of 2012. The updated procedures incorporate new sections that discuss: Mandatory acceptance of a […]

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HUD PROPOSES FAIR LENDING DISPARATE IMPACT RULE

On August 19, 2019 the Department of Housing and Urban Development (HUD) proposed a rule to amend HUD’s interpretation of the Fair Housing Act’s disparate impact standard contained in HUD’s existing regulation 24 C.F.R. Part 100. The proposed rule makes it more difficult for a plaintiff to bring a disparate impact case and also  makes it more difficult for a plaintiff to recover punitive and exemplary damages. The proposed rule is good news for lenders […]

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URLA CHANGES AND DELAY OF MANDATORY COMPLIANCE DATE

At the direction of the Federal Housing Finance Agency (FHFA), the Government Sponsored Enterprises (GSEs) will be making specific modifications to the Uniform Residential Loan Application (URLA) form. As a result, FHFA and the GSEs are postponing the February 1, 2020 mandatory compliance date of the URLA form and Automated Underwriting System (AUS) datasets to allow time for the industry to implement these modifications. A new effective date has not been set. In June, we […]

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