Shortly after the CFPB released its payday and advance deposit lending report, the FDIC and the OCC released proposed guidance warning institutions about the risks of offering deposit advance products. The guidance describes the safety and soundness, compliance and consumer protection risks posed by these products, and it encourages financial institutions “to respond to customers'…

Last week, the CFPB released a final rule amending its new remittance rule, which regulates international money transfers. The amended rule eases some of the original rule's requirements. Providers of international remittances will not have to disclose foreign taxes or fees charged by recipient institutions, and they will not be held liable for a sender's losses…

The National Flood Insurance Program (NFIP) has published a series of bulletins that estimate the rate increases and other changes required under the Biggert-Waters Flood Insurance Reform Act of 2012. Additionally, an Interagency Statement clarifies that the law's changes relating to force-placed flood insurance and increased civil money penalties became effective immediately, while the law's other changes…

The CFPB has issued a report on the growing market for payday and deposit advance loans. While recognizing that small dollar loans can be helpful to consumers, the report concludes that these loans harm some consumers due to low underwriting standards, risky loan structures, high costs, and the repeated use of the loans over time. The…

The Consumer Financial Protection Bureau has published several Small Entity Compliance Guides on its flurry of recent mortgage rulemakings to help financial institutions implement the rules. Read the guides on the: TILA Escrow rule – HOEPA rule – Equal Credit Opportunity Act Appraisals rule – TILA Higher-Risk Mortgage Appraisals rule – Ability-to-Repay and QM rule.

The CFPB has issued a proposed rule to clarify its ability-to-repay and mortgage serving rules, which are scheduled to become effective on January 10, 2014. Among other things, the proposal clarifies the “qualified mortgage” definition, the power of states to also regulate mortgage servicing, and the exemption for small servicers. The Bureau also announced that it…

The Consumer Financial Protection Bureau has released a final rule amending Regulation Z that will allow stay-at-home spouses and partners greater access to credit. The Credit CARD Act requires lenders to consider a consumer's independent ability to repay before opening a credit card, but this rule creates an exception for applicants who are 21 or older…

The Federal Housing Finance Agency (FHFA) announced yesterday that Fannie Mae and Freddie Mac will limit purchases of mortgages to “qualified mortgages” under the ability-to-repay rule from the Consumer Financial Protection Bureau (CFPB).  Fannie and Freddie will apply the QM standards to mortgages with applications dated from January 10, 2014. “Effectively, this means Fannie Mae…

Please write your lawmakers TODAY on the following high priority issues. Click on the links below to access the ABA's automated system for sending customized letters. Basel III capital rules — Ask your Senators to co-sponsor S. 731, a bill requiring regulators to stop and study the effects of the Basel III proposals before issuing any…

Last week, IBA and ABA-supported legislation (S. 731) was introduced to require the financial regulatory agencies to conduct a comprehensive study of the Basel III capital proposals' impact on community and regional banks before issuing final rules.