Bank Notes

  • January 31, 2017
    On Tuesday, January 31, 2017, the CFPB took action against Prospect Mortgage, LLC, for allegedly paying illegal kickbacks for mortgage business referrals. The CFPB also took action against two real estate brokers and a mortgage servicer who allegedly took illegal kickbacks from Prospect. Under the terms of the consent order, Prospect will pay a $3.5 million civil penalty for its illegal conduct,...
  • January 31, 2017
    On Tuesday, January 31, 2017, Senate Banking Committee Ranking Member Sherrod Brown (D-OH) and Sen. Elizabeth Warren (D-MA) circulated a Dear Colleague to Members of the Senate strongly urging them to oppose a change in the leadership structure at the Consumer Financial Protection Bureau (CFPB) from a sole director to a five-member bipartisan commission, stating a commission would “cripple” the...
  • January 31, 2017
    On Tuesday, January 31, 2017, House Financial Services Committee Ranking Member Maxine Waters (D-CA) and Judiciary Committee Ranking Member John Conyers, Jr. (D-MI), along with 22 other Democrats, sent a letter to the Federal Reserve Board of Governors (Fed) Chair Janet Yellen urging the Fed to promote “better minority, gender, and occupational diversity among senior leadership roles.” The...
  • January 30, 2017
    On Monday, January 30, 2017, the CFPB announced its lawsuit against a variety of debt collection law firms including Howard Law, P.C., the Williamson Law Firm, LLC, and Williamson & Howard, LLP, as well as attorneys Vincent Howard and Lawrence Williamson. The individuals ran their firms along with Morgan Drexen, Inc., which the CFPB sued in 2015 and subsequently went out of business. In the...
  • January 26, 2017
    On Thursday, January 26, 2017, Senate Banking Committee Ranking Member Sherrod Brown and House Financial Services Committee Ranking Member Maxine Waters asked the D.C. Circuit Court to intervene in PHH v. CFPB , the case challenging the constitutionality of the CFPB’s sole director structure. The filing asserted the lawmakers have standing to intervene because transforming the CFPB into an...
  • January 26, 2017
    On Thursday, January 26, 2017, the Federal Reserve released a report summarizing its progress to date on promoting a faster payments system in the United States. In pursuit of its goal, the Fed established in 2015, two industry stakeholder task forces – one on faster payments and another on secure payments. As recounted in a separate report , the Faster Payments Task Force has developed “...
  • January 24, 2017
    On Tuesday, January 24, 2017, following an op-ed in The Hill, 38 members of the Congressional Black Caucus (CBC) sent a letter to President Trump, urging him not remove CFPB Director Richard Cordray before his term expires in July of 2018. The CBC members heralded the achievements of the agency and Director Cordray in protecting consumers and “vindicating the rights of minority consumers.” CBC...
  • January 24, 2017
    On Tuesday, January 24, 2017, the OCC, Federal Reserve, and FDIC entered into consent order with Servicelink to resolve certain outstanding requirements placed on Lending Processing Services (LPS) under a pre-existing consent order. In April of 2011, LPS entered into a consent order with the prudential regulators following allegations of unsafe or unsound practices in providing default management...
  • January 23, 2017
    On Monday, January 23, 2017, the OCC published its final rule on the Economic Growth and Regulatory Paperwork Reduction Act of 1996 removing outdated and otherwise unnecessary provisions found in the rules in an effort to reduce the regulatory burden on national banks. This final rule also integrates the OCC’s national bank and Federal Savings Association (FSA) rules relating to fidelity bonds,...
  • January 23, 2017
    On Monday, January 23, 2017, the Bureau took separate actions against Citi Financial Servicing and Citi Mortgage for allegedly not informing borrowers about their options to avoid foreclosure and asking consumers to complete excessive paperwork for foreclosure relief. Specifically the CFPB claims Citi Financial: Kept consumers “in the dark” about foreclosure relief options; Misled consumers about...

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