Bank Notes

  • January 27, 2016
    On Wednesday, January 27, 2016, CBA and other trade associations requested the U.S. Department of Defense (DOD) extend until March 1, 2016 its deadline for financial institutions to opt-in for access to the Pentagon’s Defense Manpower Data Center database (DMDC). The DMDC database allows lenders to verify military status for applicants applying for consumer credit other than a mortgage or...
  • January 22, 2016
    The new Military Lending Act (MLA) regulations require banks to determine military status for applicants applying for consumer credit other than a mortgage or purchase money loan. Lenders who verify military status through the U.S. Department of Defense (DOD) database or a nationwide credit bureau will be provided a compliance safe harbor. By February 1, 2016, bankers must email dodhr.dodc-mb...
  • January 22, 2016
    On Friday, January 22, 2016, in anticipation of severe winter storms, the OCC issued a statement authorizing national banks and other federal savings associations in potentially impacted areas to close, but cautioned them on their responsibility to consumers. The agency reminded banks of their obligations to aid financial institutions and consumers affected by the storm, and recognized the...
  • January 21, 2016
    On Thursday, January 21, 2016, the CFPB took action against Herbies Auto Sales, a buy-here pay-here used car dealer, for allegedly using abusive financing schemes, hiding auto finance charges and misleading consumers. Under the consent order, Herbies is required to pay $700,000 in redress to consumers, with a suspended civil penalty of $100,000. The company also must stop deceiving consumers...
  • January 20, 2016
    On Wednesday, January 20, 2016, the House Financial Services Committee (HFSC) released a report entitled: “Unsafe at any Bureaucracy, Part II: How the Bureau of Consumer Financial Protection Removed Anti-Fraud Safeguards to Achieve Political Goals.” The second in a series, the report investigates the CFPB’s actions in the indirect auto market. In conjunction with the release, the HFSC also...
  • January 15, 2016
    On Friday, January 15, 2016, the Federal Communications Commission (FCC) filed a response to the lawsuit filed by CBA, and co-petitioners, challenging the FCC’s order for the Telephone Consumer Protection Act (TCPA). The FCC argued its definition of an autodialer corresponds with statutory text, is good policy, has sufficient limiting principles, and appropriately encompasses predictive dialers...
  • January 13, 2016
    On Thursday, January 13, 2016, the CFPB announced it will hold a filed hearing in Louisville, KY concerning access to checking accounts. The hearing will take place on Wednesday, January 27, 2016 at 11 a.m. EST, and is a follow-up to the agency’s October 2014 forum on checking account access and screening.
  • January 13, 2016
    This week, the House Financial Services Subcommittee on Housing and Insurance held two flood insurance hearings entitled: Opportunities and Challenges Facing the National Flood Insurance Program How to Create a More Robust and Private Flood Insurance Marketplace Subcommittee Chairman Blaine Luetkemeyer (R-MO) stated, “With flooding happening from coast to coast, and most recently devastating my...
  • January 12, 2016
    On Tuesday, January 12, 2016, the CFPB issued a construction loan factsheet providing an overview on how the TILA-RESPA Integrated Disclosure Rule (TRID) applies to these types of loans. At the outset, the Bureau expressly states TRID applies to most construction loans which are secured, closed-end consumer credit transactions. In contrast, open-end loans or those for a commercial purpose lie...
  • January 12, 2016
    On Tuesday, January 12, 2016, the CFPB issued a guide, accompanied by a blog post, on retirement payout options for a private-sector plan. Through a series of six questions, the guide aims to help those nearing retirement to determine whether to choose a lump-sum payout or monthly payments of their pension. The questions address the circumstantial benefits and shortfalls of each option. The guide...

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