Dodd Frank Update
California-based Silvergate Bank, which gained some notoriety as an early participant in crypto investment and transactions, announced it plans to voluntarily liquidate and wind down its business. Less than a week later, Silicon Valley Bank collapsed after announcing a $1.8 billion loss that would potentially make it unable to meet depositor needs. This was followed closely by New York-based Signature Bank, which was shuttered by state regulators.
Artificial intelligence (AI) has been a thing of science fiction storytelling since the genre’s earliest days. For many, when they think of AI, they think of androids and possibly Isaac Asimov’s three laws of robotics. But there is more to AI and machine learning than robots. They can also be helpful tools in real estate finance.
The Consumer Financial Protection Bureau and the Department of Justice filed a joint statement of interest in a lawsuit alleging an appraiser and a lender violated federal law by lowering the valuation of a home because the owners were Black and by denying a mortgage refinancing application based on that low appraisal.
Celebrity Home Loans is facing a potential class action suit from its ex-employees who were laid off “abruptly” in February and who are claiming Celebrity still owes them back pay.
The Federal Reserve Vice Chair for Supervision Michael Barr announced the Fed is setting up a “specialized team of experts” to help it supervise the crypto sector.
Sen. Sherrod Brown (D-Ohio), chair of the Senate Committee on Banking, Housing, and Urban Affairs, sent a letter to Acting Comptroller Michael Hsu asking the Office of the Comptroller of the Currency to apply greater scrutiny to banks that are closing branches in low- and moderate-income areas.