Regulatory news & conference coverage in top stories of May ’23

Regulatory news & conference coverage in top stories of May ’23

Expert discusses preparing for CRA modernization

Jason Keller, associate director of U.S. Advisory Services with Wolters Kluwer Compliance Solutions and former community and economic senior advisor at the Federal Reserve Bank of Chicago, spoke with Dodd Frank Update about the upcoming Community Reinvestment Act modernization rules and what lenders can do to get ready for any changes.


CFPB experiences data breach ‘major incident’

It has recently become public that the Consumer Financial Protection Bureau (CFPB) suffered a data breach earlier this year when a now-former employee of the bureau sent confidential and personal information on more than 250,000
consumers to their own personal email account. The CFPB has referred the matter to the Office of the Inspector General and reported the breach to relevant congressional oversight committees.


CFPB issues Section 1071 small entity compliance guide

The Consumer Financial Protection Bureau issued a compliance guide for small entities that are to be subject to the Section 1071 small-business lending rule. The guide provides a detailed summary of the final rule’s requirements and provides details and examples when necessary to clarify and explain the different components and requirements of the final rule as it affects small entities.


First Republic shows $100B deposit loss in Q1

San Francisco-based First Republic Bank released its first quarter earnings report, giving investors a first glimpse at the state of the bank following its near-collapse as a ripple effect of the collapse of Silicon Valley Bank and Signature Bank in early March. In an effort to prevent First Republic’s collapse, national banks issued it $30 billion in deposits to increase liquidity as depositors and investors acted in fear.


Experts discuss AI as the next frontier of fair lending

At CBA Live, hosted by the Consumer Bankers Association, Dodd Frank Update sat in on a discussion with experts about the next frontier in fair lending: artificial intelligence (AI). The panel of experts discussed the ways AI is being used
in fair lending and what regulators are doing in response to this new tool.


CFPB barred from bringing back past claims

In an attempt to bring charges against non-bank mortgage company Ocwen for alleged violations of federal consumer protection laws that occurred while Ocwen was under a consent order with the Consumer Financial Protection Bureau (CFPB), a district judge in the Southern District of Florida has held that the CFPB is barred from bringing claims from that period.


MBA files amicus brief refuting lender liability in appraisal bias

The Mortgage Bankers Association filed an amicus brief 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. The amicus brief seeks to respond to a statement of interest filed by the Consumer Financial Protection Bureau and the Department of Justice.


CBA Live: Chopra and Johnson discuss banking in uncertain times

At CBA Live 2023 in Las Vegas, Nev., Consumer Bankers Association President and CEO Lindsey Johnson and Consumer Financial Protection Bureau Director Rohit Chopra discussed the state of banking following significant bank collapses, banking regulation, and what can be expected in the future.


CFPB cost-benefit bill introduced in the Senate

Sen. Jon Kennedy (R-La.) introduced the Transparency in CFPB Cost-Benefit Analysis Act which would require, among other things, the Consumer Financial Protection Bureau (CFPB) perform a cost-benefit analysis during any rulemaking activity.


Republic First to exit mortgage origination

Philadelphia-based Republic First Bancorp announced plans to exit the mortgage origination business, as well as plans to streamline its commercial lending business.


Fed raises rates; upcoming pause possible

The Federal Reserve Federal Open Market Committee voted to increase the federal fund rate by an additional 25 basis points during its May 2-3 meeting. Fed Chair Jerome Powell indicated this increase is possibly the last in a series of rate hikes started in March 2022 to address record-high inflation.

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