Top Story Lending Related

The Consumer Financial Protection Bureau has publishing in this morning's Federal Register a notice that it is reopening the comment period for a specific aspect of the proposed rule published by the Bureau in the Federal Register on December 15, 2014 (79 FR 74176 -- see our December 16, 2014, Top Story). The 2014 proposal included amendments to certain mortgage servicing provisions in Regulation X and Regulation Z. Among other things, the proposed rule: addressed requiring servicers to provide modified periodic statements under Regulation Z to consumers who have filed for bankruptcy, subject to certain exceptions; included related proposed sample periodic statement forms; and indicated that the Bureau intended to conduct consumer testing of the proposed sample forms and would publish and seek comment on a report summarizing the methods and results of such testing prior to finalizing any sample forms. The original comment period to the proposed rule closed on March 16, 2015. The Bureau now reopens the comment period until May 26, 2016, to seek comment specifically on the report summarizing consumer testing of sample periodic statement forms for consumers in bankruptcy.

Updated 4/27/2016 to provide link to report.

HUD has announced a $1 million agreement between the Fair Housing Project of North Carolina Legal Aid and North Carolina-based The Fidelity Bank to resolve allegations the mortgage lender engaged in unfair lending practices against minority applicants. Under the agreement, Fidelity will make investments and community development loans in predominantly minority census tracts where at least 40 percent of these loans will specifically promote affordable housing. Fidelity also committed to earmarking at least $500,000 each year for two years, for a total of $1 million and prominently display its non-discrimination policies at that branch in English and Spanish, and provide fair lending training to staff, including loan originators and employees engaged in loan processing and underwriting.

The Federal Reserve Board has issued SR 16-9 announcing the release of a list of inactive Supervision and Regulation (SR) letters. Most SR letters identified have been determined to be inactive and no longer applicable to the Federal Reserve's supervision program. A brief explanation indicating why each letter has been made inactive is included. In many cases, the information transmitted in these issuances was a point-in-time announcement, or has become outdated, or has been superseded by subsequent regulations, policies, and guidance. In some instances, letters were made inactive because more comprehensive guidance on the topic can be located in the Commercial Bank Examination Manual or the Bank Holding Company Supervision Manual.

The Bureau has announced upgrades to its consumerfinance.gov site to help users quickly and easily browse the information, tools, and reports that the Bureau provides. Examples of the improvements are provided in the announcement.

The Federal Emergency Management Agency has published in this morning's Federal Register a final rule [81 FR 24033] to identify communities in Pennsylvania where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP) that are scheduled for suspension on June 2, 2016, for noncompliance with the floodplain management requirements of the program.

FEMA has published in today's Federal Register a correction of its March 30, 2016, final rule suspending communities in Colorado, Virginia and Wisconsin from the Flood Insurance Program. See our March 30 Top Story for more information.

The Federal Housing Finance Agency (FHFA) has released its February House Price Index (HPI). U.S. house prices rose in February, up 0.4 percent on a seasonally adjusted basis from January, The previously reported 0.5 percent increase in January was revised downward to reflect a 0.4 percent increase. The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac. From February 2015 to February 2016, house prices were up 5.6 percent. The index levels since October 2015 have exceeded the prior peak level from March 2007. For detailed information on the monthly HPI, see the HPI FAQs. Complete historical data can be found on the HPI Data page.

The CFPB has reported that research indicates online payday loans, also known as "cash advances" or "check loans," can offer quick access to money. A CFPB report found that attempts by online lenders to debit payments from a consumer’s checking account add a steep, hidden cost to online payday loans. Half of online borrowers rack up an average of $185 in bank penalties because at least one debit attempt overdrafts or fails. Further, one third of those borrowers who get hit with a bank penalty wind up having their accounts closed involuntarily. The study also found that despite this high cost to consumers, lenders' repeated debit attempts typically fail to collect payments. The Bureau also released prepared remarks from Director Cordray on the report.

The Federal Reserve Board has issued SR Letter 16-8 to announce the implementation of new procedures for examiners to conduct off-site loan reviews for community and small regional banks. The option is offered as part of an ongoing effort to improve efficiency and provide burden reduction while maintaining quality supervision. State member banks and U.S. branches and agencies for foreign banking organizations with less than $50 billion in total assets can opt to allow Federal Reserve examiners to review loan files off-site, during both full-scope or target examinations, so long as loan documents can be sent securely and with the required information. While some banks may prefer an off-site loan review, the program is optional so that any bank can still choose an on-site review.

HUD and the Census Bureau have released the new residential construction statistics for March 2016.

• Privately owned housing units authorized by building permits in March were at a seasonally adjusted annual rate of 1,086,000; 7.7 percent below the revised February rate, but 4.6 percent above the March 2015 estimate. Single-family authorizations in March were at a rate of 727,000;1.2 percent below the revised February figure of 736,000.
• Privately owned housing starts in March were at a seasonally adjusted annual rate of 1,089,000; 8.8 percent below the revised February estimate of 1,194,000, but 14.2 percent above the March 2015 rate. Single-family housing starts in March were at a rate of 764,000; 9.2 percent below the revised February figure.
• Privately owned housing completions in March were at a seasonally adjusted annual rate of 1,061,000; 3.5 percent above the revised February estimate of 1,025,000 and 31.6 percent above the March 2015 rate. Single-family housing completions in March were at a rate of 734,000; 0.3 percent below the revised February rate.