Top Story Lending Related

In a presentation at the Credit Union National Association's annual America's Credit Union Conference, Chairman Metsger encouraged qualified credit unions to seek certification as Community Development Financial Institutions (CDFIs). “Credit unions are uniquely positioned to advance the goals of the Community Development Financial Institutions Program,” Metsger said, “and I encourage every qualified credit union to make CDFI certification a priority in the next few months. Increasing the number of credit unions with this certification will allow significant dollars to be put to work helping people of modest means meet their financial needs. This is the core of the credit union mission.”

The Federal Reserve has released the G.20 finance companies report on owned and managed receivables outstanding and auto loans: terms of credit for April 2016.

HUD and the Department of Justice (DOJ) have awarded $8.7 million to address homelessness and reduce recidivism among this justice-involved population through the Pay for Success model. For many individuals convicted of minor crimes, finding jobs and decent housing is so challenging that many are at extreme risk of homelessness or reentering the criminal justice system.

The FDIC has released a list of enforcement actions taken during May 2016. The list comprises 15 orders, including one consent order, two removal and prohibition orders, three section 19 orders, two civil money penalties and seven terminations of earlier enforcement actions. Of the civil penalty orders, one for $100,000 was issued, together with a removal and prohibition order, to a former institution-affiliated party of a Utah bank for engaging or participating in "violations of law, unsafe or unsound banking practices, and/or breaches of fiduciary duty as an institution-affiliated party" of the bank. The other civil penalty order, for $40,000, was issued to TSB Bank, Lomira, Wisconsin, for alleged violations of 31 C.F.R. § 1010.306(a)(1) -- the requirement to file CTRs within 15 days of the reportable transactions. An institution-affiliated party of another Utah bank received an order of prohibition from further participation in the affairs of any financial institution upon the FDIC's determination that he violated the Real Estate Settlement Procedures Act and Regulation X by agreeing to pay fees for the referral of mortgage loan business.

The Federal Housing Finance Agency (FHFA) has announced the release of its first quarter 2016 foreclosure prevention report which indicates Fannie Mae and Freddie Mac completed 49,573 foreclosure prevention actions in the first quarter of 2016, bringing the total number of foreclosure prevention actions to nearly 3.7 million since the start of the conservatorships in September 2008. These measures have helped more than 3.0 million borrowers stay in their homes, including nearly 1.9 million who received permanent loan modifications.

Sales of new single-family houses in May 2016 were at a seasonally adjusted annual rate of 551,000, according to estimates released jointly by HUD and the U.S. Census Bureau. This is 6.0 percent below the revised April rate of 586,000 but is 8.7 percent above the May 2015 estimate. The median sales price of new houses sold in May 2016 was $290,400; the average sales price was $358,900. The seasonally adjusted estimate of new houses for sale at the end of May was 244,000. This represents a supply of 5.3 months at the current sales rate.

Yesterday, the Office of the Comptroller of the Currency issued Bulletin 2016-23 as a reminder of the Joint Notice of Proposed Rulemaking issued by the Board of Governors, the OCC, FDIC, NCUA, SEC and FHFA, published on June 10 at 81 FR 37669 in the Federal Register. The proposal would establish new requirements for incentive-based compensation at certain covered institutions (those with average total assets of at least $1 billion) regulated by the agencies.

The proposed rule would prohibit incentive-based compensation arrangements that encourage inappropriate risks by a covered institution (1) by providing an executive officer, employee, director, or principal shareholder of the covered institution with excessive compensation, fees, or benefits; or (2) that could lead to material financial loss to the covered financial institution. Comments on the proposed rule are due by July 22, 2016. There had been over 2,300 public comments filed on the proposal as of June 23.

The Federal Housing Finance Agency reported yesterday that U.S. house prices rose in April, up 0.2 percent on a seasonally adjusted basis from the previous month, according to the FHFA monthly House Price Index (HPI). The previously reported 0.7 percent increase in March was revised upward to reflect a 0.8 percent increase.

The CFPB has announced the release of a special edition of Supervision Highlights focused specifically on mortgage servicing. The report found that some mortgage servicers continue to use failed technology that has already harmed consumers, putting the company in violation of the CFPB’s new servicing rules. In its examinations covering numerous mortgage servicers since the new CFPB rules took effect in January 2014, CFPB examiners have found violations because of deficient technology and process breakdowns. Specifically, examiners have observed problems with loss mitigation and servicing transfers. To spur industry in its general compliance with CFPB rules, the Bureau today is also releasing an updated mortgage servicing exam manual. Among other things, mortgage servicers should note a greater emphasis on complaint handling and requests by troubled borrowers, and on discrimination issues.

Credit unions can learn how to assist member small businesses while helping their own bottom lines by joining the National Credit Union Administration’s upcoming webinar, “Micro-Enterprise Lending – Making Loans to Small Businesses.”
The 90-minute webinar is scheduled for Wednesday, July 13, 2016 at 2 p.m. ET.