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09/24/2020

FDIC regulatory relief for Alabama banks

FDIC FIL-92-2020, issued yesterday, announces steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Alabama affected by Hurricane Sally.

09/24/2020

Mortgage performance declines

The OCC reported yesterday that the performance of first-lien mortgages in the federal banking system declined during the second quarter of 2020.

The OCC Mortgage Metrics Report, Second Quarter 2020 showed 91.1 percent of mortgages included in the report were current and performing at the end of the quarter, compared to 96.1 percent a year earlier. The percentage of seriously delinquent mortgages — mortgages that are 60 or more days past due and all mortgages held by bankrupt borrowers whose payments are 30 or more days past due — increased 5.4 percent from the previous quarter and 5.3 percent from a year ago.

Servicers initiated 249 new foreclosures during the second quarter of 2020, a 98.7 percent decrease from the previous quarter and a 98.8 percent decrease from a year ago. Events associated with COVID-19, including foreclosure moratoriums during the second quarter of 2020, caused significant decreases in these metrics. Servicers completed 10,984 mortgage modifications in the second quarter of 2020, and 89.0 percent of the modifications reduced borrowers' monthly payments.

The first-lien mortgages included in the OCC's quarterly report comprise 28 percent of all residential mortgages outstanding in the United States or approximately 15 million loans totaling $2.97 trillion in principal balances.

09/24/2020

House Price Index rises nationwide

The FHFA has released the House Price Index (HPI) for July 2020, which was up 1.0 percent from June 2020. House prices rose 6.5 percent from July 2019 to July 2020. FHFA also revised its previously reported 0.9 percent price change for June 2020 to 1.0 percent.

For the nine census divisions, seasonally adjusted monthly house price changes from June 2020 to July 2020 ranged from +0.6 percent in the West North Central division to +2.0 percent in the New England division. The 12-month changes ranged from +5.4 percent in the West South Central division to +7.7 percent in both the Mountain and the East South Central divisions.

09/24/2020

Fannie and Freddie databases updated

The Federal Housing Finance Agency has released new and revised datasets for the Public Use Databases (PUDBs) of single-family and multifamily mortgage acquisitions by Fannie Mae and Freddie Mac. New data for 2019 are now available, as well as final versions of data for 2018 that replace the interim files uploaded last September. The PUDBs contain additional loan-level data that increases their alignment with information reported under the Home Mortgage Disclosure Act (HMDA), enhances transparency about the Enterprises’ effects on local economies, and provides more information to the public about the secondary mortgage market.

09/23/2020

Telecom firm to pay $1.9M for facilitating credit card relief scheme

The Federal Trade Commission has announced that Globex Telecom, Inc. and an affiliated company will pay a total of $1.9 million to settle charges that they facilitated a scheme that peddled bogus credit card interest rate relief, illegally charging consumers millions of dollars. The settlement marks the end of the FTC's first consumer protection case against a Voice over Internet Protocol service provider. The FTC and Ohio alleged that Globex provided a company called Educare Centre Services with the means to make calls to U.S. consumers, including illegal robocalls, to market Educare’s phony credit card interest rate reduction services.

09/22/2020

CFPB settles with auto lender over unfair loss damage waiver practices

The CFPB reports it has settled with Lobel Financial Corporation, an auto-loan service based in Anaheim, California. The Bureau found that Lobel engaged in unfair practices with respect to its Loss Damage Waiver (LDW) product, in violation of the Consumer Financial Protection Act (CFPA). When a borrower has insufficient insurance, rather than force-placing collateral-protection insurance, Lobel places the LDW product, which is not itself insurance, on borrower accounts and charges a monthly premium of approximately $70 for the LDW coverage.

The LDW product provides that Lobel will pay for the cost of covered repairs and, in the event of a total vehicle loss, cancel the borrower’s debt. The Bureau found that Lobel continued to bill certain consumers for LDW coverage but then failed to provide it, and assessed fees from consumers that they were not obligated to pay.

The Bureau's consent order requires Lobel to pay $1,345,224 in consumer redress to approximately 4,000 harmed consumers and a $100,000 civil money penalty. The order also prohibits Lobel from failing to provide consumers with LDW coverage or similar products or services for which it has charged consumers or from charging consumers fees that are not authorized by its LDW contracts.

09/22/2020

Former Wells Fargo execs settle with OCC

The OCC has announced settlements with three former senior executives of Wells Fargo Bank, N.A., Sioux Falls, South Dakota, for their roles in the bank’s systemic sales practices misconduct.

  • a prohibition order with a $925,000 civil money penalty to former Community Bank Group Finance Officer Matthew Raphaelson
  • a cease and desist order with a $400,000 civil money penalty to the former Head of Community Bank Deposit Products Group Kenneth Zimmerman
  • a cease and desist order with a $350,000 civil money penalty to the former Head of Community Bank Human Resources Tracy Kidd

09/22/2020

'Seasoned QM' comment period extended three days

The CFPB has reported it will extend the comment period on its proposal for a new "seasoned qualified mortgage" definition by three days to end on October 1, 2020, to accommodate the Yom Kippur Jewish holiday occurring on the original comment deadline, September 28.

09/22/2020

Fed ANPR on CRA regs modernization

The Federal Reserve Board announced Monday an Advance Notice of Proposed Rulemaking inviting public comment on an approach to modernize the regulations that implement the Community Reinvestment Act by strengthening, clarifying, and tailoring them to reflect the current banking landscape and better meet the core purpose of the CRA. The ANPR seeks feedback on ways to evaluate how banks meet the needs of low- and moderate-income (LMI) communities and address inequities in credit access.

Board Chair Jerome H. Powell said, "By releasing a thoughtful and balanced ANPR and providing a long period for comment, the Federal Reserve is hoping to build a foundation for the banking agencies to come together on a consistent approach to CRA that has the broad support of the intended beneficiaries as well as banks of different sizes and business models."

The Office of the Comptroller of the Currency published a final rule to modernize its CRA regulations on June 5, 2020, with an October 1, 2020, effective date (but a compliance date of January 1, 2023). The FDIC did not join the OCC in issuing a final rule at that time, although the OCC and FDIC had jointly issued a proposal.

The Federal Reserve said its proposal will have a 120-day comment period starting when it is published in the Federal Register.

PUBLICATION UPDATE: Published at 85 FR 66410 on October 19, 2020. Comments are due by February 16, 2021.

09/21/2020

FDIC Oregon wildfire and wind relief

The FDIC has issued FIL-91-2020 with guidance on steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Oregon affected by wildfires and straight-line winds starting September 7, 2020.

The Federal Emergency Management Agency declared a federal disaster for selected areas affected in Oregon on September 15, 2020. FEMA may make additional designations after damage assessments are completed in the affected areas. A current list of designated areas is available at www.fema.gov.

The FDIC encouraged banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the wildfires and straight-line winds. Banks that extend repayment terms, restructure existing loans, or ease terms for new loans in a manner consistent with sound banking practices, can contribute to the health of the local community and serve the long-term interests of the lending institution and may receive favorable Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery. The FDIC also will consider regulatory relief from certain filing and publishing requirements.

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