MUNICIPALITY CASES UPDATE
Category: Fair Housing, Fair Lending
On May 6, 2017 we reported the Supreme Court’s 5 – 3 decision that cities have standing to sue banks for damages under the Fair Housing Act. We wondered, ” Will we see more of these actions? Most likely.” Well we have another case, and much sooner than expected. The City of Philadelphia filed suit against Wells Fargo on May 15th. We expect the list of cities filing cases to grow steadily. If any city
JUST A LITTLE OVER THE LIMIT
Category: CFPB, Lending Compliance, Regulation X, RESPA, Section 8 Violation
From time-to-time I have identified a practice as “a violation, but a low-risk violation.” That’s kind of like driving 58 miles per hour in a 55 miles per hour zone. It is “a violation of law, but a low-risk violation.” Recently I was asked if it was OK to take a realtor to lunch to build a better relationship that should lead to more referrals of loan applications. I responded that the practice is… You
PREPAID RULE LIVES TO FIGHT ANOTHER DAY
Category: CFPB, Deposit Compliance, Electronic Fund Transfer Act, Regulation E
For those banks that fervently prayed the almost 1,700-page Prepaid Account rule would be banished by the Party of Lincoln – sorry but it survived the recent round of regulatory rollbacks. Courtesy of the law firm, Ballard Spahr, and its Consumer Finance Monitor (CFM) webpage and Politico, we have learned that the joint resolutions introduced in the Senate and House in February to kill the upcoming Prepaid Account regulation, died on the vine of apathy.
CFPB Takes Steps Toward Small Business Lending Data Collection Rules
Category: Dodd-Frank Act, ECOA, Lending Compliance, Regulation B
The Consumer Financial Protection Bureau (CFPB) has begun to take steps toward implementing rules related to small business lending data collection. On May 10, 2017, the CFPB issued a Request for Information (RFI) regarding the small business lending market. This RFI coincides with a field hearing, on the same topic, set to take place later today in Los Angeles, California. Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) amended
On May 1, 2017 the Supreme Court (in a 5 – 3 decision, with Justice Gorsuch abstaining) ruled in the case of Bank of America v. City of Miami that municipalities have standing to file a civil damages action for a violation of the Fair Housing Act. The City’s complaints charge that the Banks intentionally targeted predatory practices at African-American and Latino neighborhoods and residents, lending to minority borrowers on worse terms than equally creditworthy
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