CFPB SEEKS INFORMATION ON ALTERNATIVES TO TRADITIONAL CREDIT REPORTS
Category: ECOA, Fair Credit Reporting Act, Privacy
On February 16, 2017 the Consumer Financial Protection Bureau (CFPB) issued a request for information (RFI) on the potential use of alternative data and modeling techniques in the credit process. The goal of the CFPB’s inquiry is to explore options that will expand access to credit for consumers who are credit invisible or who lack enough credit history to obtain a credit score. In May 2015 the CFPB released “Data Point: Credit Invisibles” which was
KICKBACK SCHEME – PROSPECT MORTGAGE AND OTHERS
Category: CFPB, Consent Decree, Regulation X, RESPA, Section 8 Violation
On January 21, 2017 the Consumer Financial Protection Bureau (CFPB) took action against Prospect Mortgage, LLC, a major mortgage lender, for paying illegal kickbacks for mortgage business referrals. The CFPB also took action against two real estate brokers and a mortgage servicer that took illegal kickbacks from Prospect. Under the terms of the action, Prospect will pay a $3.5 million civil penalty for its illegal conduct, and the real estate brokers and servicer will pay
On January 13, 2017 the Department of Justice (DOJ) filed a lawsuit against KleinBank alleging that the bank engaged in unlawful “redlining” of majority-minority neighborhoods in the Minneapolis-St. Paul metropolitan area. The lawsuit, filed in the U.S. District Court for the District of Minnesota, alleges that KleinBank violated the Fair Housing Act and Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race and color in their mortgage lending practices.
DODD-FRANK OR NO DODD-FRANK?
Category: Uncategorized
Another Order was signed by President Trump on Friday, February 3rd that may have a substantial impact on those of us in the financial services industry, or at least we think it might, maybe, possibly? After a White House meeting with business executives on Friday, Mr. Trump signed a directive calling for a rewriting of major provisions of the Dodd-Frank Act, crafted by the Obama administration and passed by Congress in response to the 2008
On January 30 President Trump signed an Executive order that states, among other items: Whenever an executive department or agency (agency) publicly proposes for notice and comment or otherwise promulgates a new regulation, it shall identify at least two existing regulations to be repealed; The total incremental cost of all new regulations, including repealed regulations, to be finalized this year shall be no greater than zero, unless otherwise required by law or consistent with advice provided in writing
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