On March 10 the U.S. Department of Housing and Urban Development (HUD) announced an agreement with Alpine Bank & Trust resolving allegations the Northern Illinois-based lender discriminated against African American and Hispanic mortgage applicants. HOPE Fair Housing Center of Wheaton, Illinois filed a complaint with HUD claiming the lender’s business service areas excluded majority African-American and Hispanic neighborhoods. The Fair Housing Act makes it unlawful for any person or other entity whose business includes residential real estate-related […]
Month: March 2017
SETBACK FOR CFPB
On June 6 2016 the CFPB sued Intercept Corporation, a payment processor, and two of its executives, Bryan Smith and Craig Dresser, for allegedly enabling unauthorized and other illegal withdrawals from consumer accounts by their clients. In the suit filed in federal district court, the CFPB alleges that Intercept turned a blind eye to blatant warning signs of potential fraud or lawbreaking by its clients. These include actions by federal and state authorities, and sky-high […]
PROPOSED CHANGES TO REGULATION B
The CFPB released proposed changes to Regulation B on Friday, March 24th. The proposal, a mere 56 pages, is designed to permit creditors additional flexibility in complying with Regulation B, in order to facilitate compliance with Regulation C – HMDA. This proposal was not unexpected. In October 2015, the CFPB issued final rules to implement changes to Regulation C that allow an applicant to self-identify using disaggregated ethnic and racial categories. These rules are generally […]
PREPAID RULE TAKES A MUCH NEEDED PAUSE
On October 3, 2016, the CFPB issued its 1,689 page Final Rule on Prepaid Accounts which was to primarily become effective on October 1, 2017. Surprisingly, the CFPB announced in a release last week, on March 9, 2017, that it was proposing to delay the implementation date for the rule until April 1, 2018. The CFPB is giving some love to the Deposit Compliance side of the bank much like it did with TRID on […]
TRID AND DAYLIGHT SAVINGS TIME
Daylight Saving Time (DT) begins on March 12, 2017. What does that have to do with TRID? The TRID rules under Regulation Z require creditors to disclose the time zone applicable to its location when disclosing the date and time the interest rate lock and estimate of closing costs will expire on the loan estimate. As a result, financial institutions located in areas that observe DT need to remember to change the time designation used […]