Ocwen Financial is asking the Justice Department for assistance in challenging the Consumer Financial Protection Bureau's lawsuit alleging misconduct in mortgage servicing, saying the agency is unconstitutional. The request follows a similar strategy in the PHH case, in which the DOJ has filed an amicus brief asking the court to declare the CFPB unconstitutional and to give President Donald Trump authority to terminate the CFPB director for any reason.
Banks Confront Third-Party Risks The regulation of banks' relationships with third parties has evolved in recent years, and financial institutions face the challenge of interpreting and applying the new guidance, as their business models change and incorporate more outsourced activities, Promontory's Insights says.
The Consumer Financial Protection Bureau has ordered Security National Automotive Acceptance to pay $2.4 million in fines and redress for failure to comply with a consent order that alleges illegal tactics to collect debt from service members. The CFPB has levied a $1.25 million penalty on the Ohio auto-loan servicer, in addition to a $1 million penalty in 2015.
An internal Federal Reserve audit concluded that cybersecurity risks at large banks are being overlooked because Fed bank examiners have difficulty identifying thousands of service providers. The central bank's inspector general said those vendors process loans and checks; prepare checks, statements and notices for mailing; and calculate and post interest and other credits and charges.
Startups have accounted for slightly more than 11% of job growth during the latest economic expansion, down from 15% in the 1990s, according to the Labor Department. The slowdown indicates reduced entrepreneurship and a lack of dynamic environment needed to boost productivity, economists say.
Rep. Patrick McHenry, R-N.C., vice chairman of the House Financial Services Committee, said he will introduce a bill requiring financial regulators to launch innovation offices. The offices would exchange financial technology with one another and help fintech startups get in touch with the proper government authorities, he said.
The Conference of State Bank Supervisors has sued the Office of the Comptroller of the Currency, saying the latter has no authority to offer a federal charter for financial-technology firms. The group says that the OCC is authorized to charter only firms involved in banking, per the National Bank Act, and that chartering fintechs would pre-empt state law.
The Federal Reserve is revamping its Large Institution Supervision Coordinating Committee, sources said. Changes to the LISCC, created in 2010 to improve the Fed's oversight of major banks, involve streamlining the panel's subgroups to clarify roles and reduce redundancies.
President Donald Trump has proposed slashing federal taxation. The highest personal tax rate would fall to 35% from 39.6%, while the standard deduction would double, and the rate for corporations and most small businesses would decline to 15%.
People often omit or gloss over key details when delivering a message, and it's also easy as a listener to hear only what you need to respond, writes David Grossman. He offers tactics for hearing "what's not being said," including paying attention to body language and emotional hints.