Federal Reserve Board announces termination of enforcement action with Chicago Shore Corporation and Security Chicago Corporation

Federal Reserve Board announces termination of enforcement action with Chicago Shore Corporation and Security Chicago Corporation

Federal Reserve Board announces termination of enforcement action with Chicago Shore Corporation and Security Chicago Corporation

Read more / Original news source: https://www.federalreserve.gov/newsevents/pressreleases/enforcement20180726a.htm

Bill seeks to spur mortgage interest rate competitiveness

A bill designed to provide home buyers more options for more competitive mortgage interest rates has gained House Financial Services Committee approval.© Shutterstock Officials said the Mortgage Fairness Act, introduced by Rep. Bill Posey (R-FL), removes the Consumer Financial Protection Bureau’s (CFPB) cap on items already accounted for in interest rates. “The Consumer Financial Protection […]

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A bill designed to provide home buyers more options for more competitive mortgage interest rates has gained House Financial Services Committee approval.

© Shutterstock

Officials said the Mortgage Fairness Act, introduced by Rep. Bill Posey (R-FL), removes the Consumer Financial Protection Bureau’s (CFPB) cap on items already accounted for in interest rates.

“The Consumer Financial Protection Bureau’s application of the qualified mortgage rule has distorted the wholesale lender market and caused confusion for consumers and mortgage providers,” Posey said. “The Mortgage Fairness Act adds clarity to the qualified mortgage rule by eliminating this market distortion to provide more options for homebuyers, particularly benefiting low and middle-income consumers.”

Posey said the rule harms the wholesale lender market by restricting competition in the geographic areas of the United States with lower loan amounts.

“It is alarming to me that some veterans who utilize their Department of Veterans Affairs mortgage benefits must pay a higher price for their mortgage, and in some cases, cannot even use their earned benefits,” he said. “That’s unacceptable.”

Officials said the qualified mortgage rule includes a 3 percent cap on costs for most mortgages, noting it has created unintended consequences.

By including lender paid compensation in the fees and points cap, the CFPB’s application of the rule imposes a double-penalty on lenders who offer services through mortgage broker companies and pay the mortgage fees via inclusion in the mortgage rate.

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Read more / Original news source: https://financialregnews.com/bill-seeks-spur-mortgage-interest-rate-competitiveness/

CFTC seeks to simplify notification provisions

The Commodity Futures Trading Commission (CFTC) has approved a proposal designed to aid registrants and market participants by simplifying complex notification provisions.© Shutterstock The Commission unanimously approved the provision, which reduces certain intricate and prescriptive requirements that have been found to provide little or no benefit. “The CFTC regulations implementing segregation notification are very specific […]

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The Commodity Futures Trading Commission (CFTC) has approved a proposal designed to aid registrants and market participants by simplifying complex notification provisions.

© Shutterstock

The Commission unanimously approved the provision, which reduces certain intricate and prescriptive requirements that have been found to provide little or no benefit.

“The CFTC regulations implementing segregation notification are very specific about the manner in which counterparties must be notified of their right to segregate their funds and how funds must be held,” Matt Kulkin, director of the Division of Swap Dealer and Intermediary Oversight, said. “After four years of administering these rules, division staff has found that the prescriptive nature of the CFTC’s rules provides little benefit, if any, and yet, adds a level of complexity that deters end-user swap counterparties from exercising their right to choose to require their funds to be segregated.”

Kulkin said by allowing for more flexibility, the CFTC believes the proposal would encourage more end-user counterparties to elect to segregate their funds.

Officials said the proposal stems from the Commission’s 2017 Project K.I.S.S. initiative, which drew suggestions from the public for simplifying the Commission’s regulations and practices, removing unnecessary burdens and reducing costs.

By adding greater flexibility in how the swap parties can comply with the notification, segregation and custody requirements, officials said the Commission hopes to encourage more counterparties to take advantage of segregation and avoid unnecessary complication and interference with swap transactions essential for hedging and other commercial needs.

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Read more / Original news source: https://financialregnews.com/cftc-seeks-simplify-notification-provisions/

Bureau roundtables seek public input

As part of the Bureau’s commitment to engage
stakeholders in active dialogue about key issues, the Bureau recently held
three roundtables to gather feedback about the Requests for Information the
Bureau recently issued.

As part of the Bureau’s commitment to engage stakeholders in active dialogue about key issues, the Bureau recently held three roundtables to gather feedback about the Requests for Information the Bureau recently issued.

Read more / Original news source: https://www.consumerfinance.gov/about-us/blog/bureau-roundtables-seek-public-input/

Maryland Insurance Administration targets industry fraud

Maryland Insurance Administration (MIA) will continue to investigate and prosecute individuals and businesses committing insurance fraud, the administration recently announced. © Shutterstock During the first half of 2018, MIA investigations led to the criminal prosecution of 12 people for committing insurance fraud while the agency issued another 25 civil fraud orders. The enforcement efforts resulted […]

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Maryland Insurance Administration (MIA) will continue to investigate and prosecute individuals and businesses committing insurance fraud, the administration recently announced.

© Shutterstock

During the first half of 2018, MIA investigations led to the criminal prosecution of 12 people for committing insurance fraud while the agency issued another 25 civil fraud orders.

The enforcement efforts resulted in a combined total of $68,092 in fines and penalties, officials said, as well as $146,400 in restitution to insurance carriers impacted by the fraudulent activity.

“Our talented Insurance Fraud staff follows up and investigates every confidential tip received, and we want the public to report all suspected insurance fraud to us,” Insurance Commissioner Al Redmer, Jr. said. “The MIA’s efforts to root out fraud have resulted in fines, penalties, and restitution in excess of $2 million over the past several years. Our investigations have led to criminal convictions and jail time as well.”

Officials said anyone suspecting insurance fraud is encouraged to call the MIA’s Fraud Division hotline at 1-800-846-4069 or email a referral form to fraud-referrals.mia@maryland.gov.

MIA is an independent body charged with enforcing insurance laws and regulations, officials said. Its Fraud Division is staffed by former law enforcement officers and prosecutors who investigate reports of fraudulent activity related to insurance matters.

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Read more / Original news source: https://financialregnews.com/maryland-insurance-administration-targets-industry-fraud/

Lawmakers seek SEC rule clarification

Sens. Elizabeth Warren (D-MA), Cory Booker (D-NJ), and Sherrod Brown (D-OH) recently forwarded correspondence to the Financial Industry Regulatory Authority (FINRA) as means of gaining clarity regarding a Security and Exchange Commission (SEC) standards of conduct rule. The senators sent a letter to the FINRA President and Chief Executive Officer Robert W. Cook requesting the […]

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Sens. Elizabeth Warren (D-MA), Cory Booker (D-NJ), and Sherrod Brown (D-OH) recently forwarded correspondence to the Financial Industry Regulatory Authority (FINRA) as means of gaining clarity regarding a Security and Exchange Commission (SEC) standards of conduct rule.

The senators sent a letter to the FINRA President and Chief Executive Officer Robert W. Cook requesting the organization provide its interpretation of the SEC’s proposed standards of conduct rule.

The lawmakers said they are concerned the rule, which FINRA will play a significant role in implementing and enforcing, would not adequately protect investors or guarantee brokers put their clients’ interests ahead of their own.

“Despite its title implying a much more stringent standard, this proposal is unlikely, for several reasons, to give investors the peace of mind they deserve that the advice they are receiving is truly in their best interests,” the senators wrote. “In other words, billions of dollars in middle-class Americans’ hard-earned savings-which families need to buy a house, send a child to college, or retire in old age may depend on how you understand and implement the SEC’s rule.”

The lawmakers said the correspondence was generated in the wake of a statement issued by Warren in April expressing concern the proposal would do little to eliminate conflicts of interest and protect working families from conflicted investment advice.

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Read more / Original news source: https://financialregnews.com/lawmakers-seek-sec-rule-clarification/

Bill targets IRS administrative reform

Sens. Orrin Hatch (R-UT) and Ron Wyden (D-OR) introduced last week a measure designed to reform certain administrative practices at the Internal Revenue Service (IRS).© Shutterstock The legislation is based on two 114th Congress bills that unanimously passed the Finance Committee in 2016. The senators said it seeks to assist the agency by increasing taxpayer […]

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Sens. Orrin Hatch (R-UT) and Ron Wyden (D-OR) introduced last week a measure designed to reform certain administrative practices at the Internal Revenue Service (IRS).

© Shutterstock

The legislation is based on two 114th Congress bills that unanimously passed the Finance Committee in 2016. The senators said it seeks to assist the agency by increasing taxpayer protections and electronic filing; enhancing whistleblower protections; reforming policies concerning IRS employees; increasing scrutiny of IRS audit criteria; and supporting prevention of identity theft and tax refund fraud.

“Ensuring the IRS has greater flexibility and bringing it into the 21st century continues to be a top priority, especially with the largest rewrite of the tax code in more than three decades on the books,” Hatch, who serves as chairman of the Finance Committee, said. “We’ve been working hand in glove with the administration to ensure a proper and seamless implementation of new policies and are confident this bill will streamline the agency in a way that protects taxpayers from fraud and abuse, increases electronic filing and supports IRS employees.”

Wyden said there the nation is continually seeing incidents involving the theft of taxpayer dollars and personal data, noting more safety measures are needed.

“Congress must do more to protect American taxpayers from fraud and financial abuse,” Wyden, ranking member of the Finance Committee, said. “This bipartisan legislation will make common-sense changes to help taxpayers and streamline administrative rules at the IRS, which will allow tax officials and agents to better safeguard the American people against financial predators.”

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Read more / Original news source: https://financialregnews.com/bill-targets-irs-administrative-reform/