Federal Reserve Board announces that it is seeking individuals to serve on its Insurance Policy Advisory Committee

Federal Reserve Board announces that it is seeking individuals to serve on its Insurance Policy Advisory Committee

Federal Reserve Board announces that it is seeking individuals to serve on its Insurance Policy Advisory Committee

Read more / Original news source: https://www.federalreserve.gov/newsevents/pressreleases/other20210730a.htm

Sen. Wyden, Rep. Neal examine JCT data on mega-IRA prevalence

U.S. Sen. Ron Wyden (D-OR), chair of the Senate Finance Committee, and U.S. Rep. Richard E. Neal (D-MA), chair of the House Ways & Means Committee, recently released Joint Committee on Taxation (JCT) data regarding the prevalence of mega-IRA accounts.© Shutterstock “It is shocking, but not surprising, to see how the use of mega-IRA accounts […]

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U.S. Sen. Ron Wyden (D-OR), chair of the Senate Finance Committee, and U.S. Rep. Richard E. Neal (D-MA), chair of the House Ways & Means Committee, recently released Joint Committee on Taxation (JCT) data regarding the prevalence of mega-IRA accounts.

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“It is shocking, but not surprising, to see how the use of mega-IRA accounts by mega-millionaires and billionaires has exploded,” Wyden said. “IRAs were designed to provide retirement security to middle-class families, not allow the super wealthy to avoid paying taxes. This is the perfect example of what I’ve long called the tale of two tax codes.”

According to Wyden, there are 100 million Americans with no benefits in retirement plans or savings in retirement accounts like IRAs while the top 497 IRA owners have an average aggregate account balance of more than $150 million each.

“As the Finance Committee continues to develop proposals to make the tax code more fair, closing these loopholes will be a top priority,” he said.

The lawmakers cited JCT statistics detailing that, as of the 2019 tax year, over 28,000 taxpayers had aggregate IRA account balances of $5 million or more, and 497 taxpayers possessed aggregate IRA account balances of $25 million or more.

“These data indicate that the exploitation of IRAs is a growing problem,” Neal said. “IRAs are intended to help Americans achieve long-term financial security, not to enable those who already have extraordinary wealth to avoid paying their fair share in taxes and deepen existing inequalities in our nation. The Ways and Means Committee is already looking at strategies to ensure that this retirement savings tool isn’t misused as a tax shelter for folks at the very top.”

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Read more / Original news source: https://financialregnews.com/sen-wyden-rep-neal-examine-jct-data-on-mega-ira-prevalence/

CFPB examines credit applications recovery

The Consumer Financial Protection Bureau (CFPB) maintains consumer auto loans, new mortgages, and revolving credit cards applications have returned to pre-pandemic levels by May 2021. © Shutterstock “While consumer credit applications have generally recovered to pre-pandemic levels in the aggregate, we see important differences across consumers,” Acting CFPB Director David Uejio said. “Both borrowers with […]

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The Consumer Financial Protection Bureau (CFPB) maintains consumer auto loans, new mortgages, and revolving credit cards applications have returned to pre-pandemic levels by May 2021.

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“While consumer credit applications have generally recovered to pre-pandemic levels in the aggregate, we see important differences across consumers,” Acting CFPB Director David Uejio said. “Both borrowers with super prime and subprime credit scores are still not applying for credit as much as they were pre-pandemic. We will continue to keep a close watch on the marketplace as the economic recovery continues, to help ensure all consumers have access to financial products and services that are fair, transparent, and competitive.”

Per the analysis, auto loan inquiries experienced a drop of 52 percent by the end of March 2020 and returned to the pre-pandemic trend by January 2021; new mortgage credit inquiries revealed a smaller reduction in March 2020 in comparison to other types of inquiries and then increased; and inquiries have exceeded their usual, seasonally adjusted volume by 10 to 30 percent – with the action being attributed to high activity in the mortgage market throughout the pandemic.

The CFPB indicated the report was generated through its Consumer Credit Panel, a sample of credit records maintained by one of the three nationwide consumer reporting agencies (NCRAs).

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Read more / Original news source: https://financialregnews.com/cfpb-examines-credit-applications-recovery/

Independent Community Bankers of America opposes IRS reporting proposal

The Independent Community Bankers of America (ICBA) has joined other business groups in opposing a Treasury Department proposal requiring financial institutions to report customer bank account information to the IRS.© Shutterstock The ICBA recently joined the coalition in forwarding correspondence to federal lawmakers as a means of outlining objection to the proposal requiring financial institutions […]

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The Independent Community Bankers of America (ICBA) has joined other business groups in opposing a Treasury Department proposal requiring financial institutions to report customer bank account information to the IRS.

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The ICBA recently joined the coalition in forwarding correspondence to federal lawmakers as a means of outlining objection to the proposal requiring financial institutions to report deposit and withdrawal activity of business and personal accounts possessing a balance of more than $600 to the IRS.

“The Treasury Department’s proposal to mandate blanket financial account reporting to the IRS would intrude on consumer privacy, create data security risks to taxpayers, undermine efforts to reduce the unbanked population, and create taxpayer complexity and confusion,” ICBA President and CEO Rebeca Romero Rainey said. “Community bankers and other small businesses urge Congress to reject the Treasury proposal and explore less intrusive means of reducing the tax gap.”

The correspondence alleged the IRS has a poor record of data security that would compromise taxpayers’ privacy and raise the risk of identity theft; intrusive account reporting would undermine the goal of reducing the unbanked population among communities prone to distrust of institutions and government agencies; and create taxpayer complexity while undermining the goal of tax simplicity as a means of promoting compliance.

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Read more / Original news source: https://financialregnews.com/independent-community-bankers-of-america-opposes-irs-reporting-proposal/

CFPB Confirms Effective Date for Debt Collection Final Rules

The Consumer Financial Protection Bureau (CFPB) today announced that two final rules issued under the Fair Debt Collection Practices Act (FDCPA) will take effect as planned, on November 30, 2021.

The Consumer Financial Protection Bureau (CFPB) today announced that two final rules issued under the Fair Debt Collection Practices Act (FDCPA) will take effect as planned, on November 30, 2021.

Read more / Original news source: https://www.consumerfinance.gov/about-us/newsroom/cfpb-confirms-effective-date-for-debt-collection-final-rules/

Sen. Brown urges examination of consumer fintech risks

Senate Committee on Banking, Housing, and Urban Affairs Chairman Sherrod Brown (D-OH) is encouraging the Consumer Financial Protection Bureau (CFPB) to examine consumer fintech risks.© Shutterstock Brown has forwarded correspondence to CFPB Acting Director Dave Uejio in the wake of the recent actions of Chime, a nonbank fintech. In the correspondence, Brown cited news reports […]

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Senate Committee on Banking, Housing, and Urban Affairs Chairman Sherrod Brown (D-OH) is encouraging the Consumer Financial Protection Bureau (CFPB) to examine consumer fintech risks.

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Brown has forwarded correspondence to CFPB Acting Director Dave Uejio in the wake of the recent actions of Chime, a nonbank fintech.

In the correspondence, Brown cited news reports alleging Chime closed or froze several accounts because of potentially fraudulent activity. Chime acted without any prior customer warning to its customers, with some account closures resulting from fraudulent federal stimulus checks and unemployment insurance deposits suspicions.

“Chime’s abrupt, involuntary closures of its customers’ accounts—and locking them out of access to their funds—can cause lasting damage to their financial condition,” Brown wrote. “Chime customers who could not access funds may have been unable to pay their bills, subject to late fees, become delinquent on bills and put at risk of losing their homes to eviction or foreclosure.”

Brown indicated the CFPB’s mission is to protect consumers from risk in the marketplace for consumer financial products and services.

“This includes the risks associated with receiving financial services from nonbanks,” Brown concluded. So that I may better assess these issues, I ask that the Bureau share insight into the risks posed by nonbanks to consumers as well as the measures the Bureau is taking to address the risks by nonbank fintech companies and their affiliated banks. In addition, please offer any guidance on any gaps in the regulatory framework that may require Congressional action.”

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Read more / Original news source: https://financialregnews.com/sen-brown-urges-examination-of-consumer-fintech-risks/

Bill targets clean energy sector innovation

Spurred by an International Energy Agency CO2 emissions reductions report, a group of lawmakers recently introduced legislators that encourage clean energy sector innovation to scale new technologies. © Shutterstock U.S. Sens. Mike Crapo (R-ID) and Sheldon Whitehouse (D-RI) recently presented the Energy Sector Innovation Credit (ESIC) Act in the wake of the International Energy Agency’s […]

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Spurred by an International Energy Agency CO2 emissions reductions report, a group of lawmakers recently introduced legislators that encourage clean energy sector innovation to scale new technologies.

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U.S. Sens. Mike Crapo (R-ID) and Sheldon Whitehouse (D-RI) recently presented the Energy Sector Innovation Credit (ESIC) Act in the wake of the International Energy Agency’s analysis detailing 40 percent of cumulative CO2 emissions reductions needed to attain sustainability targets rely on technologies not yet commercially implemented via the mass-market.

“If we are to meet long-term emissions targets without sacrificing affordable electricity, we need to invest in on-the-horizon technologies that can accomplish our environmental goals, create good-paying American jobs and meet our energy demand,” Crapo,
ranking member of the U.S. Senate Finance Committee, said regarding the energy tax proposal’s benefits. “ESIC will incentivize technology-wide clean energy innovation so new, clean technologies can rapidly scale up and compete independently in the market.”

Crapo said ESIC automatically scales down credits as technologies’ market penetration increases- adding taxpayer funds dollars would not subsidize market-mature technologies.

Bill features include phasing out credits as technologies mature, initiating efforts to get innovative technologies to market where they compete on their own; providing flexibility for unforeseen clean energy technologies to be eligible for ESIC; and establishment of technologies varying from one another as determined by U.S. Department of Energy (DOE) experts, as well as national labs and other stakeholders.

“Major investments in innovative clean energy technologies are needed if we’re going to make a difference in the race against climate change,” Whitehouse, a member of the Senate Finance Committee, said. “Our bipartisan legislation will accelerate nascent clean technologies that have the potential to compete against heavy-polluting forms of energy and create good jobs in the process.”

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Read more / Original news source: https://financialregnews.com/bill-targets-clean-energy-sector-innovation/

CFPB and FHFA Release Updated Data from the National Survey of Mortgage Originations for Public Use

The Consumer Financial Protection Bureau (CFPB) and the Federal Housing Finance Agency (FHFA) today published updated loan-level data for public use collected through the National Survey of Mortgage Originations (NSMO). The data provide insights into borrowers’ experiences obtaining residential mortgages.

The Consumer Financial Protection Bureau (CFPB) and the Federal Housing Finance Agency (FHFA) today published updated loan-level data for public use collected through the National Survey of Mortgage Originations (NSMO). The data provide insights into borrowers' experiences obtaining residential mortgages.

Read more / Original news source: https://www.consumerfinance.gov/about-us/newsroom/cfpb-and-fhfa-release-updated-data-from-the-national-survey-of-mortgage-originations-for-public-use/