CFPB Rule Clarifies Tenants Can Hold Debt Collectors Accountable for Illegal Evictions

The Consumer Financial Protection Bureau (CFPB) today issued an interim final rule in support of the Centers for Disease Control and Prevention (CDC)’s eviction moratorium.

The Consumer Financial Protection Bureau (CFPB) today issued an interim final rule in support of the Centers for Disease Control and Prevention (CDC)’s eviction moratorium.

Read more / Original news source: https://www.consumerfinance.gov/about-us/newsroom/cfpb-rule-clarifies-tenants-can-hold-debt-collectors-accountable-for-illegal-evictions/

Sens. Warren, Smith urge Labor Department not to provide Goldman Sachs with EBSA exemption

U.S. Sens. Elizabeth Warren (D-MA) and Tina Smith (D-MN) are urging the Department of Labor not to give financial firm Goldman Sachs an exemption from Employee Benefits Security Administration (EBSA) that would allow the company to manage clients’ retirement plans. © Shutterstock The senators reasoned that the company should be held accountable for its “impending […]

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U.S. Sens. Elizabeth Warren (D-MA) and Tina Smith (D-MN) are urging the Department of Labor not to give financial firm Goldman Sachs an exemption from Employee Benefits Security Administration (EBSA) that would allow the company to manage clients’ retirement plans.

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The senators reasoned that the company should be held accountable for its “impending admission of criminal wrongdoing for its subsidiary’s role in the Malaysian 1MDB global bribery scandal.”

The lawmakers explained that EBSA has proposed an exemption for Goldman that would allow it to retain its status as a “qualified professional asset manager.” However, under EBSA regulations, a financial entity cannot maintain that status if convicted of criminal activity involving trust management. Goldman Sachs settled the case with the Department of Justice last October, agreeing to pay a $2.9 billion penalty.

“Companies that are convicted of or plead guilty to fraudulent schemes do not deserve special government favors. We have long been concerned about the federal government’s unwillingness to impose on white-collar and corporate criminals the penalties necessary to deter future wrongdoing and protect consumers, taxpayers, and families,” the senators wrote in a letter to Timothy Hauser, deputy assistant secretary of the EBSA, which is part of the Department of Labor.

The senators said that exempting corporations from consequences for misconduct is a breach of EBSA’s obligation to the public.

“You have the opportunity to send a clear message that the federal government holds corporate criminals accountable for their misdeeds and does not give them special regulatory favors. We ask that you review and rescind this proposal,” they added.

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Read more / Original news source: https://financialregnews.com/sens-warren-smith-urge-labor-department-not-to-provide-goldman-sachs-with-ebsa-exemption/

Rep. Beatty touts affordable housing legislation

During a recent hearing focusing on affordable housing federal funding, the House Financial Services Committee examined a proposed measure that a lawmaker said would multiply existing funding fivefold.© Shutterstock Rep. Joyce Beatty (D-OH) said the Generating Resources and Opportunities Within (GROW) Affordable Housing Act would bolster the National Housing Trust Fund (HTF) and the Capital […]

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During a recent hearing focusing on affordable housing federal funding, the House Financial Services Committee examined a proposed measure that a lawmaker said would multiply existing funding fivefold.

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Rep. Joyce Beatty (D-OH) said the Generating Resources and Opportunities Within (GROW) Affordable Housing Act would bolster the National Housing Trust Fund (HTF) and the Capital Magnet Fund (CMF).

“Affordable housing is a critical issue for hardworking families in every congressional district across the country,” Beatty said. “I have heard from my constituents every day—before and during the pandemic—about their concerns with the rising price of rent and costs of owning a home, not to mention the lack of affordable housing units.”

The HTF is the first new federal housing resource since 1974, adding funds are used to aid in building, preserving, rehabilitating, and operating housing affordable to low-income individuals.

The CMF supports financing for the preservation, rehabilitation, development, or purchase of affordable housing for low-income communities – and related economic development and community service facilities.

“I am focused on making federal funding for affordable housing a congressional priority and will continue working to provide greater opportunities for all Central Ohioans to build back better and live their American Dream,” Beatty concluded.

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Read more / Original news source: https://financialregnews.com/rep-beatty-touts-affordable-housing-legislation/

Bill offers protection for small business against predatory lenders

Sens. Sherrod Brown (D-OH) and Marco Rubio (R-FL) reintroduced a measure designed to protect small businesses from predatory lenders.© Shutterstock The Small Business Lending Fairness Act codifies the Federal Trade Commission’s (FTC) 1985 ban on confessions of judgment in law in consumer loan contracts, expanding the ban to provide protections to business borrowers. The lawmakers […]

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Sens. Sherrod Brown (D-OH) and Marco Rubio (R-FL) reintroduced a measure designed to protect small businesses from predatory lenders.

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The Small Business Lending Fairness Act codifies the Federal Trade Commission’s (FTC) 1985 ban on confessions of judgment in law in consumer loan contracts, expanding the ban to provide protections to business borrowers.

The lawmakers maintain confessions of judgment require a borrower to surrender their court rights before obtaining a loan – allowing predatory lenders to seize the borrower’s assets without warning to pay off the debt.

“When we let financial predators harm hard-working Americans through scams like confessions of judgment, we undermine the dignity of work,” Brown, chairman of the Senate Committee on Banking, Housing and Urban Affairs, said. “This bipartisan bill would protect consumers and small business owners from predatory lenders that use legal tricks to strip away their hard-earned money.”

Rubio said the bill takes another step toward protecting the nation’s small businesses, which he said is the foundation of the country’s economy, by preserving the right of a business to be heard in a court of law before a potential credit default.

“I remain committed to protecting our small businesses from predatory, out-of-state lenders, and I urge my colleagues to join me in this effort,” he said.

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Read more / Original news source: https://financialregnews.com/bill-offers-protection-for-small-business-against-predatory-lenders/

Deputy Comptroller for Market Risk Policy Testifies on LIBOR Transition

Deputy Comptroller for Market Risk Policy Kevin Walsh today testified during a hearing before the U.S. House Financial Services Subcommittee on Investor Protection, Entrepreneurship and Capital Markets regarding the upcoming cessation of the London Int…

Deputy Comptroller for Market Risk Policy Kevin Walsh today testified during a hearing before the U.S. House Financial Services Subcommittee on Investor Protection, Entrepreneurship and Capital Markets regarding the upcoming cessation of the London Interbank Offered Rates (LIBOR).

Read more / Original news source: https://www.occ.gov/news-issuances/news-releases/2021/nr-occ-2021-46.html

OCC Enforcement Actions and Terminations

The Office of the Comptroller of the Currency (OCC) today released new enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations.

The Office of the Comptroller of the Currency (OCC) today released new enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations.

Read more / Original news source: https://www.occ.gov/news-issuances/news-releases/2021/nr-occ-2021-45.html

ICI chief issues statement on potential money market fund reform

The Investment Company Institute issued a statement on the Securities and Exchange Commission’s request for comments on potential options for money market fund reforms, as detailed in the President’s Working Group (PWG) report.© Shutterstock “Policymakers seeking to address the COVID-19 market turmoil should be prudent in placing new rules on money market funds. ICI’s new […]

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The Investment Company Institute issued a statement on the Securities and Exchange Commission’s request for comments on potential options for money market fund reforms, as detailed in the President’s Working Group (PWG) report.

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“Policymakers seeking to address the COVID-19 market turmoil should be prudent in placing new rules on money market funds. ICI’s new data and analysis challenge the narrative that money market funds caused or amplified the stress in the short-term funding markets in March 2020. As such, it is important to examine how last year’s events, market structure, and the actions of all market participants, not just money market funds, led to significant strains in the short-term funding markets last March. This is a necessary step before considering any of the PWG money market fund reform options,” ICI President and CEO Eric Pan said.

Pan said that removing the tie between the 30 percent weekly liquid asset threshold and the imposition of fees and gates would strengthen prime money market funds and improve the financial system’s resiliency.

“As ICI’s letter shows, the threat of fees and gates was a main contributor to the unusually high redemptions from some prime institutional money market funds. In contrast, the other PWG options will not achieve policymakers’ goal of making the financial system more resilient in the face of a severe liquidity shock. Instead, those options will only severely weaken money market funds’ key characteristics and eliminate the important benefits they provide to millions of investors and the economy—without addressing the underlying vulnerabilities in the financial system,” Pan added.

Pan added that more than 50 million retail investors, as well as corporations, municipalities, and other institutional investors, rely on money market funds, which have some $4.9 trillion in assets.

“ICI and its members are committed to working with U.S. and international policymakers to further strengthen money market funds and the short-term funding markets for the benefit of investors and the economy,” the ICI CEO concluded.

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Read more / Original news source: https://financialregnews.com/ici-chief-issues-statement-on-potential-money-market-fund-reform/

Rep. Waters encourages FinCEN supplemental funding support

Rep. Maxine Waters (D-CA), House Financial Services Committee chairwoman, has forwarded correspondence supporting Financial Crimes Enforcement Network (FinCEN) supplemental funding. © Shutterstock Waters sent the letter to Senior Members of the House Committee on Appropriations, Subcommittee on Financial Services and General Government. “I write to urge a substantial increase of not less than $74.3 million […]

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Rep. Maxine Waters (D-CA), House Financial Services Committee chairwoman, has forwarded correspondence supporting Financial Crimes Enforcement Network (FinCEN) supplemental funding.

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Waters sent the letter to Senior Members of the House Committee on Appropriations, Subcommittee on Financial Services and General Government.

“I write to urge a substantial increase of not less than $74.3 million in new funding for the Financial Crimes Enforcement Network (FinCEN) to support the initial stages of the landmark reforms codified in the bipartisan Anti-Money Laundering Act of 2020 (AMLA) and the Corporate Transparency Act (CTA), enacted in the FY2021 National Defense Authorization Act (NDAA) (Public Law 116-283).” Waters wrote. “I strongly support this implementation funding request and hope that you will include this funding in any upcoming supplemental appropriations bill to be considered in the House.”

Waters maintains effective implementation of the new mandates in accordance with the additional duties the laws impose on FinCEN and Treasury offices, which would require a substantial and sustained investment of new resources.

“I believe that these funds are critical to properly implement the requirements of the AMLA and CTA,” Waters concluded. “If additional funds are available, in order to provide maximal hiring flexibility to FinCEN in FY21, I would also support an expanded appropriation of $98.5 million in new funding for FY21.”

In November 2020, Waters secured the inclusion of provisions on beneficial ownership, preventing money laundering, and combating international corruption in the FY2021 NDAA.

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Read more / Original news source: https://financialregnews.com/rep-waters-encourages-fincen-supplemental-funding-support/

Consumer Bankers Association outlines student loan debt solutions

The Consumer Bankers Association (CBA) has outlined a series of reforms the organization said reduces student debt while also protecting borrowers.© Shutterstock According to the CBA, initiatives include reining in unlimited federal government lending the organization maintains drives up higher education costs. In correspondence forwarded to the Committee on Banking, Housing, and Urban Affairs Subcommittee […]

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The Consumer Bankers Association (CBA) has outlined a series of reforms the organization said reduces student debt while also protecting borrowers.

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According to the CBA, initiatives include reining in unlimited federal government lending the organization maintains drives up higher education costs.

In correspondence forwarded to the Committee on Banking, Housing, and Urban Affairs Subcommittee on Economic Policy in advance of its hearing on student loan debt, CBA President and CEO Richard Hunt indicated the domestic student debt problem is caused by unlimited lending by the federal government and the resulting constantly increasing prices charged by schools.

“The best way to reduce excessive student loan debt is to restrain the federal lending that is fueling the excess,” Hunt wrote. “Federal student loan debt has ballooned in large part because many borrowers are not making progress repaying what they borrowed. In contrast, private student loan borrowers are successfully repaying their loans 98 percent of the time. This successful repayment rate has persisted year after year, only dropping slightly during the COVID-19 pandemic-affected months 2020 and already recovering this year.”

Hunt said federal law allows for open-ended borrowing of PLUS loans by graduate students and parents of undergraduates, limited by what schools decide to charge.

The CBA solutions include changing the Higher Education Act to limit PLUS borrowing and otherwise encourage colleges to restrain their costs; improving disclosure of terms and conditions for federal loans, like those required for private loans by the Truth in Lending Act; taking into some consideration students’ and families’ ability to repay before saddling them with significant debt they may not be able to repay.

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Read more / Original news source: https://financialregnews.com/consumer-bankers-association-outlines-student-loan-debt-solutions/

FDIC partners with Duke University to advance technological innovation in financial industry

The Federal Deposit Insurance Corporation (FDIC) formed a strategic partnership with Duke University’s Pratt School of Engineering to support technological innovation in the banking and financial services industries.© Shutterstock “This exciting collaboration will amplify our efforts to drive innovation in the banking ecosystem and within the FDIC,” Sultan Meghji, FDIC’s chief innovation officer, said. “We […]

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The Federal Deposit Insurance Corporation (FDIC) formed a strategic partnership with Duke University’s Pratt School of Engineering to support technological innovation in the banking and financial services industries.

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“This exciting collaboration will amplify our efforts to drive innovation in the banking ecosystem and within the FDIC,” Sultan Meghji, FDIC’s chief innovation officer, said. “We share a common interest to better understand the opportunities and the risks of new technologies and to build a first-of-its-kind strategic innovation program.”

This is the continuation of a longstanding relationship between the FDIC’s Center for Financial Research and Duke University. It provides a way for the two organizations to collaborate in different areas of innovation, including artificial intelligence, risk management, quantitative research, and cybersecurity.

“The opportunity to partner with the FDIC, and in particular Sultan, will allow our students to work on the cutting edge of finance, risk management, credit, and emerging asset classes,” Jimmie Lenz, director of Duke’s Master of Engineering programs in FinTech and Cybersecurity, said. “Our FinTech and Cybersecurity graduate students will be leveraging the applied learning that defines these programs and students to develop and deliver solutions to assist the largest bank insurance organization in the world. This partnership highlights the dramatic changes taking place in finance and recognition by the FDIC of the key role Duke Engineering is playing in this dynamic environment.”

Duke Engineering school offers master’s degree programs in FinTech, Cybersecurity, AI for Product Innovation, and Engineering Management.

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Read more / Original news source: https://financialregnews.com/fdic-partners-with-duke-university-to-advance-technological-innovation-in-financial-industry/