APCIA urging Florida Gov. DeSantis to veto legislation repealing no-fault auto insurance system

The American Property Casualty Insurance Association (APCIA) is encouraging Florida Gov. Ron DeSantis to veto a measure repealing the state’s personal injury protection “no-fault” auto insurance system.© Shutterstock State legislators have forwarded Senate Bill 54 to DeSantis, maintaining that the legislation possesses the ability to increase yearly auto insurance costs by as much as $860 […]

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The American Property Casualty Insurance Association (APCIA) is encouraging Florida Gov. Ron DeSantis to veto a measure repealing the state’s personal injury protection “no-fault” auto insurance system.

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State legislators have forwarded Senate Bill 54 to DeSantis, maintaining that the legislation possesses the ability to increase yearly auto insurance costs by as much as $860 for some drivers, add more uninsured drivers, and contribute to rising litigation.

“Floridians have been loud and clear in asking the governor to protect their wallet and their roads by vetoing this major policy change,” Logan McFaddin, APCIA assistant vice president of state government relations, said regarding 37,000 letters forwarded to DeSantis on the matter. “Florida drivers are overwhelmingly concerned because they already pay the highest premiums in the country for full auto insurance coverage, and this change could mean their costs may be driven up even higher, making coverage unaffordable for many.”

Per the APCIA, the average auto insurance policy would be increased by as much as 23 percent or $344 if the legislation is signed into law.

“Consumers and businesses have already suffered significant financial hardship due to the unprecedented pandemic, and now is simply not the time to make drastic changes to Florida’s 50-year-old no-fault auto insurance system that are likely to increase costs for Florida drivers, especially those who can least afford it,” McFaddin said. “APCIA, alongside the many Floridians who have written letters, is urging Gov. DeSantis to take action to protect Florida drivers from higher auto insurance costs and from more uninsured drivers on Florida’s roads by vetoing SB 54.”

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Read more / Original news source: https://financialregnews.com/apcia-urging-florida-gov-desantis-to-veto-legislation-repealing-no-fault-auto-insurance-system/

CFPB issues final rules mitigating potential foreclosure surge as nation’s economy recovers

The Consumer Financial Protection Bureau (CFPB) said the recent finalization of federal mortgage servicing regulations amendments would address potential foreclosure surges while aiding the nation’s economy.© Shutterstock Adjustments to the federal mortgage servicing regulations would reinforce the ongoing economic recovery amid the federal foreclosure moratoria phase-out and protect mortgage borrowers from surprises as they exit […]

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The Consumer Financial Protection Bureau (CFPB) said the recent finalization of federal mortgage servicing regulations amendments would address potential foreclosure surges while aiding the nation’s economy.

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Adjustments to the federal mortgage servicing regulations would reinforce the ongoing economic recovery amid the federal foreclosure moratoria phase-out and protect mortgage borrowers from surprises as they exit forbearance. Additionally, the rules cover loans on principal residences, generally exclude small servicers, and will take effect on Aug. 31, 2021.

“As the nation shifts from the COVID-19 emergency to the economic recovery, we cannot be complacent about the dangers we still face,” CFPB Acting Director Dave Uejio said. “An unchecked wave of foreclosures would drain billions of dollars in wealth from the Black and Hispanic communities hardest hit by the pandemic and still recovering from the impact of the Great Recession just over a decade ago. An unchecked wave of foreclosures would also risk destabilizing the housing market for all consumers.”

The rules provide borrowers with a meaningful opportunity to pursue loss mitigation options, allow mortgage servicers to help borrowers faster, and tell borrowers their options.

“We are giving homeowners the time and opportunity to make informed decisions about the best course of action for them and their families, whether that is seeking a loan modification or selling their home,” Uejio said. “And we are giving mortgage servicers the flexibility they need to serve homeowners with dignity while managing an unprecedented volume of borrowers seeking assistance.”

The CFPB will be working in conjunction with other federal agencies in the next few months to ensure a transition to the post-pandemic housing market through increased borrower outreach in sharing mortgage option information.

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Read more / Original news source: https://financialregnews.com/cfpb-issues-final-rules-mitigating-potential-foreclosure-surge-as-nations-economy-recovers/

Financial Regulators Update Examiner Guidance on Financial Institutions’ Information Technology Architecture, Infrastructure, and Operations

The Federal Financial Institutions Examination Council (FFIEC) today issued a new booklet in the FFIEC Information Technology Examination Handbook series, titled “Architecture, Infrastructure, and Operations.”

The Federal Financial Institutions Examination Council (FFIEC) today issued a new booklet in the FFIEC Information Technology Examination Handbook series, titled “Architecture, Infrastructure, and Operations.”

Read more / Original news source: https://www.consumerfinance.gov/about-us/newsroom/financial-regulators-update-examiner-guidance-on-financial-institutions-information-technology-architecture-infrastructure-and-operations/

FINRA orders Merrill Lynch, Pierce, Fenner & Smith, Inc. to pay $8.4M in customer restitution

The Financial Industry Regulatory Authority (FINRA) has issued investment trust restitution payment orders against Merrill Lynch, Pierce, Fenner & Smith, Inc. regarding Unit Investment Trusts (UITs) rollovers.© Shutterstock According to FINRA, the company must pay over $8.4 million restitution to more than 3,000 customers who incurred excessive sales charges connected with the early UIT rollovers. […]

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The Financial Industry Regulatory Authority (FINRA) has issued investment trust restitution payment orders against Merrill Lynch, Pierce, Fenner & Smith, Inc. regarding Unit Investment Trusts (UITs) rollovers.

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According to FINRA, the company must pay over $8.4 million restitution to more than 3,000 customers who incurred excessive sales charges connected with the early UIT rollovers. The firm was also assessed a $3.25 million fine for failing to supervise the transactions responsibly.

FINRA defines a UIT as an investment company offering investors units in a fixed portfolio of securities during a one-time public offering ending on a specific maturity date. A registered representative recommending a customer sell their UIT position before the maturity date and rolls over the funds into a new UIT causes the customer to incur increased sales charges over time.

Per FINRA, Merrill Lynch initiated over $32 billion in UIT transactions between January 2011 and December 2015, including approximately $2.5 billion in which the UITs were sold more than 100 days before their maturity dates, and some or all of the proceeds were used to purchase one or more UITs.

“Customers often incur unnecessary costs when representatives recommend short-term sales of products that are intended as long-term investments,” Jessica Hopper, executive vice president and Head of FINRA’s Department of Enforcement, said. “FINRA member firms must implement supervisory systems sufficient to identify these potentially unsuitable transactions. Providing restitution to harmed investors remains a top priority for FINRA.”

Authorities indicated Merrill Lynch did not admit to or deny the charges but consented to the entry of FINRA’s findings.

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Read more / Original news source: https://financialregnews.com/finra-orders-merrill-lynch-pierce-fenner-smith-inc-to-pay-8-4m-in-customer-restitution/

FASB seeking stakeholder input on development of accounting standards for digital currencies

Officials are crediting the efforts of U.S. Rep. Tom Emmer (R-MN) in aiding the Financial Accounting Standards Board (FASB) in opening an Invitation to Comment (ITC) regarding accounting standards for digital asset holdings.© Shutterstock On May 12, 2021, Emmer led a bipartisan letter calling on FASB Chairman Richard Jones to establish more accurate accounting standards […]

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Officials are crediting the efforts of U.S. Rep. Tom Emmer (R-MN) in aiding the Financial Accounting Standards Board (FASB) in opening an Invitation to Comment (ITC) regarding accounting standards for digital asset holdings.

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On May 12, 2021, Emmer led a bipartisan letter calling on FASB Chairman Richard Jones to establish more accurate accounting standards for companies with digital asset holdings. Jones announced on June 24 that the organization would allow stakeholders the opportunity to provide input on the attempt to develop the accounting standards. Comments will be accepted until Sept. 22, 2021, per authorities.

“It’s encouraging to see the FASB invite stakeholders to provide input as they develop proper accounting standards,” Emmer said. “For too long, companies with virtual currency holdings have been in the dark, unable to properly comply. After urging the FASB to take the lead and issue guidance, I am hopeful that this step will ensure the creation of accounting standards that make sense.”

According to Emmer, the FASB has not issued accounting standards for digital assets, resulting in companies conforming to non-authoritative guidance, impacting stakeholders and financial statements.

Emmer’s correspondence encouraged the FASB to update the financial instrument definition to include digital assets and consider companies holding digital currencies for varying purposes when assigning one of four different appropriate accounting standards.

“It is important that standards be set to consider the use of the asset and to assure consistency in financial reporting,” the correspondence concluded. “The impact of digital assets on financial reporting of public and non-publicly traded companies is being felt. Failure to establish sound authoritative guidance in accounting for these assets jeopardizes the integrity of financial reporting.”

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Read more / Original news source: https://financialregnews.com/fasb-seeking-stakeholder-input-on-development-of-accounting-standards-for-digital-currencies/

NAFCU applauds Congress for repealing ‘true lender’ rule

The National Association of Federally-Insured Credit Unions (NAFCU) applauded Congress’s passage of a bill that would repeal the true lender rule, which was approved in the final days of the Trump administration. © Shutterstock The true lender rule allowed banks and federal savings and loan companies to provide their charter to online lenders, who in […]

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The National Association of Federally-Insured Credit Unions (NAFCU) applauded Congress’s passage of a bill that would repeal the true lender rule, which was approved in the final days of the Trump administration.

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The true lender rule allowed banks and federal savings and loan companies to provide their charter to online lenders, who in turn could charge higher interest rates. In effect, it allowed the non-bank lenders to evade state laws and regulations on interest rates.

Under the Congressional Review Act, legislators can vote to overrule new federal regulations with a joint resolution of disapproval within 60 legislative days after regulators have submitted the rule to Congress. The true lender rule took effect in December 2020. On May 11, the Senate voted to overturn it. The House then approved it last week.

The bill now goes to President Joe Biden’s desk to be signed into law.

“NAFCU applauds the House of Representatives for voting to overturn the OCC’s anti-consumer true lender rule,” NAFCU President and CEO Dan Berger said. “This rule has allowed banks to blur regulatory lines in partnership with high-cost online lenders to charge consumers interest rates of over 100 percent, evade consumer protection laws and usury caps, and promote payday lending schemes. Not only would this rule have threatened the COVID-19 economic recovery, but it would have severely harmed American consumers.”

NAFCU officials have also called upon Congress to advance legislation to allow credit unions to add underserved areas to their fields of membership.

The post NAFCU applauds Congress for repealing ‘true lender’ rule appeared first on Financial Regulation News.

Read more / Original news source: https://financialregnews.com/nafcu-applauds-congress-for-repealing-true-lender-rule/

CFPB Report Highlights Supervisory Findings of Wide-Ranging Violations of Law in 2020

The Consumer Financial Protection Bureau (CFPB) today issued a report highlighting legal violations identified by the Bureau’s examinations in 2020. The report also highlights prior CFPB supervisory findings that led to public enforcement actions in 20…

The Consumer Financial Protection Bureau (CFPB) today issued a report highlighting legal violations identified by the Bureau’s examinations in 2020. The report also highlights prior CFPB supervisory findings that led to public enforcement actions in 2020 resulting in more than $124 million in consumer remediation and civil money penalties.

Read more / Original news source: https://www.consumerfinance.gov/about-us/newsroom/cfpb-report-highlights-supervisory-findings-of-wide-ranging-violations-of-law-in-2020/

CFPB Takes Action Against Company and its Owners and Executives for Deceptive Debt-Relief and Credit-Repair Services

The Consumer Financial Protection Bureau (CFPB) today filed a proposed order in federal district court against Burlington Financial Group and its owners and executives, Richard Burnham, Katherine Burnham, and Sang Yi, for allegedly deceiving consumers …

The Consumer Financial Protection Bureau (CFPB) today filed a proposed order in federal district court against Burlington Financial Group and its owners and executives, Richard Burnham, Katherine Burnham, and Sang Yi, for allegedly deceiving consumers into hiring the company to lower or eliminate credit-card debts and improve consumers’ credit scores.

Read more / Original news source: https://www.consumerfinance.gov/about-us/newsroom/cfpb-takes-action-against-company-and-its-owners-and-executives-for-deceptive-debt-relief-and-credit-repair-services/

Mortgage Performance Declines in First Quarter 2021

The Office of the Comptroller of the Currency (OCC) reported that the performance of first-lien mortgages in the federal banking system declined during the first quarter of 2021.

The Office of the Comptroller of the Currency (OCC) reported that the performance of first-lien mortgages in the federal banking system declined during the first quarter of 2021.

Read more / Original news source: https://www.occ.gov/news-issuances/news-releases/2021/nr-occ-2021-71.html

OCC Reports First Quarter 2021 Bank Trading Revenue

The Office of the Comptroller of the Currency (OCC) reported trading revenue of U.S. commercial banks and savings associations of $10.5 billion in the first quarter of 2021.

The Office of the Comptroller of the Currency (OCC) reported trading revenue of U.S. commercial banks and savings associations of $10.5 billion in the first quarter of 2021.

Read more / Original news source: https://www.occ.gov/news-issuances/news-releases/2021/nr-occ-2021-70.html