Bank Law Monitor

Bank Law Monitor

A Legal Blog for the Financial Services Industry

Category Archives: Trending News

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Continued Uncertainty Regarding Proof of Water Availability Necessary to Obtain a Permit Follows Whatcom County v. Hirst

Posted in Trending News, Washington Legislation
Last October in Whatcom County v. Hirst, the Washington Supreme Court held that each county must ensure that there is an adequate water supply before it approves a project permit. The Hirst decision upset the existing process by which a county would assume an adequate water supply, including for projects served by “permit exempt wells,”… Continue Reading

Trustee’s Sale Not Subject to the Fair Debt Collection Practices Act, Appeals Court Holds

Posted in Trending News
A trustee is not a “debt collector,” so foreclosing a deed of trust is not subject to FDCPA’s restrictions or damages. A federal appellate court held recently that the trustee of a residential deed of trust was not a “debt collector” under the federal Fair Debt Collection Practices Act (FDCPA), because the trustee was enforcing… Continue Reading

How Does Washington’s New Power of Attorney Statute Impact Banks?

Posted in Trending News, Trust and Estates
Washington has adopted the Washington Uniform Power of Attorney Act (“The Act”) which becomes effective on January 1, 2017 (ESSB 5635). The Act completely replaces Washington’s current law and has some key differences that need to be considered when a bank accepts a power of attorney. The Act applies to all powers of attorney including… Continue Reading

Military Lending Act: It Applies to More Products Than You Think

Posted in Compliance Resources, Trending News
We first posted an article about proposed amendments to the Military Lending Act (MLA) on December 30, 2014. Ultimately, the Department of Defense (DoD) amended its regulation effective October 1, 2015, and extended the MLA’s application to a wide range of closed-end and open-end credit products and to broad classes of creditors as originally proposed.… Continue Reading

Citing Operational Challenges, CFPB May ReWrite TRID

Posted in CFPB, Compliance Resources, Mortgage Servicing, Regulatory Developments, TILA/RESPA, Trending News
Today, the CFPB issued a letter to various industry trade groups, including the Mortgage Bankers Association, the American Bankers Association, and the Independent Community Bankers of America,  acknowledging that the implementation of the “Know Before You Owe” rule  (otherwise known as “TRID”) poses many “operational challenges.”   Many financial institutions and industry participants do not have… Continue Reading

The SEC’s New Pay Ratio Rule

Posted in Trending News
The Securities and Exchange Commission (SEC) recently adopted a new executive compensation disclosure requirement which will require comparison of the compensation of a company’s CEO to that of a “median employee” of the company. The pay ratio rule is seemingly simple—compare the CEO’s compensation to that of a median employee, expressed as a ratio. But… Continue Reading

CFPB Issues Final Home Mortgage Disclosure Act Rule

Posted in CFPB, HMDA, Mortgage Servicing, Regulatory Developments, Trending News
The CFPB issued a final rule changing Regulation C, which implements the Home Mortgage Disclosure Act (HMDA) today. This is significant because HMDA requires certain institutions to collect, report, and disclose information about their mortgage lending activity. The CFPB and other banking regulators will use the reported data to determine whether financial institutions are serving… Continue Reading

Beware: Data Breaches May Expose You to UDAP Liability

Posted in CFPB, Cybersecurity, Regulatory Developments, Trending News, UDAAP
cyber-lawRecently, the U.S. Court of Appeals for the Third Circuit ruled that the Federal Trade Commission (“FTC”) may pursue a lawsuit against Wyndham Worldwide Corporation, a hotel and time share operator for “unfair and deceptive” cybersecurity practices. In its complaint, the FTC alleged that Wyndham “unreasonably and unnecessarily” exposed consumers’ personal data in more than… Continue Reading

New Fannie Mae Lending Product Counts Extended Family Income

Posted in Mortgage Servicing, Trending News
Today, Fannie Mae announced a new lending product, the HomeReady mortgage, which is intended to help creditworthy borrowers with low and moderate incomes to gain access to a mortgage. In order to qualify for the HomeReady mortgage, borrowers will be required to complete an online education course, called “Framework”, to educate and prepare them for… Continue Reading

Updated Compliance Resources for the TILA-RESPA Integrated Disclosure Rule

Posted in CFPB, Compliance Resources, Mortgage Servicing, Regulatory Developments, TILA/RESPA, Trending News
As many of you know, the effective date of the TILA-RESPA Final Rule and the related TILA-RESPA Amendments has been delayed to October 3, 2015. Please take note of the following updates from the CFPB: Freddie Mac and Fannie Mae Data Standards Freddie Mac and Fannie Mae have released a common industry dataset, called the… Continue Reading

New Integrated Loan Disclosure Requirements Become Effective August 1, 2015

Posted in TILA/RESPA, Trending News
On June 3, 2015, the Consumer Financial Protection Bureau (CFPB) issued a statement reminding mortgage lenders that the new integrated loan disclosures required by Dodd-Frank become effective August 1, 2015. Because the TILA/RESPA Integrated Disclosure Rule, or TRID Rule, requires lenders to make substantial changes to their internal procedures for mortgage originations, the industry had… Continue Reading

Why Banks Should Care about Bitcoin and New York’s Proposed Virtual Currency Regulation

Posted in Banking Technology, Regulatory Developments, Trending News, Virtual Currency
On February 25, 2015, the New York Department of Financial Services (NYDFS) published its proposal to regulate virtual currencies in the New York Federal Register. Since the issuance of its initial proposal in July, 2014, the NYDFS received over 3000 public comments on its proposed regulation. Superintendent Benjamin Lawsky claims that the reproposed legislation incorporates… Continue Reading

Welcome to Bank Law Monitor: A Legal Blog for the Financial Services Industry

Posted in Auto Finance, CFPB, Compliance Resources, Credit Cards, Debt Collection, Marijuana, Mortgage Servicing, Overdrafts, Regulation AB, Regulatory Developments, TILA/RESPA, Trending News, UDAAP
Welcome! Graham & Dunn’s Financial Services team is pleased to announce the launch of Bank Law Monitor, a legal blog for the financial services industry. Bank Law Monitor will analyze regulatory developments, report on significant news and market trends, and monitor upcoming regulatory changes that impact the financial services industry. Our goal is to help… Continue Reading

FTC Shares Concerns about Fraudulent or Unfair Practices Related to Mobile Banking with CFPB

Posted in CFPB, Trending News
The CFPB announced in June 2014 that it is studying how mobile technologies affect under-served consumers who have little access to traditional banking systems. The Federal Trade Commission (FTC) provided comments to the CFPB, detailing concerns that mobile banking is ripe for fraudulent transactions. In particular, consumers could be potentially liable for unauthorized charges using… Continue Reading

Regulators Warn Banks about “Shellshock” Virus

Posted in Trending News
On September 26, 2014, the Federal Financial Institutions Examination Counsel (FFIEC) warned financial institutions to quickly address a “Shellshock” vulnerability that  affects a common software tool that is found in many operating systems. The software tool is known as “Bash or Bourne-again Shell” and is found on most UNIX, Linux and Mac OS X operating… Continue Reading

CFPB Found Unfair and Deceptive Practices Related to Add-On Identity Theft Protection Products

Posted in CFPB, Trending News
On September 24, 2014, the CFPB announced a consent order with a large bank relating to allegations that customers were unfairly billed by a third-party service provider to the bank’s customers for identity theft protection products. According to the CFPB, the third party service provider either never obtained customer authorization or allowed significant time to… Continue Reading