Tabs

Bank Insurance Agency Management
Community Banks and Insurance
Compliance and Risk Management
Wealth Management
Insurance Product Marketing
Advocacy

Friday, January 30, 2015

This Week at the CFPB

A summary of this week's news about the CFPB from the ABIA and ABA Dodd-Frank Tracker:
The ABIA has a Task Force of members that work on issues related to the CFPB's regulation of insurance products. If you are an ABIA member and would like to learn more about ABIA's work with CFPB to educate them about the bank-insurance industry or join our CFPB Task Force, please contact us and visit our website.

Wednesday, January 28, 2015

ABIA Hosts Government Relations Webinar on "Managing State Responses to Flood Insurance"

Today, the American Bankers Insurance Association hosted a Government Relations Webinar on "Managing State Responses to Flood Insurance".  ABA's Joseph Pigg moderated the event while Mike Hughes, Wells Fargo, Jon Skarin, Massachusetts Bankers Association, and Kevin McKechnie, ABIA discussed the importance of ensuring that policyholders have the information they need to navigate the flood insurance process and ensure any concerns are addressed.

View the presentation.

Download the recording.

For more information about upcoming webinars, please visit our website.

CFPB Issues Supervisory Compliance Bulletin

By Outside Counsel, Chrys D. Lemon, McIntyre & Lemon, PLLC

The CFPB issued a bulletin reminding supervised financial institutions, including nonbank companies, of existing regulatory requirements regarding confidential supervisory information.

“The CFPB has supervisory authority over banks and credit unions with assets over $10 billion, and their affiliates. The Bureau is also the first federal agency with supervisory authority over certain nonbank financial companies such as mortgage lenders and servicers, payday lenders, and private student lenders, as well certain large debt collectors, consumer reporting agencies, student loan servicers, and international remittance providers.”

“The bulletin . . . provides guidance on what types of information constitute confidential supervisory information. The bulletin also explains that disclosure of confidential supervisory information is not allowed, with limited exceptions.

“The CFPB is aware that some supervised financial institutions may have entered into non-disclosure agreements that purport to restrict the institution from sharing information with a regulator, or to require the institution to notify a third party when it shares information. However, the bulletin explains that provisions in non-disclosure agreements do not alter or limit the Bureau’s existing supervisory authority or the supervised financial institution’s obligations relating to confidential supervisory information.”

Read CFPB Press Release, Bulletin.

Monday, January 26, 2015

CFPB Takes Action Against Large Banks for Illegal Mortgage Kickbacks

By Outside Counsel, Chrys D. Lemon, McIntyre & Lemon, PLLC

The CFPB took action against two large banks and their employees for participating in an allegedly illegal marketing-services-kickback scheme with a title company.

According to the CFPB, the title company “gave the banks’ loan officers cash, marketing materials, and consumer information in exchange for business referrals. The proposed consent orders, filed in federal court, would require $24 million in civil penalties from [one of the banks], $600,000 in civil penalties from [from the other bank], and $11.1 million in redress to consumers whose loans were involved in this scheme.”

The title company “was a Maryland-based title company that offered real-estate-closing services from 2005 until it went out of business in April 2014. As part of the marketing-services-kickback scheme, [the title company] offered loan officers valuable services to increase the amount of loan business generated. . . . The services the company offered included purchasing, analyzing, and providing data on consumers and creating letters with the banks’ logos that the company had printed, folded, stuffed into envelopes, and mailed. In return, the banks’ loan officers would . . . [refer] homebuyers to the company for closing services. This scheme was especially profitable for the loan officers, who generally are paid by commission.”

The CFPB found this “marketing-services-kickback scheme [to be a violation of] the Real Estate Settlement Procedures Act (RESPA), which prohibits giving a ‘fee, kickback, or thing of value’ in exchange for a referral of business related to a real-estate-settlement service.”

Read the CFPB Press Release, Complaint, Consent Order 1, Consent Order 2.

Friday, January 23, 2015

This Week at the CFPB

A summary of this week's news about the CFPB from the ABIA and ABA Dodd-Frank Tracker:
The ABIA has a Task Force of members that work on issues related to the CFPB's regulation of insurance products. If you are an ABIA member and would like to learn more about ABIA's work with CFPB to educate them about the bank-insurance industry or join our CFPB Task Force, please contact us and visit our website.