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Monday, July 28, 2014

Has the CFPB Issued Guidance on the Disclosure of Unemployment or Disability Limitations in Debt Protection or Credit Insurance?

By: ABIA Outside Counsel Chrys D. Lemon and Adam D. Maarec, McIntyre & Lemon, PLLC

The Consumer Financial Protection Bureau (CFPB) has issued a series of enforcement actions related to allegedly deceptive marketing of debt protection products in connection with credit cards. The CFPB also issued a bulletin that addresses the marketing of add-on products, including debt protection products and credit insurance in some circumstances. The bulletin states that terms and conditions must be accurately stated, and that “material limitations on eligibility for benefits” should be disclosed.

Read the full article.

Senate Banking Committee to Hold Hearings This Week on Flood Insurance and Expectations of the GAO Report

On Wednesday, July 30th the Senate Banking Committee will hold a hearing to examine the flood insurance claims process in the Dirksen Senate Office Building at 10:00am (EDT).

Full details and witness list.

On Thursday, July 31st the Senate Banking Committee will hold a hearing to examine the GAO report on expectations of government support for bank holding companies.

Full details and witness list.

All hearings are webcast live and will not be available until the hearing starts.

Friday, July 25, 2014

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.

CFPB Proposes HMDA Changes

The Consumer Financial Protection Bureau yesterday proposed several changes to Regulation C, which implements the Home Mortgage Disclosure Act. The bureau is seeking to add several new categories for reporting by lenders and make changes in how the data is reported.

In keeping with the Dodd-Frank Act, the rule would require lenders to report for the first time property value, loan term, total points and fees, the duration of teaser rates and the age and credit score of the applicant or borrower. The CFPB also proposed that lenders submit data on an applicant’s debt-to-income ratio, interest rate and total points charged, which the bureau said would help it evaluate the impact of its mortgage rules. With only a few exceptions, all dwelling-secured loans would be subject to the rule.

The CFPB proposed a single threshold -- 25 mortgages originated annually -- at which banks and nonbanks become subject to the rule. It said it would align the HMDA reporting requirements with industry data standards and improve the electronic reporting process. The bureau also said it would seek to improve its public, online HMDA database that was launched in February.

Comments are due Oct. 22. ABA will evaluate the proposal and provide feedback.

Read the proposed rule.

For more information, contact ABIA’s  Kevin McKechnie.

Thursday, July 24, 2014

ABIA Hosts Best Practices Panel on Overcoming Challenges for a Bank Owned Insurance Agency

Today, the American Bankers Association hosted a Best Practices Panel on Community Bankers- Overcoming Challenges for a Bank Owned Insurance Agency. Partners Insurance Group and BayCoast Bank discussed their experience and process improvement approach to creating effective synergy between the insurance agency and the bank divisions.

Download the presentation.