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Monday, February 27, 2017

Trump Orders Agencies to Create Regulatory Reform Task Forces

President Trump on Friday issued an executive order as part of his administration’s efforts to reduce regulatory burdens. The order requires agencies to appoint regulatory reform task forces led by regulatory reform officers, with a mandate to identify regulations that eliminate jobs or inhibit job creation; are outdated, unnecessary or ineffective; have costs that outweigh their benefits; are inconsistent with regulatory reform initiatives; or derive from since-rescinded executive orders. Initial reports are due within 90 days.

Read the order.

Read the release.

CFPB Speeds Up Enforcement Efforts

By: McIntyre & Lemon, PLLC

Law360 reports that the Consumer Financial Protection Bureau (CFPB) has greatly enhanced its enforcement efforts in anticipation that the Trump administration will replace its director, Richard Cordray.

According to Law360, the CFPB has come under fire by Republican lawmakers for what is seen as its aggressive enforcement actions and implementation of new consumer protection rules under Cordray’s leadership. Facing an uncertain future under the Trump administration, and with Republicans controlling Congress, the CFPB’s enforcement team is said to be moving at a quicker pace to push through as many enforcement actions as they can muster.

Between January 1 and February 17, the CFPB filed a total of 10 enforcement actions, confirming a significant increase compared to previous years. The CFPB maintains, however, that the pace of its enforcement work is a result of the violations it investigates with no noticeable change in the last few months.

Friday, February 17, 2017

Full Circuit Court to Hear Appeal of CFPB Structure Case

The full D.C. Circuit Court of Appeals yesterday agreed to hear the appeal in PHH Mortgage v. Consumer Financial Protection Bureau, a closely watched case over whether the CFPB’s leadership structure -- a single powerful director who cannot be removed at will by the president -- is constitutional.

Yesterday’s order also vacated an October 2016 ruling by a three-judge D.C. Circuit panel finding the structure unconstitutional and allowing the director’s removal not just “for cause” but at the president’s discretion -- thus preventing President Trump from removing current director Richard Cordray before his term ends in 2018.

Oral arguments in the “en banc” review of the case will be heard by the D.C. Circuit on May 24. The case arose in 2015, when Cordray overruled an administrative law judge’s recommendation for a $6.5 million fine against mortgage lender PHH for allegedly requiring unlawful kickbacks from mortgage insurers in violation of the Real Estate Settlement Procedures Act. ABA will continue to monitor the case as it progresses.

Read the order.

Wednesday, February 15, 2017

FDIC Announces Relief for Louisiana Banks after Storms

The FDIC yesterday announced steps to provide regulatory relief to financial institutions and facilitate recovery in areas of Louisiana affected by recent severe storms, tornadoes, high winds and flooding. The FDIC is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the severe weather. It will also consider regulatory relief from certain filing and publishing requirements.

Read more.

Monday, February 13, 2017

Wells Fargo New App Encourages Savings and Increase Engagement

At the end of last year, Wells Fargo introduced a new application called "Daily Change," a tool meant to improve and incentivize savings by challenging customers to take on tasks like bringing lunch for a week. The app measures progress ad sends congratulatory messages and then follows up by asking them to transfer the money saved into their savings account. While this app is utilized to improve savings. Wells Fargo can also use it for marketing and increased customer engagement. The push notifications and reminders can drive users to use their mobile banking app on a more regular basis increasing bank-customer interactions.

Read more.