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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.

Mnuchin, McMahon Votes Expected This Week; Yellen on the Hill

The full Senate is expected to vote this week on the confirmations of Steve Mnuchin as treasury secretary and Linda McMahon as administrator of the Small Business Administration.

Meanwhile, Federal Reserve Chair Janet Yellen will appear before Congress this week to deliver a semi-annual report on monetary policy, addressing the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday. The House subcommittee on housing and insurance will also hold a hearing entitled “Assessing the U.S.-EU Covered Agreement” on Thursday.

Tuesday, January 31, 2017

NFIP Selects Marsh Subsidiary for Tech Platform

The National Flood Insurance Program (NFIP) has selected Torrent Technologies, a subsidiary of Marsh LLC, a US-based global leader in insurance and risk management, to provide a technology platform for responding to flood events.

As the NFIP Direct Service Provider, Torrent's platform will be used to manage NFIP policies and respond to flood events, with the goal of streamlining the process for agents and providing real-time data on flood related events to the federal government.

“When households and businesses suffer from a flood, they need to be paid quickly and accurately so they can restore their lives and their property," said Kevin Tobin, President and CEO of Marsh’s Insurance Services Group. “We believe Torrent’s advanced technology will enable us to interact more efficiently with those who may have suffered a flood loss and accelerate the payment of claims.”

Marsh has made continued investments to further develop Torrent’s proprietary TorrentFlood system to enable fast and efficient claims payments for policyholders and a streamlined application process for agents.