NYAMB Industry News & Updates

DFS Cybersecurity Regulation Updates and Reminders September 2025

Edith Tella — Thu, 25 Sep 2025 22:26:40 GMT

In 2023, DFS amended its landmark Cybersecurity Regulation (Part 500) with requirements rolling out through November 2025. To assist entities of all sizes, DFS provides regular updates with deadlines, resources, and practical insights.

In this month’s edition:

Final Part 500 Requirements Take Effect November 1
New MFA Requirements Resource
Cybersecurity Insights: Help Desk Social Engineering
DFS is Hiring: New Opportunities in Cybersecurity
ICYMI: Annual Compliance Submissions Were Due in April

Click Here for full Notice

Cybersecurity Regulation Updates and Reminders 2025

Edith Tella — Fri, 28 Feb 2025 18:24:41 GMT

In 2023, the Department of Financial Services (DFS) issued its amended Cybersecurity Regulation with requirements rolling out through 2025.

To assist entities of all sizes throughout the rollout of the regulation, DFS is providing regular updates on important information and helpful resources.

In this month’s edition:

Annual Compliance Submissions Due by April 15
New Requirements Coming May 2025
Cybersecurity Regulation Refresher Videos
ICYMI: FAQs on the Shield Act

Annual Compliance Submissions Due by April 15

CLICK HERE TO ACCESS ALL THE DETAILS, DEADLINES, AND RESOURCES

DFS Notice on Guidance to Address Cybersecurity Risks Arising from Artificial Intelligence

Edith Tella — Wed, 16 Oct 2024 15:40:35 GMT

Today, the New York State Department of Financial Services (DFS or the Department) issued new guidance to help New York’s financial services sector understand and assess cybersecurity risks arising from artificial intelligence (AI).

Read the full Notice CLICK HERE

CFPB Notice CFPB has announced three rulemakings related to threshold adjustments.

Edith Tella — Tue, 15 Oct 2024 18:59:54 GMT

The first rule is a joint rulemaking between the CFPB, the Federal Reserve Board, and the Office of the Comptroller of the Currency to adjust the threshold for exempting loans from special appraisal requirements under the TILA Higher Priced Mortgage Loan Appraisal rule. This adjustment is effective January 1, 2025.

Read full notice CLICK HERE

NMLS Notice Update Your NMLS Accounts Now – And Save Time Ahead of Renewals

Edith Tella — Tue, 15 Oct 2024 18:56:56 GMT

MLS has a new and improved login experience that requires action the first time you login. We strongly encourage you to log in to NMLS before Nov. 1 to ensure your account is up to date when you start the renewals process. As a reminder, the NMLS annual renewal period starts Nov. 1 and will continue through Dec. 31.

Read entire message CLICK HERE

DFS Notice Renewal of License/Registration for 2025

Edith Tella — Mon, 07 Oct 2024 18:53:47 GMT

Kindly note, beginning November 1st, of each calendar year, New York regulated entities are required to process a renewal request through the Nationwide Multistate Licensing System & Registry (“NMLS”). All renewals must be processed through the NMLS no later than December 31, 2024. Although the Department does not charge a renewal fee for entities to renew their license or registration, the NMLS collects a system processing fee of $100.

Read the entire notice CLICK HERE

DFS Cybersecurity Regulation Updates and Reminders

Edith Tella — Fri, 12 Jul 2024 12:28:56 GMT

In 2023, the Department of Financial Services (DFS) amendedits Cybersecurity Regulation. To assist entities throughout the rollout of the regulation, DFS is providing regular updates on important information and helpful resources.

CLICK HERE to see what you need to know this month.

DFS’s Cybersecurity Regulation 23 NYCRR Part 500 Resource

Edith Tella — Mon, 13 May 2024 20:12:29 GMT

As you know, DFS’s Cybersecurity Regulation 23 NYCRR Part 500 requires covered entities, including individual licensees and single person regulated entities, to maintain a cybersecurity program.* To assist individual licensees and single person regulated entities in creating a cybersecurity program, DFS has developed a model Cybersecurity Program Template.

CLICK HERE to read full post

Legislative Update - Latest Update Amended Part 500 Cybersecurity Regulation from the NYSDFS

Edith Tella — Mon, 06 Nov 2023 18:14:19 GMT

Today, the New York State Department of Financial Services (“Department” or “DFS”) adopted amendments to its Cybersecurity Regulation, 23 NYCRR Part 500. The amended regulation incorporates current best practices to better protect businesses and consumers from emerging cyber threats and further tailors the requirements based on businesses’ risks and resources. CLICK HERE FOR FULL NOTICE

Legislative Update - Notice on Amended Part 500 Cybersecurity Regulation from the NYSDFS

Edith Tella — Wed, 01 Nov 2023 18:12:07 GMT

Important update from NYSDFS due to rapidly evolving situation with Ukraine & Russian invastion.

Edith Tella — Wed, 09 Mar 2022 13:32:48 GMT

Due to the rapidly evolving situation in Ukraine and Russian invasion, the New York State Department of Financial Services is issuing Guidance to all regulated individuals and entities (“regulated entities”). The Guidance can be viewed online here: https://www.dfs.ny.gov/industry_guidance/industry_letters.

Read full update click here

Cybersecurity Resource Center

Edith Tella — Thu, 27 Jan 2022 00:52:53 GMT

Reference Link: Cybersecurity Resource Center | Department of Financial Services (ny.gov)

NYS DFS Coronavirus Information for Industry and Regulated Entities

Edith Tella — Thu, 27 Jan 2022 00:50:54 GMT

Reference Link

Coronavirus Information for Industry and Regulated Entities | Department of Financial Services (ny.gov)

NYS DFS VOOR Resource

Edith Tella — Wed, 29 Dec 2021 00:53:54 GMT

Reference Link: Volume of Operations Report | Department of Financial Services (ny.gov)

CFPB Rescinds Temporary Policy Statements to Ensure Industry Complies with Consumer Protection Laws

Edith Tella — Wed, 31 Mar 2021 18:48:28 GMT

FOR IMMEDIATE RELEASE: March 31, 2021
MEDIA CONTACT: Office of Communications
Tel: (202) 435-7170

CFPB Rescinds Temporary Policy Statements to Ensure Industry Complies with Consumer Protection Laws

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today announced it is rescinding seven policy statements issued last year that provided temporary flexibilities to financial institutions in consumer financial markets including mortgages, credit reporting, credit cards and prepaid cards. The seven rescissions, effective April 1, provide guidance to financial institutions on complying with their legal and regulatory obligations. With the rescissions, the CFPB is providing notice that it intends to exercise the full scope of the supervisory and enforcement authority provided under the Dodd-Frank Act. The CFPB is also rescinding its 2018 bulletin on supervisory communications and replacing it with a revised bulletin describing its use of matters requiring attention (MRAs) to effectively convey supervisory expectations.

Click Here for Full Release

Department of Financial Services Issues Cybersecurity Alert to Regulated Entities Concerning Microsoft Exchange Email Servers (Industry Letter)

Edith Tella — Tue, 09 Mar 2021 23:30:00 GMT

The New York State Department of Financial Services (“DFS”) today issued the following industry letter to all of its regulated entities following the recent discovery of cybersecurity vulnerabilities in Microsoft Exchange Server.

Read Full Industry Letter

CFPB Clarifies That Discrimination by Lenders on the Basis of Sexual Orientation and Gender Identity Is Illegal

Edith Tella — Tue, 09 Mar 2021 22:00:00 GMT

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule clarifying that the prohibition against sex discrimination under the Equal Credit Opportunity Act (ECOA) and Regulation B includes sexual orientation discrimination and gender identity discrimination. This prohibition also covers discrimination based on actual or perceived nonconformity with traditional sex- or gender-based stereotypes, and discrimination based on an applicant’s social or other associations.

Read Full Press Release

“Hard Money Loans Versus Fix & Flip Loans and Why the Industry is Confusing the Two”

Edith Tella — Mon, 08 Mar 2021 18:08:45 GMT

Article written by: New Jersey based Mortgage Expert, Michael Mikhail, CEO of Stratton Equities, reviews Hard Money and Fix & Flip Loans Programs

Regardless of the type of investor you are and your loan scenario, there is an array of loan programs that are designed to meet all your mortgage needs.

Hard Money and Fix & Flip Loans are among the most popular programs that investors utilize for their real estate investments. Although, they are two different programs, many in and outside the industry believe them to be the same loan…but this is the furthest thing from the truth.

Read Full Article

Notification from NYSDFS! Revamping Mortgage Branch License Process

Edith Tella — Tue, 25 Aug 2020 14:09:49 GMT

Below is a link to the new form that will be rolled out to simplify the branch licensing process. Effective with applications submitted through NMLS beginning August 25, entities can use this form. Note that the NMLS checklist has been submitted for update, however, it may not be completed by August 25, 2020.

The New Checklist once posted will require the submission of the attached form and the previously required Out of State Branch Location.

Branch Office Affirmation

Department of Financial Services
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Governor Cuomo Announces New COVID Rental Assistance Program

Edith Tella — Wed, 15 Jul 2020 23:48:09 GMT

https://www.governor.ny.gov/news/governor-cuomo-announces-new-covid-rental-assistance-program

NYSDFS Reminder: 2019 VOOR Report Final Deadline to file is June 30, 2020

Edith Tella — Mon, 08 Jun 2020 21:28:33 GMT

The deadline for filing the annual 2019 Volume of Operations Report (“VOOR”) is June 30, 2020 . The Department does not intend to extend this deadline of June 30, 2020.

This is the link to access the 2019 VOOR https://myportal.dfs.ny.gov/

Kindly note, submission of the Mortgage Call Report (“MCR”) does not replace the annual VOOR filing requirement.

Please review the Industry letter CLICK HERE

Changes to the Fannie Mae underwriting guidelines

Edith Tella — Wed, 06 May 2020 12:49:33 GMT

Attention NYAMB Members:

Please review the changes to the Fannie Mae underwriting guidelines that our lenders are being required to implement during the COVID19 crisis and possibly for sometime beyond. Please have all your loan officers read this and make any changes necessary to your loan application processes immediately.

CLICK HERE for Fannie Mae Letter

An Important update from the NYSDFS "ACTION REQUIRED" 2019 VOOR

Edith Tella — Sat, 25 Apr 2020 00:45:20 GMT

Re: Filing of the 2019 Volume of Operations Report (“VOOR”)

Effective with the 2019 Volume of Operations Report (“VOOR”), the New York State Department of Financial Services (the “Department”) will no longer send letters containing temporary passwords to registered mortgage brokers (“Registrant”) or licensed mortgage bankers (“Licensee”) to facilitate the annual VOOR filing requirements. Licensees and Registrants will be required to establish an account through the Department’s online encrypted portal in order to gain access and electronically file the 2019 VOOR.

Click Here for Full Notice

News Release: FHFA Announces that Enterprises will Purchase Qualified Loans in Forbearance to Keep Lending Flowing

Edith Tella — Wed, 22 Apr 2020 14:30:00 GMT

Washington, D.C. – To support homeowners and mortgage lenders, the Federal Housing Finance Agency (FHFA) is approving the purchase of certain single-family mortgages in forbearance that meet specific eligibility criteria by Fannie Mae and Freddie Mac (the Enterprises).

“We are focused on keeping the mortgage market working for current and future homeowners during these challenging times," said Director Mark Calabria. “Purchases of these previously ineligible loans will help provide liquidity to mortgage markets and allow originators to keep lending."

Click Here to Access Full News Release

FHFA Addresses Servicer Liquidity Concerns, Announces Four Month Advance Obligation Limit for Loans in Forbearance

Edith Tella — Wed, 22 Apr 2020 12:17:21 GMT

Washington, D.C. – Today, the Federal Housing Finance Agency (FHFA) announced the alignment of Fannie Mae's and Freddie Mac's (the Enterprises) policies regarding servicer obligations to advance scheduled monthly principal and interest payments for single-family mortgage loans. Once a servicer has advanced four months of missed payments on a loan, it will have no further obligation to advance scheduled payments. This applies to all Enterprise servicers regardless of type or size.

Click Here for Entire News Release from FHFA

Extension Filing for the VOOR to May 4, 2020

Edith Tella — Tue, 21 Apr 2020 21:00:00 GMT

Volume of Operations Report (VOOR)

Pursuant to §597 of the New York Banking Law, licensed mortgage bankers and registered mortgage brokers are required to file a Volume of Operations Report (VOOR) annually.

2019 Volume of Operations
Report FILING DELAY
NOTIFICATION

Pursuant to §597 of the New York Banking Law, licensed mortgage bankers and registered mortgage brokers are required to file a Volume of Operations Report

(“VOOR”) annually.

Kindly note, the 2019 VOOR filing period is expected to begin May 4, 2020. The Department will be sending out information to regulated entities regarding the revised VOOR filing process.

Temporary COVID-19 Mortgage Loan Originator Bond Submission Process

Edith Tella — Tue, 07 Apr 2020 18:24:48 GMT

To: Regulated Mortgage Companies

Based on the Governor’s mandate regarding non-essential state employees, the New York State Department of Financial Services (the “Department”) is currently operating remotely.

To minimize the impact our remote operations may have on the ability of licensed mortgage loan originators (“MLOs”) to comply with bond requirements, effective immediately and until further notice, the Department will accept MLO Individual and Originating Entity bond and bond related documentation electronically.

Going forward, in addition to mailing original documents to the Department as required, regulated entities can submit MLO Surety Bond(s) and bond related document electronically to MLOSURETYBOND@dfs.ny.gov. The subject line of the email should include the name and NMLS number of the MLO for whom the information is being submitted. The body of the e-mail should contain your name and contact information, as well as the specifics relating to the nature and reason for your submission. For Originating Entity bonds, sponsors must include specific details in the email regarding the purpose for which the bond or certification documents are being provided.

New York State Department of Financial Services

***

CFPB Issues Credit Reporting Guidance During COVID-19 Pandemic

Edith Tella — Wed, 01 Apr 2020 18:30:06 GMT

FOR IMMEDIATE RELEASE:
April 1, 2020

MEDIA CONTACT:
Office of Communications
Tel: (202) 435-7170

CFPB ISSUES CREDIT REPORTING GUIDANCE DURING COVID-19 PANDEMIC

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (Bureau) today released a policy statement outlining the responsibility of credit reporting companies and furnishers during the COVID-19 pandemic. In response to the pandemic, many lenders are being flexible when it comes to consumers’ making payments. The Bureau’s statement underscores that consumers benefit if lenders report accurate information about these arrangements to credit bureaus so that the credit reports of consumers are accurate.

“During this time of uncertainty, we are providing clarity to ensure the consumer reporting industry can continue to function,” said Director Kraninger. “Consumers rely on their credit report to purchase a new car, their new home, or to finance their college education. An effective consumer reporting system is critical in promoting fair and efficient access to credit in the consumer financial services market.”

As lenders continue to offer struggling borrowers payment accommodations, Congress last week passed the CARES Act. The Act requires lenders to report to credit bureaus that consumers are current on their loans if consumers have sought relief from their lenders due to the pandemic. The Bureau’s statement informs lenders they must comply with the CARES Act. The Bureau’s statement also encourages lenders to continue to voluntarily provide payment relief to consumers and to report accurate information to credit bureaus relating to this relief. The continuation of reporting such accurate payment information produces substantial benefits for consumers, users of consumer reports, and the economy as a whole.

In addition, in response to staffing and resources constraints on lenders and credit bureaus due to the pandemic, the Bureau’s statement also provides flexibility for lenders and credit bureaus in the time they take to investigate disputes. The Bureau specifically states that it does not intend to cite in an examination or bring an enforcement action against firms who exceed the deadlines to investigate such disputes as long as they make good faith efforts during the pandemic to do so as quickly as possible.

Earlier this month, the Bureau provided consumers with resources to protect their credit. The Bureau’s blog outlines the steps consumers should take if they cannot make a payment, how to dispute inaccurate information on their credit report, and how to obtain a free copy of their credit report. The blog can be found here.

Statement on Supervisory and Enforcement Practices Regarding the Fair Credit Reporting Act and Regulation V in Light of the CARES Act.

###

Coronavirus Emergency Loans: Small Business Guide and Checklist

Edith Tella — Tue, 31 Mar 2020 19:08:54 GMT

The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses.

Click Here for SB Guide & Checklists

NMLS Policy Changes in Response to COVID-19 Pandemic

Edith Tella — Tue, 31 Mar 2020 18:25:54 GMT

March 31, 2020

The NMLS Policy Committee has been reviewing certain NMLS policies in response to the COVID-19 pandemic and its impact on state regulated entities.

Following the Federal Financial Institutions Examination Council's release announcing there would be a 30-day extension for certain reports, the NMLS Policy Committee has amended the previously announced 60-day temporary deadline extension for the following types of reporting submitted in NMLS:

CLICK HERE for full notice

For Immediate Release from the NYS DFS: Update to the Guidance to New York State Regulated Institutions

Edith Tella — Wed, 25 Mar 2020 20:56:42 GMT

The NYS DFS has just issued the following Industry letter:

To the Chief Executive Officers or the Equivalents of New York State Regulated Institutions:

This is an update to the “Guidance to New York State Regulated Institutions and Request for Assurance of Operational Preparedness Relating to the Outbreak of the Novel Coronavirus” (the Industry Letter) issued by the New York State Department of Financial Services (the Department) on March 10, 2020. The Industry Letter requested a response within 30 days from the date of the Letter, which is April 9, 2020.

The Department has received various requests to extend the time to respond to the Industry Letter due to the impact of COVID-19. The Department recognizes and appreciates that many institutions are currently experiencing resource and other constraints during this challenging time. To that end, the Department hereby extends the deadline for responding to the Industry Letter to May 25, 2020.

Click Here for a copy of DFS Letter

NYAMB & Covid 19 Q&A for Broker & Affiliate Members

Edith Tella — Tue, 24 Mar 2020 21:24:20 GMT

Attention all Members and Affiliates of the New York Association of Mortgage Brokers:

As a follow up to my message earlier today this letter is to inform the membership that your association is currently working carefully with your regulators and other industry partners in response to the current world health crisis and the effect that this may be having on your businesses to date and in the unforeseeable future.

I have received calls and emails from many of you asking for advice and or input on a number of areas that are a concern to all of us so I will attempt to address the most immediate concerns of New York Mortgage Brokers in this letter and then follow up later this week with additional information as necessary.

Please stay tuned to these Important Notices so that you can stay on top of the direction of your industry as we all move through this together.

Question : Are NYS Mortgage Brokers considered essential Businesses?Answer : Yes, according correspondence received today from the NYSDFS, Mortgage Brokerage is an Essential Financial Service.

For Consideration : NY Mortgage Brokers must carefully consider the risks to the public when operating their business and the recommendation from the CDC to work from home should be the current standard of practice for most mortgage brokers. If you are a (1) person operation the current law exempts you from the stay at home provision. NYSDFS has issued emergency guidelines for working at home. Employees may NOT conduct any “face to face” business with consumers from any property other than the licensed location. However, employees will be allowed to take mortgage applications from a secure, remote location such as their own home. You are required to adhere to the regulation regarding the safety of all consumer data. Remote users will be required to implement the same standard for operation as would be expected in the office and should follow all policies and procedures.

Click Here for all Q&A

NYS Governor’s Executive Order 202.6 "Essential Business"

Edith Tella — Mon, 23 Mar 2020 13:30:00 GMT

We just received clarification to the Governor's Executive Order 2026 "Essential Business". Please see below from Gayathri Nair, Financial Services Manager of the NYS DFS:

"Based on Governor’s Executive Order 202.6, "Essential Business," includes Financial Institutions and services related to financial markets. Therefore Brokers are considered essential business."

Link to Governor guidelines : https://www.governor.ny.gov/news/governor-cuomo-issues-guidance-essential-services-under-new-york-state-pause-executive-order

Click Here to Read Notice in Full

Guidance to New York State Regulated Institutions and Request for Assurance of Operational Preparedness Relating to the Outbreak of the Novel Coronavirus

Edith Tella — Wed, 11 Mar 2020 17:39:57 GMT

copy of Industry Letter issued by the NYSDFS on May 10, 2020

To: The Chief Executive Officers or the Equivalents of New York State Regulated Institutions

The New York State Department of Financial Services (DFS) is issuing this guidance and request for assurance to ensure your institutions have preparedness plans in place to address operational risk posed by the outbreak of a novel coronavirus known as “COVID-19”.

Click Here to read full content of letter

Key Dates for 2019 Cybersecurity Filings

Edith Tella — Wed, 30 Jan 2019 21:30:51 GMT

All regulated entities and licensed persons of the New York State Department of Financial Services (DFS) are required to file various notices to the Superintendent.

January 2019 Covered Entities Must File Notices of Exemption
- Exemptions filed in 2017 and 2018 have expired. Any DFS regulated entity or licensed person that is currently entitled to an exemption must file an Initial Notice of Exemption prior to the February 15, 2019 due date for the annual Certification of Compliance.
February 15, 2019 Compliance Certification Filing Deadline
- Regulated entities and licensed persons must file the Certification of Compliance for calendar year 2018 no later than February 15, 2019.

Click Here for More Details

DFS Guidance on Whistleblowing Program

Edith Tella — Wed, 16 Jan 2019 18:13:25 GMT

The New York State Department of Financial Services is issuing this guidance to all entities chartered, licensed, or regulated by the Department. This guidance applies to all such regulated institutions regardless of industry, size, or number of employees.

CLICK HERE to access full content of DFS Letter

Request for Information Regarding the Bureau’s Consumer Complaint and Consumer Inquiry Handling Processes Docket Number CFPB-2018-0014

Edith Tella — Mon, 16 Jul 2018 02:43:07 GMT

NAMB's letter to The Honorable J. Michael Mulvane, Acting Director
Bureau of Consumer Financial Protection

Read Context of Full Letter Click Here

NYAMB Announces New Compliance Line, Names Barone Legal Counsel

Edith Tella — Tue, 22 May 2018 23:30:45 GMT

The New York Association of Mortgage Brokers (NYAMB) has announced the creation of the NYAMB Compliance Line to provide its members who have questions or concerns regarding residential mortgage compliance matters with an experienced, centralized source of information. Read full article

House Passes S.2155 Dodd-Frank Reform Bill

Edith Tella — Tue, 22 May 2018 23:29:55 GMT

S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act just passed the House. This bill passed the senate back in March of this year and was sent back to the House for approval and now sits on President Trump's desk for approval. The bill rolls back reforms from the 2010 Dodd-Frank Act.

Freddie Mac Announces HomeOne(SM) Conventional 3% Down Payment Mortgage to Broaden Access to Credit for Qualified First-Time Homebuyers.

Edith Tella — Mon, 16 Apr 2018 23:26:04 GMT

MCLEAN, Va., April 26, 2018 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB:FMCC) announced today HomeOne mortgage, a new conventional (non-FHA) 3% down payment option for qualified first-time homebuyers. HomeOne mortgage broadly serves borrowers without geographic or income restrictions and complements the company’s Home Possible^® mortgage products for low-to-moderate income audiences. HomeOne will be available starting July 29, 2018. Read full article

BREAKING: Senate passes rollback of Dodd-Frank banking rules

Edith Tella — Wed, 14 Mar 2018 22:30:00 GMT

Bill passes 67-31 March 14, 2018 source: Caroline Basile, HousingWire

The Senate spent the first part of this week working through the bill sorting through the more than 100 proposed amendments. While the final vote was originally expected last week, it was pushed back to this week in order to consider the amendments. The bill, which aims to ease regulations on small banks, was sponsored by Banking Committee Chairman Mike Crapo, R-Idaho, with nearly 20 bipartisan co-sponsors, and was introduced in the Committee on Banking, Housing and Urban Affairs.

Read full article

Senate postpones vote for Dodd-Frank reform bill

Edith Tella — Mon, 12 Mar 2018 14:58:58 GMT

Unable to agree on more than 100 amendments
March 12, 2018 Author: Kelsey Ramírez

Click Here for Full Article

DFS SUPERINTENDENT VULLO ISSUES CYBERSECURITY FILING DEADLINE REMINDER

Edith Tella — Wed, 24 Jan 2018 20:35:37 GMT

Press Release: 1/22/18

Financial Services Superintendent Maria T. Vullo today reminded all regulated entities and licensed persons covered by the Department of Financial Services’s (DFS) landmark cybersecurity regulation that the first certification of compliance requiring a statement to the Superintendent covering the prior calendar year must be filed electronically via the DFS cybersecurity portal on or prior to February 15, 2018. Superintendent Vullo also took the opportunity to announce that DFS will now be incorporating cybersecurity in all examinations, including adding questions related to cybersecurity to “first day letters,” which are notices the Department issues to commence its examinations of financial services companies, including examinations of banks and insurance companies for safety and soundness and market conduct.

Read Full Press Release CLICK HERE

Bureau issues annual notice of asset-size exemption thresholds for Regulations C and Z

Edith Tella — Thu, 11 Jan 2018 12:30:00 GMT

On Dec. 27, 2017, the Bureau announced the asset-size exemption thresholds for depository institutions under Regulation C and for creditors under the escrow requirements and small-creditor portfolio and balloon-payment qualified mortgage requirements, and the prohibition against balloon-payment high-cost mortgages under Regulation Z. These thresholds became effective Jan. 1, 2018.

You can access the notices at:

Regulation C: http://www.consumerfinance.gov/policy-compliance/rulemaking/final-rules/home-mortgage-disclosure-regulation-c-adjustment-asset-size-exemption-threshold/

Regulation Z: http://www.consumerfinance.gov/policy-compliance/rulemaking/final-rules/truth-lending-act-regulation-z-adjustment-asset-size-exemption-threshold/

CFPB Regulatory Implementation Team
Consumer Financial Protection Bureau

Financial CHOICE Act H.R. 10 Passes the House

Edith Tella — Sat, 10 Jun 2017 02:43:52 GMT

The U.S. House of Representatives voted on Thursday to pass the Republican-led Financial CHOICE Act, H.R. 10, which would abolish the Dodd-Frank Wall Street Reform and Consumer Protection Act.

From here, the Financial CHOICE Act moves to the Senate for a vote...CLICK HERE TO READ FULL ARTICLE

CFPB Opens Up Ability to Repay Rule

Edith Tella — Sat, 10 Jun 2017 02:42:40 GMT

The CFPB is assessing the Ability to Repay rule, also known as the Qualified Mortgage rule, they released in January of 2014. Under the rule, we have a 43% ratio that essentially only applies to private industry loans and a 3% cap that really only applies to mortgage brokers because of all of the exemptions. This is your opportunity to comment. Certainly, we would recommend that they remove lender-paid compensation from the 3% cap. That would give an even playing field for all originators, that the CFPB claims to want to create. Secondly, the government loan exemption from the 43% ratio expires in 2021. The CFPB must decide in this iteration if that should be extended. Changing to a 50% DTI would be the best choice but we really need to extend the GSE/FHA/VA exemption if raising the DTI is not their choice. They also need to make certain streamline refinances remain QMs.

Volume of Operations Report (VOOR) NYSDFS

Edith Tella — Wed, 17 May 2017 19:08:45 GMT

May 17, 2017

Pursuant to §597 of the New York Banking Law, licensed mortgage bankers and registered mortgage brokers are required to file a Volume of Operations Report (“VOOR”) annually.

The Department is pleased to announce the 2016 VOOR will be accessible beginning Monday, May 22, 2017 at 9:00am EST. Correspondence outlining the filing requirements and password were mailed out to licensed mortgage bankers and registered mortgage brokers on May 17, 2017. Kindly note, all VOOR filers will have six weeks from the date of this correspondence to electronically file the required VOOR information.

click link for more information http://www.dfs.ny.gov/banking/voor.htm

CFPB proposes clarifications to the Home Mortgage Disclosure Act (Regulation C) October 2015 Final Rule

Edith Tella — Tue, 18 Apr 2017 14:45:48 GMT

The Consumer Financial Protection Bureau (CFPB) has issued a proposal to facilitate compliance with the 2015 updates to the Home Mortgage Disclosure Act (HMDA) rule. The changes proposed would help financial institutions comply with the 2015 HMDA Final Rule by clarifying the information they are required to collect and report about their mortgage lending.

You can access the proposal on the Bureau’s website.

New York State Department of Financial Services NYCRR 500 Cybersecurity Requirement for Financial Service Companies

Edith Tella — Tue, 21 Mar 2017 21:22:12 GMT

The New York State Department of Financial Services (“DFS”) has been closely monitoring the evergrowing threat posed to information and financial systems by nation-states, terrorist organizations and independent criminal actors. Recently, cybercriminals have sought to exploit technological vulnerabilities to gain access to sensitive electronic data. Cybercriminals can cause significant financial losses for DFS regulated entities as well as for New York consumers whose private information may be revealed and/or stolen for illicit purposes. The financial services industry is a significant target of cybersecurity threats. DFS appreciates that many firms have proactively increased their cybersecurity programs with great success.

Given the seriousness of the issue and the risk to all regulated entities, certain regulatory minimum standards are warranted, while not being overly prescriptive so that cybersecurity programs can match the relevant risks and keep pace with technological advances. Accordingly, this regulation is designed to promote the protection of customer information as well as the information technology systems of regulated entities. This regulation requires each company to assess its specific risk profile and design a program that addresses its risks in a robust fashion. Senior management must take this issue seriously and be responsible for the organization’s cybersecurity program and file an annual certification confirming compliance with these regulations. A regulated entity’s cybersecurity program must ensure the safety and soundness of the institution and protect its customers.

It is critical for all regulated institutions that have not yet done so to move swiftly and urgently to adopt a cybersecurity program and for all regulated entities to be subject to minimum standards with respect to their programs. The number of cyber events has been steadily increasing and estimates of potential risk to our financial services industry are stark. Adoption of the program outlined in these regulations is a priority for New York State.

Read Full Regulation Requirement

Governor Cuomo Announces First-In-The-Nation Cybersecurity Regulation

Edith Tella — Fri, 17 Feb 2017 01:31:55 GMT

Governor Andrew M. Cuomo today announced the first-in-the nation Cybersecurity regulation to protect New York's financial services industry and consumers from the ever growing threat of cyber attacks .

Read Press Release Click Here

Trump Vows to Dismantle Dodd-Frank ‘Disaster’ by Glenn Thrush NY Times

Edith Tella — Tue, 31 Jan 2017 21:28:04 GMT

Update - HUD Suspends FHA Annual MIP Rate Reductions

Edith Tella — Wed, 25 Jan 2017 23:46:27 GMT

Effective immediately, HUD has suspended indefinitely the previously announced rate reduction on annual FHA Mortgage Insurance Premiums (MIP).

For more information, please see HUD Mortgagee Letter 2017-17

Cyber Security Requirements for Financial Institution Companies

Edith Tella — Sat, 31 Dec 2016 17:36:28 GMT

NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES PROPOSED 23 NYCRR 500
CYBERSECURITY REQUIREMENTS FOR FINANCIAL SERVICES COMPANIES

I, Maria T. Vullo, Superintendent of Financial Services, pursuant to the authority granted by sections 102, 201, 202, 301, 302 and 408 of the Financial Services Law, do hereby promulgate Part 500 of Title 23 of the Official Compilation of Codes, Rules and Regulations of the State of New York, to take effect upon publication in the State Register, to read as follows:
(ALL MATTER IS NEW)
Section 500.00 Introduction.
The New York State Department of Financial Services (“DFS”) has been closely monitoring the evergrowing threat posed to information and financial systems by nation-states, terrorist organizations and independent criminal actors. Recently, cybercriminals have sought to exploit technological vulnerabilities to gain access to sensitive electronic data. Cybercriminals can cause significant financial losses for DFS regulated entities as well as for New York consumers whose private information may be revealed and/or stolen for illicit purposes. The financial services industry is a significant target of cybersecurity threats. DFS appreciates that many firms have proactively increased their cybersecurity programs with great success.

Click here to read more

HR 2121 Up for Vote on May 23, 2016 "CALL TO ACTION"

Edith Tella — Tue, 07 Jun 2016 03:25:15 GMT

HR 2121 Up for a Vote on May 23, 2016 - Ask Your Elected House Member to Vote No! Transitional Licensing Bills Harms Consumers - Tweet Your Elected Officials Now! NAMB – The Association of Mortgage Professionals has expressed concerns regarding H.R. 2121, The Transitional Licensing Act of 2015. This bill will be considered on Monday, May 23rd under suspension calender and requires a two-thirds majority vote to pass the House of Representatives.

More info click here

Federal - HR 3393

Edith Tella — Tue, 07 Jun 2016 02:59:06 GMT

Federal - HR 3393

A bill to amend the Truth in Lending Act to clarify that the points and fees in connection with a mortgage loan do not include certain compensation amounts already taken into account in setting the interest rate on such loan, and for other purposes. http://thomas.loc.gov/cgi-bin/query

We Support

NYSDF Guide Books Now Available

Edith Tella — Thu, 16 Jul 2015 20:31:00 GMT

NYAMB has been working with the NYSDFS to get a reference guide published by the Department. We are proud of the ongoing relationship and work we do with the department on behalf of our members and are pleased to announce that the Department has officially released these comprehensive guidebooks that will help companies & individuals to not only apply for a license, but to maintain a license. These guidebooks provide an overview of the regulatory requirements and boils them down into comprehensible directions on what information to file with DFS, at what times, and what licensees and registrants are and are not permitted to do as a regulated entity.

Please be sure to watch for any additional e-notices from NYAMB for updates to these books that may become available as a result of any new or revised mortgage-related federal and state laws and regulations, and Department policies and procedures that may come into effect.

NYSDFS (Updated July 2015)

Mortgage Broker Guidebook (PDF Download)

CFPB Proposes Two-Month Extension of Know Before You Owe Mortgage Rule

Edith Tella — Tue, 30 Jun 2015 04:39:29 GMT

Jun 24 2015

Proposal Open for Public Comment Until July 7th

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today issued a proposed amendment to the Know Before You Owe mortgage disclosure rule, which proposes to move the rule’s effective date to October 3, 2015. The rule, also called the TILA-RESPA Integrated Disclosure rule, requires.....

CFPB DELAYS TRID TILL OCTOBER 1ST

Edith Tella — Thu, 18 Jun 2015 00:30:29 GMT

Statement by CFPB Director Richard Cordray on Know Before You Owe Mortgage Disclosure Rule

WASHINGTON, D.C. - Today, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray issued the following statement on the Know Before You Owe mortgage disclosure rule:

"The CFPB will be issuing a proposed amendment to delay the effective date of the Know Before You Owe rule until October 1, 2015..

read full statement click here

Report: President to Announce Reduction in FHA Premiums

Edith Tella — Wed, 07 Jan 2015 20:14:43 GMT

Author: Tory Barringer January 7, 2015

President Barack Obama will announce this week a reduction to Federal Housing Administration (FHA) mortgage insurance premiums, according to media reports.

Bloomberg reported Wednesday that FHA will cut CLICK HERE to access full article

Housing In 2015: Four Reasons For Optimism (And One For Worry)

Edith Tella — Mon, 05 Jan 2015 19:00:00 GMT

January 05, 201510:58 AM ET

by Marilyn Geewax

Six years ago, homebuilders and Realtors were facing brutal business conditions: millions of Americans were losing their jobs and homes.

As 2015 begins, hiring is strong and CLICK HERE TO ACCESS FULL ARTICLE

NYDFS ISSUES EXAMINATION GUIDANCE TO BANKS OUTLINING NEW TARGETED CYBER SECURITY PREPAREDNESS ASSESSMENTS

Edith Tella — Wed, 10 Dec 2014 20:11:36 GMT

Press Release

December 10, 2014

Contact: Matt Anderson, 212-709-1691

NYDFS ISSUES EXAMINATION GUIDANCE TO BANKS OUTLINING NEW TARGETED CYBER SECURITY PREPAREDNESS ASSESSMENTS

DFS-Regulated Banks to be Examined Based on Cyber Security Protocols, Governance, Third-party Vendor IT Security, Other Issues

Targeted Cyber Security Assessments Will Be Integrated As Ongoing, Regular Part of DFS Exam Process

Benjamin M. Lawsky, Superintendent of Financial Services, today issued an industry guidance letter to all New York State Department of Financial Services (DFS)-regulated banks outlining the specific issues and factors on which those institutions will be examined as part of new targeted, DFS cyber security preparedness assessments. These banks will be examined on their protocols for the detection of cyber breaches and penetration testing; corporate governance related to cyber security; their defenses against breaches, including multi-factor authentication; the security of their third-party vendors, and a number of other issues.

The new cyber security assessments will become regular, ongoing parts of all

CLICK HERE TO ACCESS FULL PRESS RELEASE ISSUED FROM THE NYSDFS

New York State Department of Financial Services – Guidance on Cyber Security

Edith Tella — Wed, 10 Dec 2014 18:38:36 GMT

Read letter put out by the NYSDFS

CLICK HERE

CFPB Proposed Expanded Foreclosure Protections

Edith Tella — Thu, 20 Nov 2014 19:41:56 GMT

Nov 20 2014

CFPB Proposes Expanded Foreclosure Protections

WASHINGTON, D.C. undefined Today, the Consumer Financial Protection Bureau (CFPB) proposed additional measures to ensure that homeowners and struggling borrowers are treated fairly by mortgage servicers. The proposal would require servicers to provide certain borrowers with foreclosure protections more than once over the life of the loan, to put in place additional servicing transfer protections, and to take steps to protect borrowers from a wrongful foreclosure sale. The proposal would also help ensure that surviving family members and others who inherit or receive property have the same protections under the CFPB’s mortgage servicing rules as the original borrower.

SUPERINTENDENT LAWSKY ANNOUNCES STREAMLINED DFS LICENSING FOR MORTGAGE BANKING IN NEW YORK

Edith Tella — Mon, 09 Jun 2014 15:30:46 GMT

Press Release

JUNE 05, 2014

Contact: Matt Anderson, 212-709-1691

CFPB RELEASES EXAM PROCEDURES FOR NEW MORTGAGE RULES

Edith Tella — Thu, 06 Jun 2013 19:01:19 GMT

The CFPB published the first update to its exam procedures for the new mortgage regulations it issued in January 2013. The exam procedures offer financial institutions and mortgage companies valuable guidance on what the CFPB will be looking for as the rules become effective. The new regulations include those on appraisals, escrow accounts, and compensation and qualifications for loan originators. Learn more...

CFPB FINALIZES AMENDMENTS TO ABILITY-TO-REPAY RULE

Edith Tella — Thu, 06 Jun 2013 18:59:56 GMT

The CFPB finalized rules to facilitate access to credit by creating specific exemptions and modifications to the CFPB's Ability-to-Repay rule for small creditors, community development lenders, and housing stabilization programs. The amendments also revised rules on how to calculate loan origination compensation for certain purposes.
Learn more...

CFPB Finalizes Amendments to Ability-to-Repay Rule

Edith Tella — Wed, 29 May 2013 22:24:51 GMT

Press Release issued by CFPB

WASHINGTON, D.C. undefined Today the Consumer Financial Protection Bureau (CFPB) finalized rules to facilitate access to credit by creating specific exemptions and modifications to the CFPB’s Ability-to-Repay rule for small creditors, community development lenders, and housing stabilization programs. The amendments also revised rules on how to calculate loan origination compensation for certain purposes. Today’s final rule amends the CFPB’s Ability-to-Repay rule, which was finalized in January of this year.

CLICK HERE TO READ MORE

CFPB releases largest collection of federal consumer financial complaint data

Edith Tella — Thu, 28 Mar 2013 15:44:05 GMT

from Tracy Wilkerson, CFP

Dear Colleagues,

The Consumer Financial Protection Bureau (CFPB) goes live today with the nation’s largest public database of federal consumer financial complaints, opening up information on more than 90,000 individual complaints on financial products and services.

A breakdown of the Consumer Complaint Database is available at: http://files.consumerfinance.gov/f/201303_cfpb_consumer-complaint-database-fact-sheet.pdf

CLICK HERE FOR PRESS RELEASE

Freddie Mac Offers New Streamlined Modification by Jann Swanson,Mortgage News Daily

Edith Tella — Wed, 27 Mar 2013 17:01:10 GMT

by Jann Swanson

Freddie Mac Offers New Streamlined Modification

Mar 27 2013, 11:47AM

Freddie Mac has announced a new Streamlined Modification Program that it says will "open a new gateway to mortgage relief for many of American's stuggling borrowers." Starting July 1, read more

Companies of All Sizes Need to Be Ready for CFPB Exam, by Brad Finkelstein

Edith Tella — Fri, 15 Mar 2013 17:23:45 GMT

Companies of All Sizes Need to Be Ready for CFPB Exam
By Brad Finkelstein
Small mortgage bankers should not think their organizations are not of interest to the Consumer Financial Protection Bureau because of their size.Click here to read more

Housing Experts Call for QRM-QM Alignment by By Amilda Dymi, Origination News

Edith Tella — Fri, 15 Mar 2013 17:07:44 GMT

Housing experts are warning legislators about the unintended consequences of a narrow qualified residential mortgage definition.

click here to read more of this article

New York's Brokers On the Upswing, Origination News by Brad Finkelstein

Edith Tella — Mon, 28 Jan 2013 17:59:56 GMT

Featured Story

New York's Brokers On the Upswing
By Brad Finkelstein

Louis Borsellino, newly-installed president of the New York Association of Mortgage Brokers, lays out his plans for the coming year.

Click here to read more....

CFPB Compensation Rull Allows Cash Bonus to Loan Officer

Edith Tella — Thu, 24 Jan 2013 23:37:29 GMT

CFPB Compensation Rule Allows Cash Bonus to Loan Officers
By Brian Collins

Mortgage companies can pay their loan officers quarterly and annual cash bonuses under the final LO compensation rule issued by the Consumer Financial Protection Bureau.

NYAMB Contends With Storm, More

Edith Tella — Thu, 24 Jan 2013 23:34:23 GMT

NYAMB Contends With Storm, More
By Brad Finkelstein

Hurricane Sandy and the reelection of Pres. Obama were big topics at the roundtable with NYAMB officers.

CFPB Update: January 16, 2013

Edith Tella — Fri, 18 Jan 2013 18:55:21 GMT

CFPB Issues Rules to Strengthen Protections for High-Cost Mortgages

The CFPB issued final rules to strengthen consumer protections for high-cost mortgages and to provide consumers with information about homeownership counseling. The Bureau also finalized a rule that requires escrow accounts be established for a minimum of five years for certain higher-priced mortgage loans.
Read more...

CFPB Update: January 16, 2013

Edith Tella — Fri, 18 Jan 2013 18:53:19 GMT

CFPB Issues Rule to Protect Consumers from Irresponsible Mortgage Lending

The CFPB has adopted a new rule that will protect consumers from irresponsible mortgage lending by requiring lenders to ensure that prospective buyers have the ability to repay their mortgages.
Learn more...

CFPB Extends Effective Date for New Mortgage Disclosures

Edith Tella — Fri, 16 Nov 2012 19:15:18 GMT

From: Barton.Shapiro@cfpb.gov [mailto:Barton.Shapiro@cfpb.gov]
Sent: Friday, November 16, 2012 1:23 PM
To: Barton.Shapiro@cfpb.gov

Dear Colleagues,

The Consumer Financial Protection Bureau (CFPB) announced that it will give industry extra time to provide certain new disclosures required under the Dodd-Frank Wall Street Reform and Consumer Protection Act in order to allow a more seamless integration with other mortgage disclosures that have been proposed by the Bureau. Per today’s announcement, industry will not be required to provide those disclosures until after the Bureau’s previously proposed mortgage disclosure rules are finalized. Please read below for more information.

Regards,

Bart

CONSUMER FINANCIAL PROTECTION BUREAU EXTENDS EFFECTIVE DATE FOR NEW MORTGAGE DISCLOSURES

Disclosure Requirements Will Be Integrated into CFPB’s Final Mortgage Disclosure Forms Instead of Taking Automatic Effect in January

WASHINGTON, D.C. - The Consumer Financial Protection Bureau (CFPB) announced that it will give industry extra time to provide certain new disclosures required under the Dodd-Frank Wall Street Reform and Consumer Protection Act in order to allow a more seamless integration with other mortgage disclosures that have been proposed by the Bureau. Per today’s announcement, industry will not be required to provide those disclosures until after the Bureau’s previously proposed mortgage disclosure rules are finalized.

“Considering these disclosures on the same timeline will ensure that consumers receive clear, concise, and consistent information,” said CFPB Director Richard Cordray. “By seeking public comment and conducting consumer-testing for these disclosures together, we can avoid the duplication and inefficiency that existed in the past.”

The Dodd-Frank Act required that the CFPB integrate certain disclosures from the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). For decades, TILA and RESPA have required lenders and settlement agents to give borrowers different but overlapping disclosure forms in connection with applying for and closing most mortgages loans. This duplication has long been recognized as inefficient and confusing for consumers and industry. In July, the CFPB proposed new Loan Estimate and Closing Disclosure forms after months of qualitative testing and the Bureau’s Know Before You Owe mortgage initiative.

In addition to requiring the integration of TILA-RESPA disclosures, the Dodd-Frank Act also establishes additional new mortgage disclosure requirements, which would automatically take effect on Jan. 21, 2013 unless other action was taken. These new requirements include disclosures on cancellation of escrow accounts, on a consumers’ liability for debt payment after foreclosure, and on the creditor’s policy for accepting partial payment. The CFPB integrated many of these new requirements into the Bureau’s proposed forms that were released in July 2012.

The Bureau’s July TILA-RESPA integration proposal requested comment on granting more time for companies to provide many of the additional disclosures so that the entire TILA-RESPA disclosure regime could take effect together. Commenters overwhelmingly supported providing this extra time so that all of the disclosures take effect together.

Through a final rule issued today, the Bureau is allowing more time to provide the new disclosures by giving a temporary exemption from the requirements, so that the entire TILA-RESPA disclosure integration regime can go into effect at once. Without this extra time, industry would have to implement these new disclosures twiceundefinedonce on January 21, 2013, and once again when the Bureau finalizes the integrated TILA-RESPA disclosure regime. Consumers will benefit from a comprehensive disclosure rule because the Bureau plans to use consumer-tested, easily understood language in all disclosures.

Though no deadline was mandated for finalizing the TILA-RESPA integrated proposal, the Bureau anticipates that the final rules will be published next year.

The final rule providing this temporary exemption for certain Dodd-Frank disclosures can be found at: http://files.consumerfinance.gov/f/201211_cfpb_final-rule_title-XIV-disclosures-extension.pdf

###

The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit www.ConsumerFinance.gov.

Will QM Crimp Low Downpayment Lending?

Edith Tella — Fri, 19 Oct 2012 18:14:56 GMT

Orignation News 10/19/12

Low downpayment loans could be in danger depending on how the qualified mortgage rule plays out.

click here to read more

Broker Group Fights for 'Dual Compensation' in CFPB’s LO Rule

Edith Tella — Tue, 16 Oct 2012 20:32:27 GMT

Origination News, 10/16/12

A group that represents loan officers is holding out hope that "dual compensation" will be allowed on all mortgage transactions.

Securing the American Dream and the Future of Housing Policy

Edith Tella — Fri, 12 Oct 2012 19:40:43 GMT

Origination News Post 10/12/12

Mitt Romney has put out a paper on his views of the housing market and how he proposes to bring it back fully from the collapse of 2008. Tomorrow we will publish in this space President Obama’s views on housing.

Click Here for more Info

TODAY: Congressman Barney Frank to Debate the Future of Housing Policy

Edith Tella — Fri, 12 Oct 2012 15:59:35 GMT

FOR PLANNING PURPOSES
Friday, October 12, 2012



TODAY: Congressman Barney Frank to Debate the Future of Housing Policy

Congressman Barney Frank today will take part in a moderated discussion on the future of housing policy in the United States. As the former Chairman of the House Financial Services Committee, Frank was a leader in the passage of the 2010 Wall Street Reform and Consumer Protection Act. Frank will engage in what is likely to be a spirited discussion with Keith Hennessy, former Assistant to President George W. Bush for Economic Policy, and former Director of the National Economic Council. WHEN: Friday, October 12, 2012 -- 10:30 am CST, 11:30 am EST WHAT: Opening remarks: Leo Melamed, CME Group Chairman Emeritus Moderator: Terry Savage, Chicago Sun-Times Financial Columnist Panelists: •· Barney Frank, United States Representative of the 4th Congressional District of Massachusetts •· Keith Hennessey, National Economic Council Former Director *The forum will be webcast at: www.cmegroup.com/msri2012* WHERE: W Chicago - City Center 172 West Adams Street Chicago, IL CONTACT For media access to Congressman Frank, please contact Harry Gural by phone at (202) 225-9400. For media access at the CME Group, please contact Michael Shore at (312) 930-2363

FDIC and CFPB Order Discover to Pay $200 Million Consumer Refund for Deceptive Marketing

Edith Tella — Mon, 24 Sep 2012 18:00:00 GMT

Dear Colleagues,

Today, the Federal Deposit Insurance Corporation (FDIC) and the Consumer Financial Protection Bureau (CFPB) announced a joint public enforcement action with an order requiring Discover Bank to refund approximately $200 million to more than 3.5 million consumers and pay a $14 million civil money penalty.

Please see the joint press release below.

Regards,

Bart

FEDERAL DEPOSIT INSURANCE CORPORATION AND CONSUMER FINANCIAL PROTECTION BUREAU ORDER DISCOVER TO PAY $200 MILLION CONSUMER REFUND FOR DECEPTIVE MARKETING

Discover Pays Additional $14 Million Penalty for Deceptive Marketing of Credit Card ‘Add-On Products’

WASHINGTON, D.C. – Today, the Federal Deposit Insurance Corporation (FDIC) and the Consumer Financial Protection Bureau (CFPB) announced a joint public enforcement action with an order requiring Discover Bank to refund approximately $200 million to more than 3.5 million consumers and pay a $14 million civil money penalty. This action results from an investigation started by the FDIC, which the CFPB joined last year. The joint investigation concerned deceptive telemarketing and sales tactics used by Discover to mislead consumers into paying for various credit card “add-on products” – payment protection, credit score tracking, identity theft protection, and wallet protection.

The agencies jointly determined that Discover engaged in deceptive telemarketing tactics to sell the company’s credit card add-on products. Payment Protection was marketed as a product that allows consumers to put their payments on hold for up to two years in the event of unemployment, hospitalization, or other qualifying life events. Discover also sold its Credit Score Tracker, designed to allow a customer unlimited access to his or her credit reports and credit score. The third product was Identity Theft Protection, which was marketed as providing daily credit monitoring. Lastly, Discover’s Wallet Protection product was sold as a service to help a consumer cancel credit cards in the event that his or her wallet is stolen.

Discover’s telemarketing scripts contained misleading language likely to deceive consumers about whether they were actually purchasing a product. Discover’s telemarketers also often downplayed key terms and spoke quickly during the part of the call in which the prices and terms of the add-on products were disclosed. Because of the misleading language in the scripts and the actions of Discover’s telemarketers, consumers were:

•· Misled about the fact that there was a charge for the products: Discover’s telemarketing scripts often used language implying that the products were additional free “benefits,” rather than products for which a fee would be applied to their accounts.

•· Misled about whether they had purchased the products: The telemarketing scripts frequently suggested that consumers would not be charged for the products until after having a chance to review printed materials from Discover. Discover, however, did not provide consumers with the information until after Discover had already initiated the consumer’s purchase of a product.

•· Enrolled without their consent: Discover representatives processed the add-on product purchases without some consumers’ consent. These consumers were then charged for the product on their Discover card.

•· Withheld material information about eligibility requirements for certain benefits: Discover’s telemarketers typically did not disclose critical eligibility requirements for certain payment protection benefits, such as exclusions for pre-existing medical conditions and certain limitations concerning employment.

Enforcement Action

Under the order, Discover has agreed to:

•· Stop deceptive marketing: Discover is required to institute certain changes to its telemarketing of these products that are designed to ensure that these unlawful acts do not occur again. Discover has also agreed to submit a compliance plan to the FDIC and the CFPB for approval, and to take specific corrective actions related to the products.

•· Pay restitution to consumers who purchased the products: Discover will pay approximately $200 million in restitution to more than 3.5 million consumers who were charged for one or more of the products between December 1, 2007 and August 31, 2011. Generally, all consumers affected by Discover’s deceptive practices regarding these products, except those who affirmatively made use of Payment Protection, will receive restitution, with amounts varying depending on when they purchased, and how long they held, the add-on products. All consumers will receive at least 90 days’ worth of fees paid (minus any refunds they have already received), with approximately 2 million consumers receiving full restitution of all of the fees they paid (minus any refunds they have already received).

•· Provide refunds or credits without any further action by consumers: Consumers are not required to take any action to receive their credit or check. If an affected consumer is still a Discover customer, he or she will receive a credit to his or her account. If an affected consumer is no longer a Discover credit card holder, the consumer will receive a check in the mail or have any outstanding balance reduced by the amount of the refund.

•· Submit to an independent audit: Compliance with the restitution terms of the order will be assured through the work of an independent auditor, who will report to the FDIC and the CFPB on Discover’s compliance with the joint FDIC-CFPB Consent Order.

•· Pay a $14 million penalty: The FDIC and the CFPB imposed civil money penalties of $14 million. Discover will pay $7 million of that penalty to the U.S. Treasury and $7 million to the CFPB’s Civil Penalty Fund.

The full text of the Joint FDIC-CFPB Consent Order with Discover is available at: http://files.consumerfinance.gov/f/201209_cfpb_consent_order_0005.pdf

A factsheet on the Consent Order is available at: http://consumerfinance.gov/f/201209_cfpb_factsheet_settlement-with-discover-bank.pdf

###

Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 7,246 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.

Written Testimony of Richard Cordray Before the Senate Committee on Banking, Housing, and Urban Affairs

Edith Tella — Thu, 13 Sep 2012 19:30:00 GMT

Below please find Director Cordray’s written testimony before the Senate Committee on Banking, Housing, and Urban Affairs earlier today.

Regards,

Bart

Written Testimony of Richard Cordray

Director, Consumer Financial Protection Bureau

United States Senate Committee on Banking, Housing, and Urban Affairs

Washington, D.C.

September 13, 2012

Chairman Johnson, Ranking Member Shelby, and Members of the Committee, thank you for inviting me to testify today about the Semi-Annual Report of the Consumer Financial Protection Bureau.

Just over one year ago, the Consumer Bureau became the nation’s first federal agency focused solely on protecting consumers in the financial marketplace. The Semi-Annual Report we are discussing today covers our activities from January 1 through June 30 of this year.

As the report shows, we have been using all of the tools at our disposal to help protect consumers across this country. We pledge to continue our work to promote a fair, transparent, and competitive consumer financial marketplace.

Through our regulatory tools, we have proposed smarter rules that will help fix the broken mortgage market with common-sense solutions. We are writing rules that simplify mortgage disclosure forms and rules that make sure consumers do not receive mortgages that they do not understand or cannot afford. Our rules will also bring greater transparency and accountability to mortgage servicing. And our careful process is that before we propose a rule, a team of attorneys, economists, and market experts evaluates its potential impacts, burdens, and benefits for consumers, providers, and the market.

Our push for accountability extends beyond mortgage servicing. We are holding both banks and nonbanks accountable for following the law. Prior to my appointment, nonbanks had never been federally supervised. The financial reform law specifically authorized us to supervise nonbanks in the markets of residential mortgages, payday loans, and private student loans. We also have the authority to supervise the “larger participants” among nonbanks in other consumer finance markets as defined by rule. So far, we have added credit reporting companies to this group.

It is important for us to exercise sensible oversight of the consumer finance markets, but it is also important that we empower consumers themselves to make responsible financial decisions. Our “Know Before You Owe” campaign involves us working to make mortgages, credit cards, and student loans easier to understand. We also developed “AskCFPB,” an interactive online database with answers to consumers’ frequently asked questions. We also launched the first-ever database of individual complaints about financial products, starting with credit cards. Consumers can use the website to review and analyze information and draw their own conclusions about the customer service provided with these financial products.

We also think it is important to engage directly with consumers so we know more about the struggles and frustrations they encounter in their daily lives. The Bureau has held numerous field hearings across the country so we can talk face to face with consumers on a variety of topics. Our website has a feature called “Tell Your Story,” which encourages consumers to share with us their personal stories to help inform our approach in addressing issues in the financial marketplace. And, perhaps most significantly, we help to resolve consumer disputes with lenders by taking complaints on our website at consumerfinance.gov, as well as by mail, fax, phone, and by referral from other agencies. As of September 3, we have received 72,297 consumer complaints about credit cards, mortgages, and other financial products and services, and the pace of complaints has been increasing over the past year.

All of these processes – rulemaking, supervision, enforcement, and consumer engagement – provide us with valuable information about consumer financial markets. We engage in extensive outreach to large and small institutions, including banks and nonbanks, to gather the best current information as we make policy decisions. We pride ourselves on being a 21st-century agency whose work is evidence-based. So we also conduct our own in-depth studies on consumer financial products, such as reverse mortgages and private student loans. We have issued public requests for information that seek input from consumers, industry, and other stakeholders on issues such as overdraft fees, prepaid cards, and the financial exploitation of seniors.

The new Consumer Bureau has worked on all of these projects while being fully engaged in start-up activities to build a strong foundation for the future. The Bureau has worked to create an infrastructure that promotes transparency, accountability, fairness, and service to the public. Our first year has been busy and full, and this report reflects considerable hard work done by people whom I greatly admire and respect. They are of the highest caliber and they are deeply dedicated to public service. We look forward to continuing to fulfill Congress’s vision of an agency that helps all Americans by improving the ways and means of their financial lives. Thank you.

The semi-annual report can be found online here: http://www.consumerfinance.gov/reports/semi-annual-report/

###

NAMB Government Affairs Update - Free Webinar for NAMB Members 9/13/2012

Edith Tella — Thu, 13 Sep 2012 13:12:12 GMT

Update from Capitol Hill

NAMB signs joint letter on Reg X and Reg Z. We question the use of an "all-in" APR, request the CFPB simplify its approach to rulemakings, and push for a single version of Regulation Z changes so the industry does not have to navigate through overlapping proposals.

Click Here for more inforamtion

Update on Loan Originator Compensation Rulemaking

Edith Tella — Fri, 17 Aug 2012 19:11:00 GMT

Proposed Rule:

http://files.consumerfinance.gov/f/201208_cfpb_tila_mlo_compensation_proposed_rule.pdf

How to Submit a Comment: You can submit a comment by mail or electronically. Please see the instructions under “Addresses” at the beginning of the proposed rule. Please note that comments should be identified by Docket No. CFPB-2012-0037 or RIN 3170-AA13

Deadlines for Submitting Comments: The comment period begins today. Comments must be received by October 16, 2012

CONSUMER FINANCIAL PROTECTION BUREAU PROPOSES RULE TO IMPROVE CONSUMER ACCESS TO APPRAISAL REPORTS

Edith Tella — Wed, 15 Aug 2012 15:36:07 GMT

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) released a proposed rule that would require mortgage lenders to provide home loan applicants with copies of written appraisals and other home value estimates developed in connection with the application. The rule would ensure that consumers receive information prior to closing about how the property’s value was determined.

“When looking to buy a home or refinance a mortgage, consumers need the best available facts and data,” said CFPB Director Richard Cordray. “This rule would guarantee consumers receive important disclosures on how a lender determines the value of the home, making it easier for loan applicants to make informed decisions.”

In response to the mortgage crisis, the Dodd-Frank Wall Street Reform and Consumer Protection Act requires that creditors provide mortgage applicants with a copy of written appraisals and home value estimates developed in connection with the application. Today’s proposed rule would require that creditors inform consumers within three days of applying for a loan of their right to receive a free copy of appraisal reports and home value estimates. Creditors would then be required to provide the reports to consumers as promptly as possible, but in no case later than three days before closing, regardless of whether credit is extended, denied, incomplete or withdrawn.

Appraisals and other home value estimates are used by creditors to inform lending decisions for most home sales. Consumers are typically charged for the costs related to conducting an appraisal; however, currently consumers must request appraisal reports from creditors and may be charged a fee to obtain the report. Under the proposed rule, creditors could still charge reasonable fees associated with conducting appraisals and home value estimates; however, the rule would prohibit creditors from charging consumers fees for obtaining the reports.

The proposed rule would amend the Equal Credit Opportunity Act (ECOA)’s Regulation B, which require certain disclosures and prohibits lenders from discriminating on the basis of race, national origin, sex, or other protected bases. Under the Dodd-Frank Act, the Bureau is authorized to issue regulations implementing ECOA and supervise compliance with ECOA and Regulation B for certain lenders.

The CFPB welcomes comments on the proposed rule. The public will have 60 days, or until October 15, 2012 to review and provide comments on the proposed rule. The CFPB will review and analyze the comments before issuing a final rule in January 2013.

The CFPB’s proposed rule is available at: http://files.consumerfinance.gov/f/201208_cfpb_ECOA_proposed_rule.pdf

A summary of the CFPB’s proposed rule is available at: http://files.consumerfinance.gov/f/201208_cfpb_ECOA_plain_language_summary.pdf

This is one of several rulemakings governing mortgage practices currently underway at the Bureau in order to implement requirements of the Dodd-Frank Act. Today, in partnership with several other federal regulatory agencies, the Bureau is also issuing a proposed rule to establish special requirements concerning appraisals for higher-risk mortgage loans, which would require creditors to use a licensed or certified appraiser to prepare the written appraisal report based on a physical inspection of the property.

The interagency proposed rule is available at: http://files.consumerfinance.gov/f/201208_cfpb_HRM_proposed_rule.pdf

A summary of the interagency proposed rule is available at: http://files.consumerfinance.gov/f/201208_cfpb_HRM_plain_language_summary.pdf

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RFI re financial exploitation of older Americans

Edith Tella — Wed, 15 Aug 2012 07:16:57 GMT

On June 15, 2012, World Elder Abuse Awareness Day, Director Cordray announced a Request for Information (RFI) to learn more from the public about the growing issue of financial exploitation of older Americans and best practices for elder financial management. A recent study suggests elder financial abuse cost seniors more than $2.9 billion in 2010, a 12 percent increase from 2008.

The goals of the RFI are:

•1. To help us understand the senior financial advisor market so we can improve protections for older Americans.
•2. To help make the work of the office for Older Americans more effective.

Read and respond to the RFI:

http://www.regulations.gov/#!documentDetail;D=CFPB-2012-0018-0001

The RFI poses the following questions:

•· How seniors can best determine the legitimacy of the credentials of financial planners and advisors.
•· What financial education, counseling, or management programs are tailored to the needs of older Americans, their families, and their caregivers.
•· Asks for information about power of attorney and guardian abuse, affinity frauds, and the exploitation of older veterans.

Please share what you are seeing and experiencing.

The information you provide us will help us better understand the issues of elder financial abuse and other forms of exploitation.

Thank you,

Skip Humphrey

Assistant Director for Older Americans

The Consumer Financial Protection Bureau

P.S. -- For more information on the Office for Older Americans and to read our blog, go to http://www.consumerfinance.gov/older-americans/

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