Former CBA Chairman Richard Davis, who plans to retire in April as CEO of U.S. Bancorp but remain executive chairman, is among candidates considered by President Donald Trump for the Federal Reserve Board, sources say. Davis has said he expects policies from the Trump administration to help the banking industry by boosting consumer demand.
More than two-thirds of workers who have access to 401(k)s and similar retirement savings plans don't use them, the Census Bureau has found in research involving tax records. The findings suggest that millions of Americans will face financial hardship in retirement.
Sen. David Perdue, R-Ga., and fellow Republicans plan to employ the Congressional Review Act to prevent the Consumer Financial Protection Bureau from banning arbitration clauses that prohibit consumers from filing class-action lawsuits against financial institutions. "Any rule coming out of the CFPB would be subject to" the Congressional Review Act, says CBA President and CEO Richard Hunt, adding that release of the arbitration rule is ultimately up to CFPB Director Richard Cordray.
Wells Fargo has not given the location of its annual shareholders meeting, frustrating investors because the meeting is only two months away. There is speculation that the meeting will be in Florida, but the bank has declined to comment.
Treasury Secretary Steven Mnuchin has called a meeting of the Financial Stability Oversight Council for "an update on the annual re-evaluation of the designation of a nonbank financial company." The Dodd-Frank Act lets the FSOC deem nonbanks systemically important financial institutions.
Nonbank financial institutions such as Quicken Loans, loanDepot and PHH Mortgage have become the largest mortgage lenders, replacing big banks. Bank of America, Wells Fargo and JPMorgan Chase lent 50% of mortgage origination in 2011, but that had dropped to 21% by September.
After nominating former OneWest Bank chief Steven Mnuchin as treasury secretary, President Donald Trump reportedly is looking to two others who also had ties to OneWest -- former general counsel Brian Brooks to serve as head of the Consumer Financial Protection Bureau and former CEO Joseph Otting to lead the Office of the Comptroller of the Currency. OneWest's mortgage-lending practices were the subject of heavy scrutiny during Mnuchin's confirmation process.
The Consumer Financial Protection Bureau will face Nationwide Biweekly Administration and its founder, Daniel Lipsky, in an April jury trial over the firm's allegedly deceptive mortgage-payoff program. Nationwide argues that the CFPB's naming of Nationwide's banking partners, which included Bank of America and TD Bank, in court filings contributed to their withdrawals from the firm and its subsequent collapse.
Although the Consumer Financial Protection Bureau has tried to simplify lending rules for homebuyers by creating the Loan Estimate and the Closing Disclosure, more than 50% of borrowers see a higher amount than expected at closing, according to a survey of 1,000 first-time and repeat buyers. Purchasers also report inaccurate initial estimates, revision before closing and a lack of knowledge about closing costs.
Minutes of the latest Federal Reserve meeting mention an improving economy and the Trump administration's policy of less taxing and more spending and indicate interest rates could rise as early as March. Fed Governor Jerome Powell and Federal Reserve Bank of Philadelphia President Patrick Harker have said an increase is possible at that time.
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