The Office of the Comptroller of the Currency is considering downgrading Wells Fargo for its performance under the Community Reinvestment Act, sources say. The bank could be dropped to "needs to improve" from "outstanding" when the OCC issues its ruling in January.
Mortgage lenders are doing a better job of complying with the TILA-RESPA Integrated Disclosure rule, according to a report by ACES Risk Management. Mortgages with serious defects fell to 1.63% during the second quarter, reversing an upward trend from the prior three quarters, the report says.
The Consumer Financial Protection Bureau fined three reverse-mortgage lenders $790,000. The CFPB claims the lenders used deceptive advertising to lure homeowners into taking out reverse mortgages.
Banks are hopeful that GOP-backed legislation easing some aspects of the Dodd-Frank Act will include a repeal of the Durbin Amendment, which caps debit card swipe fees. House Financial Services Committee Chairman Jeb Hensarling, R-Texas, has put forth legislation that calls for nixing the rule.
Commerce Secretary Penny Pritzker on Tuesday highlighted a commission's recommendation for consolidating cybersecurity regulation, a suggestion that also drew support from FSR. "We're now beginning to see a number of problems ... because it's not harmonized across regulatory agencies, not even at the federal level, much less with states or the international environment," said Heather Hogsett, FSR's vice president of technology and risk strategy.
JPMorgan Chase's fourth-quarter profit will decline by $200 million to $300 million because of costs associated with the well-received Sapphire Reserve credit card, CEO Jamie Dimon says. "The card has been doing great," Dimon said. "Now we have to account for acquisition cost in that business."
Tellers, customer service representatives and employees in some other jobs at Bank of America will see their minimum hourly rate rise from $13.50 to $15 next year, CEO Brian Moynihan says. JPMorgan Chase and Wells Fargo have also announced pay increases for tellers and other bank workers.
Financial-technology companies that use alternative credit scoring may be running afoul of consumer-protection laws, Federal Reserve Governor Lael Brainard says. Social media and other data "may not necessarily have a broadly agreed upon or empirically established nexus with creditworthiness and may be correlated with characteristics protected by fair-lending laws," she said.
President-elect Donald Trump could fire Consumer Financial Protection Bureau Director Richard Cordray once he takes office, even as a court case on the issue remains unresolved. Experts find the move risky.
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