Acting CFPB Head Mick Mulvaney said he thought the payday lending rule was too far along for the agency to change but that he supports a congressional rollback; the Congressional Review Act gives Congress 60 days to nullify a regulation; Mr. Mulvaney is currently involved in a dispute over whether or not he can run the agency on an interim basis and he said he anticipates staying for 5 to 7 months. Source.
The Consumer Financial Protection Bureau (CFPB) had a heightened presence in 2016; it was involved in governance for payday lending and marketplace lenders, it also declared a $100 million fine for Wells Fargo and was declared unconstitutional by a three-judge panel of the D.C. Circuit Court; the CFPB's structure and authority will be a factor for 2017; a marketplace lending retrenchment in 2016 also included a number of new lessons centered around governance and alternative forms of platform investment; decreased confidence and increasing platform defaults will be factors to watch for marketplace lending in 2017 while increasing credit defaults overall, and specifically in auto loans, could also be influential. Source
CFPB to give more information to firms under investigation The head of Credit Suisse’s blockchain efforts said culture is the...
At an event held by the CFPB banks, fintechs, regulators and consumer advocates discussed the data sharing experience; screen scraping...
The Trump administration is looking to potentially name the chair of the National Credit Union Administration to lead the CFPB; J. Mark McWatters has been seen as being a bigger credit union advocate over banks; bankers are concerned because his public record has indicated he lobbies more for breaks that favor credit unions over banks; while a decision is yet to be made bankers are hopeful that the administration will consider those from the banking community as well. Source.
Artificial intelligence (AI) can significantly improve loan decisioning accuracy, but several factors must be considered to maximize that effectiveness. Luckily, given some care and consideration, Zest AI’s chief legal officer Teddy Flo said they can be easily applied.
Big Banks vs. Silicon Valley Startups – Whose Customer Financial Data Is It Anyway? Mixed Bank Earnings; PeerIQ’s Modeling Archive...
New CFPB chief’s memo to staff: Enforce law, but don’t presume guilt 2019 could be the year CRA deadlock ends...
Some fintech companies have stated that banks are not following through on the data sharing guidance set forth by the CFPB; banks on the other hand have said they are following through and sharing data with fintechs; the biggest complaint thus far is that banks are being selective and not granting access widely; banks have more complicated systems and multiple levels of compliance which could end a relationship before it begins; some ideas for better cooperation are for banks to design a set of standards as banks in the UK have done. Source.
Despite recent regulatory changes designed to encourage banks to offer small dollar loans few banks are taking up the challenge;...