ABA Dodd-Frank Tracker: House Panel Approves Hensarling Housing Bill

This bill is working its way through the legislature.

As passed, the bill would wind down Fannie Mae and Freddie Mac within five years, replace them with a “public utility” to oversee the creation and maintenance of a single platform for the private sale of mortgages and end all federal guarantees. It also would reduce the mortgage insurance coverage provided by the Federal Housing Administration to only 50% of the mortgage being insured and re-target the FHA to serve first-time and low-income homebuyers.

ABA Dodd-Frank Tracker: House Panel Approves Hensarling Housing Bill.

What do you think the impact will be if this bill passes?

ABA Dodd-Frank Tracker: House Panel Approves Hensarling Housing Bill

U.S. consumer bureau’s first criminal referral is a warning for regulated banks | Financial Regulatory Forum

This kind of action by the CFPB will motivate banks to vet their service providers.  This particular action did not involve a title agency but I can see by extension, that title companies will come under the same scrutiny.

“Paul Schieber, a shareholder at the law firm Stevens & Lee, said banks who work with unregulated financial companies needed to carry out thorough checks on their partners past behavior to avoid being on the wrong end of an enforcement action.”

U.S. consumer bureau’s first criminal referral is a warning for regulated banks | Financial Regulatory Forum.

U.S. consumer bureau’s first criminal referral is a warning for regulated banks | Financial Regulatory Forum

Being responsible for your independent contractor’s fraud - Lexology

I found this interesting.  Is this not the issue Dodd/Frank is trying to address in making financial institutions responsible for their 3rd party vendors?  It seems if or when it gets tested in the courts, there will be precedent in this case.

Being responsible for your independent contractor’s fraud – Lexology.

Being responsible for your independent contractor’s fraud - Lexology