Law and regulation

The Obama Administration's issued looser rules Thursday for transactions in the small island nation, but banks still face impediments.

Under pressure from Congress and credit unions, the NCUA significantly dialed back its proposal to institute risk-based capital requirements, raising the threshold of which institutions must comply and softening other provisions.

Facing the prospect of losing its license in California, Ocwen would be wise to settle its probe by state regulators in a timely manner, observers said. If it doesn't, the mortgage servicer could lose significant revenue and might even face a cash crunch.

Regulators on Thursday posted another round of abridged resolution plans for regional U.S. banks and scores of foreign-owned institutions.

Sen. Richard Shelby, R-Ala., is quickly assembling his team after being formally named head of the Banking Committee just last week, with many current and former staffers for the lawmaker taking top slots.

While put-backs and litigation risk are widely recognized as factors that have contributed to tight credit conditions, another factor — high servicing costs for nonperforming loans — is being overlooked.

The Bancorp in Wilmington, Del., said the Federal Deposit Insurance Corp. will assess an insurance premium surcharge after a broader ruling on the status of prepaid cards.

The Consumer Financial Protection Bureau said Wednesday that it was seeking comment on a so-called "safe student account scorecard" that colleges could use to see how banks structure the fees, features and "sales tactics" of financial products to students before forming a partnership.

Federal bank regulators will gather feedback on regulatory relief ideas at a public meeting on Feb. 4 at the Federal Reserve Bank of Dallas, the agencies said Wednesday.

The Federal Reserve's regular economic snapshot showed a moderate but consistent increase in credit quality and demand for banking services nationwide, though the report noted that sources of demand were highly variable and major financial stresses remained in some regions.

A federal agency's plan to tighten membership rules for Federal Home Loan banks would hurt community banks and credit unions — and could endanger the financial system, according to a broad array of stakeholders, including state regulators, lawmakers and institutions.

House lawmakers approved a package of financial services bills on Wednesday, including a controversial delay of the Volcker Rule, despite strong opposition from key Democrats.

The Consumer Financial Protection Bureau is considering releasing a tool that would show schools exactly how much financial institutions will charge borrowers for providing certain account services on campus.

The agency appears to be on the verge of reining in lawsuits that have cost banks hundreds of millions of dollars in recent years.

Regardless of the outcome, MetLife's decision to fight the Financial Stability Oversight Council's ruling that the insurer is "systemically important" will have serious implications for the council's ability to rein in nonbanks.

Capital markets hold the key to the future for the consolidating Wall Street landlords, but the path through is downright bloody.

Regulators want banks to police MSBs for illicit activity, but they do not view all such businesses as high-risk, said David Cohen, Treasury's top AML official.

Lenders and homebuyers should not expect further reductions in Federal Housing Administration's mortgage insurance premiums this year, according to Housing and Urban Development secretary Julian Castro.

As banks look to cuts costs and improve efficiency, many are actively trying to reduce the number of times they "touch" a loan file. The goal: get the application right the first time so it doesn't have to be sent back to the underwriter for time-consuming and costly fixes.

President Obama signed into law a six-year extension to the Terrorism Risk Insurance Act on Monday night, putting to rest months of debate over the program.