Law and regulation

The state's superintendent of financial services has softened his stance toward bitcoin and other payment startups and has already shortened New York's money transmitter license application review process, which used to take nine months.

The New York Department of Financial Services will likely institute an on-ramp for new Bitcoin businesses — and possibly any other kind of money transmitting startups — as a way for them to launch without being burdened by costly licensing requirements.

Thanks to the rise of online and mobile banking, some banks now have significant customer bases in areas where they have little branch presence. The solution is to carve out a category of virtual banks that have tailored CRA responsibilities and examination standards.

New York may grant transitional licenses to small virtual-currency firms and startups to let them grow before facing the full burden of new regulation, the state's top financial watchdog said.

New York may offer transitional licenses to small virtual-currency firms and startups to let them grow before facing the full burden of new regulation, the state’s top financial watchdog said.

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Lenders could face tougher enforcement and higher penalties if they make errors on the new mortgage disclosure forms that are slated to go in effect next August.

The Federal Deposit Insurance Corp. on Friday released its list of enforcement actions from September, including a consent order that played a role in derailing two planned acquisitions.

Federal Housing Finance Agency Director Mel Watt has struck a conciliatory tone, seeking lenders' input and making loan-buyback rules more industry-friendly — a clear signal the administration thinks it needs bankers' help to reignite the tepid housing recovery.

Election Day is just around the corner, but control of the Senate may not be determined until early next year, raising questions about how quickly the Banking Committee could get up and running.

A recap of the informed opinions (and the discussions they generated) on BankThink this week.

WASHINGTON — Sens. Tim Johnson, D-S.D., chairman of the Banking Committee, and Sherrod Brown, D-Ohio, announced the panel will hold a hearing next month over concerns about regulatory "capture" at the bank regulatory agencies.

The net stable funding ratio issued by global regulators is aimed at ensuring a bank has enough strong liquidity to back its particular lineup of assets.

Under fire from New York's top banking regulator, Ocwen Financial took a $100 million charge for a potential settlement for servicing violations and posted a third-quarter loss.

As regulators heighten their scrutiny of Bitcoin businesses, several digital currency supporters are looking for business models that do not subject them to the cumbersome requirements they would face as money services businesses or money transmitters.

WASHINGTON — The Office of the Comptroller of the Currency has tightened up the process it uses to document and track banks that are flagged by examiners for having problems.

Embattled nonbank servicer Ocwen took a $100 million charge for a potential settlement of foreclosure violations and posted a third-quarter loss, but warned the final cost to settle allegations that it backdated foreclosure notices could be higher.

The Supreme Court is slated to hear arguments Tuesday in a case that could determine when and how borrowers are allowed to cancel their mortgages.

Small lenders are hoping a new representation and warranty framework by Fannie Mae and Freddie Mac will offer them alternatives to loan repurchases.

WASHINGTON — A smaller percentage of U.S. households in 2013 were unbanked compared with two years earlier, just as less traditional financial services products such as prepaid cards grew in usage among those without a bank account.