Law and regulation

Somali-Americans who send cash home to their relatives can breathe a bit easier following the decision by Merchants Bank of California.

WASHINGTON — Loans for manufactured homes typically come with higher interest rates and fewer consumer protections than more conventional mortgages, the Consumer Financial Protection Bureau said Tuesday.

The investigative story alleging weak supervision by the Federal Reserve Bank of New York has sent shockwaves through the regulatory community, but whether it will lead to any change of course in policy is still an open question.

It is tempting to believe we can avoid another crisis by giving regulators additional controls over the financial markets. A more effective approach would be to acknowledge regulators' limits.

The Consumer Financial Protection Bureau's action against Flagstar Bank on Monday marked a series of firsts for the agency, including the first time it enforced its new mortgage servicing rules and the first time it banned a servicer from servicing new loans until fixes are made.

The Federal Deposit Insurance Corp. has ordered Merrick Bank in South Jordan, Utah, to pay $16.1 million to settle charges related to the marketing of a credit card add-on product.

Hefty penalty seems 'puzzling' since the Seattle and Des Moines FHLB merger seems on track to be the first voluntary merger in the 82-year history of the Federal Home Loan Bank System.

Michigan-based Flagstar Bank will be required to pay $37.5 million in restitution and fines over regulatory allegations it blocked struggling homeowners from receiving foreclosure relief, the Consumer Financial Protection Bureau said Monday.

WASHINGTON — Michigan-based Flagstar Bank will be required to pay $37.5 million in restitution and fines over regulatory allegations it blocked struggling homeowners from receiving foreclosure relief, the Consumer Financial Protection Bureau said Monday.

Banks are likely to reconsider product strategies associated with minimum balance requirements and earnings credit features as they prepare to comply with Basel III.

The DOJ wants the banks it threatens with litigation to admit accountability, pay hefty penalties and takes steps to satisfy the public thirst for payback. But the financial system would be better served if the bulk of regulation was left to the banking agencies.

The CFPB's very public concerns regarding both auto lending and add-on products has led observers to conclude the agency will soon focus specifically on add-on products tied to auto loans, such as extended warranties and theft-prevention services.

Banks, credit unions, payday lenders and installment lenders are likely to feel the impact of restrictions on loans to members of the military that the Defense Department has proposed.

The Federal Deposit Insurance Corp. in August issued eight consent orders and one civil money penalty, according to its latest monthly roundup of enforcement actions released Friday.

Columbia University's Rare Book & Manuscript Library is now the keeper of ledgers, meetings minutes and correspondence covering the years in which The Clearing House Association helped steer the country's banking system through financial turmoil.

Bank of America's recent mortgage settlement with the DOJ includes a number of striking admissions about its underwriting and origination process in the run-up to the financial crisis. These facts may provide banks and correspondent lenders facing buyback demands with a fresh line of defense.

Credit cards and installment loans that are sold to active-duty military members would be subject to a series of consumer protections under the new Defense Department proposal. High-cost lenders easily evaded the earlier rules, which applied more narrowly.

The regulator of Fannie Mae and Freddie Mac should require banks and mortgage lenders to obtain independent, third-party tests to ensure compliance with its guidelines, according to a government watchdog report.

Attorney General Eric Holder, who said he plans to leave office, spent the past year making up for lost time in an effort to hold banks accountable for their role in the 2008 financial crisis.

An improving economy and better execution of loan modifications have meant fewer redefaults on restructured mortgages, the Office of the Comptroller of the Currency said Thursday.