Law and regulation

The head of the Independent Community Bankers of America says the government has gone too far demanding banks act like law enforcement.

The Consumer Bankers Association frequently tangles with the Consumer Financial Protection Bureau, but its new chief Tim Wennes struck a more conciliatory tone in an interview. Rules that promote transparency and consumer understanding are good, but consumer choice has to be preserved, he said.

National Credit Union Administration board member Rick Metsger said a Federal Housing Finance Agency proposal to restrict Federal Home Loan Bank membership could give banks an unfair advantage over some smaller credit unions.

House Republicans warned Wednesday that bank examiners are going to continue to pursue small institutions as part of a government crackdown on certain merchants such as payday lenders, pawn shops and gun dealers.

Although time is running out for the Senate to take up pending cybersecurity legislation before the end of the year, key lawmakers said they are still hopeful it could be enacted soon in the wake of several prominent breaches.

New regulatory and investor compliance requirements have put a renewed emphasis on quality control measures. But lenders are discovering the additional costs of these efforts are outweighed by the savings from originating fewer defective loans.

The draft released by the top Financial Services Committee Democrat would remove adverse information from credit reports and require consumer data furnishers to retain records.

A federal judge has dismissed an attempt by the New York Bankers Association to block a New York City law requiring an evaluation of community investments made by banks holding the city's deposits.

Real estate investment trusts don't pose the credit risk to the Federal Home Loan Bank System that regulators claim they do, said the CEO of Two Harbors Investment Corp.

Members of the Senate Banking Committee pressed top regulators on a host of issues, including plans to raise capital standards on the biggest banks and potential changes to a new liquidity rule.

The Federal Housing Administration wants lenders to make fewer mistakes when writing mortgages for the government insurance program. The agency also wants to serve more borrowers with low credit scores. Getting both may be tricky.

A lack of formal training programs and insufficient financial and career incentives limit the availability of skilled risk managers.

The best way to prevent the repo market from freezing up in a future crisis is to require broker-dealers to use Treasury securities as collateral.

MasterCard Inc. won a court clash with European Union antitrust regulators who refused to hand over a study comparing the costs of bank cards with cash.

The Federal Housing Finance Agency is receptive to the idea of Federal Home Loan Bank mergers, according to the agency's director.

In Indonesia, Bank Tabungan is partnering with financial services software company Compass Plus to navigate the issuance of EMV-chip cards ahead of its national deadline.

The Mortgage Bankers Association announced two promotions Monday as part of an organizational realignment plan.

The federal bank regulators proposed more consideration for small-dollar lending and non-branch services as part of a second round of targeted Community Reinvestment Act reforms.

Community bankers are launching a last-ditch effort to push the Senate this year to pass more than a dozen bipartisan regulatory relief bills that have already cleared the House with support from both parties.

Bankers joined loan guarantors in pushing the Federal Housing Finance Agency to ease proposed capital rules for mortgage insurers, saying the plan will make borrowing less affordable for homebuyers unless it's revised.