Policy & Regulation

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.