GSE reform heats up, Zelle's flaw and CFPB's struggles: Top stories of the week

January 19, 2018 5:59 PM

An exclusive look at the Senate's tightly held housing finance plan drew the most interest from readers this week, while TD's foray into AI and the roller coaster at CFPB also dominated attention.

Signage in front of the Fannie Mae and Freddie Mac headquarters.

Cheat sheet: Senate goes own way on housing finance reform

Senate negotiators are working on a bill that would place Fannie Mae and Freddie Mac into receivership and replace them with multiple mortgage guarantors, according to sources.

(Full story here.)

TD Bank's bold bet on AI

In a move rare for the industry, the bank bought a team of data scientists to bolster its artificial intelligence efforts in areas including product recommendations and fraud prevention.

(Full story here.)

FHFA breaks silence on housing finance reform

FHFA Director Mel Watt said Fannie Mae and Freddie Mac should be reincorporated as private entities and the government must provide an explicit guarantee for catastrophic losses in the secondary mortgage market.

(Full story here.)

Signage is displayed on the exterior of a Bank of America Corp. branch in New York, U.S., on Wednesday, Oct. 12, 2016. Bank of America Corp. is scheduled to release earnings figures on October 17. Photographer: Mark Kauzlarich/Bloomberg

Mark Kauzlarich/Bloomberg

Bank of America reports 84% increase in Zelle P-to-P payments

Fast growth in use of the bank's instance of the person-to-person payments product indicates it could one day rival Venmo.

(Full story here.)

Zelle's anti-fraud efforts trip up key group: Its users

The P-to-P payments service promises to clear transactions in near-real time, but many consumers have complained that they have been unable access their money or even open accounts. Zelle has acknowledged the delays and says they are a result of its rigorous enrollment process.

(Full story here.)

A new name emerges as possible head of CFPB

Jonathan Dever, a Republican Ohio state representative and defense lawyer, is being touted as a top candidate to lead the bureau, according to multiple insiders.

(Full story here.)

Mick Mulvaney, OMB director and acting director of the CFPB

Mick Mulvaney, director of the U.S. Office of Management and Budget (OMB), listens during a House Budget Committee hearing on U.S. President Donald Trump's fiscal 2018 budget proposal in Washington, D.C., U.S., on Wednesday, May 24, 2017. Trump would dramatically reduce the U.S. government's role in society with $3.6 trillion in spending cuts over the next 10 years in a budget plan that shrinks the safety net for the poor, recent college graduates and farmers. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

Mulvaney requests 'zero' money for CFPB

Mick Mulvaney, the acting director of the Consumer Financial Protection Bureau, has requested no funding from the Federal Reserve in the second quarter and instead will use reserves to fund the agency.

(Full story here.)

Cloud computing concept. Hand with ethernet cable connecting into cloud.

Jakub Jirsak/Jakub Jirsák - stock.adobe.com

Fears mount about Meltdown, Spectre threats to cloud computing

Bankers could see higher costs as cloud computing vendors struggle to protect their systems from the latest hacking vulnerabilities.

(Full story here.)

J. Mark McWatters, acting chairman of the National Credit Union Administration, listens during a Senate Banking Committee hearing in Washington, D.C., U.S., on Thursday, June 22, 2017. Top U.S. banking regulators are sprinting to ease the Volcker Rule, stress tests and other constraints on Wall Street after the Trump administration issued a long list of proposals last week for rolling back post-crisis financial rules. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

Banks, consumer groups stir up backlash against potential CFPB pick

National Credit Union Administration Chairman Mark McWatters has not even been announced as President Trump's pick to run the Consumer Financial Protection Bureau, but his potential nomination already is uniting diverse groups in opposition.

(Full story here.)

Mick Mulvaney, director of the Office of Management and Budget (OMB), listens to a question during an interview at the Securities Industry And Financial Markets Association (SIFMA) annual meting in Washington, D.C., U.S., on Tuesday, Oct. 24, 2017. SIFMA represents the U.S. securities industry including broker-dealers, banks and asset managers with nearly one million employees providing access to the capital markets. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

Mulvaney launches public review of entire CFPB

Acting CFPB director Mick Mulvaney issued "a call for evidence" Wednesday seeking comment on all of the consumer agency's functions, including enforcement, supervision, rulemaking, market monitoring and education activities.

(Full story here.)