Enforcement

WASHINGTON — Federal examiners will expect institutions to show that they made a "good faith" effort in preparing for the implementation of the new integrated mortgage disclosures that go into effect on Oct. 3, regulators said in letters sent to industry groups on Thursday.

The Consumer Financial Protection Bureau hit an indirect auto lender and a subsidiary with $48.3 million in fines and restitution on Thursday, accusing it of deceptive collection tactics.

Recommended reforms released by the Department of Education for servicers and private student lenders are part of intensifying federal efforts to help struggling borrowers.

JPMorgan Chase has paid off $3.56 billion of the $4 billion it owes in consumer relief credit as part of a 2013 settlement over marred mortgage-backed securities issued before the crisis.

In comments to the Treasury Department, traditional financial institutions are calling for more oversight of an industry that is fast becoming a big competitive threat.

Community banks merit more regulatory relief, particularly those that hold mortgage originations. That was a key message from James Bullard, St. Louis Fed president, during a community banking conference in St. Louis hosted by the Federal Reserve Board and the Conference of State Bank Supervisors.

Lawmakers from both political parties on Tuesday sharply criticized the Consumer Financial Protection Bureau's attempt to restrict or eliminate auto dealers' ability to markup a loan by citing their partnering lenders, arguing it would result in higher prices for consumers.

UBS Financial Services of Puerto Rico has agreed to pay $34 million to settle charges by the Securities and Exchange Commission and Financial Industry Regulatory Authority that it failed to supervise a former broker who had customers invest in UBSPR affiliated mutual funds using money borrowed from an affiliated bank.

The government appears to be speeding toward establishing uniform standards for student loan servicers in light of reports of pervasive problems in the administration of both private and federal loans.

The CFPB hired Dr. Bernard Siskin three years ago to serve as the agency's expert witness when it brings discrimination cases against lenders. But Siskin has also been hired by JPMorgan Chase, Citigroup and other big banks to represent them in bias cases against the CFPB, causing issues for the agency.

WASHINGTON — Fifth Third Bank must pay a total of more than $21 million to settle separate claims by the federal government that the bank's indirect auto-loan business discriminated against African-Americans and that the bank deceptively signed up customers for a credit card add-on product.

It's hard to decide which is more surprising: that the largest U.S. bank has almost abandoned the business of making home loans insured by the Federal Housing Administration, that lots of big banks could be right behind it, or that the FHA might not even need to care.

The Consumer Financial Protection Bureau has struggled internally with how to end potential discrimination in auto lending, including debating whether it should cite a large lender in the hopes of effectively ending the ability of partnering dealers to mark up loans with all lenders.

Officials signaled that Hudson City Savings Bank's nearly $33 million settlement over redlining charges is only the first in what is likely to be a string of other cases.

Federal officials on Thursday ordered Hudson City Savings Bank to pay more than $27 million to resolve redlining allegations, the largest order of its kind and one that is likely to put larger banks on notice that redlining cases will be aggressively pursued.

Kelly Cochran has vetted every rule that comes out of the agency, making her one of the most influential people in the financial services industry.

In a series of internal documents that were reviewed by American Banker, Consumer Financial Protection Bureau officials repeatedly acknowledge its methodology could overcount the potential discrimination by firms, but say they prefer that to the alternative where bias is underestimated.

One of the top anti-money-laundering regulators warned credit unions Tuesday that many do not appear to be properly following reporting requirements.

License numbers for loan officers, real estate agents and settlement agents will be required on one of the new TILA-Respa integrated disclosure forms, raising questions about whether they could trigger investigations of possible illegal marketing services agreements.

The rest of the credit card industry continues to be dogged by slow loan growth, but retail-branded cards are bouncing back, thanks largely to a big push by merchants.