Law and regulation

CFPB Director Richard Cordray is expected to stick out his recess appointment term through 2013 regardless of who wins the presidency. After that various different scenarios could play out.

The government continues to broaden relief for homeowners in areas hit by Hurricane Sandy.

Bankrupt should be barred from selling its mortgage servicing unit to Ocwen Financial unless Ocwen agrees to honor ResCap's portion of a $25 billion legal settlement with the U.S. and 49 states, government lawyers said in court papers.

Although bankers want full insurance for certain deposits to be extended, the Federal Deposit Insurance Corp. encouraged institutions Monday to tell customers in advance that that insurance may expire.

In all the regulatory discussion of small banks vs. megabanks, what about midsized banks? Some of those banks that are over the $50 billlion asset threshold, but far from being a Wall Street behemoth, are hiring their own lobbyists.

The outspoken Texas lawmaker is widely expected to take the top slot on the banking panel, pursuing an agenda to revamp Dodd-Frank and privatize Fannie Mae and Freddie Mac.

The CFPB, FDIC and FHFA face a number of potential scenarios affecting their leadership structure depending on who wins Tuesday night.

As the presidential election looms, observers talk about changes a President Romney could make to the CFPB while regulators warn on reducing loan loss reserves too quickly. Following are the top stories from Washington last week.

The potential consequences include rising interest rates, dropping home values, a resurgence of foreclosures and a dramatic, perhaps generational loss of consumer confidence.

Only a strong QM rule can prevent a repeat of the past and protect consumers from the type of risky and irresponsible lending that preceded the foreclosure crisis.

As the effective date for compliance with the CFPB's final remittance rule approaches, bankers are saying meeting all the requirements will not feasible. "It's one of those 'you can't get there from here’ regulations," says an industry lawyer.

HSBC said it's likely to face criminal charges from U.S. anti-money laundering probes and the cost of a settlement may "significantly" exceed the $1.5 billion the bank has already set aside.

The SEC asked Groupon to explain its accounting for coupon refunds and other aspects of its business after the daily deal site revised 2011 results and disclosed a “material weakness” in its financial controls. Groupon recently entered the payments industry by offering a mobile card reader for Groupon merchants.

Regulators closed the $225 million-asset Heritage Bank of Florida in Lutz, and the $924 million-asset Citizens First National Bank in Princeton, Ill. The two failures were estimated to cost the FDIC a combined $111 million.

International Bancshares in Laredo, Texas, has redeemed another chunk of the money it received from the Troubled Asset Relief Program.

The California Department of Financial Institutions has lifted a memorandum of understanding against Hanmi Bank after the Los Angeles institution's condition improved.

Under the OCC, a complex foreclosure review process is funneling hundreds of millions of dollars to administrators and advertisements. Critics charge that banks and homeowners would be far better served by a simpler program.

The Consumer Financial Protection Bureau put out its first issue of "Supervisory Highlights," which provides an overview of issues that have emerged in examinations by the agency.

Fears about spikes in tax rates could lead a number of capital-heavy bank to consider one-time plans to return capital to shareholders.

The industry has asked the CFPB to delay the effective date for a rule expanding disclosures for remittance transfers.