The Conference of State Bank Supervisors announced April 26 it has filed a lawsuit against the Office of the Comptroller of Currency over the agency’s plans to create a new special purpose national bank charter for financial technology companies.
The lawsuit, filed in the U.S. District Court for the District of Columbia, claims the OCC’s action is unconstitutional and seeks injunctive relief to prohibit the establishment of the proposed federal fintech charter.
“The OCC’s action is an unprecedented, unlawful expansion of the chartering authority given to it by Congress for national banks,” CSBS President and CEO John W. Ryan said in a news release. “If the OCC is allowed to proceed with the creation of a special purpose nonbank charter, it will set a dangerous precedent that any federal agency can act beyond the legal limits of its authority.”
By creating a national bank charter for nonbank companies, the complaint alleges the OCC exceeded the limited authority granted to it by Congress under the National Bank Act and other federal banking laws. The complaint further asserts the OCC does not have authority to create a special purpose charter for nonbanks without specific congressional approval.
“The OCC’s proposed action ignores Congress, seeks to preempt state consumer protection laws, harms markets and innovation, and puts taxpayers at risk of inevitable fintech failures,” Ryan said in the release. “This is a dangerous combination and one the court should decisively halt.”
To read the CSBS filing, click here.
Utah adopts Uniform State Test effective May 8
The Utah Division of Real Estate will be adopting the National SAFE MLO Test Component with Uniform State Content effective May 8.
The Utah DRE is the 55th state agency in the U.S. to no longer require mortgage loan originators seeking licensure to take a second state-specific test.
To view a map of all the states that have enacted the Uniform State Test, click here.
CFPB issues report focuses on mortgage, fair lending issues.
The Consumer Financial Protection Bureau on April 26 released its Spring 2017 issue of Supervisory Highlights, reporting recent examination findings in the areas of mortgage servicing, mortgage origination, student loan servicing and fair lending.
The report also includes information about recent public enforcement actions that were a result of the bureau’s supervisory work, as well as recently released examination procedures and bureau guidance.
To read the full report, click here.
CFPB report highlights student loan complaints
The Consumer Financial Protection Bureau on April 25 released a report highlighting consumer complaints about student loans.
The monthly complaint snapshot shows that both private and federal student loan borrowers nationwide report persistent servicing breakdowns that may sideline their path to repayment. The report also highlights trends seen in complaints coming from Nevada.
More information about the report can be found by clicking here.