Fed Study: Mortgage Churning for CRA Adversely Affects LMI Mortgage Market
A new Fed staff paper revisits one of the longstanding questions with CRA regulation: whether allowing equal CRA credit for mortgage originations and purchases increases LMI-focused mortgage finance. Critics of past CRA rules have argued that mortgage purchases are “churning” – i.e., the same loans are bought and sold across the marketplace at the time of each bank’s CRA examination.
Comment Deadline Extended for CFPB Relationship Banking RFI
The Federal Register today provides a 30-day comment period extension for the CFPB’s Relationship Banking RFI (see FSM Report CONSUMER43). Comments are now due August 22. As noted, the Bureau has inferred that preserving relationship banking requires “human touch” rapid responses to consumer inquiries that will ensure high-quality banking services are available in all markets.
CFPB Blog: Overdraft/NSF Policy Changes Reduced Fees
Expanding on its December 2021 report, a CFPB blog post today concluded that overdraft and NSF policy changes led to significant reductions in the amount bank customers incur from various account fees. The post provides two tables — one displaying overdraft/NSF revenue and the other showing ATM fees — across multiple years and specific quarters for small and midsize banks and for select large banks.