The recently proposed federal subprime lending guidance reminds lenders that they should help consumers make informed choices and not steer them into 2/28 adjustable-rate mortgages when they might qualify for another product, according to Office of Thrift Supervision Director John Reich.It is an "inappropriate practice" to steer consumers into 2/28s with one-sided product descriptions that present the benefits without describing the risks, Mr. Reich told a National Community Reinvestment Coalition conference. (A 2/28 ARM is a 30-year mortgage that has a fixed rate for the first two years.) The comment period on the proposed guidance ends May 7. The thrift regulator also told the community activists that his agency is about to issue a final rule that realigns OTS's Community Reinvestment Act regulation with those of the other federal banking agencies. "We are making these revisions to our CRA rule to promote consistency and help facilitate objective evaluations of CRA performance across the banking and thrift industries," Mr. Reich said.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
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Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
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The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
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Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
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The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
10h ago