Topics In This Issue
• Federal Issues
• State Issues
• Firm News
• Consumer Finance
Excerpt from "Federal Issues"
Fed Loan-Mod Study Finds No Disparate Impact. On December 17, San Francisco Federal Reserve Bank researchers issued a study on loan modifications, finding that there is no evidence of disparate impact in either the likelihood of a borrower receiving a loan modification or the terms of that modification. The study found that 11% of blacks received modifications, 9% of Hispanics received modifications, compared with 5% of whites who received modifications. In conducting the study, researchers sampled approximately 106,000 non-agency securitized subprime loans originated in 2005 by merging data from subprime loans with loan-level data on borrowers from HMDA. Although the researchers did not find evidence of disparate impact, the study suggests that the data cannot entirely erase the possibility of disparities in who gets a modification because the researchers cannot assess whether there are differences in who gets a loan modification versus who applied for a loan modification.
CFPB and CSBS Sign MOU to Coordinate State and Federal Financial Supervision. On January 4, the Conference of State Bank Supervisors (CSBS) announced that it signed a memorandum of understanding (MOU) with the Consumer Financial Protection Bureau (CFPB) to coordinate state and federal supervision of providers of consumer financial products and services.
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