Reporters discuss bombshell story on Better.com’s CEO

An exclusive interview with the Forbes reporters who recently wrote a bombshell article about Better.com CEO Vishal Garg’s controversial workplace culture.

Now is the time to double down on diversity and inclusion efforts

Quicken Loans Mortgage Services is proud to partner with a diverse set of brokers, which broadens the pool of potential clients they serve together.

How to Accelerate Closings in 2021

In this webinar, we’ll provide you with actionable insights to help you accelerate your closing process from point-of-sale through post-closing.

Why are sellers sitting on the housing market sidelines?

Why aren’t more homeowners selling in this hot housing market? According to new research from Zillow, a number of factors are at play.

FintechInvestmentsMortgageReal Estate

New York sues federal government over fintech bank charter plan

NYDFS is taking the government to task over decision to offer bank charters to fintech companies

New York state’s top banking regulator sued the federal government to void its decision to award national bank charters to online lenders and payment companies, saying the decision was unconstitutional and posed a threat to consumers.

According to Reuters, Maria Vullo, superintendent of New York Department of Financial Services called the Office of the Comptroller of Currency’s decision to allow fintech companies to obtain bank charters, “lawless, ill-conceived and destabilizing of financial markets.”

Vullo feels that states like New York can best regulate those markets and that the OCC decision leaves customers up a creek, in danger of exploitation with the threat of a return of “too big to fail” institutions and the inability of local banks to compete.

Vullo currently oversees more than 2,200 banks, financial services companies and insurers with about $7 trillion of total assets.

“Financial centers like New York, which have developed comprehensive and well-functioning regulatory bodies, should not needlessly bear the harmful brunt of an overreaching federal agency,” the complaint against the OCC said.

The OCC made the decision to offer charters to nonbank, fintech companies back in July citing customer needs and the potential for innovation as the primary catalysts for the edict.

“The decision to consider applications for special purpose national bank charters from innovative companies helps provide more choices to consumers and businesses and creates greater opportunity for companies that want to provide banking services in America. Companies that provide banking services in innovative ways deserve the opportunity to pursue that business on a national scale as a federally chartered, regulated bank,” Comptroller of the Currency Joseph Otting said in a statement.

“Providing a path for fintech companies to become national banks can make the federal banking system stronger by promoting economic growth and opportunity, modernization and innovation, and competition. It also provides consumers greater choice, can promote financial inclusion, and creates a more level playing ground for financial services competition,” he added.

Vullo was one of the first to speak out against the OCC decision, saying earlier this year that the NYDFS opposed the move. And now, New York is taking the federal government to court over the OCC's decision.

Vullo, New York Gov. Andrew Cuomo and the rest of New York’s government have been active this year, moving to counter rollbacks in corporate oversight they feel endangers consumers.

Earlier this year, New York became the first state to subject credit reporting agencies to direct oversight from its department of financial services. Cuomo made this move under the belief that federal regulation did not do enough to cur the potential of another Equifax-esque disaster.

At its heart, this complaint is the latest skirmish in a tooth-and-nail fight that has been raging between worried consumer protection agencies and the Trump administration as the administration has been rolling back consumer protection guidelines in favor of corporate independence.

Most Popular Articles

The downside of the hot 2020 housing market: rapid home-price growth

The mismatch in the COVID deflationary impact toward the economy overall and the strength of the housing market due to demographics makes for a troubling formula for home-price growth, which we are seeing. The recent NAR existing home sales report showed 15.5% year-over-year growth in prices. HW+ Premium Content

Nov 30, 2020 By

Latest Articles

Fannie and Freddie need “significant capital” to leave conservatorship, Mnuchin says

In a hearing before the House Financial Services Committee, Treasury Secretary Steven Mnuchin said no definite plans have been made for the future of Fannie Mae and Freddie Mac, but discussed the idea that they could be released from conservatorship before their full capital levels are reached.

Dec 02, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please