Big Banks Facing New Mortgage Restrictions
June 18, 2015
JPMorgan Chase, Wells Fargo, and four other big banks are facing new restrictions on their mortgage operations after a federal regulator determined that the banks did not do enough to fix problems in their foreclosure practices in the aftermath of the financial crisis.
• JPMorgan Chase, Wells Fargo, and four other big banks are facing new restrictions on their mortgage operations after a federal regulator determined that the banks did not do enough to fix problems in their foreclosure practices in the aftermath of the financial crisis. The banks had promised in 2011 to change the way they handled foreclosures in a consent order with the Office of the Comptroller of the Currency. The O.C.C. said Wednesday morning that three large banks — Bank of America, Citigroup and PNC Financial — had complied with the 2011 order and an amended version in 2013 and no longer faced restrictions. But JPMorgan, Wells Fargo, Santander, HSBC, US Bank and EverBank will face new limitations on their ability to acquire mortgage servicing rights from other banks. [NYTimes]
• In a do-over of a vote from Friday, the House is expected to take up the fast-track trade bill again. The new version of the bill to be presented on the floor this Thursday will be shorn of an original provision to extend a program known as the Trade Adjustment Assistance to help displaced workers. The measure would give President Obama and his successor the ability to present trade deals to Congress for an up-or-down vote without amendments. The President has long sought this fast-track power, which is seen as necessary to securing a trade deal with 11 other nations around the Pacific Ocean. [WSJ]
Economic Indicators & News
• U.S. Consumer Prices Rose 0.4% in May. The consumer-price index has now risen for four straight months after falling from November through January. Consumer prices posted the largest monthly increase in May in more than two years, a sign of modest inflation pressures are beginning to build. [WSJ]
•U.S. Jobless Claims Fall to 267,000. The Labor Department announced that initial claims for unemployment benefits, a measure of layoffs across the U.S., decreased 12,000 to 267,000. While markedly improved, there are still signs the labor market isn’t fully healed. For example, wages have increased only slowly, a large number of people have given up looking for work and many others are stuck in part-time positions but would prefer full-time jobs. However, this report is a promising sign of steady job creation. [WSJ]