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Compensation and Compliance Matters August Round Up

This Month in Compensation and Compliance Matters

Each week, labor and employment attorney Ari Karen writes about the latest hearings and litigation in the financial sector, and offers his viewpoint on diverse compliance and compensation matters. Whether you run a business, work for a financial institution, or are involved in an employment dispute, Mr. Karen offers an important point-of-view on our nation’s volatile regulatory environment. Missed August’s Compensation and Compliance Matters? Catch up with this article round-up:

Looking at Mini-Correspondents Differently

Lenders who focus too narrowly on the Consumer Financial Protection Bureau’s guidance too often pay the price for missing the big picture, argues Mr. Karen. In regards to the mini-correspondent model, relationships with investors and warehouse lenders should be considered just as carefully as the particular factors the agency expresses. Read Mr. Karen’s advice in full, in his National Mortgage News column from August 11th.

A Few Things We’ve Learned About the CFPB in the Last Three Years

The Consumer Financial Protection Bureau commemorated its third anniversary this month, and there is no better time than now to take a look back at the regulator’s distinguishing qualities. From its agenda of regulating through enforcement to its habit of settling matters confidentially, the CFPB has a character all its own, as Mr. Karen writes in his article on the topic.

How Compliance Violations Become Conspiracies

Not all compliance errors arise from conspiracies, but that does not stop the CFPB from perceiving these problems as such. Lenders should be aware of how isolated actions can lead enforcement staff to form theories on complex, international misconduct, thus escalating the costs of investigations and settlement. Here is Mr. Karen’s advice on how lenders should shift their perspectives to better understand the agency’s beliefs and interests.

Auto Case Shows CFPB Will Fine Lenders for Not Protecting Borrowers

In a recent case against an auto lender, the CFPB fined the lender nearly $3 million for using flawed credit reporting technology. Though the computer vendor, and not the lender, was directly at fault, the CFPB’s action demonstrates that  “the lender has an affirmative obligation to prevent the harm.” If you have any questions about these or other compliance and compensation matters please contact Ari Karen at: akaren@offitkurman.com  | 240.507.1740 Bank Manager ReimbursementsAri Karen is an experienced litigator and speaker who has focused his practice in representing financial institutions in both government investigations and litigation before state and federal trial and appellate courts nationwide. Mr. Karen’s practice is diverse, representing clients on matters concerning banking regulations, Dodd Frank financial reform laws, contractual disputes, employment and labor statutes, wage-hour class actions, employment discrimination and fair lending matters, whistleblower complaints and non-competition claims, among others. You can also connect with Offit Kurman via FacebookTwitterGoogle+YouTube, and LinkedIn.