Tougher Federal Rules for Banks, Consumer Protections for Alternative Home Financing & More

Stricter Rules Could be Coming for Banks with Over $100B in Assets

The heads of the Federal Deposit Insurance Corporation and the Federal Reserve said last week that bank regulators are considering applying a set of tougher capital rules to banks that have over $100 billion in assets. In a speech FDIC Chairman Martin Gruenberg said the turmoil in the banking sector this spring, including the failure of three banks, indicated banks of this size pose a risk to the financial system and need greater oversight. (REUTERS)

Multiple States Eye Protections for Home Buyers Who Use Alternative Financing Methods

With traditional mortgages becoming out of reach for an increasing number of American homebuyers, lawmakers in at least four states have introduced bills this year addressing consumer protections for alternative home financing arrangements such as rent-to-own agreements, land installment contracts and personal property loans, according to the National Conference of State Legislatures. The four states are: Hawaii (SB 396), Indiana (HB 1185), Kansas (HB 2101) and West Virginia (SB 71). (NATIONAL CONFERENCE OF STATE LEGISLATURES)

Appeals Court Agrees Citizens Insurance Must Defend Customer Sued for Alleged Biometric Privacy Violations

The 7th Circuit Court of Appeals upheld a lower court decision requiring Citizens Insurance Co. of America to defend a customer, Wynndalco Enterprises, in a pair of class-action lawsuits associated with a facial recognition database the tech company sold to a data broker, which then sold to the Chicago Police Department. The appeals court said a “catch-all” provision in Citizens’ policy excluding coverage for violations of any statutes was too broad to apply to the Illinois Biometric Privacy Act, which the lawsuits were centered around. (INSURANCE JOURNAL)

—Compiled by SNCJ Managing Editor KOREY CLARK