On April 13, 2017, the Consumer Financial Protection Bureau (“CFPB”) issued a Notice of Proposed Rule Making (the “NPRM” or “proposal”) to amend the Regulation C final rule issued by the CFPB in October 2015 (“Final Rule”).  Regulation C implements the Home Mortgage Disclosure Act (“HMDA”), 12 U.S.C. § 2801 et seq.  The Final Rule modified the types of institutions and transactions subject to Regulation C, the types of data that institutions are required to collect, and the processes for reporting and disclosing the required data.  The Final Rule included, but was not limited to, amendments required by the Dodd Frank Wall Street Reform and Consumer Protection Act.  Most of the requirements of the Final Rule become effective in January 2018.

The NPRM would create transition rules to permit financial institutions to report “not applicable” for certain data points, specifically loan purpose and the unique identifier for the loan originator, when reporting on certain loans they purchased that were originated before regulatory requirements to report those data points took effect. The proposal would clarify the term “automated underwriting system,” clarify the scope of temporary financing, and create a new reporting exception for certain consolidation transactions in New York State.  The NPRM would also establish a safe harbor for a financial institution that reports an incorrect census tract for a property if the institution enters an accurate property address into the CFPB’s geotracking tool to obtain census tract information but the geotracking tool returns an incorrect census tract number.

Comments on the proposal will be due 30 days after the NPRM’s publication in the Federal Register. As proposed, most provisions would take effect on January 1, 2018, to correspond to the effective date of the Final Rule.

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of David Stein David Stein

David Stein advises clients on credit reporting, financial privacy, financial technology, payments, retail financial services, and fair lending issues. He assists a broad range of financial services firms, consumer reporting agencies, financial technology companies, and their vendors with regulatory, compliance, supervision, enforcement, and…

David Stein advises clients on credit reporting, financial privacy, financial technology, payments, retail financial services, and fair lending issues. He assists a broad range of financial services firms, consumer reporting agencies, financial technology companies, and their vendors with regulatory, compliance, supervision, enforcement, and transactional matters.

Mr. Stein has significant experience advising clients on compliance with the FCRA, GLBA, ECOA, EFTA, E-Sign Act, TILA, TISA, FDCPA, Dodd-Frank Wall Street Reform and Consumer Protection Act, and FTC Act, as well as state financial privacy laws. Mr. Stein is a member of the firm’s fintech and artificial intelligence initiatives and works with clients on issues related to cutting edge technologies, such as blockchain, virtual currencies, big data and data analytics, artificial intelligence, online lending, and payments technology.

Mr. Stein previously served in senior regulatory, policy-making, and management positions at the Consumer Financial Protection Bureau (CFPB) and the Federal Reserve Board (FRB). He played a significant role in developing regulations and policy on credit reporting, financial privacy, retail payments systems, consumer credit, fair lending, overdraft services, debit interchange, unfair or deceptive acts or practices, and mortgage origination and servicing. Mr. Stein draws upon his government experience in representing clients before the CFPB, the FRB, and other regulatory agencies and leverages his insights into the regulatory process to provide clients with practical, actionable advice.