Archives: Regulatory Compliance

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CFPB Special Monthly Complaint Report Highlights Companies’ Reponses to Consumer Complaints

On August 1, 2017, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) released a “special edition” of its monthly complaint report. Rather than focus on particular financial products or markets like the Bureau’s standard monthly complaint reports, the special edition highlights how companies have responded to consumer complaints and consumers’ views of those responses and … Continue Reading

CFPB Proposes to Ease HMDA Reporting Requirements for Community Banks and Credit Unions

On July 14, 2017, the Consumer Financial Protection Bureau (“CFPB”) issued a proposal to ease, at least temporarily, the reporting requirements for community banks and credit unions under the Home Mortgage Disclosure Act (“HMDA”). The proposed rule would raise the threshold at which financial institutions have to report on home equity lines of credit for … Continue Reading

FDIC Proposes Guidance on Deposit Insurance Applications

On July 10, 2017, the FDIC published for comment a handbook on deposit insurance applications, Deposit Insurance Applications: Procedures Manual.  The manual covers each step in the application process: pre-filing activities, application receipt, review and acceptance, application processing, pre-opening activities and post-opening considerations.  The FDIC has two audiences and purposes in issuing the manual.  For potential bank organizers, the manual provides greater clarity of … Continue Reading

The CFPB Finalizes Amendments to Federal Mortgage Disclosure Requirements under Regulation Z (the “Know Before You Owe” Rule)

On July 7, 2017, the Consumer Financial Protection Agency (“CFPB”) announced final amendments to its “Know Before You Owe” (“KBYO”) mortgage disclosure rule to memorialize informal guidance regarding the rule, clarify certain aspects of the rule, and provide implementation guidance to industry. The CFPB also issued a proposed rule regarding when a creditor may compare … Continue Reading

Federal Banking Agencies Propose Changes to Call Reports

On June 27, 2017, the Board of Governors of the Federal Reserve System, Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (collectively, the “Agencies”) proposed revisions to their Call Report forms for insured depository institutions.  The proposed changes are intended to align Call Reports with a recent accounting change and … Continue Reading

CFPB Reports and Acts on Complaints about Student Loan Servicer Handling of Public Service Loan Forgiveness Program

On June 22, 2017, the CFPB announced a series of actions based on consumer complaints it has received about the manner in which student loan servicers handle the Public Service Loan Forgiveness (“PSLF”) program. PSLF is a federal student loan forgiveness program that provides borrowers in public service jobs, such as teachers, nurses, first responders, … Continue Reading

Treasury Issues Regulatory Reform Recommendations for Banking Industry

On June 12, 2017, the U.S. Department of the Treasury released the first of a series of reports recommending regulatory reforms to the financial system consistent with President Trump’s Core Principles for Regulating the United States Financial System.  Treasury’s first report focuses on the regulatory framework governing the depository system.  Notably, a substantial portion of … Continue Reading

CFPB Proposes Additional Changes to the Prepaid Rule

On June 15, 2017, the CFPB announced that it is proposing for public comment certain modifications to its prepaid rule. The rule, which was issued in final form in October 2016, limits consumers’ losses for lost and stolen prepaid cards, requires financial institutions to investigate errors, and includes enhanced disclosure provisions. The final rule unexpectedly … Continue Reading

Congressman Hensarling Removes Repeal of Durbin Amendment from CHOICE 2.0

On May 24, 2017, Rep. Jeb Hensarling (R-TX), the chairman of the House Financial Services Committee, agreed to remove the repeal of the Durbin Amendment from the second discussion draft of the Financial CHOICE Act (“CHOICE 2.0”). The Durbin Amendment, an amendment to the Electronic Fund Transfer Act added by section 1075 of the Dodd-Frank … Continue Reading

CFTC Adopts Amendments to Whistleblower Rule, Asserts Anti-Retaliation Authority

On May 22, 2017, the Commodity Futures Trading Commission (“CFTC”) announced the finalization of amendments to its whistleblower rules.  The most important change is the CFTC’s assertion of the authority to enforce Section 23(h)(1) of the Commodity Exchange Act (“CEA”), which prohibits retaliation against whistleblowers.  When it originally promulgated its whistleblower rules in 2011, the … Continue Reading

CFPB Issues Request for Information on the Small Business Lending Market

On May 10, 2017, the Consumer Financial Protection Bureau (“CFPB”) issued a request for information on small business lending. In a press release accompanying the request, the CFPB stated that its goal is to “learn more about how small businesses engage with financial institutions, with a particular focus on women-owned and minority-owned small business,” in … Continue Reading

CFPB Issues its First Fine for a Violation of a Consent Order

On April 26, 2017, the CFPB announced it had entered into a consent order (the “2017 Order”) with Security National Automotive Company, LLC (“SNAAC”).  The consent order, for the first time, imposes a $1.25 million fine for the violation of a prior CFPB consent order.  In October 2015, the CFPB issued a consent order against … Continue Reading

Conference of State Bank Supervisors Sues To Stop OCC Fintech Charters

On April 26, 2017, the Conference of State Bank Supervisors (“CSBS”) filed a complaint against the Office of the Comptroller of the Currency (“OCC”) and Comptroller of the Currency Thomas J. Curry to block the agency from going forward with its proposal to grant special purpose national bank charters to fintech companies. The CSBS filed … Continue Reading

CFPB Monthly Complaint Report Highlights Consumer Complaints Regarding Student Loans

On April 25, 2017, the Consumer Financial Protection Bureau (“CFPB”) released its monthly complaint report.  For the month of March 2017, the products and services generating the most consumer complaints were debt collection, credit reporting, and mortgages, collectively representing approximately 65% of all complaints received.  This continues the trend from February 2017, when the same … Continue Reading

CHOICE Act 2.0: House Financial Services Committee Revises Regulatory Reform Bill

On April 19, 2017, the House Financial Services Committee released a new discussion draft of the Financial CHOICE Act, its comprehensive regulatory reform bill.  The Committee released the first version of the CHOICE Act in June 2016.  Buoyed by the election of a Republican president, and following several months of public and industry outreach, Committee … Continue Reading

Trump Directs Treasury to Review Dodd-Frank Orderly Liquidation Authority and FSOC Processes

On Friday, April 21, President Donald Trump signed two presidential memoranda, directing the Secretary of the Treasury (the “Secretary”), Steve Mnuchin, to review two major provisions of the Dodd-Frank Act: orderly liquidation authority (“OLA”) for financial companies under Title II, and the decision-making processes of the Financial Stability Oversight Council (“FSOC”). Consistent with the Trump … Continue Reading

CFPB Announces Fair Lending Priorities in Fifth Annual Fair Lending Report

On April 15, 2017, the CFPB issued its fifth annual Fair Lending Report (“Report”). The Report describes the CFPB’s 2016 fair lending supervisory, enforcement, and rulemaking activities, interagency collaboration, and outreach to stakeholders. Most importantly, the Report outlines the CFPB’s fair lending priorities for 2017, indicating that the CFPB will increase its focus on redlining, … Continue Reading

CFPB Proposes Revisions to Final Rules under Home Mortgage Disclosure Act (Regulation C)

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 … Continue Reading

CFTC Settles Allegations that Dairy Company Acted as FCM for Milk Suppliers

On March 27, 2017, the Commodity Futures Trading Commission (“CFTC”) announced it entered into a consent order with Davisco Foods International, Inc. (“Davisco”), a dairy company, to settle allegations that Davisco acted as a futures commission merchant (“FCM”) for its milk suppliers without registering as an FCM.  Section 4d of the Commodity Exchange Act defines … Continue Reading

CFPB Monthly Complaint Report Highlights Complaints about Credit Cards

On March 28, 2017, the Consumer Financial Protection Bureau (CFPB) released its monthly complaint report. For the month of February 2017, the products and services generating the most complaints were debt collection, credit reporting, and mortgages, collectively representing over 60% of all complaints received. This is a shift over January, where the three most complained … Continue Reading

Federal Agencies Complete Evaluation of Resolution Plans of 16 Domestic and Four Foreign Banks

On March 24, 2017, the Federal Reserve Board and the Federal Deposit Insurance Corporation (the “Agencies”) jointly announced that they had completed their evaluation of  the resolution plans submitted by 16 domestic banks, primarily regional banks, in December 2015, as required by the Dodd-Frank Act. The Agencies did not determine that any of the  16 … Continue Reading
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