Dodd-Frank News Center

CFPB seeks renewal of RESPA information collection

This story appeared in Bank Digest.

The CFPB is requesting to renew, without change, the Office of Management and Budget approval for an existing information collection entitled “Real Estate Settlement Procedures Act (Regulation X) 12 CFR 1024.” According to the CFPB’s notice, consumers use the disclosures required by the Real Estate Settlement Procedures Act and its implementing Regulation X to inform their choice of settlement service providers, review the final terms of a settlement, understand who to contact about questions concerning their mortgage loan, and identify and protect themselves against inaccurate or questionable loan servicing practices. On April 8, 2019, the Bureau issued a 60-day Federal Register notice seeking comments on the proposal. Written comments on the current notice must be received by Aug. 21, 2019, and will be reviewed by the OMB as part of its review of this request.

CFPB issues updated advisory urging institutions to report suspected financial exploitation of older adults

This story appeared in Bank Digest.

The CFPB has issued an updated advisory to financial institutions urging them to report to the appropriate local, state, and federal authorities whenever they suspect that an older adult is the target or victim of financial exploitation. The Bureau also recommended that financial institutions file Suspicious Activity Reports with the federal government when they suspect elder financial exploitation. According to the CFPB’s press release, the updated advisory builds on the Bureau’s earlier recommendations and its recent research on elder financial abuse, and it contains voluntary best practices to help financial institutions prevent and respond to elder financial exploitation.

 

 

 

Fed extends ‘Debit Card Interchange Fees’ information collection

This story appeared in Bank Digest.

The Fed is adopting a proposal to extend for three years, without revision, an existing information collection entitled “Recordkeeping and Disclosure Requirements Associated with Regulation II (Debit Card Interchange Fees and Routing).” According to the Fed, Regulation II (Debit Card Interchange Fees and Routing) implements, among other things, standards for assessing whether interchange transaction fees for electronic debit transactions are reasonable and proportional to the cost incurred by the issuer with respect to the transaction, as required by Section 920(a) of the Electronic Fund Transfer Act.

 

OIG issues ‘Work Plan’ presenting current or planned audits and evaluations

This story appeared in Bank Digest.

The Office of Inspector General for the CFPB and the Federal Reserve Board has issued a “Work Plan,” current as of July 1, 2019, presenting the audits and evaluations the OIG is conducting to assist the CFPB and the Fed in fulfilling their respective missions. The “Work Plan” is updated quarterly, and each project is categorized as “initiated,” “in development,” or “planned.” In addition, each quarter, projects that are new or have been canceled, terminated, or issued as reports are marked as such, the OIG said.

CFPB blog post addresses myths in military community about personal finance

This story appeared in Bank Digest.

Noting that the CFPB’s Office of Servicemember Affairs’ has engaged with military families throughout the country and even the world” over the past eight years and that its members” have heard lots of barracks rumors and scuttlebutt,” a Bureau blog post addresses five myths in the military community regarding personal finance. The five myths the post discusses are: (1) credit card companies are required to waive annual fees for servicemembers; (2) the Servicemembers Civil Relief Act only helps servicemembers by lowering interest rates; (3) the Military Lending Act doesn’t protect servicemembers’ spouses or dependent children; (4) servicemembers need to pay someone to help them with their financial issues; and (5) financial issues are too complicated for the average person.

 

Agencies exclude community banks from Volcker Rule

This story appeared in Bank Digest.

The FDIC and several other federal financial regulatory agencies have adopted a final rule to exclude community banks from the Volcker Rule, consistent with the Economic Growth, Regulatory Relief, and Consumer Protection Act. In addition to the FDIC, the rule was adopted by the Federal Reserve Board, Office of the Comptroller of the Currency, Commodity Futures Trading Commission, and Securities and Exchange Commission. Under the final rule, community banks with $10 billion or less in total consolidated assets and total trading assets and liabilities of 5 percent or less of total consolidated assets are excluded from the Volcker Rule. The final rule is effective upon publication in the Federal Register.

OCC seeks renewal of information collection on requirements for swap entities

This story appeared in Bank Digest.

The Office of the Comptroller of the Currency is proposing to renew an existing information collection entitled “Margin and Capital Requirements for Covered Swap Entities. The OCC also is giving notice that it has sent the collection to the Office of Management and Budget for review. Comments on the current notice must be received by Aug. 8, 2019.This collection is related to regulations by the OCC and other federal agencies that require swap dealers and security based swap dealers (Swap Margin Rule) under the agencies’ respective jurisdictions to exchange margin with their counterparties for swaps that are not centrally cleared. The OCC had issued an earlier notice, in March 2019, seeking comments on the information collection.

 

CFPB issues report on patterns of revolving and repayment of credit card accounts

This story appeared in Bank Digest.                         

The Consumer Financial Protection Bureau has issued the latest in its occasional series of data point reports—this one studying patterns of revolving and repayment of credit card accounts in the United States. Cardholders can either repay their balances in full at the end of a billing cycle or repay only a portion of the balance, borrowing the unpaid portion, in which case they are said to revolve a balance. The current report examines how often balances are revolved (or borrowed) on an account, how long balances are revolved, and how regularly they are paid down.

According to the report, about two-thirds of actively used credit card accounts carry a revolving balance, and once consumers pay less than the balance due and begin to revolve on an account, they do so continuously for about 10 months on average. The report added that the longer a balance is revolved, the higher the chances are that a consumer will continue to revolve a balance on the account.

 

CFPB issues 2018 Fair Lending Report

This story appeared in Bank Digest.                                   

The Consumer Financial Protection Bureau has issued its Fair Lending Report to Congress for 2018, which describes the Bureau's "2018 activities to expand fair, equitable, and nondiscriminatory access to credit and to ensure that consumers are protected from discrimination," according to an introductory message from CFPB Director Kathleen Kraninger. As described in a related Bureau blog post, the report explains how in 2018, the CFPB: (1) convened a symposium entitled "Building a Bridge to Credit Visibility" that brought together diverse stakeholders to expand credit access; (2) monitored compliance with anti-discrimination laws; and (3) issued new guidance to facilitate implementation of the Home Mortgage Disclosure Act, among other activities.

 

CFPB updates Payday Lending Rule small entity compliance guide

This story appeared in Bank Digest.                                   

The Consumer Financial Protection Bureau has updated its small entity compliance guide entitled "Payday, Vehicle Title, and High-Cost Installment Lending Rule: Payment-Related Requirements." The guide has been updated to address the delay of the mandatory underwriting provisions for, and the technical corrections to, the Bureau's Payday Lending Rule that were set forth in the final rule released on June 6, 2019.