All in Regulatory Update

Federal Reserve Guidance for Regulation D

Adam Witmer
Regulation D, Regulatory Update

The Federal Reserve recently issued a series of FAQs regarding their announcement on March 15, 2020 of the elimination of reserve requirements. This announcement has resulted in many questions regarding the transaction restrictions on savings accounts under Regulation D. Specifically, many banks are seeing an increase of restricted transactions on Savings accounts due to customers following stay-at-home orders. The question bankers often have is this: Do we still need to follow Regulation D’s restrictions on Savings accounts, or can we allow customers to exceed those restrictions?

Fortunately, the Federal Reserve has provided guidance to financial institutions, which many comes down to this: the restrictions are still in place, but financial institutions can convert applicable accounts to transaction accounts.

CFPB Guidance on Credit Reporting during COVID-19 Pandemic

Adam Witmer
FCRA, Regulatory Update

On April 1, 2020, the CFPB released a policy statement outlining the responsibility of credit reporting companies and furnishers during the COVID-19 pandemic. In response to the pandemic, many lenders are being flexible when it comes to consumers’ making payments. As many lenders are now working to offer struggling borrowers payment accommodations, Congress last week passed the CARES Act which requires lenders to report to credit bureaus that consumers are current on their loans if consumers have sought relief from their lenders due to the pandemic. The Bureau’s statement informs lenders they must comply with the CARES Act and also encourages lenders to continue to voluntarily provide payment relief to consumers and to report accurate information to credit bureaus relating to this relief.

FATF Report on US Progress in Strengthening AML Measures

Adam Witmer
BSA, Regulatory Update

On March 31, 2020, the Financial Action Task Force (FATF) released a report regarding the measures taken by the United States to strengthen their money laundering framework. In their report, FATF found that the United States has been in an enhanced follow-up process following the adoption of its mutual evaluation in 2016, after the 2016 FATF evaluation. In line with the FATF Procedures for mutual evaluations, the country has reported back to the FATF on the actions it has taken since then.

CFPB Settles with Short-Term Lender for UDAAP Violations

Adam Witmer
Regulatory Update, UDAAP

On April 1, 2020, the CFPB announced a settlement with Cottonwood Financial, Ltd., which does business under the name Cash Store, operating in several states and based in Texas. The CFPB found that in the course of marketing, servicing, and collecting on high-interest payday, auto-title, and unsecured consumer-installment loans Cash Store violated several consumer protection laws including the Consumer Financial Protection Act (CFPA), Fair Credit Reporting Act (FCRA), and Truth in Lending Act (TILA). The consent order includes $1.3 million in monetary restitutions and fines.

CFPB Issues Mortgage Relief Options Guide

Adam Witmer
Regulatory Update

On March 31, 2020, the CFPB released a guide to assist consumers with understanding their mortgage relief options. The guide is designed by those financially impacted by the coronavirus pandemic and who might be concerned about how to pay their mortgage or rent. Federal and state governments have announced plans to help struggling homeowners during this time and the CFPB guide provides information on what consumers can do now, and what their options are for mortgage and rental relief.

FFIEC COVID-19 Guidance

Adam Witmer
Regulatory Update, Business Continuity

On March 25, 2020 the Federal Financial Institutions Examination Council (FFIEC) released a statement that the regulatory agencies are continuing to monitor and respond to the COVID-19 pandemic to promote the ongoing ability of the nation’s financial institutions to support the households and businesses that depend on them. This article highlights the FFIEC guidance.

Load More