All in Regulatory Update

FTC Issues Consumer Tips to Avoid COVID-19 Scams

Adam Witmer
Regulatory Update

On 12/8/2020, the Federal Trade Commission issued a “consumer education blog post” which provides tips for consumers on how to recognize and avoid vaccine-related scams. In their blog post, the FTC warns that, with COVID-19 vaccines in the pipeline, scammers will not be far behind. Therefore, consumers should look out for red flags of potential scams.

CFPB Issues final Advisory Opinion Policy

Adam Witmer
Regulatory Update

On 11/30/2020, the CFPB issued its final Advisory Opinions Policy to set forth procedures to facilitate the submission of requests that the CFPB issue advisory opinions. Advisory opinions may be issued by the CFPB in the form of interpretive rules, which in some situations may provide a safe harbor to regulated entities that are in compliance with the Bureau’s interpretive rule, in order to resolve regulatory uncertainty for interested parties. The Bureau initiated its policy for issuing advisory opinions in response to feedback received from external stakeholders in the 2018 Guidance RFI, encouraging the Bureau to provide written guidance in cases of regulatory uncertainty. The Advisory Opinion Policy is applicable on November 30, 2020.

Regulators to Have Webinar on Artificial Intelligence

Adam Witmer
BSA, Regulatory Update

On 11/30/2020, the FDIC - along with the OCC, Federal Reserve, and CFPB - announced that they will be holding an Ask the Regulators webinar for their supervised institutions. This webinar event will be on the use of artificial intelligence (AI), including machine learning (ML), and will be held on Wednesday, December 16, 2020 at 1:00 PM EST. Participants must preregister for the event.

OCC Proposal on CRA General Performance Standards

Adam Witmer
CRA, Regulatory Update

On 11/24/2020, the OCC issued a proposed rulemaking on the Community Reinvestment Act’s (CRA) general performance standards. This proposal comes after the June 2020 final rule and provides the OCC’s planned approach to determine the CRA evaluation measure benchmarks, retail lending distribution test thresholds, and community development minimums under the general performance standards set forth in the 2020 final rule.

CFPB to Update Website

Adam Witmer
Regulatory Update

On 11/25/2020, the CFPB announced a few enhancements to its website, including a new interactive enforcement database to help the public track the CFPB’s enforcement actions. In their release, the CFPB states that the updated website will feature additional user functionality, an improved layout, more content, and easier access to information. Through these updates, the CFPB intends to increase transparency and make it easier for consumers and stakeholders to locate and access essential resources.

HMDA FIG Updated for 2021

Adam Witmer
Regulatory Update, HMDA

In August, September, October, and November of 2020, the CFPB updated their Filing instructions guide for HMDA data collected in 2021. Updates to this guide are made annually, and there have been several different updates and versions to the FIG so far. HMDA filers will need to be sure to monitor the 2021 FIG to ensure they are using the current version of the guide.

Community Bank Reporting Relief

Adam Witmer
Regulatory Update

On 11/20/2020, the FDIC, Federal Reserve, and OCC jointly issued an interim final rule to provide temporary relief to certain community banks whose asset size has increased in 2020 due, in large part, to their participation in government programs established in response to the COVID-19 pandemic, such as the Paycheck Protection Program. The interim final rule provides temporary relieve to financial institutions with $10 billion or less in total consolidated assets as of December 31, 2019. According to the OCC’s release, community banks that have crossed a relevant threshold generally will have until 2022 to either reduce their size, or to prepare for new regulatory and reporting standards. The interim final rule is effective immediately, but comments will be accepted for 60 days after publication in the Federal Register.

FinCEN Issues Fact Sheet on CDD Expectations for Charities & Non-Profits

Adam Witmer
BSA, Regulatory Update

On 11/19/2020, the Financial Crimes Enforcement Network (FinCEN), in coordination with the Federal Banking Agencies, issued a joint fact sheet for banks to better understand how to apply a risk-based approach to charities and other non-profit organizations, often referred to as NPOs. In their release, the CFPB explains that the joint fact sheet highlights the importance of ensuring that legitimate charities have access to financial services and can transmit funds through legitimate and transparent channels, especially during the current COVID-19 pandemic. The joint fact sheet also reminds banks to apply a risk-based approach to customer due diligence (CDD) requirements when developing the risk profiles of charities and other non-profit customers.

CFPB Announces 2021 Thresholds Under Reg Z & Reg M

Adam Witmer
Regulatory Update

On 11/18/2020, the CFPB issued a number of thresholds for 2021 under Regulation Z, as well as a threshold under Regulation M. First, the CFPB announced that the threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans during 2021 will remain the same as it was in 2020, at $27,200. In addition, the threshold exempting certain loans from the Truth in Lending Act as well as the Consumer Leasing Act in 2021 will continue to apply to consumer credit transaction and consumer lease of $58,300 or less.

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