All in Regulatory Update

FBI Warns of Elder Abuse

Adam Witmer
Regulatory Update

On 6/15/2021, the FBI issued an article warning of elder abuse as well as a report from the FBI’s Internet Crime Complaint Center. The article explains that older people are an attractive target for fraudsters and scammers as this demographic tends to have more financial stability - which makes them a target for criminals.

CFPB Report on HMDA Threshold

Adam Witmer
Regulatory Update, HMDA

On June 14, 2021, the CFPB issued a report that reviews differences in lending patterns for lenders below and above the 100-loan closed-end threshold set by the 2020 Home Mortgage Disclosure Act rule. The CFPB also issued a blog post that explains the data source and analytical approach, as well as key findings from their report. Even though the information presented in the report covers all 2019 HMDA reporters with closed-end origination volume below 1,000, the CFPB explains that their report highlights the contrasts between the reporters whose origination volume was below 100 and those whose origination volume was over 100, as 100 corresponds to the closed-end reporting threshold set by the 2020 HMDA Rule.

CFPB Issues EFT FAQs

Adam Witmer
Regulation E, Regulatory Update

On 6/4/2021, the Consumer Financial Protection Bureau (CFPB) issued a set of frequently asked questions (FAQs) under the topic of “Unauthorized Electronic Fund Transfers, Subpart A to Regulation E.” This FAQs provide guidance on several areas financial institutions have struggled with over the years, including topics like determining how to handle instances where consumer share account access information with third parties who fraudulently obtain the information, consumer negligence, private network rules, and requiring police reports. These FAQs appear to be the first of several topics, so compliance professionals should stay tuned over the next few years to see if more Reg E FAQs are released by the CFPB.

OCC Steps Back from CRA Rule

Adam Witmer
CRA, Regulatory Update

In somewhat of a surprise turn of events, the OCC announced on 5/18/2021 that it plans to reconsider its June 2020 CRA rule. This backstep comes for a rule that was released only by the OCC as the FDIC and Federal Reserve did not participate in this final rule and had not come to a consensus on CRA reform - meaning the OCC was planning to implement a new CRA rule on their own, rather than jointly with the other agencies. Interestingly enough, the 5/18/21 announcement comes almost one year after prior OCC Comptroller Joseph Otting - who was the primary person pushing for CRA reform - issued the final rule, and then just hours later announced that he would be stepping down from the OCC.

FDIC Requests Information on Digital Assets

Adam Witmer
Regulatory Update

On 5/17/2021, the FDIC announced that it is gathering information about insured depository institutions’ current and potential digital asset activities. In their release, the FDIC explains that banks are increasingly exploring the emerging digital asset ecosystem, so the FDIC has issued its request for information (RFI) to help inform its understanding of the industry’s and consumers’ interests in this area.

Agencies Extend Comment Period for AI Information

Adam Witmer
Regulatory Update

On 5/17/21, the Federal Reserve, CFPB, FDIC, NCUA, and OCC jointly announced that they extended the comment period on the request for information on financial institutions’ use of artificial intelligence (AI) until July 1, 2021. Comments were originally due by June 1, 2021, but this extension was made to allow stakeholders more time to coordinate and prepare their comments.

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