All in Regulatory Update

More CFPB Leadership Changes

Adam Witmer
Regulatory Update

On 10/29/21, the Consumer Financial Protection Bureau (CFPB) announced leadership changes within the CFPB. The positions announced were: Assistant Director for the Office of Supervision Policy and Assistant Director for the Office of Enforcement. Specifically, Lorelei Salas will be joining the CFPB as Assistant Director for Supervision Policy and will also serve as the Acting Assistant Director for Supervision Examinations and Eric Halperin has joined the CFPB as Assistant Director for the Office of Enforcement.

FinCEN Renews Geographic Targeting Orders

Adam Witmer
Regulatory Update, BSA

On 10/29/21, the Financial Crimes Enforcement Network (FinCEN) announced the renewal of its longstanding Geographic Targeting Orders (GTOs) that require U.S. title insurance companies to identify the natural persons behind shell companies used in all-cash purchases of residential real estate. The purchase amount threshold remains $300,000 for each covered metropolitan area.

OCC Revises Retail Booklet

Adam Witmer
Regulatory Update

On 10/28/21, the OCC released Bulleting 2021-52 to announce the issuance of version 2.0 of the “Retail Lending” booklet of the Comptroller’s Handbook. This booklet discusses risks associated with retail lending and provides a framework for examiners’ evaluations of risk management activities.

OCC FAQs on Rescission of June 2020 CRA Rule

Adam Witmer
Regulatory Update, CRA

In late October of 2021, the OCC issued a set of 25 Frequently Asked Questions (FAQs) relating to the OCC’s proposal to rescind and replace the Community Reinvestment Act (CRA) rule issued on June 5, 2020 (June 2020 CRA rule). The FAQs provide information on the rulemaking process and the OCC’s consideration of potential CRA issues during any transition from the June 2020 CRA rule to a rule largely based on the rules adopted jointly by the OCC, the Board of Governors of the Federal Reserve System (Board), and the Federal Deposit Insurance Corporation (FDIC) in 1995, as revised (1995 rules).

CFPB Issues Annual Reg Z Threshold Adjustments for 2022

Adam Witmer
Regulatory Update

In late October, 2021, the CFPB announced a final rule to implement the annual adjustment requirements of Regulation Z. Specifically, the CFPB is required to calculate annually the dollar amounts for several provisions in Regulation Z, and the final rule revises, as applicable, the dollar amounts for provisions implementing TILA and amendments to TILA, including under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act of 1994 (HOEPA), and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The CFPB is adjusting these amounts, where appropriate, based on the annual percentage change reflected in the Consumer Price Index (CPI) in effect on June 1, 2021.

FTC Continues Warning Letters

Adam Witmer
Regulatory Update

On 10/26/21, the Federal Trade Commission announced that it is putting more than 1,100 businesses that pitch money-making ventures on notice that if they deceive or mislead consumers about potential earnings, the FTC won’t hesitate to use its authority to target them with large civil penalties.

FATF Update List of Deficient Countries

Adam Witmer
BSA, Regulatory Update

On 10/26/21, FinCEN issued a press release to inform U.S. financial institutions that the Financial Action Task Force (FATF), an intergovernmental body that establishes international standards to combat money laundering, counter the financing of terrorism, and combat weapons of mass destruction proliferation financing (AML/CFT/CPF), has issued public statements updating its lists of jurisdictions with strategic AML/CFT/CPF deficiencies following its plenary meeting this month. U.S. financial institutions should consider the FATF’s stance toward these jurisdictions when reviewing their obligations and risk-based policies, procedures, and practices.

CFPB Announces Deliberate Discrimination Case

Adam Witmer
Regulatory Update, Fair Lending

On 10/22/21, the CFPB announced that it, along with the Department of Justice (DOJ) and OCC, took action to put an end to alleged redlining by Trustmark National Bank. The CFPB and DOJ allege that Trustmark discriminated against Black and Hispanic neighborhoods by deliberately not marketing, offering, or originating home loans to consumers in majority-Black and Hispanic neighborhoods in the Memphis metropolitan area. The CFPB and DOJ also allege that Trustmark discouraged consumers residing in or seeking credit for properties located in these neighborhoods from applying for credit.

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