All in Regulatory Update

OCC Fall 2022 Semiannual Risk Perspective

Adam Witmer
Regulatory Update

On December 8, 2022, the OCC released the Fall 2022 edition of its publication Semiannual Risk Perspective. This edition reports key issues facing the banking industry and the lingering effects from the pandemic and shocks from Russia’s invasion of Ukraine on the industry. According to the report, economic growth slowed sharply in 2022, while high employment rates supported consumer spending and overall bank performance.

CFPB Breaks Silence on HMDA Closed-End Loan Reporting Threshold

Adam Witmer
Regulatory Update, HMDA

Over two months after the United States District Court for the District of Columbia issued an order vacating the 2020 Home Mortgage Disclosure Act (HMDA) Final Rule, the CFPB has finally broken their silence. On December 6, 2022, the CFPB announced through a blog post that the HMDA loan volume threshold for reporting data on closed-end mortgage loans has now decreased to 25 loans in each of the two preceding calendar years. Read more for a background on this change and how it might apply to you…

CFPB Takes Action Against Loan Doctor for Offering Fake High-Yield Bank Accounts

Adam Witmer
Regulatory Update, UDAAP

On December 1, 2022, the CFPB took action against Loan Doctor to resolve the CFPB’s claims that the company and its founder, Edgar Radjabli, broke the law by deceiving consumers into thinking they were depositing funds into a guaranteed return savings product within a commercial bank. The CFPB alleges that Loan Doctor and Radjabli falsely represented that deposited funds would be used to originate loans for healthcare professionals, would be held in insured accounts or backed by cash alternatives, and would yield interest rates between 5% and 6.25%.

FDIC Updates Consumer Compliance Exam Manual

Adam Witmer
Regulatory Update

On November 30, 2022, the FDIC updated sections of the Consumer Compliance Examination Manual. The Consumer Compliance Examination Manual is a primary resource and reference tool for FDIC compliance examination staff when conducting Consumer Compliance and CRA examinations. It incorporates examination policies, procedures, and guidance and is available on the FDIC website as a resource for FDIC staff, bankers, and other members of the public.

FTC Shuts Down Credit Card Debt Relief Scheme

Adam Witmer
Regulatory Update

On November 30, 2022, the FTC temporarily shut down a credit card debt relief scheme operated by Sean Austin, John Steven Huffman, and John Preston Thompson and their affiliated companies that allegedly took millions from people by falsely promising to eliminate or substantially reduce their credit card debt. According to the FTC, the scheme often targeted older Americans and financially distressed consumers.

CFPB Files Amicus Brief to Explain TILA

Adam Witmer
Regulatory Update, Regulation Z

On November 30, 2022, the CFPB filed an amicus brief in the U.S. Court of Appeals for the Fourth Circuit to defend the Truth in Lending Act (TILA), which contains important protections for consumers who have both a credit card account and a savings or checking account with the same bank. TILA prohibits banks from unilaterally taking money from consumers’ deposit accounts to cover their credit card debt.

FATF Publishes Report on Money Laundering from Fentanyl and Synthetic Opioids

Adam Witmer
Regulatory Update, BSA

On November 30, 2022, the FATF released its first ever report on money laundering from fentanyl and synthetic opioids with recommendations for countering financial flows from the illicit drug trade, which claims thousands of lives around the world. The report, which was co-led by the United States and Canada, looks at the way proceeds are laundered from synthetic opioids trafficking.

FTC Sues Google and iHeartMedia for Deceptive Ads

Adam Witmer
Regulatory Update

On November 28, 2022, the FTC and state attorneys general announced lawsuits against Google LLC and iHeartMedia, Inc. for airing nearly 29,000 deceptive endorsements by radio personalities promoting their use of and experience with Google’s Pixel 4 phone in 2019 and 2020. The FTC’s administrative complaint alleges that the two companies’ misrepresentations violated the FTC Act.

CFPB Shares Complaint Data to Local Governments

Adam Witmer
Regulatory Update

On November 18, 2022, the CFPB published an article about how using CFPB complaint data can help cities and counties protect the public from unfair, deceptive, or abusive acts or practices. The Bureau has recently created the CFPB’s Government Portal where local, state, and federal government agencies can have access to more granular information about consumers’ complaints and companies’ responses through a secure interface.

CFPB Takes Action Against Carrington Mortgage for Violating CARES Act

Adam Witmer
Regulatory Update

On November 17, 2022, the CFPB took action against Carrington Mortgage Services for deceptive acts or practices under the Consumer Financial Protection Act in connection with mortgage forbearances. According to the CFPB, Carrington failed to implement many protections, provided to borrowers with federally backed mortgage loans who were experiencing financial hardship, during the COVID-19 public health emergency.

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