All in Regulatory Update

CFPB Fines Freedom Mortgage and Realty Connect for Illegal Kickbacks

Adam Witmer
Regulatory Update, RESPA

 On August 17, 2023, the CFPB took action against Freedom Mortgage Corporation (Freedom) for providing illegal incentives to real estate brokers and agents in exchange for mortgage loan referrals.  According to the CFPB, Freedom provided real estate agents and brokers with numerous incentives, including cash payments, paid subscription services, and catered parties, with the understanding they would refer prospective homebuyers to Freedom for mortgage loans. 

CFPB Considers Rulemakings on Harmful Data Practices

Adam Witmer
Regulatory Update

On August 15, 2023, CFPB Director Rohit Chopra spoke at a White House Roundtable on Protecting Americans from Harmful Data Practices where he announced that the Bureau has decided to launch a rulemaking to ensure that modern-day digital data brokers are not misusing or abusing consumers' sensitive data. According to Chopra, the proposals aim to ensure that modern-day data companies assembling profiles about consumers are meeting the requirements under the Fair Credit Reporting Act.

FDIC's 2023 Risk Review

Adam Witmer
Regulatory Update

On August 14, 2023,  the FDIC  published its 2023 Risk Review, which summarizes conditions in the U.S. economy, financial markets, and banking industry. According to the FDIC, this year’s expanded report incorporates data and insights related to the recent stress to the banking sector through first quarter 2023.

FinCEN Officials Meets with Mexican Counterparts to Discuss Illicit Finance Trends Associated with Fentanyl

Adam Witmer
Regulatory Update, BSA

On August 4, 2023, FinCEN announced that officials from FinCEN traveled to Mexico City to reinforce its continuing commitment to close collaboration with the Mexican government to combat illicit finance. On August 2, FinCEN hosted a cross-border roundtable on the shared priorities of combating fentanyl and other drug trafficking, human smuggling and trafficking, and other predicate crimes. The dialogue was participated by U.S. and Mexican financial institutions, U.S. and Mexican regulators and financial intelligence units, and U.S. law enforcement.

Stay on 1071 Rule for Some Banks

Adam Witmer
Regulatory Update

On July 31 2023, the ABA Banking Journal published an article announcing a Federal judge’s decision to block the enforcement of the Consumer Financial Protection Bureau’s Section 1071 final rule while the Supreme Court hears a challenge to the constitutionality of the CFPB’s funding structure. This delay, however, does not apply to all financial institutions, so those needing more information regarding this delay should seek legal counsel.

FinCEN SAR Filings

Adam Witmer
BSA, Regulatory Update

FinCEN has updated its “SAR Filings by Industry” webpage to include data from 2022. In addition to this webpage, FinCEN has an interactive map and and Interactive SAR Stats which allow BSA professionals to analyze what types of suspicious activity are being reported in their areas. As this data allows specific sorting of the data, BSA professionals are able to sort by many different fields including primary regulator, county, industry, etc.

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