CFPB Issues Consumer Complaint Bulletin

Adam Witmer
Regulatory Update

On 4/28/2021, the CFPB issued a bulletin that analyzes complaints submitted by consumers in counties nationwide. In their release, the CFPB explains that, in 2019 and 2020, it received more complaints on a per-capita basis from consumers living in predominantly minority counties than from consumers in predominantly white, non-Hispanic counties. Consumers in counties with the highest percentage of minority population submitted complaints at over four times the rate compared to counties with the lowest percentage of minority population.

CFPB Delays General QM Compliance Dates

Adam Witmer
Regulatory Update

On 4/27/2021, the CFPB officially delayed the mandatory compliance date of the General Qualified Mortgage (QM) final rule from July 1, 2021 to October 1, 2022. In their release, the CFPB states it is taking this action to help ensure access to responsible, affordable mortgage credit, and preserve flexibility for consumers affected by the COVID-19 pandemic and its economic effects.

CFPB Fines Reverse Mortgage Lender for Deceptive Advertising

Adam Witmer
Regulatory Update, UDAAP, Regulation Z

On 4/27/21, the Consumer Financial Protection bureau (CFPB) announced that it had taken action against Nationwide Equities Corporation for sending deceptive loan advertisements to hundreds of thousands of older borrowers. In their release, the Bureau explained that it had found that advertisements from Nationwide Equities misled consumers about how much money they could receive from a reverse mortgage, the fees and costs associated with the products, and the consequences of nonpayment. In addition, the advertisements violated the Mortgage Acts and Practices Advertising Rule (MAP Rule), the Truth in Lending Act (TILA), and the Consumer Financial Protection Act of 2010 (CFPA). The CFPB is ordering the company to pay a penalty, cease its illegal conduct, and implement a compliance plan to affirmatively review every advertisement to ensure they do not violate federal law.

FDIC Proposes Rule Regarding False Advertising of Deposit Insurance

Adam Witmer
Regulatory Update

on 4/22/21, the FDIC issued a proposed rule implementing its statutory authority to prohibit any person or organization from making misrepresentations about FDIC deposit insurance or misusing the FDIC’s name or logo. This statutory authority allows the FDIC to bring formal enforcement actions, such as cease and desist orders or civil money penalties, against individuals or entities for violations.

HUD Charges Landlord with Discrimination Against Family with 10 Children

Adam Witmer
Fair Lending, Regulatory Update

On 4/20/21, the U.S. Department of Housing and Urban Development (HUD) announced that wass charging an owner of a six-bedroom rental home in Frisco, Texas, with violating the Fair Housing Act by refusing to rent to a woman and her ten children. HUD’s charge alleges that the owner stated that he could not rent the home to a family with eleven people, even though the mother, a HUD Housing Choice Voucher recipient, was qualified to rent the home.

VIDEO: GMI for Construction Refinance

VIDEO: GMI for Construction Refinance

Adam Witmer
Regulation B

In this Compliance Clip (video), Adam answers a question about collecting government monitoring information (GMI) for a second construction loan replacing a first construction loan. This question is specific to Regulation B and applies to those financial institutions who are not HMDA reporters.

Agencies Issue Joint BSA Statement & Request for Information

Adam Witmer
BSA, Regulatory Update

On 4/9/2021, the federal banking agencies, along with the Financial Crimes Enforcement Network (FinCEN) and the NCUA, issued a joint statement addressing “how risk management principles described in the ‘Supervisory Guidance on Model Risk Management’ relate to systems or models used by banks to assist in complying with the requirements of Bank Secrecy Act (BSA) laws and regulations.” In addition, the agencies also announced a request for information (RFI) on the extent to which the principles discussed in the guidance support compliance by banks and credit unions with BSA/AML and Office of Foreign Assets Control requirements

FDIC Reopens Input Request on Signage & Advertising Requirements

Adam Witmer
Regulatory Update

On 4/9/2021, the FDIC announced that it is again seeking the public’s input on potential modernization of its sign and advertising requirements to better reflect how banks and savings associations operate and how consumers use banking services. This request for information reopens a notice the FDIC originally published in the Federal Register on 2/19/2020, just prior to the COVID-19 Pandemic. Given the challenges associated with the COVID-19 pandemic, the FDIC temporarily postponed this effort on April 16, 2020. The goal of this request is to solicit public input regarding potential changes to its official sign and advertising rules, as the last significant updates to these rules were in 2006.

Load More