HUD Issues ANPR on Transitioning Away from LIBOR

Adam Witmer
Regulatory Update

On 10/5/2021, the Department of Housing and Urban Development (HUD) issued an Advance Notice of Proposed Rulemaking (ANPR) in the Federal Register. In the ANPR, HUD explains that it is considering a rule that would address a Secretary-approved replacement index for existing FHA loans and provide for a transition date consistent with the cessation of the LIBOR index. HUD is also considering replacing the LIBOR index with the SOFR interest rate index, with a compatible spread adjustment to minimize the impact of the replacement index for legacy ARMs.

Rohit Chopra Confirmed as New CFPB Director

Adam Witmer
Regulatory Update

On 9/30/2021, Rohit Chopra was confirmed by a Senate vote of 50 to 48 to become the next director of the Consumer Financial Protection Bureau. As we have reported previously, Chopra is a former McKinsey & Company consultant, worked with Senator Elizabeth Warren on establishing the CFPB before heading up the student lending division of the CFPB in 2011, and has been a member of the Federal Trade Commission since 2018.

CFPB Reminds of Mortgage Servicing Rules

Adam Witmer
Regulatory Update, RESPA

On 9/30/2021, the CFPB published an article reminding servicers of newer rule that help protect potentially vulnerable borrowers exiting forbearance. In their article, the CFPB reminds loan services that not all borrowers are similarly situated and many borrowers may be vulnerable to a greater risk of harm due to a variety of pandemic-related and nonrelated circumstances, including poor health, mental decline, disability, caregiving for a child or loved one, having limited English proficiency, inadequate access to technology, or being a first-time homeowner.

FinCEN Starts Process for New Antiquities Regulations

Adam Witmer
Regulatory Update, BSA

On 9/23/21, the Financial Crimes Enforcement Network (FinCEN) issued an Advance Notice of Proposed Rulemaking (ANPRM) to solicit public comment on a range of questions related to the implementation of amendments to the Bank Secrecy Act (BSA) regarding the trade in antiquities. This ANPRM is the first in a series of regulatory actions that FinCEN will undertake to implement Section 6110 of the Anti-Money Laundering Act of 2020 (AML Act), which became law on January 1, 2021.

CFPB Report on Complaints by Location

Adam Witmer
Regulatory Update, Compliance Management

On 9/23/21, the Consumer Financial Protection Bureau (CFPB) released its first in-depth report analyzing complaint submission patterns by U.S. Census tract. The report, “Consumer complaints throughout the credit life cycle, by demographic characteristics,” finds that the complaints from wealthier communities and communities with higher percentages of white, non-Hispanic residents were more frequently about loan origination and performing servicing, while the complaints from communities of color and lower income communities were more frequently about credit reporting, identity theft, and delinquent servicing.

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