On October 13, 2021, the Federal Trade Commission (FTC) sent letters to hundreds of businesses warning them about risks of using fake reviews and misleading endorsements. In their release, the FTC explained that they are blanketing industry with a clear message that, if they use endorsements to deceive consumers, the FTC will be ready to hold them responsible with every tool at its disposal.

On October 13, 2021, one day after Rohit Chopra assumed the office as the 3rd Director of the Consumer Financial Protection Bureau (CFPB), the CFPB announced leadership changes within the organization. The positions announced were: Deputy Director; Associate Director for Consumer Education & External Affairs; Chief of Staff; and Chief Technologist.

On 10/13/21, the U.S. Department of the Treasury launched a new effort to study the impact of climate change on households and communities. The Financial Literacy and Education Commission (FLEC) convened a meeting, which was chaired by Under Secretary for Domestic Finance Nellie Liang to begin to explore the financial risks to households and communities, especially low-income and historically disadvantaged communities, of climate change and climate transition.

On 10/6/2021, the Federal Trade Commission put 70 for-profit higher education institutions on notice that the agency is cracking down on any false promises they make about their graduates’ job and earnings prospects and other outcomes and will hit violators with significant financial penalties. In addition, the FTC announced that it is resurrecting its Penalty Offense Authority, found in Section 5 of the FTC Act, to ensure that bad actors pay a price when they break the law.

In early October, 2021, the CFPB issued a new “Compliance Aid” -27 frequently asked questions and answers (i.e. FAQS) - to assist creditors with understanding the new debt collection rule. The new FAQs are divided into 5 different topics and include 27 total questions and answers.

On October 5, 2021, Acting Comptroller of the Currency, Michael J. Hsu, spoke at the Women in Housing & Finance Public Policy Luncheon. In his speech, Hsu addressed the importance of diversity in a financial institution’s board of directors and discussed steps the OCC was considering to ensure diversity.

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.

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.