CFPB Settles Lawsuit with NACA, et al.

Adam Witmer
Regulatory Update

On 1/14/2022, the CFPB announced that it has settled a lawsuit filed by the National Association of Consumer Advocates, U.S. Public Interest Research Group, and Professor Kathleen Engel. The lawsuit alleged that the Taskforce on Federal Consumer Financial Law, a taskforce chartered by CFPB, did not comply with the Federal Advisory Committee Act (FACA). FACA is a "sunshine" law that seeks to ensure adequate transparency into agency advisory committees.

FDIC and FinCEN Launch Digital Identity Tech Sprint

Adam Witmer
Regulatory Update

On 1/11/2022, the FDIC and FinCEN announced a Tech Sprint to develop solutions for financial institutions and regulators to help measure the effectiveness of digital identity proofing—the process used to collect, validate, and verify information about a person. FDIC's tech lab and FinCEN are collaborating to reduce fraud and other forms of identity-related crime, money laundering, and terrorist financing through the Tech Sprint. They also intend to increase customer confidence in digital banking services.

CFPB Reminds Creditors of the No Surprises Act

Adam Witmer
Regulatory Update, FCRA

On 1/13/22, the CFPB released a bulletin reminding debt collectors and credit bureaus of their legal obligations in light of the No Surprises Act, which protects consumers from certain unexpected medical bills. The bulletin advises credit bureaus that the accuracy and dispute obligations imposed by the FCRA apply with respect to debts stemming from charges that exceed the amount permitted by the No Surprises Act.

VIDEO: Credit Report Fees and Fair Lending

VIDEO: Credit Report Fees and Fair Lending

Adam Witmer
Fair Lending, Regulation B

In this Compliance Clip (video), Adam talks about how credit report fees can relate to fair lending. In particular, Adam describes how differences in credit report charges may lead to a fair lending violation under Regulation B. While this has been a known issue for decades, it seems this topic has resurfaced a bit, so feel free to share this with anyone on your lending team.

CFPB Sues for Illegal Debt Collection Practices

Adam Witmer
Regulatory Update

On 1/10/22, the CFPB sued United Debt Holding (UDH), JTM Capital Management (JTM), United Holding Group (UHG), and their owners, Craig Manseth, Jacob Adamo, and Darren Turco, for illegal debt-collection practices. The Bureau alleges that the defendants placed consumer debt with, or sold consumer debt to, collection companies that used unlawful and deceptive collection tactics. Based on CFPB’s statement, the defendants knew, or should have known, the collection companies made false threats and false statements to consumers.

VIDEO: RESPA Section 8 Gifts & Promotions

VIDEO: RESPA Section 8 Gifts & Promotions

Adam Witmer
RESPA

In this Compliance Clip (video), Adam explains the answer to the question on whether or not gifts and promotions are allowed under RESPA Section 8. While having kickbacks and unearned fees is definitely prohibited, Adam gives some examples on how it may happen to mortgage lenders.

MLA Database to Add Certain Cadets and Midshipmen

Adam Witmer
Regulatory Update, MLA

On 12/27/21, the Department of Defense issued a notice to the public of a scheduled change to the Military Lending Act (MLA) Database. Effective February 1, 2022, cadets and midshipmen attending Military Service Academies of the Armed Forces, who are covered borrowers under the MLA, will be added to the population of covered borrowers identified in the MLA database. This is actually a correction of an error in the database's original development.

FHFA Acting Director’s Statement on Climate Change

Adam Witmer
Regulatory Update

On 12/27/21, the Federal Housing Finance Agency (FHFA) issued a statement by its Acting Director, Sandra L. Thompson, regarding climate change. According to Thompson, ​​ FHFA recognizes that climate change poses a serious threat to the U.S. housing finance system and as a member of the Financial Stability Oversight Council (FSOC), FHFA is committed to working collaboratively with other federal agencies to make tangible progress toward addressing climate change and its consequences.

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