CFPB Outlines Options to Prevent Algorithmic Bias in Home Valuations

Adam Witmer
Regulatory Update, Fair Lending

On 2/23/2022, the CFPB outlined options to ensure that computer models used to help determine home valuations are accurate and fair. The options will now be reviewed to determine their potential impact on small businesses. According to the CFPB’s release, automated valuation models can pose fair lending risks to homebuyers and homeowners. The CFPB is particularly concerned that without proper safeguards, flawed versions of these models could digitally redline certain neighborhoods and further embed and perpetuate historical lending, wealth, and home value disparities.

OCC Issues FAQs on the December 2021 CRA Final Rule

Adam Witmer
Regulatory Update, CRA

On 2/22/2022, the OCC issued answers to frequently asked questions (FAQ) about the December 2021 final rule to rescind the OCC's Community Reinvestment Act (CRA) rule issued on June 5, 2020 (June 2020 CRA rule). The December 2021 CRA final rule, which became effective on January 1, 2022, replaced the June 2020 CRA rule with provisions largely based on the rules adopted jointly by the OCC, the FRB, and the FDIC in 1995, as revised.

Interagency Statement on Special Purpose Credit Programs Under the ECOA and Reg B

Adam Witmer
Regulatory Update, Regulation B, Fair Lending

On 2/22/2022, the FRB, FDIC, NCUA, OCC, CFPB, HUD, the DOJ, and the FHFA issued an interagency statement to remind creditors of the ability under the Equal Credit Opportunity Act (ECOA) and Regulation B to establish special purpose credit programs to meet the credit needs of specified classes of persons. The statement focuses on the special purpose credit options under ECOA and Regulation B, which have been publicly committed by many financial institutions to better serve underserved communities.

CFPB Issues Guidance for PSLF Communications

Adam Witmer
Regulatory Update

On 2/18/2022, the CFPB issued a Compliance Bulletin and Policy Guidance regarding the servicing of Federal student loans, including Federal Family Education Loan Program and Perkins loans, for borrowers who may be eligible for Public Service Loan Forgiveness (PSLF). The Limited PSLF Waiver announced by the Department of Education on October 6, 2021 significantly changes the program’s eligibility criteria for a limited period. Thus, servicers should consider taking certain actions to ensure compliance with the Dodd-Frank Act’s prohibition on unfair, deceptive, or abusive acts or practices.

VIDEO: What is an Error under Regulation E

VIDEO: What is an Error under Regulation E

Adam Witmer
Regulation E

In this Compliance Clip (video), Adam discusses what an error is for purposes of Electronic Fund Transfer Act, for Regulation E and for dispute purposes. In just under 8 minutes, this video takes a pretty deep dive into a core element of Regulation E disputes. This would be a great video to pass on to anyone needing to understand an “error” under Regulation E. A transcript of this video is now available.

Agencies to Release CRA Proposal

Adam Witmer
Regulatory Update, CRA

On 2/14/2022, Acting Comptroller of the Currency Michael J. Hsu spoke before the National Community Reinvestment Coalition where he announced that the OCC, the Federal Reserve, the FDIC will release a joint CRA Notice of Proposed Rulemaking (NPR) in the not-too-distant future. This step, according to Hsu, is aimed at strengthening and modernizing the regulation implementing the CRA in order to expand financial access and inclusion for low- and moderate-income (LMI) communities.

FinCEN Issues RRP Fact Sheet

Adam Witmer
Regulatory Update

On 2/14/2022, the FinCEN issued a fact sheet on its Rapid Response Program (RRP). RRP is a collaborative partnership that leverages FinCEN’s relationships with law enforcement, U.S. financial institutions, and foreign financial intelligence units to help victims and their financial institutions recover funds stolen as the result of certain cyber-enabled financial crimes schemes, including business e-mail compromise.

CFPB Sees Changes in Banks's Overdraft Programs

Adam Witmer
Regulatory Update

On 2/10/2022, the CFPB released a blog post discussing the changes that banks are making to their overdraft programs. The CFPB also prepared a table comparing overdraft fees and policies across banks. According to the CFPB, they will continue to monitor these developments to better understand the impact of these changes, and to work to ensure that banks continue to evolve their businesses to reduce reliance on overdraft and NSF fees.

VIDEO: Banking Compliance Changes 2022

VIDEO: Banking Compliance Changes 2022

Adam Witmer

In this Compliance Clip (video), Adam gives practical insights on why you need to predict and anticipate compliance changes this year. In doing so, he has a couple of hilarious moments while he also discusses practical things you can do to identify upcoming and possible banking regulatory compliance changes. This must watch video is a fun, valuable tool for compliance professionals who are in charge of regulatory change management.

Federal Reserve Issues Fraud Mitigation Toolkit

Adam Witmer
Regulatory Update, BSA

In early February, 2022, the Federal Reserve released a Synthetic Identity Fraud Mitigation Toolkit which offers a wide variety of informative resources for financial institutions, consumers and businesses on fraud mitigation. The issuance of the fraud mitigation toolkit is the next step in the Federal Reserve’s years-long commitment and engagement with fraud experts to support the payments industry in its battle against fraud.

Load More