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In this Compliance Clip, Adam talks about how the section for politically exposed persons (PEPs) in the BSA Exam Manual was recently updated in December of 2021. While the regulators have said that the BSA Exam manual updates shouldn’t be anything new, the changes to the PEP section of the manual are quite interesting as it seems to back peddle from what was said in the 2014 edition. This video is a must watch for your BSA/AML team.
A Transcript of this video is now available.
On April 26, 2022, CFPB Director Rohit Chopra testified before the Senate Committee on Banking, Housing, and Urban Affairs in conjunction with the CFPB’s submission of the Semiannual Report to Congress. In his speech, Chopra enumerated the CFPB’s efforts to align with the objectives that Congress set out for the agency.
On April 25, 2022, the CFPB announced that it is invoking a largely unused legal provision to examine nonbank financial companies that pose risks to consumers. Through the use of this dormant authority, the CFPB believes that it will protect consumers and level the playing field between banks and nonbanks. In addition, the CFPB is seeking public comments on a procedural rule to make this process more transparent.
On April 21, 2022, the CFPB and New York Attorney General Letitia James announced that they are filing a lawsuit against MoneyGram International, Inc. and MoneyGram Payment Systems, Inc. for systemically and repeatedly violating various consumer financial protection laws and leaving families high and dry. The lawsuit specifically alleges that the company stranded customers waiting for their money when it failed to deliver funds promptly to recipients abroad.
In this Compliance, Adam discusses what a lender credit is for purposes of the TRID rule. In particular, Adam specifies items that are considered lender credits and gives examples of payments that not are considered a lender credit. In addition, Adam briefly describes the difference between a specific and a general lender credit. A transcript of this video is now available.
On April 1, 2022, HUD issued a proposed rule to increase the term for loan modification to 40 years. HUD's current regulations allow mortgagees to modify a FHA insured mortgage by recasting the total unpaid loan for a term limited to 360 months to cure a borrower's default. This proposed rule would amend HUD's current regulation to allow for mortgagees to recast the total unpaid loan for a new term limit of 480 months.
On April 19, 2022, Acting Comptroller of the Currency Michael J. Hsu spoke at the Black Homeownership Collaborative’s Fair Housing Month Virtual Forum where he discussed expanding access to homeownership for minorities.
On April 19, 2022, the CFPB issued a report on the challenges faced by Americans in rural communities. The report reveals that many of these communities lack access to physical bank branches, are more likely to seek credit from nonbanks, and are heavily affected by medical bills.
On April 15, 2022, the CFPB published an article written by Director Rohit Chopra about protecting families and honest businesses from debt collection abuses. Through the article, CFPB announced that it has submitted its annual report to the Congress on the Fair Debt Collection Practices Act (FDCPA).
On April 14, 2022, FinCEN issued an advisory on kleptocracy and foreign public corruption, urging financial institutions to focus their efforts on detecting the proceeds of foreign public corruption, which is a priority for the U.S. government.. The advisory provides typologies and potential indicators of kleptocracy and other forms of foreign public corruption, namely bribery, embezzlement, extortion, and the misappropriation of public assets.
