CFPB Discusses Mortgage Financing Alternatives

Adam Witmer
Regulatory Update

On December 21, 2022, the CFPB published an article describing how interest rates have risen over the past two years. Data from Freddie Mac Primary Mortgage Market Survey shows that interest rates for 30-year fixed-rate mortgages increased to as high as 7% in 2022 from a historical low of 2.90 in 2020. According to recent CFPB analysis of quarterly HMDA data, these higher rates have already led to increased monthly payments and higher debt-to-income ratios for mortgage borrowers.

CFPB Charges Wells Fargo for Multiple Violations

Adam Witmer
Regulatory Update

On December 20, 2022, the CFPB ordered Wells Fargo Bank to pay more than $2 billion in redress to consumers and a $1.7 billion civil penalty for legal violations across several of its largest product lines. According to the CFPB’s release, Wells Fargo engaged in illegal activities that led to billions of dollars in financial harm to its customers and, for thousands of customers, the loss of their vehicles and homes.

Agencies Release CRA Asset-Size Thresholds for 2023

Adam Witmer
Regulatory Update, CRA

On December 19, 2022, the Federal Reserve Board and the FDIC issued the 2023 updated asset-size thresholds used to define "small bank" and "intermediate small bank" under their Community Reinvestment Act (CRA) regulations. On December 29, 2022, the OCC released a similar notice of asset-size threshold adjustments. Annual adjustments to these asset-size thresholds are based on the average change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is a measure of inflation.

FRB Issues Final Rule for LIBOR Act

Adam Witmer
Regulatory Update

On December 16, 2022, the Federal Reserve Board adopted a final rule that implements the Adjustable Interest Rate (LIBOR) Act by identifying benchmark rates based on SOFR (Secured Overnight Financing Rate) that will replace LIBOR in certain financial contracts after June 30, 2023. The final rule is substantially similar to the proposal with certain clarifying changes made in response to comments.

CFPB Updates HELOC Booklet

Adam Witmer
Regulatory Update, Regulation Z

On December 16, 2022, the CFPB announced by publishing through the Federal Register the availability of an updated consumer publication, “What You Should Know about Home Equity Lines of Credit,” also known as the HELOC booklet, required by the Truth in Lending Act (TILA), as implemented by Regulation Z. According to the CFPB’s notice, the version of the HELOC booklet is updated to align with the Bureau's educational efforts, to be more concise, and to improve readability and usability.

FFIEC Revises FDCPA Exam Procedures

Adam Witmer
Regulatory Update

On December 15, 2022, the FFIEC Task Force on Consumer Compliance adopted the revised examination procedures for the Fair Debt Collection Practices Act (FDCPA) and its implementing regulation, Regulation F. The revised interagency examination procedures incorporate the Consumer Financial Protection Bureau’s 2020 and 2021 Fair Debt Collection Final Rules that went into effect on November 30, 2021.

FFIEC Publishes 2021 CRA Data

Adam Witmer
Regulatory Update, CRA

On December 15, 2022, the federal bank regulatory agencies, as members of the Federal Financial Institutions Examination Council (FFIEC), released the 2021 Small Business, Small Farm, and Community Development Lending Data. The analysis was conducted using data compiled for banks, savings and loan associations, and savings banks reporting under the CRA regulations.

FinCEN Publishes Proposed Rule on Access to Beneficial Ownership Information

Adam Witmer
Regulatory Update

On December 15, 2022, FinCEN issued a Notice of Proposed Rulemaking (NPRM) that would implement provisions of the Corporate Transparency Act (CTA) that govern the access to and protection of beneficial ownership information. The proposed rule is one of three rulemakings planned to implement the CTA, and follows the final reporting rule that FinCEN issued on September 30, 2022.

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