Kentucky Judge Blocks Nationwide Enforcement of 1071 Final Rule

Adam Witmer
Regulation B, Regulatory Update

On September 15, 2023, the ABA Banking Journal published an article announcing a Ketucky federal judge’s nationwide injunction blocking enforcement of the CFPB’s Section 1071 final rule until the U.S. Supreme Court rules on the constitutionality of the bureau’s funding structure. The said injunction is separate from the ruling issued by a Texas judge in July, which only applied to ABA and Texas Bankers Association members.

VIDEO: 1071 Voluntary Collecting & Reporting

VIDEO: 1071 Voluntary Collecting & Reporting

Adam Witmer
Regulation B

In this Compliance Clip (video), Adam answers the question on whether a non-covered financial institution can voluntarily collect information on covered applications from a small business pursuant to the 1071 Final Rule. Adam explains the answer by discussing the different situations that the CFPB has provided through the Small Business Lending Rule Small Entity Compliance Guide. A transcript of this video is now available.

Court Rules CFPB 2022 Update on Exam Manual for UDAAP Invalid

Adam Witmer
Regulatory Update, UDAAP

On September 8, 2023, the United States District Court for the Eastern District of Texas issued a summary judgment vacating the CFPB’s March 2022 update to the UDAAP Chapter of the CFPB’s Supervision and Examination Manual - for members of the plaintiffs. This is after the plaintiffs - the ABA, the Texas Bankers Association, the U.S. Chamber of Commerce and several others - challenged the CFPB’s March 2022 interpretation in its Consumer Compliance Examination Manual of its authority to include discrimination as an unfair act or practice under its Consumer Financial Protection Act (CFPA) UDAAP authority. This ruling applies to members of the plaintiffs.

FDIC Updates Equal Housing Lender Posters

Adam Witmer
Regulatory Update

On August 31, 2023, the FDIC issued an update on the required Equal Housing Lender (EHL) posters in FDIC-supervised institutions branches. The FDIC recently amended some details of the posters, including updating the name of the office to which complaints should be addressed, as well as adding the web address of the FDIC’s web-based complaint portal.

CFPB’s Multibillion Dollar Settlement with Credit Repair Conglomerate

Adam Witmer
Regulatory Update

On August 28, 2023, the CFPB entered into a proposed settlement with a ring of corporate entities operating some of the largest credit repair brands in the country, including Lexington Law and CreditRepair.com. The agreement follows a ruling from the court that the companies collected illegal advance fees for credit repair services through telemarketing. If approved, the settlement would impose a $2.7 billion judgment against the companies. 

VIDEO: An Example of Disparate Impact

VIDEO: An Example of Disparate Impact

Adam Witmer
Fair Lending

In this Compliance Clip (video), Adam gives an example of a disparate impact that actually that comes from the regulators. This example shows how an otherwise neutral policy or practice, applied equally to all credit applicants, can disproportionately exclude or burden certain persons on a prohibited basis.

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