Biden Vetoes Senate Resolution to Withdraw the CFPB’s 1071 Rule

Adam Witmer
Regulatory Update

On December 20, 2023, the ABA banking Journal reported that President Biden vetoed a Senate joint resolution to overturn the CFPB’s final rule implementing Section 1071 of the Dodd-Frank Act, also known as the small business lending data collection rule. In a published statement, Biden said that the resolution would harm all those that stand to benefit from expanded transparency and accountability, thus vetoing the resolution.

FinCEN Issues Final Rule On Access to BOI

Adam Witmer
Regulatory Update, BSA

On December 21, 2023, FinCEN issued a final rule that establishes the framework for access to and protection of beneficial ownership information (BOI). The final rule prescribes the circumstances under which BOI reported in compliance with FinCEN’s September 30, 2022 final BOI Reporting Rule may be disclosed to Federal agencies; state, local, tribal, and foreign governments; and financial institutions, and how it must be protected. 

CFPB and DOJ Sue Colony Ridge for Bait-and-Switch Land Sales and Predatory Financing

Adam Witmer
Regulatory Update, Fair Lending

On December 20, 2023, the CFPB and the DOJ sued Colony Ridge, a Texas-based developer and lender, for operating an illegal land sales scheme and targeting tens of thousands of Hispanic borrowers with false statements and predatory loans. The lawsuit alleges that Colony Ridge sells unsuspecting families flood-prone land without water, sewer, or electrical infrastructure, and that the company sets borrowers up to fail with loans they cannot afford. 

2024 HMDA Exemption Threshold

Adam Witmer
HMDA, Regulatory Update

On December 18, 2023, the CFPB adjusted the HMDA exemption threshold from $54 million to $56 million. The adjustment is based on the 4.1 percent increase in the average of the CPI-W for the 12-month period ending in November 2023 (up from 4.7 in 2021 and 8.6 in 2022). Therefore, banks, savings associations, and credit unions with assets of $56 million or less as of Dec. 31, 2023, are exempt from collecting data in 2024.

CFPB Shuts Down Commonwealth Financial Systems for Illegal Debt Collection

Adam Witmer
Regulatory Update, FCRA

On December 15, 2023, the CFPB took action against a medical debt collector, Commonwealth Financial Systems, for illegally trying to collect unverified medical debts after consumers disputed the validity of the debts. With its headquarter in Dickson City, Commonwealth Financial Systems is a nonbank corporation engaged in  third-party debt collection where it specializes in the collection of past-due medical debts and furnishes information about consumer collection accounts to consumer reporting companies. 

OCC’s 2023 Annual Report

Paula Parras
Regulatory Update

On December 11, 2023, the OCC issued its annual report to Congress which provides an overview of the condition of the federal banking system. The annual report can be beneficial to compliance professionals as it discusses the OCC's strategic priorities and details agency regulatory and policy initiatives.

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