John D. Socknat

Subscribe to John D. Socknat's Posts
Contact:Read more about John D. Socknat

Although an interpretive rule that made Buy Now Pay Later (BNPL) services subject to the Truth in Lending Act has been withdrawn, the issue remains a flashpoint in the industry and among policymakers, according to the Congressional Research Service (CRS).

“Whether BNPL providers should be subject to the Truth in Lending Act (TILA, 15 U.S.C.… Continue Reading

The CFPB has formally rescinded its rule creating a registry for nonbank enforcement actions. 

The rule, proposed during the Biden Administration, would have required certain nonbank entities to register certain covered enforcement or court orders, and comply with ongoing, attested reporting requirements on the entity’s compliance with such orders. 

The repeal was effective on October 29, 2025.… Continue Reading

Federal banking regulators have issued a joint statement in an effort to provide clarity on banks’ engagement in crypto-asset related activities.

The statement does not create any new supervisory requirements but warns financial institutions that they must be particularly diligent in dealing with crypto-asset safekeeping.

“Given the virtual nature of crypto-assets, and the potentially increased operational risks associated with crypto-asset safekeeping, a banking organization’s cybersecurity environment should be a key focus of risk management,” the agencies said.… Continue Reading

The FHFA has directed Fannie Mae and Freddie Mac to prepare proposals for consideration of cryptocurrency as an asset for reserves in their single-family risk assessments, without a conversion to dollars.

“Cryptocurrency is an emerging asset class that may offer an opportunity to build wealth outside of the stock and bond markets,” FHFA Director William J.… Continue Reading

Having previously announced that it was withdrawing its Buy Now, Pay Later rule, the CFPB recently said that it does not intend to issue a revised rule.

“The Bureau has determined that it does not intend to reissue the BNPL Interpretive Rule because it was procedurally defective and the interpretation included therein applied ill-fitting open-end credit regulations to BNPL products, which are generally structured as closed-end loans,” the CFPB said, in a status report it submitted in a lawsuit filed by the Financial Technology Association.  … Continue Reading

The House Financial Services Committee has approved a bill that would restrict the use of “trigger leads” in the mortgage industry.

The committee approved H.R. 2808, the Homebuyers Privacy Protection Act in a 46-0 vote. Companion legislation has been introduced in the Senate; no action has been taken on the legislation in that body.… Continue Reading

As Rich Andreano blogged on April 15, 2025, legislation to prohibit or restrict so-called “trigger leads” in the home-buying process has been reintroduced in the House and Senate. The legislation has broad industry and consumer group support.

While we await the outcome of the proposed bills, it is worth noting that a number of states have enacted laws that impose restrictions on the manner in which brokers or lenders are permitted to leverage trigger leads in connection with their mortgage activities. … Continue Reading

Alleging that a Boston company “pervasively and systematically violated the state’s consumer protection laws, including mortgage and foreclosure prevention laws, putting financially vulnerable homeowners at high risk of losing their homes,” Massachusetts Attorney General Andrea Joy Campbell has filed suit against the firm and its holding company. 

The AG alleged that Hometap Equity Partners LLC–and HomeTap Management Systems, LLC–engaged in illegal and predatory practices targeted for financially vulnerable homeowners, according to the suit filed in Suffolk County Superior Court.… Continue Reading