On December 21, 2020, the CFPB issued an advisory opinion that addresses regulatory uncertainty related to certain aspects of special purpose credit programs (“SPCPs”) designed and implemented by for-profit organizations. The advisory opinion was issued as an interpretive rule that will be published in the Federal Register and therefore is exempt from the notice and comment rulemaking requirements of the Administrative Procedure Act.… Continue Reading
Lori J. Sommerfield
Proposed ‘Online Accessibility Act’ aims to resolve uncertainty surrounding ADA website litigation
Lawsuits and demand letters relating to the accessibility of websites continue to be filed at a rapid pace in 2020, especially as the COVID-19 pandemic has increased consumer reliance on the internet for purchases of goods and services. In response, Congressmen Lou Correa (D-CA) and Ted Budd (R-NC) recently introduced the bipartisan Online Accessibility Act (H.R.… Continue Reading
CFPB releases Section 1071 SBREFA outline
The CFPB has taken a significant step towards issuing regulations to implement Section 1071 of the Dodd-Frank Act by releasing an outline of the proposals it is considering in preparation for convening a small business review panel (Panel). Section 1071 amended the ECOA to require financial institutions to collect and report certain data in connection with credit applications made by women- or minority-owned businesses and small businesses. … Continue Reading
Financial Institution Regulators Address Financial Inclusion, Expansion of Access to Credit, and Further Consumer Protection from Discrimination
Since early June 2020 when cries for racial justice resulted in a period of social unrest in the U.S., federal and state financial institution regulators have taken meaningful, proactive steps to acknowledge financial inequality issues, reach out to traditionally underserved populations to expand access to credit, and further protect consumers from discrimination.… Continue Reading
CFPB extends comment period for RFI on expanding credit access and further protecting consumers from credit discrimination
The CFPB has extended by 60 days the comment period for its Request for Information (RFI) on how best to create a regulatory environment that expands access to credit and ensures that all consumers and communities are protected from discrimination in all aspects of a credit transaction. Originally set to expire on October 2, the comment period will now close on December 1, 2020.… Continue Reading
President Trump Takes Executive Action to Continue Federal Student Loan Relief During the COVID-19 Pandemic
On August 8, 2020, President Trump signed four executive orders that are designed to provide additional COVID-19 relief as talks on Capitol Hill collapsed on August 7 between White House negotiators and Democratic leaders over a fifth coronavirus stimulus package. One of those actions, which is directed to the Secretary of Education in the form of a memorandum (the “Memorandum”), continues student loan payment relief during the COVID-19 crisis for certain federal student loans held by the Department of Education.… Continue Reading
FFIEC Issues Joint Statement on Additional Loan Accommodations Related to COVID-19
On August 3, 2020, the Federal Financial Institutions Examination Council (“FFIEC”) issued a joint statement to provide prudent risk management and consumer protection principles for financial institutions to consider when working with borrowers as consumer and business loans near the end of initial loan accommodation periods during the coronavirus pandemic. The guidance notes that the principles outlined in the joint statement apply to both commercial and retail loan accommodations and are consistent with the Interagency Guidelines Establishing Standards for Safety and Soundness.… Continue Reading
Federal and State Banking Regulators Issue New Examination Procedures on Sampling Methodologies, UDAP/UDAAP, and CARES Act
Recently, the federal banking regulators issued four new sets of examination procedures. The OCC issued two significant examination booklets on sampling methodologies and UDAP/UDAAP, and the federal banking regulators, together with state financial regulators, issued interagency exam guidance for assessing safety and soundness of financial institutions in light of the ongoing impact of the COVID-19 pandemic.… Continue Reading
CFPB Issues Request for Information on Expanding Access to Credit and Further Protecting Consumers from Credit Discrimination
On July 28, 2020, the CFPB issued a request for information (“RFI”) seeking public input on how best to create a regulatory environment that expands access to credit and ensures consumers and communities are protected from discrimination in all aspects of credit transactions. The Bureau issued the RFI in lieu of a symposium it had planned to host this fall on Equal Credit Opportunity Act (“ECOA”) issues.… Continue Reading
OCC CRA Final Rule: What’s Next for the FDIC and Federal Reserve Board?
When the OCC issued its final Community Reinvestment Act (“CRA”) rule on May 20, 2020, the agency acted alone without waiting to achieve consensus with the FDIC, the agency with which the OCC had jointly issued its proposed rule. The FDIC declined to join the OCC’s CRA reform effort, despite seemingly being in lock-step with the OCC up until that point.… Continue Reading