We begin with a discussion of the goals and themes of FTA’s recent summit and AFC’s advocacy regarding retention of the strategic plan option under the Community Reinvestment Act.  We then discuss consumer benefits of buy-now-pay-later (BNPL) and regulatory concerns raised by the CFPB in its BNPL report, state level regulatory issues facing fintechs, the Treasury’s report on bank/fintech relationships and takeaways for fintechs, consumer benefits of earned wage access products and artificial intelligence and regulatory concerns raised by the CFPB, and reactions to the CFPB’s Section 1033 rulemaking.… Continue Reading

The Washington Department of Financial Institutions has adopted regulations effective December 31, 2022 to implement amendments to the Consumer Loan Act permitting licensed companies to allow licensed mortgage loan originators to work from their residence without licensing the residence as a branch.

Among various amendments and clarifications to the regulations is new WAC § 208-620-660, which provides:

What is required for a Washington licensed loan originator to work from their residence without licensing the residence as a branch?… Continue Reading

The New York state legislature is currently considering a pair of companion bills which would impose detailed notice and records requirements upon student loan servicers.  New York Senate bill S5136B, which was passed by the New York Senate earlier this year, and New York House bill A6226B, which is currently under consideration with the New York Legislature’s Consumer Affairs and Protection Committee, would require “creditors and debt collectors” to provide certain written disclosures to borrowers or cosigners of private education loans at the time of the first collection communication (or within five days after the first communication). … Continue Reading

The Federal Reserve Board issued a final rule last week that establishes default rules for benchmark replacements in certain contracts that use the London Interbank Offered Rate (LIBOR) as a reference rate.  LIBOR will be discontinued in June 2023.  The rule implements the Adjustable Interest Rate (LIBOR) Act, which was enacted in March 2022. … Continue Reading

On December 13, 2022, the Ninth Circuit affirmed the grant of summary judgment by a  California federal district court to the Consumer Finance Protection Bureau (“CFPB”) in a civil enforcement action alleging that Armond Aria, the owner of Global Financial Support, Inc., mailed deceptive solicitations to current and prospective college students advertising a targeted program for assisting those students in applying for scholarships.  … Continue Reading

The CFPB recently published a notice advising of the availability of an updated version of the What You Should Know about Home Equity Lines of Credit booklet.  The updated booklet is dated August 2022, and replaces the January 2014 version of the booklet.

The updated booklet is considerably shorter than the prior version of the booklet—11 pages instead of 19 pages. … Continue Reading

On December 12, 2022, the CFPB released a proposed rule that would require certain “covered nonbanks” to register with and submit information to the CFPB when they become subject to certain  orders from local, state, or federal agencies and courts involving violations of certain consumer protection laws.  The CFPB has further proposed to make the registration information publicly available, including by publishing it on the Bureau’s website.… Continue Reading

Two groups of state attorneys general have filed amicus briefs in the U.S. Supreme Court urging the Court to grant the CFPB’s certiorari petition seeking review of the Fifth Circuit panel decision in Community Financial Services Association of America Ltd. v. CFPB.  In that decision, the panel held the CFPB’s funding mechanism violates the Appropriations Clause of the U.S.… Continue Reading

The Federal Reserve System, through its Consumer Compliance Outlook platform, recently hosted its annual Fair Lending Interagency Webinar.  During the session, a variety of fair lending topics were discussed, including redlining, appraisal bias, and Special Purpose Credit Programs (SPCPs), as well as supervision and enforcement-related updates. Presenters included representatives from the following federal agencies: Consumer Financial Protection Bureau (CFPB), Department of Housing and Urban Development (HUD); Department of Justice (DOJ); Federal Deposit Insurance Corporation (FDIC); Federal Housing Finance Agency (FHFA); Federal Reserve Board (FRB); National Credit Union Administration (NCUA); and Office of the Comptroller of the Currency (OCC).… Continue Reading

On December 7, 2022, the CFPB issued a report recommending that creditors proactively provide Servicemember Civil Relief Act (“SCRA”) interest rate benefits to eligible customers, bypassing the statute’s requirements of a written request from the servicemember and proof of military service.  The report, titled “Protecting Those Who Protect Us: Evidence of activated Guard and Reserve servicemembers’ usage of credit protections under the Servicemembers Civil Relief Act,” highlights the underutilization of the SCRA’s interest rate benefit by eligible servicemembers.… Continue Reading