Last week, the OCC, Federal Reserve Board, and FDIC issued proposed guidance for banking organizations on managing risks associated with third-party relationships, including those with financial technology-focused entities such as bank/fintech sponsorship arrangements.  The agencies have made clear that if banks have ineffective risk management processes, agency examiners will closely scrutinize their third-party risk management and identify and report deficiencies in examination reports and recommend appropriate supervisory actions.… Continue Reading

Today marks the tenth anniversary of our blog, Consumer Finance Monitor.  Originally named CFPB Monitor, we launched our blog to coincide with the CFPB’s first day.

Over the past ten years, our blog has received numerous awards and been recognized as a source of authoritative analysis and commentary.  Since launching our blog, it has been our hope that our readers not only find it to be a place where they can go to get up-to-the-minute reporting on important developments relevant to the consumer financial services industry, but also a place where they can find informed analysis that helps them to understand the significance of those developments. … Continue Reading

In the lawsuit alleging wrongful delay by the CFPB in adopting regulations to implement Section 1071 of the Dodd-Frank Act, the parties have entered into a stipulation that requires the CFPB to issue a Notice of Proposed Rulemaking (NPRM) by September 30, 2021.

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

At her first FTC meeting earlier this month, newly-confirmed FTC Chair Lina Khan moved, and the Commission approved (by a 3-2 vote), changes to the FTC’s rulemaking process.  The changes could assist the efforts of Democratic FTC Commissioners to further White House policy goals and lead to new UDAP rules.

Pursuant to the 1975 Magnuson-Moss Warranty Act, instead of using the Administrative Procedure Act rulemaking process, the FTC must follow specific procedures for the promulgation of trade regulation rules under Section 18 of the FTC Act. … Continue Reading

The Federal Housing Financing Agency (FHFA) announced on July 16, 2021 that effective August 1, 2021 it is eliminating the 50 basis point Adverse Market Refinance Fee for refinance mortgage loans.  The FHFA notes that the fee imposed on lenders originally was designed to cover losses projected as a result of the COVID-19 pandemic. … Continue Reading

The Federal Reserve, FDIC, and OCC have released proposed interagency guidance for banking organizations on managing risks associated with third-party relationships, including relationships with financial technology-focused entities such as bank/fintech sponsorship arrangements.  The proposal is the first time that the three agencies have proposed third-party risk management guidance on an interagency basis. … Continue Reading

The CFPB announced earlier this week that it has issued a consent order against GreenSky, LLC that finds GreenSky engaged in unfair acts and practices in connection with its origination and servicing activities related to its point-of-sale financing program.  The consent order requires GreenSky to refund or cancel up to $9 million in point-of-sale loans and pay a $2.5 million civil penalty.… Continue Reading

Tom Vartanian is a former federal banking regulator and law professor.  In Part II of this two-part podcast, we discuss technology’s impact on the banking system, how a new cyberspace infrastructure can increase security, the current financial conditions that could spark the next financial crisis, cryptocurrency’s role in building new networks for the creation and delivery of financial services, and quantum computing’s impact on encryption.… Continue Reading

Last Friday, President Biden issued an Executive Order on Promoting Competition in the American Economy.  Much of the Order is directed at increasing competition in the labor market, transportation, agriculture, healthcare, and technology.  It calls on the FTC, the DOJ, and other agencies to pursue vigorous enforcement of the antitrust laws. … Continue Reading

Following the U.S. Supreme Court’s decision last month in Collins v. Yellin (previously captioned Collins v. Mnuchin), controversy quickly erupted over the decision’s implications for the CFPB in three pending cases: All American Check Cashing and the two cases involving the CFPB’s 2017 final payday/auto title/high-rate installment loan rule (2017 Rule).… Continue Reading