Federal banking regulators recently began adopting a final rule that requires, among other things, supervised mortgage originators and secondary market issuers to ensure that automated valuation models they use follow quality control standards, including a requirement that they comply with nondiscrimination laws. The final rule will be effective on the first day of the calendar quarter following the 12 months after publication in the Federal Register.… Continue Reading
CFPB Releases Interim Final Rule Extending 1071 Rule Compliance Dates
On June 25th, the CFPB issued an interim final rule with a request for public comment extending the compliance dates for the Small Business Lending Rule in light of the Supreme Court’s decision finding the funding structure of the CFPB to be constitutional in CFPB v. Community Financial Services Association of America (CFSA).… Continue Reading
The Supreme Court’s Overruling of Chevron is a Sea Change
On August 6, 2024, we will be holding a 90 minute webinar roundtable featuring 3 administrative law professors who are among the country’s leading experts on the Chevron Deference Doctrine. To register, click here.
We already have published a short blog about the Supreme Court’s opinion issued on Friday, July 28 in Loper Bright Enterprises et al v.… Continue Reading
Supreme Court Overturns Chevron Deference Doctrine
The U.S. Supreme Court on Friday overturned the long-standing Chevron Deference Doctrine, saying that judges—not federal agencies—should interpret federal laws.
In a 6-3 decision in two marine fishery cases, the court drastically shifted the balance of power in the federal government, saying that the Administrative Procedure Act (APA) gives judges the power, not agencies, to interpret statutes.… Continue Reading
Colorado provides some (but not enough) guidance on new general-purpose credit card carve-out
Posted in Credit Cards, State Regulation
In the same 2023 bill (House Bill 23-1229) that included Colorado’s DIDMCA opt-out**, Colorado adopted a statute excepting certain “general-purpose credit cards”, as defined, from the state’s limitations on finance charges and fees applicable to consumer transactions, effective July 1, 2024. However, ambiguities in the definition of “general-purpose credit card” have perplexed many in the industry.… Continue Reading
This week’s podcast episode: Consumer Financial Protection Bureau wins in Supreme Court but can the Fed continue to fund the CFPB without earnings?
By Barbara S. Mishkin on
Posted in CFPB
Special guest Alex J. Pollock, Senior Fellow with the Mises Institute and former Principal Deputy Director of the Office of Financial Research in the U.S. Treasury Department, joins us to discuss his recent blog post published on The Federalist Society website in which he urges Congress to look into the question of whether the Federal Reserve can lawfully continue to fund the CFPB if (as now) the Fed has no earnings.… Continue Reading
Colorado UCCC Administrator issues interpretive opinion letter regarding Colorado opt-out law
Posted in Litigation and Court Decisions, Usury
On April 22, 2024 (almost 2 months before Judge Daniel Domenico issued a preliminary injunction against the UCCC Administrator and Colorado Attorney General), Administrator Martha Fulford issued an Interpretive Opinion Letter regarding the Colorado opt-out law (to be codified on its effective date of July 1, 2024 as C.R.S. Section 5-13-106) (the “Colorado Opt-out Law”).… Continue Reading
VA Proposes Rules for ARM Loans and Temporary Buydown Agreements
By Richard J. Andreano, Jr. on
Posted in Mortgages, Regulatory and Enforcement
The U.S. Department of Veterans Affairs (VA) recently proposed rules under its home loan guaranty program regarding adjustable rate mortgage (ARM) loans, hybrid ARM (h-ARM) loans and temporary buydown agreements. Comments are due August 20, 2024.
ARM Loans and H-ARM Loans
The VA’s rules currently provide that “Interest rate adjustments must occur on an annual basis, except that the first adjustment may occur no sooner than 36 months from the date of the borrower’s first mortgage payment.”… Continue Reading
FinCEN issues reminder to financial institutions to identify and report elder financial exploitation
By Beth Moskow-Schnoll on
Posted in Elder Financial Abuse, FinCEN
On June 14, 2024, President Biden declared June 15th World Elder Abuse Awareness Day. In honor of the day, the Financial Crimes Enforcement Network (FinCEN) reminded financial institutions (FIs) to remain vigilant in identifying and reporting elder financial exploitation (EFE).
In issuing the reminder, FinCEN cited the Financial Trend Analysis (2024 Analysis) it recently performed which focused on patterns and trends identified in Bank Secrecy Act data linked to EFE, which we previously blogged on here. … Continue Reading
Connecticut Department of Banking issues guidance on consumer-like disclosures in sales-based financing offers
By Catherine LaGrange on
Posted in Commercial Financing, State Regulation
On June 10, 2024, the Connecticut Department of Banking (“Department”) issued guidance (the “Guidance”) to give direction on required consumer-like disclosures in certain commercial financing offers.
As background on the Guidance, Connecticut’s commercial financing disclosure law, An Act Requiring Certain Disclosures, was signed into law on June 28 2023, and will become effective on July 1, 2024 (the “Statute”).… Continue Reading