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In an opinion authored by Chief Justice Roberts (the “DACA Opinion”), the Supreme Court has concluded that the rescission of the DACA program by the U.S. Department of Homeland Security (DHS) was arbitrary and capricious and hence in violation of the Administrative Procedure Act (APA). Several clients have asked whether the decision bodes ill for the CFPB’s anticipated rescission of the mandatory underwriting (that is, ability to repay) provisions of its payday lending rule.… Continue Reading

On May 6, 2020, the CFPB issued an ECOA/Regulation B “Compliance Aid” containing three FAQs that clarify certain issues related to notification of action taken on Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loan applications.  We understand that the Bureau provided the guidance in response to inquiries from banking trade associations on behalf of their members concerning technical compliance with Regulation B in managing the large influx of PPP loan applications.… Continue Reading

The SBA’s initial Interim Final Rule addressing the CARES Act’s Paycheck Protection Program (“PPP”), released on April 2, and its revised Borrower Application Form and Lender Application Form for a PPP Loan Guaranty, released the same day, marked huge steps forward in moving the PPP towards launch. In particular, the Lender Application Form eliminated excessive lender burdens and potential pitfalls reflected in an earlier draft of the Application that had circulated through the lender community.… Continue Reading

The Small Business Administration’s Office of Advocacy has submitted a comment letter on the CFPB’s proposed payday loan rule that raises concerns about the proposal’s economic impact on small businesses and encourages the CFPB to make various changes to reduce the burden on small businesses.  The letter notes that because Advocacy is an independent office within the U.S.… Continue Reading