Compliance Newshub
Federal Legislation

House Bill H.R. 4198 and Senate Bill S. 3502, though not identical, have been introduced to amend the Fair Credit Reporting Act to restrict the practice of trigger leads in mortgage loans. Curtailing this practice has "support from both industry participants and consumer groups," according to Ballard Spahr.

On Tuesday, December 19th, 2023, President Biden vetoed a Congressional resolution that would block the CFPB's small-business loan rule, reasoning that it would hinder government oversight of predatory lenders.

Ballard Spahr LLP--John L. Culhane, Jr., Richard J. Andreano, Jr., Michael Gordon & Alan S. Kaplinsky

The House of Representatives has voted to override the CFPB’s final Section 1071 small business lending rule following the Senate's vote to override the 1071 rule and the President is also expected to Veto the resolution and there is unlikely to be sufficient votes to override his veto.

The Consumer Financial Protection Bureau, the Federal Reserve Board, and the Office of the Comptroller of the Currency have announced that the 2024 threshold for whether higher-priced mortgage loans are subject to special appraisal requirements will increase from $31,000 to $32,400.

The Federal banking regulatory agencies have asked for comments on a proposed rule to improve the financial stability of banks with assets of $100 billion or more by requiring a layer of long-term debt to be maintained by these institutions.

The CFPB has released the beta version of the HMDA Platform for data that will be collected in 2024 (2024 Beta Platform), providing financial institutions and vendors an opportunity to determine whether their sample loan/application register data comply with the reporting requirements.

On Monday, October 30th, 2023, the President signed Executive Order 14110, calling on the FHFA and CFPB to evaluate their regulated entities' use of AI for bias against protected groups in underwriting and appraisal models. Additionally, the order requires the FHFA and CFPB to issue guidance on the use of AI in tenant screening and real estate advertising within 180 days.

ICBA Newswatch

A request from the Independent Community Bankers Association, among others, was granted by the U.S. District Court for the Southern District of Texas resulting in a nationwide injunction that prevents the Consumer Financial Protection Bureau's (CFPB) implementation and enforcement of the §1071 rule regarding business data collection to all community banks and covered financial institutions until the US Supreme Court reviews a US Court of Appeals Fifth District ruling on the constitutionality of the CFPB's funding.

On Monday, October 24th, 2023, the federal banking agencies jointly issued a final rule that updates the Community Reinvestment Act. Most requirements will be applicable beginning January 1, 2026, while the remaining requirements, including reporting requirements, will be applicable on January 1, 2027.

On October 19, 2023, the Consumer Financial Protection Bureau issued a proposed rule to implement §1033 of the 2010 Consumer Financial Protection Act (a.k.a. open banking) that would require information sharing with authorized third parties at the request of the consumer.

The Senate has approved S.J. 32, the resolution introduced under the Congressional Review Act to override the CFPB’s final Section 1071 small business lending rule, which has raised concerns over privacy and the complexity of the data that financial institutions would be required to report.

Ballard Spahr LLP--Peter D. Hardy, Scott Diamond, Siana Danch & Kaley Schafer

The Financial Crimes Enforcement Network, FinCEN, has published a Small Entity Compliance Guide for beneficial ownership information reporting under the Corporate Transparency Act, as well as updated FAQs regarding CTA compliance.