Category Archives: Compliance

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Private Flood Insurance Mandatory Acceptance Begins July 1, 2019

In February 2019, the Board of Governors of the Federal Reserve System, the Farm Credit Administration, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency (the interagency regulators) issued a final rule implementing the portion of the Biggert-Waters Flood Insurance Reform Act mandating acceptance of … Continue Reading

Student Loans in Bankruptcy: What’s on the Horizon?

Federal law has long excepted student loans from discharge in bankruptcy in all but the rarest instances, recognizing the problems (and costs) associated with allowing borrowers to wipe out defaulted debts through a bankruptcy filing. However, as the issues of access to college and affordability become frequent topics in political discourse, new ideas for radical … Continue Reading

The ABI Commission’s Final Report on Consumer Bankruptcy Issues: What Mortgage Creditors Need to Know

We previously provided you with some of the American Bankruptcy Institute’s Commission on Consumer Bankruptcy’s recommendations to improve the consumer bankruptcy system. As the commission noted, changes in bankruptcy law occur slowly. The last major amendments to the Bankruptcy Code were in 2005, and the last major amendments to the Bankruptcy Rules were in 2011. … Continue Reading

CFPB Requests Information on Remittance Rule

Last week, the Bureau of Consumer Financial Protection (Bureau) issued a request for information on its remittance rules, which are located in the Electronic Fund Transfers Act (EFTA). The request primarily seeks information and evidence related to two categories: (1) the temporary exception under the EFTA and (2) the scope of coverage of the remittance … Continue Reading

ABI Commission’s Final Report on Consumer Bankruptcy Issues, What Creditors Need to Know

The American Bankruptcy Institute’s Commission on Consumer Bankruptcy  released its Final Report and recommendations on April 12, 2019. The commission was created in 2016 to research and develop recommendations to improve the consumer bankruptcy system. During its review, the commission focused on new trends regarding how Americans are incurring debt. At the conclusion of its … Continue Reading

The New Prepaid Rule is Here. What Now? Bradley to Hold April 23 Webinar

The Consumer Financial Protection Bureau’s (CFPB) new Prepaid Rule went into effect on April 1, 2019. At a high level, the Prepaid Rule amends portions of the Truth in Lending Act and the Electronic Funds Transfer Act by extending a number of credit card-like protections to “prepaid accounts”: pre-acquisition and initial disclosures, change in terms … Continue Reading

First Federal Legislation Proposed Relating to Protection of Biometrics

Amidst privacy concerns and booming technological innovation, Sens. Roy Blunt (R-Mo.) and Brian Schatz (D-Hawaii) have introduced a bill proposed as the “Commercial Facial Recognition Privacy Act of 2019” (CFRPA) targeting arguably the most “personal” biometric identifier—our face. While several states have enacted legislation relating to protection of biometric identifiers, this is the first federal … Continue Reading

What to Make of the CFPB’s Enforcement Activity under Director Kraninger; Bradley to Hold March 26 Webinar

Since Kathleen Kraninger was confirmed as the Director of the Consumer Financial Protection Bureau (CFPB) on December 6, 2018, six enforcement actions have been publicly resolved. Those cases have involved various types of defendants, and have covered a broad range of conduct that allegedly violated federal consumer financial law. Individuals, a federally chartered savings association, … Continue Reading

FHA Expands Program to Accelerate Financing of Low-Income Housing Tax Credit Multifamily Housing Projects

The mission of the U.S. Department of Housing and Urban Development (HUD) is, in part, to bolster the economy by strengthening the housing market, protecting consumers, and working to meet the needs for quality affordable rental homes. To further this mission, the Federal Housing Administration (FHA) launched a pilot program in 2012 to streamline mortgage … Continue Reading

HUD Drastically Cuts Advance Notice for REAC Inspections

You are the property manager for a HUD-subsidized apartment development. One day, the owner of the development rushes into your office, visibly frantic. The owner says, “We just received a letter from HUD’s Real Estate Assessment Center (REAC) that REAC inspectors have scheduled the property for an inspection.” You respond, “Don’t worry — with extensions … Continue Reading

5 Tips to Consider When Performing Your Social Media Risk Assessment – Attend Our Upcoming Webinar to Learn More

According to the Pew Research Center’s Social Media Use in 2018, 73 percent of adults in the United States use at least one type of social media, and the typical American uses three. For 18 to 29 year olds, 80 percent use some form of social media. Given its prevalence, social media affords financial services … Continue Reading

Ohio Updates Licensing Requirements to Include Servicers, MSR Holders

Following a recent trend in the financial services regulatory arena, Ohio recently passed legislation requiring mortgage servicers, including entities that merely hold mortgage servicing rights (MSRs), to obtain a Residential Mortgage Lending Act Certificate of Registration in the state. Substitute House Bill 489, which passed the legislature on December 5, 2018, and was signed by Gov. … Continue Reading

Court Stays Compliance Date for BCFP’s Payday Rule

On Tuesday, the small-dollar lending industry received a favorable ruling in Community Financial Services Association of America v. CFPB. A Texas federal court reversed course by staying the August 19, 2019, compliance date for the Bureau of Consumer Financial Protection’s (BCFP) rule regarding “Payday, Vehicle Title, and Certain High-Costs Installment Loans.” The court also continued … Continue Reading

HUD OIG Report Could be Precursor to Increased Partial Claim Reimbursement Demands

On September 21, 2018, the Department of Housing and Urban Development (“HUD”)’s Office of Inspector General (“OIG”) completed a review of HUD’s partial claims program. In many ways, the title of the OIG audit report, “HUD Did Not Have Adequate Controls To Ensure That Partial Claim Notes for FHA Loans Were Properly Tracked for Future … Continue Reading

Can You Hear Me Now? Important Considerations for Avoiding Penalties under the TCPA after ACA International

In a previous blog post, we examined the “mixed bag” result of the D.C. Circuit Court of Appeals opinion in ACA International v. Federal Communications Commission. The ACA International decision narrowed the scope of potential liability for businesses under the Telephone Consumer Protection Act (TCPA) by striking down inconsistent and overly broad portions of the … Continue Reading

CalCoPA – Does It Apply to Your Organization?

As discussed in Part 1, the California Consumer Privacy Act of 2018 (CalCoPA) is a game-changing privacy act that sets a new bar for consumer privacy rights in the U.S. The primary reason it differs from existing legislation is that it goes beyond merely having to provide assurances or notices and requires organizations to be … Continue Reading

Potential Bank Customer Data Exposed through Fiserv Platform Flaw

Security researchers and cybersecurity experts recently discovered a weakness in Fiserv’s web platform, which may have exposed the personal and financial details of customers across hundreds of internet banking sites. The flaw involved a messaging platform used by Fiserv to send account alerts to customers of Fiserv-affiliated banks. These alerts can be set up to notify … Continue Reading

California Sets the Bar for Privacy with the Passage of The California Consumer Privacy Act of 2018 – Part I

As most people started to wind down for the July 4th holiday week, California was just ramping up its “as California goes” focus on data privacy. On June 28, 2018, California passed a comprehensive data privacy bill that has been touted as the strictest in the nation. The good news first—businesses have until January 1, … Continue Reading

Providing Banking Services to the Legal Marijuana Industry: Mitigating Risks to Maximize Potential Rewards

Since 1996, when California became the first state to legalize marijuana (at the time, for medicinal purposes only), 28 additional states and the District of Columbia have legalized marijuana to some extent. Public support for legalization continues to rise as more and more jurisdictions loosen their marijuana laws, with 64 percent of Americans in favor … Continue Reading

Do Servicers Have to Monitor Whether a Successor in Interest is in Bankruptcy? CFPB’s FAQ Suggests the Answer is “Yes”

As the effective date for the CFPB’s successor in interest and bankruptcy billing statement requirements quickly approaches, one question we’ve heard multiple times is whether a mortgage servicer is required to know when a confirmed successor in interest is in bankruptcy. The question stems from upcoming provisions in Regulations X and Z that will collectively … Continue Reading

CFPB Issues Implementation Guidance for Mortgage Servicing Rule Amendments

On March 29, 2018, the Consumer Financial Protection Bureau (CFPB) released two important implementation tools that may help mortgage servicers ensure compliance with recent amendments to the mortgage servicing rules in Regulations X and Z. This release comes shortly after the CFPB published a set of Frequently Asked Questions that primarily addressed issues related to the … Continue Reading

D.C. Circuit Court of Appeals’ TCPA Ruling Is a Mixed Bag

On March 16, 2018, the D.C. Circuit Court of Appeals issued its long-awaited Telephone Consumer Protection Act (TCPA) opinion in ACA International v. Federal Communications Commission, a consolidated appeal of the FCC’s July 10, 2015, TCPA Declaratory Ruling and Order. While the D.C. Circuit Court of Appeals upheld the FCC’s approach to revocation of consent … Continue Reading

Five Years Later: Five Takeaways From the Bulletin That Rocked the Auto Finance Industry

In 2013, the Consumer Financial Protection Bureau (CFPB) issued a bulletin on indirect auto lending that took the industry by storm. As we approach the five-year anniversary of the memo’s issuance, it’s valuable to reflect on how the bulletin was received, how the auto finance industry has changed since the bulletin and subsequent CFPB actions, … Continue Reading

SPEAK UP! The CFPB Wants Your Feedback

Yesterday, the Consumer Financial Protection Bureau (CFPB) announced that it is seeking “evidence to ensure the Bureau is fulfilling its proper and appropriate functions to best protect consumers.” The CFPB is expected to publish a series of Requests for Information (RFIs) in the Federal Register seeking public comments on the following areas of concern: enforcement, … Continue Reading
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