Compliance Updates - Nov. 18, 2022
FHA Allows Flood Insurance from Private Providers
The Federal Housing Administration (FHA) released a final rule to allow homeowners with FHA-insured mortgage financing to obtain flood insurance from private insurance providers. The change becomes effective on Dec. 21.
Congressman Questions FDIC on Re-Presented Transactions
House Financial Services Committee member Rep. French Hill (R-Ark.) sent a letter to Federal Deposit Insurance Corporation (FDIC) Acting Chairman Martin Gruenberg expressing concern with the FDIC's supervisory practices with respect to banks that impose multiple nonsufficient funds (NSF) fees for re-presented transactions. "The FDIC is establishing new disclosure standards for NSF fees without warning and without rulemaking," Hill stated. He asked the agency to provide clarity on the issue and to confirm if rulemaking will be initiated to establish new disclosure standards for NSF fees.
For more information on this issue, see the FDIC's Financial Institution Letter, the NBA Compliance Update or the American Bankers Association (ABA) staff analysis.
Read the Letter
U.S. Treasury: Fintech Needs More Oversight
A report released by the U.S. Department of Treasury says fintechs are "creating new risks to consumer protection and market integrity." The report offers recommendations for enhancing the oversight of bank-fintech relationships.
Read the Report
CFPB Releases Supervisory Highlights
The Consumer Financial Protection Bureau's (CFPB) recent Supervisory Highlights report details examiner observations of several financial products. The report covers issues related to auto loans, consumer reporting, credit card account management, debt collection, deposits and mortgage origination, mortgage servicing and payday lending.
Read the Report