Appellate Court Finds CFPB Funding Structure Unconstitutional
A three-judge panel of the Fifth Circuit Court of Appeals ruled that the Consumer Financial Protection Bureau's (CFPB) funding structure violates the separation of powers clause of the Constitution. The CFPB receives funding from the Federal Reserve System, instead of through the annual appropriations process. The court also vacated the CFPB's 2017 small-dollar lending rule.
FDIC Survey: Number of Unbanked Consumers Declines
According to the 2021 National Survey of Unbanked and Underbanked Households, only 3% of Nebraskan households are unbanked, a 3.6% decrease from 2019. Nationally, 4.5% of households do not have a bank account, the lowest figure since the survey began in 2009. Nearly 22% of unbanked survey respondents said not having enough money to meet minimum balance requirements was the main reason they did not have an account at a depository institution. "Don't trust banks" was cited by 13%.
CFPB Issues Guidance on Deposit Account ‘Junk Fees’
The CFPB today released information on junk fee practices. Junk fees are defined as fees charged to consumers that are not reasonably related to the costs incurred by the financial institution. A circular on unanticipated overdraft fee assessment practices and a compliance bulletin on depositor fees clarify when a bank’s policies could violate the Consumer Financial Protection Act.
Read the Overdraft Fees Circular
Read the Depositor Fees Bulletin
Fannie Mae, Freddie Mac to Require New Credit Score Models
After a multiyear transition period, lenders will be required to submit both the FICO 10T and VantageScore 4.0 credit scores for loans sold to Fannie Mae and Freddie Mac. In addition, three credit reports will be required.