Banking and Business Groups Sue CFPB for Abuse of Statutory Authority
The American Bankers Association (ABA), the U.S. Chamber of Commerce, Longview Chamber of Commerce, Texas Bankers Association, Independent Bankers Association of Texas, Texas Association of Business and the Consumer Bankers Association today filed a lawsuit against the Consumer Financial Protection Bureau (CFPB). The filing challenges the Bureau’s recent revisions to the Unfair, Deceptive or Abusive Acts or Practices (UDAAP) section of the CFPB exam manual.
The plaintiffs call the updated manual “arbitrary” and “capricious” and say the CFPB is exceeding its statutory authority. They also say the update violates Administrative Procedure Act requirements because it constitutes a legislative rule that was not subject to notice and comment procedures.
“This Court’s intervention is needed to ensure that the CFPB is accountable to legal constraints, the rule of law, and the public as it pursues an aggressive agenda with far-reaching implications for the American economy, Plaintiffs, and their members,” the filing states.
The NBA supports this effort to hold the CFPB accountable for exceeding its statutory authority. The UDAAP update is just one example of the Bureau's pursuit of an agenda that goes beyond what Congress intended.
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Treasury Seeks Feedback on the Development of Digital Assets
The Treasury Department is seeking public input regarding illicit finance and national security risks posed by digital assets. The request for comments is being issued in conjunction with President Joe Biden's executive order on cryptocurrency and digital asset regulation, and comments will be accepted through Nov. 3.
The ABA published a members-only staff analysis on the request for comment.
CFPB Seeks Input on Refinancing, Mortgage Products
The CFPB issued a request for information asking for input on ways to improve mortgage refinances for homeowners who would benefit from refinancing, especially for borrowers with smaller loan balances. The agency also seeks feedback on ways to support automatic short-term and long-term loss mitigation assistance for homeowners who experience financial disruptions.
Rental History to be Part of FHA Mortgage Scorecard
The Federal Housing Administration (FHA) will allow lenders to include a first-time homebuyer’s positive rental payment history as an additional factor in determining eligibility for an FHA-insured mortgage.
Fed Issues Updated CRE Loan Accommodation Proposal
The Federal Reserve is accepting public comments on an updated policy statement regarding accommodations for commercial real estate borrowers who experience financial difficulty.
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ABA Recommends National Senior Scam Reporting System
The ABA provided suggestions for a national reporting system that would allow financial institutions to share information about elder financial exploitation. Law enforcement and adult protective services would also have access to the information. The ABA noted that any such system would need a “Safe Harbor” liability protection for financial institutions that share customer information. The ABA made the recommendation in a statement submitted for the record to the Senate Special Committee on Aging, which recently held a hearing on combating senior fraud.
Read the Statement
Fed Launches ACH Payment Tracking Tool
Federal Reserve Financial Services last week launched the FedPayments Insights Service, a business and analytics tool that generates reports on a financial institution’s payments settled through the FedACH Service.