Weekly Rewind...News from Your Regulators!

Compliance Services Group is here for your regulatory updates.

OCC Takes Comments on Rescission of Community Reinvestment Act

Community Reinvestment Act – The OCC is soliciting comments on proposed rules to rescind the Community Reinvestment Act rule issued in 2020 and replace it with rules adopted jointly by the Federal banking agencies in 1995, as amended. This action facilitates the ongoing interagency work to modernize the CRA regulatory framework and promote consistency for all insured depository institutions. (Published September 8, 2021)

Department of Justice

DOJ Charges Money Launderer

False Statement to Bank to Open Account for Marijuana Business – On August 2, 2021, the DOJ changed an Oklahoma businessman with one count of making a false statement to a bank and charged his business with one count of structured money laundering. He laundered more than $770,000 through the account. (Published August 17, 2021)

Destruction of Credit Union Data – An ex-credit union employee plead guilty to computer intrusion for unauthorized intrusion and destruction of data on a credit union which she was previously fired from. She remotely accessed the credit union’s file server and deleted more than 20,000 files and almost 3,500 directories, totaling approximately 21.3 gigabytes of data. The deleted data included files related to mortgage loan applications and the Credit Union’s anti-ransomware protection software. (Published August 31, 2021)

FFIEC Releases 2021 CRA and HMDA Census Data

Census Data Products and Geocoding/Mapping System updates – The FFIEC updated the resources to include 2021 census data. The census data supports the collection, reporting, and analysis of CRA and HMDA data, while the geocoding helps institutions report on mortgage, business, and farm loan applications.  

From the SBA

IFR Amending EIDL loans - The SBA published an interim final rule to amend the regulations governing disaster-related economic injury disaster loans (EIDL) and COVID EIDL loans. The changes made by the IFR are applicable to any EIDL loan made on or after Sept. 8. (Published September 8, 2021)

CFPB Releases 2022 HMDA Filing Guide

HMDA 2022 Filing Guide – The Filing Instructions Guide (FIG) for Home Mortgage Disclosure Act (HMDA) data collected in 2022 is now available. The 2022 FIG is a technical resource to help financial institutions file HMDA data collected in 2022 and reported in 2023.

The CFPB also released a Supplemental Guide for Quarterly Filers for 2022, which includes 2022 calendar year deadlines. Note that as of April 1, 2021, the Bureau rescinds the Statement on Supervisory and Enforcement Practices Regarding Quarterly Reporting Under the Home Mortgage Disclosure Act and instructs all financial institutions required to file quarterly to do so beginning with their 2021 Quarter 1 data. (Published September 10, 2021)

News from the CFPB

Payday Lending Comment – The U.S. District Court for the Western District of Texas upheld the Payment Provisions in the CFPB’s 2017 payday lending rule. In response, CFPB Acting Director Dave Uejio Tuesday commented that he was “pleased the court reaffirmed our ability to protect borrowers from unfair and abusive payment practices in the payday lending and other markets covered by the rule." He added that “the CFPB expects lenders to follow the requirements of the payment provisions, consistent with the court’s order.” The effective date for the requirements is June 13, 2022. (Published September 8, 2021)

Violation of Consent Order – The CFPB filed a lawsuit accusing LendUp Loans, LLC of violating a 2016 consent order and deceiving tens of thousands of borrowers. In 2016, the Bureau ordered LendUp to pay $1.83 million in consumer redress and a $1.8 million civil penalty and to stop misleading consumers with false claims about the cost of loans and the benefits of repeated borrowing. In the current complaint, the CFPB alleges that, in violation of the 2016 order, LendUp has continued with much of the same illegal and deceptive marketing. The CFPB also alleges that LendUp illegally failed to provide timely and accurate notices to consumers whose loan applications were denied. (Published September 8, 2021)

News From the Federal Reserve

Extended Comment Period for Risk Management of Third-Party Relationships – The FRS, along with the FDIC and OCC, extended the comment period until October 18, 2021. The proposed guidance is intended to assist banking organizations in identifying and addressing the risks associated with third-party relationships and responds to industry feedback requesting alignment among the agencies with respect to third-party risk management guidance. (Published September 7, 2021)

Partnerships Between Community Banks and Fintechs - To support responsible innovation in the community banking sector, the Federal Reserve Board published a paper describing the landscape of partnerships between community banks and fintech companies. The paper captures insights gathered from extensive outreach with community banks, fintechs, and other stakeholders. The outreach involved discussions focused on the strategic and tactical decisions that support effective partnerships. (Published September 9, 2021)

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