CFPB Director Rohit Chopra, in remarks yesterday at a White House Roundtable on Protecting Americans from Harmful Data Practices, announced the Bureau has decided to launch a rulemaking to ensure that modern-day digital data brokers are not misusing or abusing consumers' sensitive data.

Chopra described two of the proposals under consideration:

1 • 1A definition of data broker and requirements to ensure the accuracy and governing of the

 1 1 handling of disputed information; and

1 • 1Addressing confusion around whether “credit header data” is a consumer report. This

 1 1 includes key identifiers like name, date of birth, and Social Security number that are

 1 1 contained in consumer reports generated by the credit reporting companies.

The Bureau intends to publish next month an outline of proposals and alternatives under consideration for a proposed rule. The CFPB will soon convene a small business panel to help craft the rule, which the Bureau plans to propose for comment in 2024.

SBA’s Office of Capital Access has created a six-page summary of the key changes to SBA Loan Programs as a result of the new SOP 50 10 7. According to the Iowa District Office these are the most user-friendly documents so far comparing the key changes to programs. 

SBA’s Iowa District Office and America’s SBDC Iowa began hosting a series of Lender Roundtables in August. Next week SBA will conduct their three remaining Lender Roundtables:

1 • 1August 22nd in Carroll from 10 am – 12:00 Noon at Western Iowa Networks.

1 • 1August 23rd in Davenport from 10:00 am – 12:00 Noon at Eastern Iowa Community

 1 1 College Urban Campus.

1 • 1August 23rd in Hiawatha from 2:00 pm – 4:00 pm at Kirkwood Community College, Linn

 1 1 County Regional Center.

Seating is limited for these events. RSVP to thomas.lentell@sba.gov and indicate which location session you wish to attend.

Yesterday, the OCC released its annual update to the Bank Accounting Advisory Service (BAAS).

The BAAS contains staff responses to frequently asked questions from the banking industry and bank examiners on a variety of accounting topics and promotes consistent application of accounting standards and regulatory reporting among national banks and federal savings associations.

This edition of the BAAS reflects updates to clarify the application of accounting standards issued by the Financial Accounting Standards Board on topics including the elimination of recognition and measurement of troubled debt restructurings by creditors, loan modifications, and credit losses.

The BAAS does not represent rules or regulations of the OCC. Rather, it represents the Office of the Chief Accountant’s interpretations of generally accepted accounting principles and regulatory guidance based on the facts and circumstances presented.

The USDA announced approximately $530 million in additional, automatic financial assistance for qualifying guaranteed Farm Loan Program borrowers facing financial distress. The announcement is part of the $3.1 billion to help certain distressed farm loan borrowers provided through the Inflation Reduction Act.

The Federal Deposit Insurance Corporation (FDIC) has published its 2023 Risk Review. The report summarizes conditions in the U.S. economy, financial markets, and banking industry.

The 2023 Risk Review provides a comprehensive summary of key developments and risks in the U.S. banking system, as in prior reports, and includes a new section focused on crypto-asset risk. The report focuses on the effects of key risks on community banks in particular, as the FDIC is the primary federal regulator for the majority of community banks in the U.S. banking system.

The FDIC’s Risk Review is an annual publication and based on year-end banking data from the prior year. This year’s expanded report incorporates data and insights related to the recent stress to the banking sector through first quarter 2023.

1 • 1Executive Summary

The Securities and Exchange Commission (SEC) issued a bulletin warning about reliance on “proof of reserves” from crypto service providers, which lack important investor protections provided by financial statements and are not independently audited in accordance with SEC rules and Public Company Accounting Oversight Board (PCAOB) standards.

 

The SEC bulletin notes that proof of reserves:

1 • 1Are incomplete financial statements that do not tell the full story of an entity’s liabilities.

1 • 1May be provided by unregistered accounting firms or third parties without assurances to the

 1 1 reliability of the information provided.

1 • 1May not be subject to PCAOB standards or enforcement proceedings.

The bulletin also contains information to help investors determine if a registered public accounting firm has conducted an audit under PCAOB standards.