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Financial Services Report – Winter 2020

Happy post-election, post-socially-distanced Thanksgiving, and pre-New Year’s newsletter. Banks, non-banks, and FinTechs can look forward to eight days of announcements from the Biden transition team with their latkes and...more

Madden Put To Rest? – OCC Finalizes Rule Reaffirming “Valid When Made” Doctrine

On May 29, 2020, the Office of the Comptroller of the Currency (OCC) finalized a rule that reaffirms the “valid when made” doctrine applicable to loans originated by a national bank. According to Acting Comptroller of the...more

CFPB Issues Guidance Concerning COVID-19-Related Regulatory Pain Points

On May 13, 2020, the Consumer Financial Protection Bureau (CFPB) issued three guidance documents designed to aid financial institutions in assisting consumers in the context of the COVID-19 pandemic: 1.A statement...more

NY Governor Cuomo Orders Power To Require Waiver Of Deposit Fees During COVID-19 Emergency

As Congress scrambles to pass a stimulus package to alleviate financial strain due to the COVID-19 pandemic, federal regulators and some states are directing financial institutions to provide immediate relief. So far,...more

The DBO Notifies CFL Lenders Of New Rate And Other Limitations Imposed By AB 539

The California Department of Business Oversight (DBO) has issued a Release that summarizes the provisions of California Assembly Bill 539 and addresses some implementation issues. This bill was chaptered as Chapter 708 of the...more

After Madden, OCC and FDIC Propose to Reaffirm “Valid When Made” Rule

On November 18, 2019, the Office of the Comptroller of the Currency (OCC) took action to reaffirm the “valid when made” doctrine in response to the uncertainty on the validity of interest rates of bank-originated loans sold...more

California Enacts Interest Rate and Other Restrictions on Consumer Loans

As expected, California has enacted legislation imposing interest rate caps on larger consumer loans. The new law, AB 539, imposes other requirements relating to credit reporting, consumer education, maximum loan repayment...more

CFPB Decides Not to Defend Constitutionality of Its Leadership Structure

On September 17, 2019, two developments took place with respect to the constitutionality of the structure of the Consumer Financial Protection Bureau (CFPB or Bureau), an issue that has been litigated for several years....more

Financial Services Report, Fall 2019

We start this issue with a feeling of déjà vu all over again. Decisions made during the mortgage crisis are back in the news with a powerhouse legal ruling and the Treasury’s initial thinking on how to turn back time. First,...more

CFPB Releases Fourth Report on the Consumer Credit Card Market

On August 27, 2019, the Consumer Financial Protection Bureau (CFPB or Bureau) released its fourth biennial report on the consumer credit card market (2019 Report or Report). The Report summarizes the CFPB’s views on the...more

HUD Proposes Rule That Could Make it Harder to Bring Housing Discrimination Lawsuits

On August 20, 2019, the U.S. Department of Housing and Urban Development (HUD) published a notice of proposed rulemaking (“Proposed Rule”) seeking public comment on amendments to its regulation implementing the disparate...more

FHFA Publishes Final Rule on Validation and Approval of Credit Score Models

On August 16, the Federal Housing Finance Agency (“FHFA”) issued a final rule on validation and approval of third-party credit score models (“Final Rule”) that Fannie Mae and Freddie Mac (“GSEs”) use in deciding whether to...more

Federal Reserve to Create Faster Payments System

On August 5, the Board of Governors of the Federal Reserve System (Board) issued a notice and request for comment (Notice) on its determination that the Federal Reserve Banks (Reserve Banks) should develop a new interbank...more

CFPB ANPR on Qualified Mortgage Rule

On July 25, 2019, the CFPB issued an Advance Notice of Proposed Rulemaking (“ANPR”) on the definition of a “qualified mortgage” under its ability-to-repay/qualified mortgage rule (“ATR/QM rule”). The ATR/QM rule requires a...more

Assembly Bill 539 and the Future of Consumer Loans in California

The California legislature is poised to cap rates on larger consumer installment loans. Assembly Bill 539 has passed the state Assembly and the state Senate Committee on Banking and Financial Institutions. Although directed...more

Policy Makers Examine the Disparate Impact Risk of Artificial Intelligence and Underwriting

Policy makers are showing increasing concern in the fair lending implications of artificial intelligence (AI) in credit underwriting. The concerns surrounding AI echo views on credit scoring and automated underwriting systems...more

CFPB Announces Public Comment Extension on HMDA Reconsideration

On June 27, 2019, the CFPB extended the deadline for public comments on its advance notice of proposed rulemaking (ANPR) relating to the Bureau’s 2015 Rule addressing the Home Mortgage Disclosure Act (HMDA). The ANPR, issued...more

CFPB Requests Comment on Overdraft Rule

On May 15, 2019, the CFPB published a Request for Comment on its Overdraft Rule (“Rule”) to assist the agency in determining whether the Rule should be revised, rescinded, or left as is. Originally published in November 2009...more

CFPB Proposes New Rules to Modernize Debt Collection

On May 7, 2019, the Consumer Financial Protection Bureau (CFPB) issued proposed rules (“Proposed Rules”) under the Fair Debt Collection Practices Act (FDCPA) and its authority under the Dodd-Frank Act. If finalized, the...more

Financial Services Report – Spring 2019

EDITOR’S NOTE - In the words of Willie Wonka: “Wait a minute — strike that, reverse it!” As loyal readers will recall, in our last issue, we tried to stay current in referring to the CFPB by what Mick Mulvaney declared...more

CFPB Proposes Revisions to Small-Dollar Loan Rule

On February 6, 2019, amidst strong opposition from representatives of consumer groups and some members of Congress, the Consumer Financial Protection Bureau (CFPB) issued a proposed rule to revise its controversial November...more

CFPB Initiates Fourth Review of the Consumer Credit Card Market

On January 31, 2019, the Consumer Financial Protection Bureau (CFPB or Bureau) published a Request for Information (2019 RFI) regarding the consumer credit card market. In accordance with Section 502(a) of the Credit Card...more

The Bureau of Consumer Financial Protection Proposes Revised No-Action Letter Policy and New Product Sandbox

On December 13, 2018, the Bureau of Consumer Financial Protection (the “Bureau”) published in the Federal Register a proposed policy (“Proposed Policy”), which would modify its 2016 Policy on No-Action Letters (the “2016...more

Financial Services Report – Winter 2018

In between holiday shopping and merriment, we here at the Financial Services Report are pondering what’s in a name. Not much, said Shakespeare. Isaac Asimov begged to differ in a mystery story about who killed one of the...more

Financial Services Report, Fall 2018

EDITOR’S NOTE - So much for the lazy days of summer. It’s been a busy couple of months on both coasts. In a case of déjà vu all over again, a New York federal court found that the CFPB structure is unconstitutional and that...more

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