Citing the pandemic, the Consumer Financial Protection Bureau is proposing to delay by 60 days the effective dates of debt collection rules that were issued by the Trump Administration last year. The agency is seeking public comment on the proposal, but the proposal first must be published in the Federal Register.
The Biden Administration released a bare-bones funding blueprint for next year and it proposes a 22.2% increase for the Community Development Financial Institutions program, the opposite of Trump Administration budgets which always called for elimination of the program.
A “GetBanked” campaign in Houston and Atlanta was announced by the FDIC. Its goal is to get unbanked people to open checking accounts in banks.
The Consumer Financial Protection Bureau is proposing a rule that would stop mortgage servicers from foreclosing on most home loans before December 31, 2021. This follows the agency’s withdrawal of its earlier position that financial services companies would have flexibility in following agency rules during the pandemic. The comment period on the proposed mortgage rule will be open until May 10.
The Consumer Financial Protection Bureau expects mortgage servicers to follow the regulations that help homeowners keep their homes as pandemic protections end. The CFPB released the criteria on which they plan to evaluate mortgage servicers.
According to the Government Accountability Office, the Small Business Administration has not conducted a comprehensive assessment of the risks of the Paycheck Protection Program because of the need for a rapid execution of the program. The GAO does not consider this an acceptable excuse and noted that an independent auditor reported multiple problems with the loan program.
The Biden Administration’s Consumer Financial Protection Bureau is back to a regulatory regime, rescinding a series of pandemic-related policy rollbacks. The pandemic will no longer be an acceptable excuse for failing to follow the CFPB’s consumer protection rules. Agency officials were quite clear about what will be expected of financial institutions going forward.
There is a lot of disagreement about whether a proposed rule that would expand the types of activities that Credit Union Service Organizations can engage in, including originating any type of loan that a federal credit union may originate, will be beneficial or disastrous to various credit unions. The National Credit Union Administration has extended the comment period for another 30 days.
National Credit Union Administration Chairman Todd Harper thinks the proposed rule is “half-baked” but credit union trade groups are endorsing a proposal to increase the threshold for credit unions to be defined as “complex.” The proposed rule states that any risk-based net worth requirement would only apply if a credit union has more than $500 million in assets at a quarter’s end. The definition impacts the effect of the Risk-Based Capital Rule that goes into effect on Jan. 1, 2022.
The Consumer Financial Protection Bureau may reinstitute the agency’s rule that would require payday loan borrowers to demonstrate their ability to repay a loan before it is approved.