House Financial Services Chairwoman Maxine Waters (D-Calif.) is asking for a supplemental appropriation for the Treasury Department’s Financial Crimes Enforcement Network so that it can implement the anti-money laundering and Bank Secrecy Act changes Congress passed last year.
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.
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.
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.
The Consumer Financial Protection Bureau’s Consumer Response staff has been reorganized and cut during the past three years—moves that could affect the agency’s handling of consumer complaints that have skyrocketed during the pandemic, the CFPB’s Inspector General said in a report issued last week. The Consumer Response office was moved structurally twice and ended up in the newly created Division of Consumer Education and External Affairs, the IG said, in a report on the management challenges the CFPB faces. “These moves may affect the management of consumer complaints, particularly as the Bureau has redistributed some of Consumer Response’s resources to
The Consumer Financial Protection Bureau announced it plans to change a Trump Administration policy and that it will now take enforcement and supervisory actions as a result of abusive acts or practices. It will no longer follow the policy instituted by former Director Kathy Kraninger that significantly narrowed the definition of “abusive acts or practices” and thus avoided enforcement actions under those terms. The new policy will take effect the day it is published in the Federal Register.
Rohit Chopra, President Biden’s choice to head the Consumer Financial Protection Bureau, will have his confirmation hearing on March 2 before the Senate Banking Committee. The battle lines between legislators about the role of the agency are already clear before the hearing starts.
The Credit Union National Association and the National Association of Federally-Insured Credit Unions have been letting the Biden administration and legislators know the actions they believe will help credit unions help their members during the pandemic. These lists are extensive, but may be tough to achieve with an administration focused on tightening up financial regulations.