This site uses cookies to improve your browsing experience, gather site analytics and activity, track shopping cart contents, and deliver relevant marketing information.
View our privacy policy and manage your settings here. By using our site you agree to these terms.

Compliance News

The latest compliance news items. Past months’ news items are found under the specific Compliance Topic page related to the news item.

Bank members-only content =

January  | February

February News

  • ABA, Groups Welcome CFPB ‘Sandbox’ Proposal (2/11/19)
    In a letter to the Consumer Financial Protection Bureau, ABA and three other trades offered support for the Bureau’s proposed changes to its 2016 No-action Letter policy (NAL) and its proposal to establish a “sandbox” to enable banks and financial technology companies to test new products, services and delivery mechanisms. We recommended that the Bureau: strengthen liability protections for companies that comply in good faith with the terms of a NAL or Sandbox approval; coordinate proactively with other regulators; ensure the confidentiality of data and information; and commit to amending relevant regulations when program experience demonstrates it is warranted. For more information, contact ABA’s Virginia O’Neill​.
  • ABA Recommends No Changes to FTC’s Current Identity Theft Rules (2/11/19)
    As the Federal Trade Commission undertakes a systematic review of all current rules and regulations, ABA on Friday offered feedback its identity theft rules. These rules require creditors and financial institutions to identify patterns, practices and activities that might indicate identity theft and to prescribe regulations requiring financial institutions and for creditors to establish reasonable policies and procedures for implementing the guidelines. They also require debit and credit card issuers to validate address changes under certain conditions. Contact Nessa Feddis​ with questions.
  • ABA Offers Feedback on Reg CC Proposal (2/7/19)
    In a letter to the Consumer Financial Protection Bureau and the Federal Reserve, ABA offered feedback on the Fed’s 2011 proposal regarding funds availability under Reg CC (Expedited Funds Availability Act) which was reopened for comment in November. The agencies simultaneously proposed a method for adjusting the regulation’s dollar amounts for inflation which is required every five years, pursuant to the Dodd-Frank Act. ABA expressed general support for the proposed calculation methodology and emphasized that the final rule should allow at least one year to implement and that the timing of any other disclosure changes should be tied to the inflation adjustments to avoid unnecessary costs and burdens.
  • CFPB Proposes to Eliminate Small-Dollar Lending Rule’s Ability-to-Repay Test (2/7/19)
    The Consumer Financial Protection Bureau proposed to remove the prescriptive underwriting provisions from the small-dollar lending rule it issued in October 2017. The rule imposes an ability-to-pay test on a wide swath of small-dollar loans of 45 days or less, including payday loans, auto title loans and bank-provided loans with balloon payments. The CFPB also proposed to extend the compliance date for the rule’s underwriting provisions by 15 months to Nov. 19, 2020. For more information, contact ABA's Jonathan Thessin​.
  • ABA Supports Proposed Residential Real Estate Appraisal Threshold Increase (2/6/19)
    ABA offered support for a recent proposal by the financial regulatory agencies to raise the appraisal threshold for residential real estate transactions from $250,000 to $400,000. Under the proposal, transactions that qualify for the exemption would still need to obtain an evaluation consistent with safe and sound banking practices. The evaluation would provide an estimate of the market value of the property, but would not be required to be prepared by a state licensed or certified appraiser, and would be less detailed and costly than an appraisal. For more information, contact ABA's Sharon Whitaker​.
  • Agencies Issue Advisory on Education Loan Rehabilitation Programs​ (2/5/19)
    The Federal Reserve and FDIC issued an advisory on voluntary private education loan rehabilitation programs to alert banks to an amendment to the Fair Credit Reporting Act that was included in the S. 2155 regulatory reform law. Under the law, consumers may request that a financial institution remove a reported default regarding a private education loan under certain conditions. The law only applies to banks that have established loan rehabilitation programs. Those banks, provided they meet the statutory requirements, become entitled to a safe harbor from potential claims under the FCRA of inaccurate reporting for removing a reported default from a consumer’s credit report. Contact Nessa Feddis​ with questions.
  • FinCEN Alerts Banks to Suspected 314(b) Phishing Attempts (2/1/19)
    FinCEN is currently investigating reports of phishing attempts using its 314(b) information sharing system. While it does not appear that FinCEN’s system has been compromised or hacked, banks that participate in the 314(b) information sharing program are encouraged to check FinCEN’s Secure Information Sharing System (SISS) for additional information. For questions, contact ABA’s Rob Rowe​.

Return to top

January News

  • OIG Reports Issues with CFPB's MRA Documentation and Follow-up Process (1/31/19)
    A recent report from the Of​fice of Inspector General (OIG) found that the Consumer Financial Protection Bureau needs to improve its documentation and follow-up process for Matters Requiring Attention (MRAs).  The OIG recommends that the CFPB improve its follow-up process for MRAs by clarifying the intent and definition of its public MRA measurement, implementing a quality control process for MRA data, and addressing inconsistencies in MRA documentation and workpaper retention practices. During the review, the Bureau took actions to improve the MRA follow-up process, including issuing guidance for Bureau staff and upgrading its system of record.
  • CFPB Releases Report on Mortgage Complaints (1/30/19)
    The CFPB released Complaint snapshot: Mortgage, a report on mortgage complaints received by the CFPB from consumers. Among the highlights include: between Nov. 1, 2016 and Oct. 31, 2018, 11 percent of complaints were about mortgages; most mortgage complaints were about “trouble during payment process” (42 percent) and “struggling to pay mortgage” (36 percent); compared to the monthly average during the past 24 months, people submitted 18 percent fewer mortgage complaints in October 2018; and, there were 15 percent fewer mortgage complaints from August 2018 to October 2018 compared to August 2017 to October 2017.
  • Agencies Issue Long-Awaited Final Rule on Private Flood Insurance Acceptance (1/28/19)
    The financial regulatory agencies on Friday released a final rule governing the acceptance of private flood insurance. The rule, which will be effective on July 1, 2019, is the long-awaited implementation of the 2012 Biggert Waters Act provision that requires federally regulated lending institutions to accept private flood insurance policies that meet certain statutory criteria. Implementation of the statutory requirements without impeding the development of a market for private flood insurance — as advocated by ABA — was such a challenge that the banking agencies issued an initial proposal in 2013, and after reviewing the comments published a revised proposal in 2016.
  • ABA, Trades Discuss Key Issues With CFPB's Kraninger​ (1/28/19)
    ABA President and CEO Rob Nichols, along with senior ABA staff, discussed key issues and regulatory concerns in a roundtable meeting with new CFPB Director Kathy Kraninger and key members of her staff last week. Participants discussed industry concerns about regulatory challenges and offered suggestions for reform of bureau policies and procedures. Among other things, ABA emphasized the importance of the bureau revisiting HMDA disclosure requirements; simplifying its rulemakings, as suggested in the association’s responses to last year’s “requests for information”; and assure clear and viable standards under the qualified mortgage rule.
  • Fed Article Series to Cover Financial Conditions and Experiences of Consumers and Communities (1/24/19)
    The Federal Reserve Board announced a new article series, Consumer & Community Context, that features original analysis about the financial conditions and experiences of consumers and communities, including traditionally underserved and economically vulnerable households and neighborhoods. The series will be published periodically and each issue will have a theme. The inaugural issue covers student loans, and includes articles on the effect that rising student loan debt levels may have on homeownership rates among young adults; and the relationship between the amount of student loan debt and individuals' decisions to live in rural or urban areas.
  • ABA Urges FDIC to Rescind Guidance on Deposit Advance Services (1/23/19)
    In a comment letter to the FDIC, ABA reiterated its call for the agency to rescind its 2013 guidance on direct deposit advance services. The letter came in response to a request for information on how the FDIC can encourage banks to offer small-dollar credit products that are economically sustainable while meeting the needs of bank customers. For more information, contact ABA's Jonathan Thessin. ​
  • ABA Issues Staff Analysis of FCC’s Reassigned Numbers Database  (1/22/19)
    With the Federal Communications Commission recently voting to establish a database of reassigned numbers, ABA issued a staff analysis summarizing how the database will reduce the risk that banks will call customer numbers that have been reassigned to another consumer. At ABA’s urging, the FCC provided a safe harbor from liability for any calls to reassigned numbers caused by database error. For more information, contact ABA's Jonathan Thessin.
  • ABA Issues Staff Analysis on Hemp Provision in Farm Bill  (1/18/19)
    ABA issued a members-only staff analysis on the 2018 Farm Bill’s provisions affecting hemp. One of the provisions amends the Controlled Substances Act to exclude “hemp” from the definition of “marihuana” provided certain conditions are satisfied.  ABA's staff analysis provides a summary of the key hemp provisions of the bill and what they may mean for banks.
  • ABA Joins Business Groups in Calling for End to Shutdown (1/18/19)
    ABA joined 384 other national and local trade associations representing all sectors of the U.S. economy in calling for an end to the government shutdown. The groups urged Congress and the president to seize one of many compromise paths that have been floated by Republicans and Democrats. View banks' response to the shutdown​. ​
  • CFPB Seeks Clear Authority to Supervise for MLA Compliance (1/17/19)
    The Consumer Financial Protection Bureau called on Congress to grant the bureau clear authority to supervise for Military Lending Act compliance. In a letter to both House Majority Leader Nancy Pelosi (D-Calif.) and Vice President Mike Pence in his role as president of the Senate, CFPB Director Kathy Kraninger offered draft legislation that would grant the bureau this authority.
  • Proposed Overtime Rule Sent to OMB for Review (1/17/19)
    The Department of Labor has sent to the White House’s Office of Information and Regulatory Affairs — an office within the Office of Management and Budget — DOL’s proposal to revise the salary level for the executive, administrative and professional, and highly compensated employee exemptions adopted in the Obama Administration’s 2016 final rule. That rule — which never took effect due to a federal judge’s ruling in late 2016 — would have resulted in far more employees being treated as hourly earners subject to federal overtime and minimum wage requirements had the rule gone into effect. ABA and its member banks have been heavily engaged in advocating for revisions to the 2016 final rule. For more information, contact ABA's Jonathan Thessin.
  • Associations Comment on the Proposed Privacy Framework (1/15/19)
    The Bank Policy Institute through its technology policy division known as BITS, the American Bankers Association, and the Securities Industry and Financial Markets Association filed joint comments to the National Institute of Standards and Technology (NIST) on its "Request for Information on Developing a Privacy Framework: An Enterprise Risk Management Tool" (RFI). In the letter, we point out the numerous privacy laws that apply to the financial sector and suggest it would be helpful to use the same collaborative effort that NIST has used on cybersecurity. We also encourage harmonization with international standards and standard definitions across the board. Contact Rob Rowe​ for more information. ​
  • CFPB Issues Analyses of Qualified Mortgage Rule (1/11/19)
    The Consumer Financial Protection Bureau issued its assessment of the ability-to-repay/Qualified Mortgage rule, as required by the Dodd-Frank Act. While the report addressed matters relating to the costs and benefits of each segment of the rule, as well as overall impact on credit, it did not include a cost-benefit analysis. The bureau noted that it is considering whether to include such analyses in future assessments and reports. For more information, contact ABA's Rod Alba.
  • CFPB Releases Report on 2013 Servicing Rule​ (1/11/19)
    The CFPB released a report assessing its 2013 RESPA mortgage servicing rule. The five-year assessment, which, was mandated by the Dodd-Frank Act, found that certain elements of the rule were quite costly to implement, while others were less so. ABA staff are closely reviewing the 300-page report. For more information, contact ABA's Rod Alba or Audrey Decker. ​
  • Fed Proposes Rule to Harmonize Company-Run Stress Testing Requirements with S. 2155 (1/10/19)
    The Federal Reserve issued a proposed rule that would make changes to its framework for company-run stress tests to conform with Section 401 of the S. 2155 regulatory reform law. Consistent with the law, the rule would raise the minimum asset threshold for state member banks to conduct their own stress tests from $10 billion to $250 billion. It would also generally require firms above $250 billion to conduct company-run stress tests once every other year rather than annually. Finally, it would eliminate the hypothetical “adverse” scenario from the test. Banks would still be required to rest themselves against the “severely adverse” scenario, and the “severely adverse” scenario will also remain a part of supervisory stress test, the Fed noted. Comments on the proposal are due Feb. 19.
  • HMDA Filing Period for Data Collected in 2018 Now Open​ (1/8/19)
    The Consumer Financial Protection Bureau has announced that the filing period for Home Mortgage Disclosure Act data collected in 2018 is open as of Jan. 1, 2019. Financial institutions may begin using the HMDA platform to begin the filing process for their HMDA data, and may continue to provide feedback on their experience or direct any questions to HMDAHelp@cfpb.gov.
  • ABA Updates Enforcement Action Database (1/7/19)
    ABA recently updated the enforcement database to include three enforcement actions issued by the bureau in December. The bureau issued a consent order based on a bank’s violation of the Federal Credit Reporting Act in furnishing, obtaining, and using consumer reports. In the second enforcement action, the bureau entered into a stipulated final judgment and order with a company and ordered the company to pay a $260,000 CMP and $268,869 restitution fine for violations of the Consumer Financial Protection Act. Lastly, FinCEN assessed a $14.5 million civil money penalty against a company for violations of Section 312 of the USA Patriot Act. Contact Teshale Smith​ for more information.
  • Senate Confirms Starks to FCC Commissioner Seat (1/7/19)
    Prior to adjournment of the 115th Congress, the Senate confirmed by voice vote Geoffrey Starks to the Democratic seat on the Federal Communications Commission that was vacated when Mignon Clyburn resigned last summer. Starks will complete Clyburn’s five-year term, which runs from July 2017 to July 2022. Prior to his nomination, Starks served as an Assistant Bureau Chief with the FCC’s Enforcement Bureau and earlier held positions in the Justice Department during the Obama Administration and with a Washington, D.C. law firm. The Senate also confirmed by voice vote FCC Commissioner Brendan Carr to a new five-year term ending in June 2023.
  • CDIA Issues Guidance for Consumer Reporting Agencies During Shutdown (1/3/19)
    With many government employees going without paychecks as the government shutdown persists, the Consumer Data Industry Association (CDIA) has issued guidance for reporting forbearance information to consumer reporting agencies during a protracted shutdown. CDIA reminded institutions that they may reference FAQ 45 of the Credit Reporting Resource guide for guidance on furnishing forbearance data to consumer reporting agencies in the Metro 2 format. For more information, contact ABA's Nessa Feddis​.
  • ABA Updates SCRA Staff Analysis ​ (1/3/19)
    ABA last week updated our Staff Analysis on Servicemembers Civil Relief Act (SCRA) compliance to include the changes made under the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155), signed on May 24, 2018, which made permanent the one-year period of protection from foreclosure that is afforded a service member under the National Defense Authorization Act for FY 2018. We also described new provisions, effective September 2018, that allow a bank to accept a letter from the service member's commanding officer or use the Defense Manpower Data Center (DMDC) database to determine military status. 
  • CFPB Issues Policy Guidance on HMDA Data Release (1/2/19)
    The Consumer Financial Protection Bureau has released its policy guidance describing the Home Mortgage Disclosure Act loan-level data it plans to release publicly in 2019. Significantly, in response to concerns raised by ABA about the need to protect consumer privacy, the bureau announced that it would not release property addresses, applicants’ credit scores or automated underwriting results. As expected, the CFPB will release “certain information with reduced precision,” including borrower ages, loan amount and number of units in the dwelling. Read ABA's Staff Analysis . For more information, contact ABA's Rod Alba​. ​​
  • FDIC Updates Bank Secrecy Act Technical Assistance Video (1/2/19)
    The FDIC released an updated technical assistance video on the Bank Secrecy Act (BSA), anti-money laundering (AML) requirements, and the Treasury Department's Office of Foreign Assets Control sanctions programs. The updated video provides an overview of current BSA/AML and OFAC requirements for directors of FDIC-supervised banks and savings associations. The video reflects the new beneficial ownership and customer due diligence requirements and related examination procedures as described in FIL 26-2018 dated May 11, 2018.
  • ABA Recommends Revisions to FDIC Unbanked Survey (1/2/19)
    In a comment letter filed before the holidays, ABA voiced support for the FDIC's National Survey of Unbanked and Underbanked Households and offered recommendations for ways the survey questions could be improved in 2019. ABA agreed with the FDIC's inclusion of prepaid cards in a survey question about consumers' experiences with bank accounts, noting that "functionally, prepaid accounts vary little from checking accounts." ABA also recommended the addition of two questions to uncover the primary reasons customers use and value branches. Such questions would help "identify opportunities to expand banking service options, especially for those who lack convenient access to branches," ABA said. Contact Nessa Feddis​ for more information.
  • After ABA Advocacy, FEMA Reverses Decision on Flood Insurance During Shutdown (1/2/19)
    Effective immediately, the Federal Emergency Management Agency will allow operations of the National Flood Insurance Program to resume, even while the government remains partially shut down, the agency announced on December 28. The move was retroactive to December 21, ultimately leaving no lapse in NFIP availability.
  • ABA Calls for Efficiency, Transparency, Accountability in CFPB’s Data Collection Activities​ (1/2/19)
    In a comment letter, the American Bankers Association urged the Consumer Financial Protection Bureau to operate transparently in its collection and use of data and to adopt safeguards to ensure it does not order the production of data that is overly broad, voluminous or duplicative. The letter was submitted in response to the bureau’s request for information on its data collections and data governance program — the latest RFI in the CFPB’s feedback initiative. Contact Jonathan Thessin​ for more information.

Return to top

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​