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Today is: June 20, 2021  
 

 

BCG Monthly Newsletter

Bankers’ Compliance Group® is pleased to provide its members with a monthly online Newsletter that keeps members informed on current topics related to Dodd-Frank Regulatory Reform, Consumer Finance, Operations, Commercial Lending, etc. BCG members can view the current Newsletter by selecting the download button below.
 

June 2021 Newsletter Highlights    Download Newsletter  


A Friendly Reminder to Only Impose Contractually Authorized Fees
Some creditors impose a fee when a borrower makes a payment over the phone.  Neither federal nor California law prohibits such a fee, but the creditor needs to make sure it has the contractual right to impose that (or any other) fee.  Case in point is a 2019 class action filed against M&T Bank.

What Qualifies as the Most Recent Installment to Avoid the Pyramiding of Late Charges?
Question:  When a consumer makes her mortgage payment late and is assessed a late charge, what is considered “the most recent installment” due when the creditor receives the next payment for purposes of the prohibition against the pyramiding of late charges?

CFPB Regulation E FAQs
On June 4, 2021, the CFPB issued Electronic Fund Transfers FAQs as a Compliance Aid.  Topics covered include Unauthorized EFTs and Error Resolution, including scenarios involving fraudulent inducement and subsequent transactions by a third party, consumer negligence and more.

Congress Expected to Disapprove OCC's True Lender Rule; OCC Will Not Reconsider its Valid When Made Rule
Last month, the U.S. Senate passed a joint resolution under the Congressional Review Act to disapprove the OCC’s “True Lender Rule” (S.J. Res. 15).  The OCC issued the rule in response to industry concerns regarding how to determine whether a bank or a third party is considered to be the lender with regard to lending arrangements between banks and non-bank third parties, such as marketplace lenders, and what laws would apply to these loans.  85 FR 68742.

Fed Extends Reg O Exception for PPP Loans
Last month, the FRB announced the third extension of its rule to except PPP loans made to businesses owned by their directors and certain shareholders from the requirements of Regulation O, subject to certain limits.  The interim final rule was effective May 21, 2021 and was published in the Federal Register at 86 FR 27507.  The extension applies to loans made through June 30, 2021.

NCUA Adopts Final Rule On Derivative Authority for Federal Credit Union
The Federal Credit Union Act (FCUA) provides federal credit unions (FCU) with the authority to invest in certain securities, obligations and accounts.  12 USC 1757(7) and (15).  In general, FCUs may engage in limited derivative activities for purposes of mitigating interest rate risk (IRR) if they have “derivative authority.”

OCC Reconsiders 2020 CRA Final Rule Except Those Provisions with October 2020 Compliance Date
Last month, the OCC announced that it is reconsidering its 2020 CRA final rule (published in the Federal Register at 85 FR 34734), which was intended to modernize its CRA regulations (2020 CRA Final Rule).

 

Table of Contents

 

Consumer Finance

  • A Friendly Reminder to Only Impose Contractually Authorized Fees
  • FHFA Extends COVID-19 Multifamily Forbearance through September 30
  • Debt Collection Recent Developments
  • FDIC Imposes $1.8 Million Civil Money Penalty for FTC Act Section 5 Violations

Consumer Finance Q&A

  • What Qualifies as the Most Recent Installment to Avoid the Pyramiding of Late Changes?

Banking Operations & FinTech

  • CFPB Regulation E FAQs
  • VA Finalizes Rule on COVID-19 Veterans Assistance
  • FRB Issues Proposed Rule to Amend Regulation J To Address Real Time Payment System
  • Host State Loan-To-Deposit Ratios Updated
  • Federal Banking Agencies Extend Comment Period on Request for Information on Artificial Intelligence

Corporate Governance

  • Congress Expected to Disapprove OCC’s True Lender Rule; OCC Will Not Reconsider its Valid When Made Rule
  • FSB Declares Continued Reliance on LIBOR Poses Clear Risks to Global Financial Stability
  • OCC Increasing LIBOR Transition Oversight in 2021
  • California DFPI Publishes Diversity Survey
  • Recent Developments in Climate-Related Financial Risk Mitigation

Commercial Lending

  • Fed Extends Reg O Exception for PPP Loans

Credit Unions

  • NCUA Adopts Final Rule On Derivative Authority for Federal Credit Union

CRA/HMDA Corner

  • OCC Reconsiders 2020 CRA Final Rule  Except Those Provisions with October 2020 Compliance Date

 

 

 

 

 
 
 

 

 

 

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