This topic consolidates legislative summaries of proposed and final regulatory rules impacting the mortgage banking industry today. This includes rules promulgated by federal regulatory agencies as well as up-to-the-minute legislative actions out of Washington, DC.
The Office of the Comptroller of the Currency has updated its civil money penalty maximums effective January 8, 2023.
The FDIC's January 2024 Consumer News aims to provide steps that may help consumers grow their savings.
Search our Compliance Calendar for current regulatory changes & updates.
The CFPB has been monitoring student loan servicing since payments were resumed and various challenges have been identified in the report.
In this bulletin, the Comptroller of the Currency (OCC), along with the Board of Governors of the Federal Reserve System (Federal Reserve Board), the Federal Deposit Insurance Corporation (FDIC), and the National Credit Union Administration (NCUA), published the final rule amending the Uniform Rules of Practice and Procedure (Uniform Rules) in 12 CFR 19 recognizes electronic communications in all administrative hearings, increases the efficiency and fairness of administrative adjudications.
The updated thresholds, published on Tuesday, December 26th, 2023, will become effective on Monday, January 1st, 2024 and apply to any national bank, federal savings association, or state savings association.
House Bill H.R. 4198 and Senate Bill S. 3502, though not identical, have been introduced to amend the Fair Credit Reporting Act to restrict the practice of trigger leads in mortgage loans. Curtailing this practice has "support from both industry participants and consumer groups," according to Ballard Spahr.
"ACES has shined a light on our productivity and empowered us to hold our teams accountable."
- Emilee Rada, Director of Lending Operations at Georgia's Own Credit Union
On Tuesday, December 19th, 2023, President Biden vetoed a Congressional resolution that would block the CFPB's small-business loan rule, reasoning that it would hinder government oversight of predatory lenders.
Ballard Spahr LLP--John L. Culhane, Jr., Richard J. Andreano, Jr., Michael Gordon & Alan S. Kaplinsky
The House of Representatives has voted to override the CFPB’s final Section 1071 small business lending rule following the Senate's vote to override the 1071 rule and the President is also expected to Veto the resolution and there is unlikely to be sufficient votes to override his veto.
The Consumer Financial Protection Bureau, the Federal Reserve Board, and the Office of the Comptroller of the Currency have announced that the 2024 threshold for whether higher-priced mortgage loans are subject to special appraisal requirements will increase from $31,000 to $32,400.
The Federal banking regulatory agencies have asked for comments on a proposed rule to improve the financial stability of banks with assets of $100 billion or more by requiring a layer of long-term debt to be maintained by these institutions.
"We are already ahead of the game and without having to add additional FTEs."
- Julie Baril, QC Manager at Norcom Mortgage
The CFPB has released the beta version of the HMDA Platform for data that will be collected in 2024 (2024 Beta Platform), providing financial institutions and vendors an opportunity to determine whether their sample loan/application register data comply with the reporting requirements.
On Monday, October 30th, 2023, the President signed Executive Order 14110, calling on the FHFA and CFPB to evaluate their regulated entities' use of AI for bias against protected groups in underwriting and appraisal models. Additionally, the order requires the FHFA and CFPB to issue guidance on the use of AI in tenant screening and real estate advertising within 180 days.
ICBA Newswatch
A request from the Independent Community Bankers Association, among others, was granted by the U.S. District Court for the Southern District of Texas resulting in a nationwide injunction that prevents the Consumer Financial Protection Bureau's (CFPB) implementation and enforcement of the §1071 rule regarding business data collection to all community banks and covered financial institutions until the US Supreme Court reviews a US Court of Appeals Fifth District ruling on the constitutionality of the CFPB's funding.
On Monday, October 24th, 2023, the federal banking agencies jointly issued a final rule that updates the Community Reinvestment Act. Most requirements will be applicable beginning January 1, 2026, while the remaining requirements, including reporting requirements, will be applicable on January 1, 2027.
