![]() ![]() The Spring 2022 agenda stated that a proposed rule was planned for December 2022, but this Fall 2022 agenda pushes that date back to March 2023. The CFPB’s Small Business Regulatory Enforcement Fairness Act (SBREFA) outline also proposed a fifth quality control factor focused on fair lending. This rule would implement Dodd-Frank Act section 1473(q), which amended the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) to require that AVMs meet four statutory quality control standards. Interagency Rulemaking on Automated Valuation Models (AVMs) The agenda states that a proposed rule is expected in January 2023.ģ. The CFPB is considering whether to amend the Fed’s rules. The CFPB issued in June 2022 an Advance Notice of Proposed Rulemaking (ANPR) to address the current rules under the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009, which were originally issued by the Federal Reserve (the Fed), that impose limitations and provide certain safe harbors for penalty fees, including late fees, on credit card accounts. This means, among other things, small business lenders will have to review their marketing strategies and data before this rule is effective to reduce their risk of the collected data supporting a redlining claim. There are many implications of this rule, including that the new HMDA-like dataset will be used by regulators and the public to support discrimination enforcement actions and lawsuits, including claims of redlining and pricing disparities. ![]() But this Fall 2022 agenda has moved that date up to January 2023.įor our clients making small business loans that will be subject to the rule, this will be an important final rule to review. The previous Spring 2022 agenda stated that a final rule was planned for March 2023. This rule would implement the Dodd-Frank Act Section 1071’s amendments to ECOA to require financial institutions to collect and report data on small business applications and lending, including the race, ethnicity, and sex of the principal owners of the business. Small Business Loan Data Collection Rulemaking I will discuss the specific rulemakings on the agenda and provide some of my thoughts below.ġ. ![]() The administration’s priority is likely also a force behind the CFPB’s supervision and enforcement focus on redlining in the mortgage industry, and the agency’s attempt to use UDAAP to reach discrimination outside of the fair lending laws, which we’ve written about here. The White House’s announcement of the release of the Unified Regulatory Agenda notes that the Biden administration has taken steps to “advance equity,” and that it will, “continue to enact a whole-of-government approach to…build a more equitable economy that reduces barriers to opportunity, roots out discrimination, and delivers environmental justice to communities across the nation.” This priority is likely a driving force behind the CFPB’s Small Business Loan Data Collection proposed rule, which we’ve written about here, and is part of this current Fall agenda. Taking a step back and looking at the big picture, it appears discrimination and equity remain a focus of the White House’s agenda. The CFPB has not yet posted a blog post or press release about the agenda. This new Fall 2022 agenda has some updates to that previous agenda, but also some new and potentially significant rulemakings, including a proposed rule that would apparently require certain non-banks to register their standard form contracts with the CFPB (wow). The CFPB’s Spring 2022 Rulemaking Agenda (which I wrote about here) had very few rulemakings on it. “It makes little sense for a credit union or a vendor to invest significant time or cost on the necessary systems, processes, and training when the Bureau has indicated an intention to alter some or all of the Final Rule prior to the mandatory compliance date.On January 4, 2023, the CFPB’s Fall 2022 Regulatory Agenda was released by the White House’s Office of Management and Budget (as well as the larger release of the Unified Regulatory Agenda for all Federal agencies). ![]() “The Bureau’s statement that it will review this rule and may initiate another rulemaking has a significant chilling effect on compliance efforts to implement the General QM Final Rule on the part of creditors, their vendors, and secondary market participants,” the letter reads. A proposal from the CFPB notes this intention to review and would move the mandatory compliance deadline for December’s General QM Final Rule to Oct. In February, the bureau issued a statement indicating it would review the General QM Final Rule, finalized on December 10, 2020. The Consumer Financial Protection Bureau’s (CFPB) stated intention to review the General Qualified Mortgage (QM) rule brings uncertainty and instability to the mortgage financing system, CUNA wrote to the CFPB Monday. ![]()
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