CFPB requests information on small business lending market

The Consumer Financial Protection Bureau on May 15 published a request for information seeking public feedback on how to obtain more consistent and complete information on small businesses with credit needs. The CFPB also posted a Bureau Blog article and a press release announcing an inquiry into ways to gather and use new and existing information to identify the financing needs of small businesses, especially those owned by women and minorities.

Comments must be received by July 14.

To read the Federal Register notice on the request for information, click here.

CSBS files suit over OCC plan for fintech charters

The Conference of State Bank Supervisors has filed a federal lawsuit against the Office of the Comptroller of Currency regarding the agency’s recent decision to create a new special-purpose national bank charter for financial technology and other nonbank companies.

The complaint, filed in the U.S. District Court for the District of Columbia, argues the OCC’s licensing of such companies goes “far beyond the limited authority granted to it by Congress under the National Bank Act and other federal banking laws.” The CSBS also alleges the OCC’s decision to offer these special-purpose charters violates the Administrative Procedure Act. The suit seeks declaratory and injunctive relief, declaring the creation of the federal nonbank charter to be unlawful and enjoining the OCC from pursuing it.

To learn more about the CSBS lawsuit, click here.

Credit unions

Low-income credit unions can apply for grant assistance

Low-income credit unions interested in applying for Community Development Revolving Loan Fund grants can begin submitting applications on July 1, the National Credit Union Administration announced.

Through a competitive application process, the NCUA’s Office of Small Credit Union Initiatives will determine credit unions’ eligibility and administer approximately $2 million to the most qualified applicants, subject to the availability of funds.

Eligible credit union may apply for funding under the following initiatives:

• Leadership development (maximum grant $10,000): Credit unions may use this grant to promote career development, management succession planning, diversity and inclusion training, or structuring essential employment positions.

• Digital services and security (maximum grant $7,500): This grant can be used to offer services like remote deposit capture, digital payments and wallets, or mobile loan applications or to provide cybersecurity training or digital encryption.

• Small, low-income credit union capacity (maximum grant $7,500): Credit unions with less than $30 million in assets may apply for funding under this initiative to address operational challenges such as upgrading technology systems for greater efficiency and improved operations.

• Underserved communities (maximum grant $25,000): Each credit union may apply for a grant to support projects designed to reach people living in underserved communities.

An online application form, an explanation of grant requirements, and other information are available on the NCUA’s website.

More compliance news

CFPB seeks comments on mortgage servicing rule

The Consumer Financial Protection Bureau announced May 4 it is conducting an assessment of the Mortgage Servicing Rules Under the Real Estate Settlement Procedures Act (Regulation X). The bureau is seeking public comment on its plans for assessing the rule, as well as on certain recommendations and information that may be useful in conducting the planned assessment.

Comments are due by July 10. To learn more, click here.

FTC launches new cybersecurity website for small businesses

The Federal Trade Commission on May 9 announced the launch of a new website with articles, videos and other information aimed at helping small business owners avoid scams and to protect their computers and networks from cyberattacks and other threats.

The new website, ftc.gov/SmallBusiness, offers specific information to help small businesses protect their networks and customer data. It includes a new Small Business Computer Security Basics guide, and also has information on other cyberthreats such as ransomware and phishing schemes targeting small businesses.

To learn more about the new website, click here.

By |2019-11-25T05:42:34-06:00May 22nd, 2017|Financial Services|0 Comments

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