This article highlights key regulatory and compliance updates for banks and credit unions that occurred in April. Read more for details and how these changes affect you and your institution.
CFPB Issues Interim Final FDCPA rule to Protect Tenants
The CFPB issued an interim final rule to the Fair Debt Collection Practices Act (FDCPA) in support of the CDC’s eviction moratorium. The temporary eviction moratorium ordered by the CDC was extended until June 30, 2021. The rule requires debt collectors to provide written notice to tenants of their rights under the eviction moratorium for non-payment of rent. The CDC has provided sample disclosure language to ensure compliance with the rule’s disclosure requirements. The interim final rule is effective May 3, 2021.
Why Is This Important to Me?
Review the sample disclosure language to ensure compliance with the rule’s disclosure requirements. Share with any colleagues who may be responsible for this area of the FDCPA.
Treasury Announces Coordinated Climate Policy Strategy with the New Treasury Climate Hub and Climate Counselor
The U.S. Department of the Treasury announced a climate policy strategy that will “bring to bear the full force of the Treasury Department on domestic and international policymaking, leveraging finance and financial risk mitigation to confront the threat of climate change. These actions will position the economy for strong and sustainable growth consistent with a net-zero emissions future.” To implement this strategy, Treasury will focus on the broad range of its climate-related policy work connected to 1) climate transition finance, 2) climate-related economic and tax policy, and 3) climate-related financial risks.
Why Is This Important to Me?
Keep an eye out on this space – there will likely be changes not only in financial incentives for climate change initiatives, but there may also be changes in regulations and regulatory compliance as the focus on climate change becomes greater.
Proposed Mortgage Servicing Changes to Mitigate Foreclosure Surge
The CFPB announced a proposed set of rule changes designed to help prevent avoidable foreclosures as COVID-19 emergency federal foreclosure protections expire. If finalized, the proposal would give borrowers more time with a special pre-foreclosure period, allow servicers to offer certain streamlined loan modification options to borrowers, and keep borrowers informed of their options. If finalized, the proposed rule would be effective August 31, 2021. Comments will be accepted through May 10, 2021.
Why Is This Important to Me?
If you so choose, you can submit comments regarding these changes to the CFPB through May 10, 2021.
Agencies’ Statement and RFI on BSA Model Risk Management Guidance
The federal banking agencies, in conjunction with FinCEN and NCUA, issued a joint statement addressing how risk management principles described in the Guidance on Model Risk Management relate to the models used by institutions to assist in complying with the requirements of the BSA laws and regulations. Additionally, they announced a request for information on the extent to which the principles discussed in the guidance support compliance by banks and credit unions with BSA/AML and OFAC requirements. Comments are accepted through June 11, 2021.
Why Is This Important to Me?
If you so choose, you can submit comments regarding the model risk management guidance through June 11, 2021.
About the Author
Rachel Davis
Product Manager at OnCourse Learning
Rachel Davis is the Product Manager of GRC and professional education for banks, credit unions, and non-bank financial services at OnCourse Learning. Rachel has worked in the financial services industry for 12 years and keeps up to date on financial industry hot topics. Rachel received her Bachelor of Arts in English Literature from Saint Louis University.
About the Author
Rachel Davis
Product Manager at OnCourse Learning
Rachel Davis is the Product Manager of GRC and professional education for banks, credit unions, and non-bank financial services at OnCourse Learning. Rachel has worked in the financial services industry for 12 years and keeps up to date on financial industry hot topics. Rachel received her Bachelor of Arts in English Literature from Saint Louis University.
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