Regulatory Compliance Updates for Banks & Credit Unions – July 2022 Recap

There were four noteworthy regulatory and compliance updates for banks and credit unions in July of 2022. Below are the details on these changes and how they affect you and your institution.

July Regulatory Compliance Updates for Banks and Credit Unions

Request for Information Regarding Relationship Banking and Customer Service 

The CFPB announced it is seeking public input (87 FR 36828) related to relationship banking and how consumers can assert the right to obtain timely responses to requests for information about their accounts from banks and credit unions with more than $10 billion in assets, as well as from their affiliates. In the 2010 Consumer Financial Protection Act, which is part of the Dodd-Frank Act, Congress decided that consumers needed additional rights to demand information from large depository institutions. Section 1034(c) of the Act gives consumers the right to get information, including supporting written documentation, about their account from a large bank or credit union with over $10 billion in assets. Financial institutions covered by this provision must comply with customer requests for information in a timely manner. To date, the CFPB has not enforced or issued additional policy guidance under this legal provision. The Request for Information asks what information would be helpful for consumers to be able to obtain from their banks. Comments are due by August 22, 2022. 

Why Is This Important to Me?

Share this information with colleagues responsible for customer service in your institution, as there may be changes on the horizon. 

FHFA Announces Office of Financial Technology 

The Federal Housing Finance Agency (FHFA) announced the establishment of the Office of Financial Technology. This Office will service as a centralized source of information to support FHFA in addressing emerging risks and advancing Agency priorities related to the adoption and deployment of financial technology (fintech).  

Why Is This Important to Me?

This new office is seeking public input on the role of technology in housing finance, looking to understand the current landscape of innovation throughout the mortgage lifecycle. Feedback is due by October 16, 2022.

FHA Expands Mortgage Eligibility for Borrowers Previously Affected by COVID-19  

The Federal Housing Administration (FHA) announced new flexibility for lenders when qualifying borrowers who experienced previous employment gaps or loss of income due to the COVID-19 pandemic. Through updates contained in Mortgagee Letter 2022-09, salaried and hourly wage-earners, as well as self-employed individuals affected by COVID-19, who now have stable income will have greater opportunity to purchase a home using affordable FHA-insured mortgage financing. 

Why Is This Important to Me? 

Review the Mortgage Letter 2022-09 if your institution is an FHA Lender. 

Joint Statement on the Risk-Based Approach to Assessing Customer Relationships and Conducting Customer Due Diligence

The FDIC, the Board of Governors of the Federal Reserve System, the Financial Crimes Enforcement Network, the National Credit Union Administration, and the Office of the Comptroller of the Currency (collectively, the Agencies), are issuing a joint statement to remind banks of the risk-based approach to assessing customer relationships and conducting customer due diligence (CDD).  

Why Is This Important to Me? 

There aren’t any changes to the current processes; this is a reinforcement of a longstanding position that no customer type presents a single level of uniform risk or particular risk profile related to money laundering, terrorist financing, or illicit financial activity. Review to ensure your institution is following the risk-based approach.

Rachel Davis - Product Manager at OCL

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.

Rachel Davis - Product Manager at OCL

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.

By |2022-08-02T14:19:40-06:00August 2nd, 2022|Bank, Credit Union, Financial Services|Comments Off on Regulatory Compliance Updates for Banks & Credit Unions – July 2022 Recap