There were four noteworthy regulatory and compliance updates for banks and credit unions in June of 2022. Below are the details on these changes and how they affect you and your institution.
CFPB: Customer Service at Big Banks Targeted
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 July 21, 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.
FinCEN Issues Advisory on Elder Financial Exploitation
The Financial Crimes Enforcement Network (FinCEN) is issuing an advisory to alert financial institutions to the rising trend of elder financial exploitation (EFE). EFE involves the illegal or improper use of an older adult’s funds, property, or assets, and is often perpetrated either through theft or scams. The advisory highlights new EFE typologies and red flags since FinCEN issued its first advisory on the issue in 2011.
Why Is This Important to Me?
Share this with client-facing colleagues to ensure they are up-to-date on all elder financial exploitation trends.
CFPB Releases A Beginner’s Guide to Accessing and Using Home Mortgage Disclosure Act Data
Data available through the Home Mortgage Disclosure Act (HMDA) provides the most comprehensive source of publicly available information on the U.S. mortgage market. Under HMDA, financial institutions maintain, report, and publicly disclose loan-level information about mortgage applications and loans. HMDA data can help show whether lenders are serving the housing needs of their communities, give diverse stakeholders information that helps to guide policy, and shed light on lending patterns that could potentially be discriminatory, including through redlining or unjustified disparities in lending outcomes that can drive racial and economic inequality.
Why Is This Important to Me?
Share this information with colleagues responsible for HMDA data at your institution.
Federal Reserve Announces It Will Soon Release Second Tool to Help Community Financial Institutions Implement the CECL Accounting Standard
The Federal Reserve announced on Tuesday it will soon release a second tool to help community financial institutions implement the Current Expected Credit Losses, or CECL, accounting standard.
Known as the Expected Losses Estimator, or ELE, the spreadsheet-based tool utilizes a financial institution’s loan-level data and management assumptions to aid community financial institutions in calculating their CECL allowances.
Why Is This Important to Me?
Share with colleagues responsible for implementing the CECL standard.
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.