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Regulators issue joint statement on using alternative data in underwriting
On December 3, the Federal Reserve, the CFPB, the FDIC, the NCUA, and the OCC (agencies) issued an Interagency Statement on alternative data use in credit underwriting, highlighting applicable consumer protection laws and noting risks and benefits. (See press release here ). According to the...
InfoBytesCFPB to amend Remittance Transfer Rule
On December 3, the CFPB issued a Notice of Proposed Rulemaking (NPRM) relating to the Remittance Transfer Rule (Rule), which implements the Electronic Fund Transfer Act’s (EFTA) protections for consumers sending international money transfers, or remittance transfers. The NPRM makes three proposals...
InfoBytesKraninger hints at new consent order policy
On November 22, in a speech at The Clearing House + Bank Policy Institute Annual Conference, CFPB Director Kathy Kraninger noted that the Bureau is considering changes to its consent order process to “ensur[e] consent orders remain in effect only as long as needed to achieve their desired effects...
InfoBytesWarren and Brown ask CFPB for breakdown on fair lending enforcement
On November 25, Senators Elizabeth Warren (D-Mass) and Sherrod Brown (D-Ohio) wrote to CFPB Director Kathy Kraninger requesting a breakdown of how the Bureau enforces fair lending laws in light of recent allegations brought against a global financial services company that reportedly offered lower...
InfoBytesSpecial Alert: Banks no longer required to file SARs for hemp-related businesses
Federal and state banking regulators confirmed in a December 3 joint statement that banks are no longer required to file a suspicious activity report on customers solely because they are “engaged in the growth or cultivation of hemp in accordance with applicable laws and regulations.” * * * Click...
InfoBytesOFAC updates and issues new Iran-related FAQs
On November 27, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) updated two existing Iran-related FAQs: FAQ 303 , which discusses insurance, reinsurance, and underwriting activities; and FAQ 804 , which discusses whether sanctions on certain shipping tankers apply to their...
InfoBytesSouth Korean company agrees to pay $75 million to resolve FCPA claims
On November 22, the DOJ announced that it entered into a deferred prosecution agreement with a South Korean engineering company, in which the company agreed to pay more than $75 million in criminal penalties to resolve an investigation into alleged violations of the FCPA’s anti-bribery provisions...
InfoBytes2nd Circuit says loan requests at Fed banks are claims under the FCA
On November 21, the U.S. Court of Appeals for the Second Circuit vacated the dismissal of a relator’s qui tam action, concluding that allegedly fraudulent loan requests made to one or more of the Federal Reserve Banks (FRBs) qualify as claims within the meaning of the False Claims Act (FCA). In the...
InfoBytesCFPB settles with two military loan companies
On November 25, the CFPB announced a settlement with two companies that originated and serviced travel-related loans for military servicemembers and their families. According to the consent order with the lender and its principal, the lender (i) charged fees to customers who obtained financing, at...
InfoBytesCFPB examines student loan borrowers enrolled in IDR plans
On November 22, the CFPB released a new Data Point report from the Office of Research titled “Borrower Experiences on Income-Driven Repayment,” which examines, among other things, the types of student loan borrowers who participate in income-driven repayment (IDR) plans, the evolution of borrower...
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