All in Regulatory Update

CFPB Reports Student Loan Payment Resumption Challenges

Adam Witmer
Regulatory Update

On January 5, 2024, the CFPB published an issue spotlight on the CFPB’s oversight of student loan servicing practices in the early months of the resumption of federal student loan repayments after over three years of a payment pause due to the COVID-19 emergency. The report shows that borrowers are encountering long hold times when trying to reach their student loan servicer, experiencing significant delays in application processing times for income-driven repayment plans, and receiving inaccurate billing statements and disclosures.

CFPB Files Amicus Brief Regarding Debt Collection

Adam Witmer
Regulatory Update

On January 2, 2024, the CFPB announced through a blog post that it has filed an amicus brief in the U.S. Court of Appeals for the First Circuit to help ensure consumers can hold debt collectors responsible when they make false representations. The CFPB reiterates that it is a violation against Fair Debt Collection Practices Act to tell consumers that they owe a debt or an amount of money that they don’t actually owe, particularly in medical debt collection.

Biden Vetoes Senate Resolution to Withdraw the CFPB’s 1071 Rule

Adam Witmer
Regulatory Update

On December 20, 2023, the ABA banking Journal reported that President Biden vetoed a Senate joint resolution to overturn the CFPB’s final rule implementing Section 1071 of the Dodd-Frank Act, also known as the small business lending data collection rule. In a published statement, Biden said that the resolution would harm all those that stand to benefit from expanded transparency and accountability, thus vetoing the resolution.

FinCEN Issues Final Rule On Access to BOI

Adam Witmer
Regulatory Update, BSA

On December 21, 2023, FinCEN issued a final rule that establishes the framework for access to and protection of beneficial ownership information (BOI). The final rule prescribes the circumstances under which BOI reported in compliance with FinCEN’s September 30, 2022 final BOI Reporting Rule may be disclosed to Federal agencies; state, local, tribal, and foreign governments; and financial institutions, and how it must be protected. 

CFPB and DOJ Sue Colony Ridge for Bait-and-Switch Land Sales and Predatory Financing

Adam Witmer
Regulatory Update, Fair Lending

On December 20, 2023, the CFPB and the DOJ sued Colony Ridge, a Texas-based developer and lender, for operating an illegal land sales scheme and targeting tens of thousands of Hispanic borrowers with false statements and predatory loans. The lawsuit alleges that Colony Ridge sells unsuspecting families flood-prone land without water, sewer, or electrical infrastructure, and that the company sets borrowers up to fail with loans they cannot afford. 

2024 HMDA Exemption Threshold

Adam Witmer
HMDA, Regulatory Update

On December 18, 2023, the CFPB adjusted the HMDA exemption threshold from $54 million to $56 million. The adjustment is based on the 4.1 percent increase in the average of the CPI-W for the 12-month period ending in November 2023 (up from 4.7 in 2021 and 8.6 in 2022). Therefore, banks, savings associations, and credit unions with assets of $56 million or less as of Dec. 31, 2023, are exempt from collecting data in 2024.

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