All in Regulatory Update

CFPB Fines NewDay USA $2.25 Million for Illegally Targeting Veterans with Cash-Out Refinance Loans

Adam Witmer
Regulatory Update

On August 29, 2024, the CFPB took action against repeat offender New Day Financial (NewDay USA) for deceiving active duty servicemembers and veterans seeking cash-out refinance loans. The CFPB found that NewDay USA gave misleading and incomplete cost comparisons to borrowers refinancing in North Carolina, Maine, and Minnesota, which made the company’s loans appear less expensive relative to their existing mortgages.

FinCEN Issues Final Rules to Counter Illicit Finance and Security Threats in Investment Adviser Sector

Adam Witmer
Regulatory Update, BSA

On August 28, 2024, FinCEN issued two rules to help safeguard the residential real estate and investment adviser sectors from illicit finance as part of its ongoing efforts to combat illicit finance and protect U.S. national security. One of the final rules will will apply anti-money laundering/countering the financing of terrorism (AML/CFT) requirements to certain investment advisers that are registered with the U.S. Securities and Exchange Commission (SEC), as well as those that report to the SEC as exempt reporting advisers. 

CFPB Report Reveals Large Retail Chains Charging Cash-Back Fees on Debit and Prepaid Cards

Adam Witmer
Regulatory Update

On August 27, 2024, the CFPB published a new report finding Americans are paying tens of millions of dollars in fees to access their own money when getting “cash back” at large retail stores when making a purchase with a debit or prepaid card. According to the CFPB, these cash-back fees are being introduced amid a wave of bank mergers, branch closures, and widespread out-of-network ATM fees, all of which have decreased the availability of free cash access for consumers.

CFPB Launches Beta for Testing Small Business Lending Data Collection Rule Submissions

Adam Witmer
Regulatory Update

On August 26, 2024, the CFPB launched the beta platform for financial institutions to test data submissions under the small business lending data collection rule  pursuant to section 1071 of the Dodd-Frank Act. The CFPB invites the participation of financial institutions and their technology partners to test the beta platform and share feedback with the CFPB on their experience.

FinCEN Reminds Financial Institutions to Remain Vigilant to Illicit Drugs Transactions

Adam Witmer
Regulatory Update, BSA

On August 26, 2024, during Overdose Awareness Week, FinCEN reminded financial institutions to monitor for and report suspicious transactional activity related to the illicit fentanyl supply chain and the trafficking of illicit fentanyl and other synthetic opioids. According to FinCEN, its efforts to marshal resources and expertise to combat the trafficking of illicit fentanyl is in participation with the Department of the Treasury’s Counter-Fentanyl Strike Force.

CFPB Acts Against Fay Servicing for Illegal Foreclosures and Order Violations

Adam Witmer
Regulatory Update

On August 21, 2024, the CFPB took action against Fay Servicing for violations of mortgage servicing laws, as well as for violations of a 2017 agency order that addressed its illegal foreclosure practices. According to the CFPB, Fay Servicing took prohibited foreclosure actions against borrowers requesting mortgage assistance, failed to offer borrowers mortgage assistance options available to them, and overcharged for private mortgage insurance.

FDIC Updates Part 328 Q&As

Adam Witmer
Regulatory Update

On August 16, 2024, the FDIC updated its Questions and Answers related to the final rule governing FDIC Official Signs and Advertising Requirements, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC Name or Logo (part 328). The Q&As, first issued in July 2024, provide clarifying information on the final rule to support stakeholders in the implementation of part 328.

FTC Issues Final Rule Banning Fake Reviews

Adam Witmer
Regulatory Update

On August 14, 2024, the Federal Trade Commission (FTC) finalized a rule that will combat fake reviews and testimonials by prohibiting their sale or purchase and allow the agency to seek civil penalties against knowing violators. FTC Chair Lina M. Khan said in a statement that the final rule will protect Americans from getting cheated and promote markets that are fair, honest, and competitive.

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