In case you missed it, we want to draw your attention to a few items issued by different regulators that may impact you.
New Exam Procedures from the Federal Reserve
The Federal Reserve recently released Exam Procedures under The CARES Act. There are three sections, or modules: 1) Credit Reporting; 2) Mortgage Servicing (Single-Family Properties); and, 3) Mortgage Servicing (Multifamily Properties). Each section gives an overview of the coverage, key requirements and covered period. Even if you’re not regulated by the Federal Reserve, this is a good summary of key requirements.
Comptroller’s Handbook on UDAAP
Earlier this summer, the OCC released a new Comptroller’s Handbook on Unfair Or Deceptive Acts or Practices (UDAP) and Unfair, Deceptive, or Abusive Acts or Practices (UDAAP). Since UDAAP can come into play with just about anything and everything, it should rank towards the top of your list of compliance concerns. Be sure to check out our September edition of Banking on BCC where we will break this down in plain English!
Payday Lending Rule FAQs Updated
In our August edition of Banking on BCC, we mentioned the CFPB’s Final Payday Lending Rule and referenced their Payday Lending Rule FAQs. These FAQs have since been updated (as of August 11th).
The FAQs are separated into three topic areas: 1) Covered Loans; 2) Payment Transfers; and, 3) Payment Notices. Seven Q&As were added or changed regarding specific loan coverage. Three Q&As were added/revised related to payment transfers, including one on the definition of a business day. Since “business day” is not defined under the Rule, any “reasonable” definition may be used as long as you’re consistent. Additionally, a Q&A on Payment Notices clarifies that an “unusual” payment notice is triggered by any change in the payment amount, regardless of the amount of the change.
If you’re subject to this Rule, we recommend checking the Payday Lending Rule FAQs out!
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