Page 7 - June 20, 2024 Bulletin

aRTiCLeS

coalitions or local community organizations, according to the AARP Survey Details
survey. About a quarter of sites formed their partnerships because Generational Differences
of an initiative of the partner bank or credit union. Roughly
two in three VITA sites were willing to direct unbanked clients in Banking Habits, Fraud
to financial institutions with Bank On accounts, regardless of Experiences
whether the sites had existing banking partnerships.
Nearly half (48%) of U.S. adults report having been a victim or
The FDIC also asked VITA sites what practices were most useful intended victim of financial exploitation in the past, according
for helping clients open bank accounts. Around 71% of locations to a new report from AARP. While adults ages 18 to 49 are more
that used on-site phones, virtual conferences, mobile apps or likely than older adults to lose money from financial exploitation,
paper forms described the practice as “very useful.” Eighty-six older adults are more likely to lose larger amounts, according to
percent of sites that use referrals, and 85% that used alternative the report’s findings.
methods such as government or trusted websites, described the
practice as very useful. The report compares 2014 and 2023 surveys of U.S. adults
ages 18-49 and ages 50 and older, which revealed generational
Read more: https://www.consumerfinance.gov/1071-rule/
differences in banking practices, financial exploitation experiences
CFPB to Require Nonbanks to and desire for industry protections. Among those who
experienced exploitation, three in five (61%) adults older than 50
Register Consumer Protection were more likely to have expressed greater trust in their financial
Orders institution based on how it handled the situation, compared with
just 41% in 2014.
The CFPB has finalized a rule requiring certain nonbanks to Sixty-three percent of people over 50 bank online or via a mobile
register information about their company with the bureau along application at least weekly, but adults 18-49 are two-and-a-half
with any agency or court orders concerning consumer protection times as likely to do so daily. More than nine in 10 (92%) adults
violations, with that information to be kept by the bureau in a ages 50 and older want the employees of their financial institution
public registry. The CFPB will also require covered nonbanks to to be trained to recognize and stop financial exploitation, up from
file annual reports regarding compliance with the orders issued 85% in 2014. Seven in 10 (67%) adults are at least somewhat
against them. more likely to use a bank or credit union recognized for having

In a statement, the CFPB said that while banks, credit unions taken proven steps to prevent financial exploitation.
and many mortgage companies are known to regulators and Read more: https://www.aarp.org/pri/topics/work-finances-
the public, many other financial companies are not licensed or retirement/fraud-consumer-protection/banks-credit-unions-serve-
registered. The bureau added that Congress gave it the authority protect-older-adults/
to register nonbanks, with the rule the first time it has exercised
that authority. The rule is effective Sept. 14, with registration to CFPB Launches Public Inquiry
begin Oct. 16.
In comments last year while the rule was still under review, ABA into Mortgage Closing Costs
raised concerns about CFPB statements that it may next consider The CFPB has launched a public inquiry into so-called “junk
imposing similar reporting requirements on banks. The Dodd- fees” associated with mortgage closing costs to “understand why
Frank Act exempts depository institutions from the CFPB’s closing costs are increasing, who is benefiting, and how costs for
registration authority, the association said. There is also no need borrowers and lenders could be lowered.” The bureau also cited
for such requirements, it added, as the bureau has acknowledged its research concluding that borrowers paid a median amount of
there already are four regulatory agencies that regularly publish $6,000 in closing costs as of 2022.
consumer compliance information on banks and credit unions,
and the largest banks are subject to CFPB supervision. Specifically, the CFPB is seeking public feedback on which fees
related to mortgage closing costs are subject to competition;
Read more: https://files.consumerfinance.gov/f/documents/cfpb_ how the fees are set and who profits from them; and how fees
nonbank-registration-orders-final-rule_executive-summary.pdf are changing and how they affect customers. The findings from
the inquiry will inform possible rulemaking, guidance and other
policy, according to the bureau. Comments are due within 60
days of the request for comment being published in the Federal
Register.

7