Page 5 - July 18, 2024 Bulletin

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CFPB Releases Mortgage for suspicious activity reports this month. Other notable dates
Servicing Proposal, Overhauls for BSA/AML actions include: July for federal banking agencies
to issue a proposed rule to conform their respective rules to
Loss Mitigation Framework the Financial Crimes Enforcement Network’s recently-issued
BSA program rule; August for FinCEN’s final AML/CFT
The CFPB has released a proposed rule to amend Regulation rules applicable to investment advisers and certain real estate
X’s mortgage servicing provisions, which would result in a major professionals, respectively; October for FinCEN’s revisions to
overhaul of the existing default servicing framework.
the customer due diligence rule; and May 2025 for FinCEN’s
The proposed rule seeks to streamline existing loss mitigation proposed rule on 314(b) information sharing protections.
requirements, add foreclosure procedural safeguards that begin as Read more: https://www.reginfo.gov/public/do/eAgendaMain
soon as a borrower requests loss mitigation assistance, revise certain
early intervention requirements, and provide borrowers with access NCUA Eyeing Executive
to certain mortgage servicing communication in languages other
than English. The proposal would also limit the fees a servicer can Compensation Reporting for
charge a borrower while the servicer is reviewing possible options to Federal Credit Unions
help the borrower. The proposal would not apply to “small servicers,”
defined as those that service 5,000 or fewer mortgage loans, all of The National Credit Union Administration may propose a new
which the servicer or affiliates own or originated. rule to require federal credit unions to provide information
on executive compensation to their members, much like what
The CFPB is seeking comment on the proposed changes and other
related topics, “including possible approaches it could take to ensure state-chartered credit unions already provide through their tax
servicers are furnishing accurate and consistent credit reporting forms, according to the White House Office of Management
information for borrowers undergoing review for assistance.” and Budget’s recently released spring regulatory agenda, which
Comments are due Sept. 9. provides an overview of possible regulatory actions by federal
agencies in coming months.
Read more: https://files.consumerfinance.gov/f/documents/cfpb_
mortgage-servicing-nprm-proposed-rule_2024-07.pdf Aside from federal credit unions and religious organizations,
tax-exempt organizations are required to disclose certain financial
Regulatory Agenda Previews information through IRS Form 990. The proposal under
consideration would require federal credit unions to report
Upcoming Rules from Banking information about executive compensation. The American
Agencies Bankers Association and State Association Alliance, including
NDBA, have strongly advocated for credit union accountability
On July 5, the White House Office of Information and Regulatory and transparency, believing that such reporting could help
Affairs released its Spring 2024 Unified Agenda of Regulatory and provide critical data on credit union activities to consumers and
Deregulatory Actions, or URA. This semi-annual report details each communities alike.
federal agency’s upcoming plans to issue or rescind regulations.

The CFPB’s agenda includes four proposed rule actions, addressing Small-Business Optimism
the Fair Credit Reporting Act, or FCRA, mortgage servicing, the Increases
Financial Data Transparency Act and consumer financial product
contracts under Regulation AA. The bureau released the initial According to the NFIB, a seasonally adjusted net 15% of business
part of its FCRA rulemaking last month. According to the URA, owners planned to create new jobs in the next three months,
it anticipates releasing the proposed rules for mortgage servicing unchanged from May. The percentage of owners thinking it’s a good
and the Financial Data Transparency Act this month, with the time to expand was 4%, unchanged from the previous month. 37%
Regulation AA proposal expected in September. of all owners reported job openings they could not fill in the current
period, down 5 percentage points (pp) from May.
Several rulemakings have progressed to the final rule stage. The final
rules on nonsufficient fund fees and Section 1033 data rights are A net negative 12% of all owners (seasonally adjusted) reported
projected for release in October. The final rule on overdraft fees is higher nominal sales in the past three months, up 2 pp from May.
expected in January 2025, likely before Inauguration Day due to the The net percentage of owners raising average selling prices was
possibility of a change in the administration. 27%, up 2 pp from May. The net percentage of owners expecting
higher real sales volumes was unchanged at a net negative 13%. The
In the Bank Secrecy Act/anti-money laundering space, the frequency of reports of positive profit trends was a net negative 29%
FDIC projects it will release a final rule on certain exemptions (seasonally adjusted), up 1 pp from May.

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