Financial Services Perspectives

Regulatory, compliance, and litigation developments in the financial services industry

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Financial Services Perspectives

CFPB Plans to Publish Final Debt Collection Rules in October

By Lee Gilley, Jonathan R. Kolodziej & J. Riley Key

July 6, 2020

On Thursday, July 2, the Consumer Financial Protection Bureau (CFPB) announced that it plans to publish final debt collection rules in October 2020. The final rules will be the first rules clarifying the nearly 40-year-old Fair Debt Collection Practices Act (FDCPA) and are expected to address a variety of topics including: Communications with borrowers; Guidance on what constitutes harassment or abuse, false or misleading representations, and unfair practices; and Disclosures (including time-barred debt disclosures). In…

Financial Services Perspectives

Hemp Banking – FinCEN Issues New Guidance Regarding AML/BSA Obligations

By J. Hunter Robinson, Whitt Steineker & James W. Wright Jr.

July 2, 2020

This article was written in collaboration with Jake Fanella and Jessica Caballero at VeriLeaf. VeriLeaf is a modern RegTech platform that optimizes the onboarding, review and ongoing compliance required for high-risk banking markets. VeriLeaf leverages state-specific requirements and the financial institution’s compliance program to streamline qualification, risk assessment, and onboarding of high-risk businesses in markets like CBD/hemp, money services, cannabis, and alcohol. More information can be found here. On June 29, the Financial Crimes…

Financial Services Perspectives

Oregon Passes Mandatory Forbearance Law

By Christy W. Hancock & R. Aaron Chastain

July 2, 2020

On June 30, 2020, Oregon joined D.C., Massachusetts, and New York in passing state-specific COVID-19 mortgage assistance programs into law. This new law further confuses the patchwork quilt of compliance issues for mortgage lenders and servicers. Oregon also became the first state to create an express cause of action allowing borrowers to enforce the state law. The new law mandates that Oregon-regulated banking organizations and mortgage servicers take several steps to assist borrowers…

Financial Services Perspectives

Supreme Court Holds That Part of CFPB’s Structure Is Unconstitutional

By Jennifer L. Galloway, Brian R. Epling & Christopher K. Friedman

June 29, 2020

This morning, the United States Supreme Court issued its decision in Seila Law v. CFPB. Authoring the opinion for a five-justice majority, Chief Justice John Roberts wrote that the Consumer Financial Protection Bureau’s (CFPB) single-director configuration, in which the CFPB’s director can only be removed for a specific list of reasons, was unconstitutional. However, the Supreme Court also found the removal provision severable from other parts of Dodd-Frank. This means that the CFPB survives,…

Financial Services Perspectives

FTC and NY AG Target Merchant Cash Advance Companies

By Lauren G. Raines, Brian R. Epling & Christopher K. Friedman

June 29, 2020

On June 10, 2020, the Federal Trade Commission and the New York Office of the Attorney General filed actions against two merchant cash advance (MCA) companies – RCG Advances and Ram Capital Funding – and individuals associated with both companies in the Southern District of New York and the Supreme Court of the State of New York County of New York. Both the FTC and New York AG assert several claims against the defendants…

Financial Services Perspectives

Credit Reporting During the COVID-19 Outbreak: CFPB Issues FAQs for CARES Act Requirements

By Bradley, Christy W. Hancock, R. Aaron Chastain & Grant A. Premo

June 25, 2020

The CFPB recently issued its “Consumer Reporting FAQs Related to the CARES Act and COVID-19 Pandemic,” addressing 10 credit reporting issues. While the FAQs provide some much-needed clarity for furnishers of information and credit reporting agencies, the CFPB left some significant questions unanswered. Below we breakdown highlights of the FAQs: Several of the FAQs — including FAQs 1, 2 and 3 — address the CFPB’s April 1, 2020 “Statement on Supervisory and Enforcement Priorities Regarding…

Financial Services Perspectives

Dodd Frank 1071 Update: CFPB Status Report Sheds Light on Implementation

By Judea S. Davis & Christopher K. Friedman

June 25, 2020

In January, we discussed the upcoming implementation of Section 1071 of the Dodd-Frank Act, which amends the Equal Credit Opportunity Act to require certain reporting requirements for specific categories of business loans. The implementation of Section 1071, which contains reporting and disclosure requirements that are comparable to the Home Mortgage Disclosure Act (HMDA), through an anticipated Consumer Financial Protection Bureau (CFPB) rulemaking will require that business lenders implement new policies and procedures to ensure compliance.…

Financial Services Perspectives

CFPB Issues Interim Final Rule to Enable COVID-19 Payment Deferral Options

By Jason R. Bushby, Jonathan R. Kolodziej & Gregory B. Pipes

June 23, 2020

On May 14, 2020, shortly after the Fannie Mae and Freddie Mac COVID-19 payment deferral options were announced, we warned mortgage servicers about the legal risks associated with offering payment deferral programs to borrowers impacted by COVID-19. A little over a month later, on June 23, 2020, the Consumer Financial Protection Bureau (CFPB) released an interim final rule that amends Regulation X and, among other things, removes many of the barriers that may have prevented…

Financial Services Perspectives

New York Passes Mandatory Forbearance Law, Inviting Potential Constitutional Challenge

By R. Aaron Chastain, Christy W. Hancock & Robert Maddox

June 22, 2020

On June 17, New York Gov. Andrew Cuomo signed one of the most far-reaching COVID-19 mortgage assistance state programs yet into law. Affected servicers and lenders will soon need to decide whether they should find a way to comply, or bring a constitutional challenge. The new law mandates that New York-regulated banking organizations and mortgage servicers take several steps to assist borrowers suffering COVID-19 related hardships as to non-federally backed mortgage loans (i.e., loans not…

Financial Services Perspectives

Flood Insurance: Busy Hurricane Season Ahead and COVID-19 Extension

By Heather Howell Wright & Judea S. Davis

June 17, 2020

June 1 marked the start of hurricane season, and according to the National Oceanic and Atmospheric Administration (NOAA), the Atlantic hurricane season will be a busy one. NOAA predicts a 60% chance of an above-normal season, a 30% chance of a near-normal season and only a 10% chance of a below-normal season. Since June 1, there have already been three named storms in the Atlantic, two of which made landfall and caused flooding. Flooding is…

Financial Services Perspectives

Regulatory, compliance, and litigation developments in the financial services industry

Blog Authors

CFPB Plans to Publish Final Debt Collection Rules in October

Hemp Banking – FinCEN Issues New Guidance Regarding AML/BSA Obligations

Oregon Passes Mandatory Forbearance Law

Supreme Court Holds That Part of CFPB’s Structure Is Unconstitutional

FTC and NY AG Target Merchant Cash Advance Companies

Credit Reporting During the COVID-19 Outbreak: CFPB Issues FAQs for CARES Act Requirements

Dodd Frank 1071 Update: CFPB Status Report Sheds Light on Implementation

CFPB Issues Interim Final Rule to Enable COVID-19 Payment Deferral Options

New York Passes Mandatory Forbearance Law, Inviting Potential Constitutional Challenge

Flood Insurance: Busy Hurricane Season Ahead and COVID-19 Extension

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