The California legislature is poised to cap rates on larger consumer installment loans. Assembly Bill 539 has passed the state Assembly and the state Senate Committee on Banking and Financial Institutions. Although directed only to California Financing Law (CFL) licensees, the bill
MoFo ReEnforcement: The Enforcement Blog
MoFo ReEnforcement: The Enforcement Blog, published by Morrison & Foerster LLP, focuses on regulatory enforcement and compliance issues affecting financial institutions, fintech companies, and corporate entities. The blog covers topics such as anti-money laundering regulations, beneficial ownership reporting, consumer financial protection, credit market oversight, small business lending data collection, and due diligence practices for fintech partnerships. It also addresses developments in federal banking regulations, national security policy related to technology, and legislative changes impacting enforcement standards. The blog provides updates on rulemakings, regulatory guidance, and enforcement trends relevant to practitioners and stakeholders in financial services and corporate compliance.
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CFPB Announces Public Comment Extension on HMDA Reconsideration
The CFPB extended the deadline for public comments on its advance notice of proposed rulemaking (ANPR) relating to the Bureau’s 2015 Rule addressing the Home Mortgage Disclosure Act (HMDA). The ANPR, issued on May 2, requested comments by July 8,…
Policy Makers Examine the Disparate Impact Risk of Artificial Intelligence and Underwriting
Recent Congressional activity reflects increasing concern in the fair lending implications of artificial intelligence (AI) in credit underwriting. Congress and regulatory agencies are likely to press financial services providers to better understand the AI they use and to ensure that its…
FinCEN Issues Convertible Virtual Currency Guidance and Advisory
The Financial Crimes Enforcement Network recently issued a guidance, Application of FinCEN’s Regulations to Certain Business Models Involving Convertible Virtual Currencies (CVC), together with an Advisory on Illicit Activity Involving Convertible Currency. The Guidance largely summarizes FinCEN’s existing regulatory framework regarding the…
Take Two: Are You a Money Transmitter in Vermont?
Last year, we noted that the Banking Department of the Vermont Department of Financial Regulation had taken the position that its money transmission law “does not exempt a payment processor or an agent of a payee from [money transmission] licensure.”…
CFPB Requests Comment on Overdraft Rule
On May 15, 2019, the CFPB published a Request for Comment on the Regulation E provisions that require consumers to opt in to overdraft fees on one-time debit card and ATM transactions. The Request for Comment is made under the Regulatory…
CFPB Proposes New Rules to Modernize Debt Collection
On May 7, 2019, the Consumer Financial Protection Bureau (CFPB) issued proposed rules (“Proposed Rules”) under the Fair Debt Collection Practices Act (FDCPA) and its authority under the Dodd-Frank Act. If finalized, the Proposed Rules will be the first substantive regulations for debt…
Home Mortgage Disclosure Act Amendments: CFPB Issues Two Regulation C Releases
On May 2, 2019, the CFPB issued two releases related to Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). The CFPB released a notice of proposed rulemaking (NPRM) to adjust Regulation C’s loan volume thresholds that trigger HMDA…
Could Strong Consumer Authentication Weaken Consumer Demand?
From 14 September 2019, certain electronic and remote payments must be subjected to two-factor, or “strong customer authentication”, under regulatory standards covering the European Economic Area relating to the second EU Payment Services Directive, which took effect in January 2018.…
In a First, FinCEN Assesses Civil Money Penalty Against Peer-to-Peer Virtual Currency Exchanger
The Financial Crimes Enforcement Network (“FinCEN”) issued a press release announcing a civil money penalty for violations of the Bank Secrecy Act against Eric Powers, an individual who acted as a peer-to-peer virtual currency exchanger. The enforcement action is the first-ever…