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Earlier today, The Office of the Comptroller of the Currency (OCC), the Federal Reserve Board, and the Federal Deposit Insurance Corporation (FDIC), issued a final rule to strengthen and modernize regulations implementing the Community Reinvestment Act (CRA). The CRA is designed to ensure federally insured banks meet the credit needs of the communities in which they do business, especially low- and moderate-income (LMI) communities.  The press release announcing the CRA Modernization’s final rule emphasizes that

2023 does not appear to be Freedom Mortgage Corporation’s year.  Yesterday, they received another enforcement action from the CFPB alleging they provided false information to Federal Regulators.  This follows the August penalty for illegal kickbacks. In August, the CFPB took action against Freedom for violating the most basic requirements of RESPA Section 8.   They were found to be providing illegal incentives to real estate brokers and agents in exchange for mortgage loan referrals. Freedom provided

Today, the CFPB released additional, more extensive Frequently Asked Questions on Section 1071, Small Business Data Collection and Reporting requirements. The expanded list of questions extends beyond the Institutional Coverage and Small Business/Credit transactions they released in June of this year, to include guidance on Firewall and Record Retention. In addition to the new sections, the CFPB also added additional questions and more details to the prior sections of the FAQ. It is important to

On July 31st, a U.S. District Court in Texas granted a stay on the compliance dates for members of the American Bankers Association (ABA) and Texas Bankers Association (TBA) with respect to the CFPB’s Section 1071 rule that was released earlier this year. The stay will remain in effect until the Supreme Court makes a final decision on the constitutionality of the CFPB’s funding structure. This review is scheduled for October of this year, but

The Community Reinvestment Act (CRA) is undergoing significant changes and the final interagency ruling on CRA Modernization is expected to come down sooner rather than later. As CEO, understanding these changes and their implications is crucial for your bank’s compliance success.  The Community Reinvestment Act has long played a vital role in promoting community development and fair lending, and the new regulations will reshape how your institution approaches its community commitments. Here are ten  things