Last week, the Federal Reserve, FDIC, and Office of the Comptroller of the Currency (OCC) released the final rule for CRA Modernization. We are working hard behind the scenes to digest the nearly 1,500-page document, but while we’re working through that, here are a few highlights and elements of the law you should keep in mind as you begin to make a plan for compliance. Highlights of CRA Modernization CRA Modernization’s final ruling includes several
CRA Modernization Final Rule
Category: CRA
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
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The ever-changing laws, regulations, proposals, deadlines, and guidance are a lot for anyone to manage and keep up with so let us do the work for you. Our blog is designed to help compliance professionals by releasing updates as soon as the news breaks. Our Compliance Resource team is researching, following, and monitoring government agencies and regulators to give you all the latest and greatest compliance news. Our goal is to work harder so you don’t have to.