This week’s headlining news item is the latest on CRA Modernization.
A joint press release from the FDIC, OCC, and FRB issued today announced that due to pending litigation, they intend to rescind the Community Reinvestment Act final rule issued October 2023 and reinstate the framework that existed prior to its release.
We’ll be closely watching how the agencies approach CRA implementation and will be sure to share insights and updates with you here.
Continue reading to get the rest of this week’s compliance news round up…
FinCEN Issues FAQ on SW Border GTO
March 24, 2025
FinCEN has posted a series of 19 Frequently Asked Questions on its Geographic Targeting Order Involving Certain Money Services Businesses in California and Texas on the Southwest Border. (The FAQs are numbered from 1 to 21, but numbers 16 and 19 are omitted.)
Acting OCC Comptroller Discusses Financial Inclusion
March 24, 2025
The OCC has reported that Acting Comptroller of the Currency Rodney E. Hood discussed financial inclusion in his remarks yesterday at the National Association of Hispanic Real Estate Professionals’ Homeownership and Housing Policy Conference.Mr. Hood’s written remarks in support of his presentation discussed the work of the OCC’s Project REACh to support affordable homeownership.
FTC Settles with Operators of Deceptive Business Opportunity Scam
March 24, 2025
The Federal Trade Commission announced it is requiring operators of a deceptive business opportunity to pay hundreds of thousands of dollars to settle allegations they misled consumers with false promises of big returns selling goods through Amazon and Walmart.
Under the settlement orders entered by the court, Trevor Duffy Young and Wessam Baiz, along with two companies associated with Baiz, will turn over the profits they made from the alleged scam, which operated under the names Lunar Capital Ventures, Ecom Genie and Profitable Automation, and before that as Valiant Consultants. The court orders ban Young, Baiz, and Baiz’s companies from any involvement with the sales, marketing, or operations of any business opportunity. The orders also prohibit them from deceiving consumers about any good or service they sell or market.
OCC Reports Mortgage Performance for Fourth Quarter 2024
March 24, 2025
The OCC Mortgage Metrics Report, Fourth Quarter 2024 showed that 97.3 percent of mortgages included in the report were current and performing at the end of the quarter, an increase from 97.2 percent one year earlier. The percentage of seriously delinquent mortgages – mortgages that are 60 or more days past due and all mortgages held by bankrupt borrowers whose payments are 30 or more days past due – decreased from the fourth quarter of 2023. Servicers initiated 6,647 new foreclosures in the fourth quarter of 2024 showing a decrease from the previous quarter and a decrease from a year earlier.
Executive Order Would End Federal Payments by Check
March 25, 2025
President Trump issued an Executive Order, “Modernizing Payments To and From America’s Bank Account,” calling for a review and update of federal government disbursements practices to phase out, to the extent possible, disbursements by paper check, including tax refunds, vendor payments, benefit payments and intergovernmental transfers. The Order also encourages payments to the federal government to be made electronically.
FSB Establishes Forum on Cross-Border Payments Data
March 26, 2025
The Financial Stability Board (FSB) announced the establishment of a Forum on Cross-Border Payments Data. This initiative is a key outcome from the FSB’s Recommendations for data frameworks related to cross-border payments that were published in December 2024, and forms part of the FSB’s increasing emphasis on promoting implementation of its policy recommendations.
The FSB said that “differences in laws, regulations, and practices between countries can create unnecessary frictions in cross-border payments, increasing costs and risks for businesses and individuals. By bringing together experts in payments, anti-money laundering and countering terrorist financing, sanctions, and data privacy and protection, the Forum will work to strengthen cooperation on data-related issues in cross-border payments, such as the way data is collected, stored and managed across borders.”
The forum will serve as a platform for dialogue, information exchange, and research, helping to identify and address inconsistencies in global data frameworks. An advisory body comprised of private sector representatives will also be created to provide industry perspectives and expertise to the forum.
CFPB Wants to Return Penalty to Townstone Financial
March 26, 2025
In its first press release since February 3rd, the CFPB reported that its Acting Director, Russ Vought, is seeking to vacate the settlement the CFPB extracted from Townstone Financial. According to its press release, the CFPB used a “redlining screen” based on an arbitrary number of mortgages to destroy a small Midwest firm with about ten employees and a radio program called Townstone Financial. After a thorough review, the CFPB is seeking to make Townstone whole by returning the six-figure penalty they were forced to pay.
FHA Loan Residency Requirements Revised
March 26, 2025
The Department of Housing and Urban Development reported that non-permanent residents will no longer be eligible for Federal Housing Administration (FHA) mortgages. HUD’s revised residency requirements for FHA-backed loans, which take effect on May 25, will apply to Deferred Action for Childhood Arrivals (DACA) recipients as well as individuals who are pending asylum or pending refugee status, according to HUD, since there is no guarantee that their residency status will be renewed under the current administration. The new policy eliminates the ‘non-permanent resident’ category entirely from the FHA’s Single Family Title I and Title II programs, and reverses a Biden-era policy which allows FHA loans for DACA recipients who provide a valid Social Security Number and work eligibility status.
SBA Restores Lender Fees for 7(a) Loan Program
March 27, 2025
The U.S. Small Business Administration announced that it has restored lender fees to its 7(a) loan program. These fees were waived under the Biden Administration in response to the COVID emergency. The agency sent SBA Information Notice 5000-865775 to all 7(a) lenders with its revised fee schedule, which became effective at 12:00 a.m. EDT March 27, 2025, for the balance of the fiscal year ending September 30, 2025.
SEC Votes to End Defense of Climate Disclosure Rules
March 27, 2025
The Securities and Exchange Commission voted to end its defense of its rules requiring disclosure of climate-related risks and greenhouse gas emissions. The rules, adopted by the Commission on March 6, 2024, create a detailed and extensive special disclosure regime about climate risks for issuing and reporting companies. States and private parties have challenged the rules. The litigation was consolidated in the Eighth Circuit (Iowa v. SEC, No. 24-1522 (8th Cir.)), and the Commission previously stayed effectiveness of the rules pending completion of that litigation. Briefing in the cases was completed before the change in Administrations. Following yesterday’s Commission vote, SEC staff sent a letter to the court stating that the Commission withdraws its defense of the rules and that Commission counsel are no longer authorized to advance the arguments in the brief the Commission had filed.
Catch up with last week’s news items here.
The aim of our compliance news round ups are to help you stay informed and prepared for the evolving regulatory landscape. If you have any questions about an item in this week’s round-up, consider submitting it to our forum. You can also reach out to the Compliance Resource team at support@mycomplianceresource.com.