November 7, 2017
President Signs Resolution Repealing CFPB Arbitration Rule
On Wednesday, Nov. 1, 2017, President Trump signed the joint Congressional Resolution.
Under the Congressional Review Act, Congress may review new federal regulation issued by a federal government agency and, with the passage of a joint resolution, overrule the regulation.
The House passed the joint resolution in July, followed by the Senate narrowly passing the resolution at the end of last month. With the President’s signature, the CFPB’s arbitration rule has been repealed.
CFPB’s New HMDA Platform
The CFPB has announced the beta launch of the new HMDA Platform. The main objective of the beta launch is to provide financial institutions an opportunity to become familiar with the HMDA Platform, and to determine whether their sample LAR data complies with the reporting requirements outlined in the Filing Instructions Guide for HMDA data collection in 2017.
The beta version of the HMDA Platform will allow financial institutions to establish test log-in credentials; upload sample HMDA files and perform validation on their data; receive edit reports; allow users to confirm their test data submission; and conclude the test HMDA filing process.
During the beta period, financial institutions may test and retest as often as desired. All test accounts created and test data uploaded during the beta period will be removed from the system when the filing period opens in January 2018.
Click here to check out the beta version of the HMDA Platform.
During the beta period, the CFPB encourages financial institutions to provide feedback on their experiences using the HMDA Platform to HMDAfeedback@cfpb.gov.
Question of the Week
Under the SAFE Act, how often do mortgage loan originators (MLOs) need to renew their registration?
The SAFE Act requires MLOs to renew their registration annually (unless they initially registered on or after July 1 of the current year). The renewal period is open Nov. 1 through Dec. 31 of the current year. If an MLO is required to register and does not do so within this time frame, the MLO will be placed in an “inactive” registration status on the National Mortgage Licensing System (NMLS).
The NMLS created a resource page dedicated to renewal and reactivation information. This resource includes a handbook and FAQs regarding the renewal process.
Consumer Financial Protection Bureau (CFPB)
The CFPB released a report on auto loan trends which found that there has been a sharp increase in riskier, longer-term auto loans.
CFPB Director Cordray delivered prepared remarks at the Consumer Advisory Board Meeting. Cordray’s comments focused on reverse mortgages, financial well-being, payday loans, and helping consumers with limited English proficiency
National Mortgage Licensing System (NMLS)
The 2018 NMLS renewal period has started. The registration opened on Nov. 1, 2017, and will close on Dec. 31, 2017.
Federal Reserve Board (FRB)
The Federal Reserve Bank Services announced it will launch a new website. The new website will also combine the FRB’s publications FedFocus and FedFlash, which will become Fed360.
The FRB issued its Federal Open Market Committee statement.
Financial Crimes Enforcement Network (FinCEN)
FinCEN issued advisory FIN-2017-A007, warning financial institutions of potential fraud related to disaster relief efforts. FinCEN’s advisory includes information on how to identify benefits fraud, charities fraud, and cyber-related fraud.
Office of the Comptroller of the Currency (OCC)
OCC Acting Comptroller Noreika issued a statement regarding the President’s signature of the resolution overturning the CFPB’s Arbitration Rule.
Office of Foreign Assets Control (OFAC)
OFAC has updated the SDN list as of Nov. 1, 2017. The last update prior to this was Oct. 31, 2017.
Questions? Contact the Compliance Hotline: 1.800.546.4465, email@example.com.