CFPB Extends Comment Period on Home Mortgage Disclosure Act


The Consumer Financial Protection Bureau (CFPB) announced that it is extending the comment period on the Advance Notice of Proposed Rulemaking (ANPR) relating to the Home Mortgage Disclosure Act (HMDA) data points. The extension will give interested parties an opportunity to review the CFPB’s annual overview of residential mortgage lending based on the HMDA data financial institutions collected in 2018, as requested by a variety of stakeholders. In late summer, the Federal Financial Institutions Examination Council (FFIEC) will release the national loan level dataset and the CFPB will release an overview of that dataset. 

The ANPR, issued on May 2, 2019, solicits comment on certain data points in the CFPB’s October 2015 final rule that were added to Regulation C or revised to require additional information, and on coverage of certain business- or commercial-purpose loans. The comment period will be extended from July 8, 2019 to October 15, 2019. 

Additionally, to facilitate additional comments based on the public’s review of the release of the national loan level data set, the CFPB will issue a Federal Register notice to reopen the comment period on certain aspects of the Notice of Proposed Rulemaking (NPRM) relating to coverage thresholds under the HMDA rules. The NPRM comment period closed on June 12, 2019. 

Question of the Week 

Q. Can a credit union use directly deposited Social Security and SSI benefits to offset overdrafts and overdraft fees?

A. Yes and no.Under 42 U.S. C. § 407, a recipient of Social Security is protected against attachment of those funds. 
There have been several lawsuits on this topic with varying outcomes. However, the underlying message in the court decisions is that a financial institution may not exercise its right to offset for a delinquent loan or account if the funds are from Social Security or are SSI. The one caveat is that if the funds are directly deposited to an account that is overdrawn at the time of the direct deposit, and the member had a reasonable ability to direct the funds elsewhere if they chose to do so—this isn’t considered a prohibited offset.  
Notably, in Lopez v. Washington Mutual Bank, the court upheld the financial institution’s right to use Social Security funds to bring a negative account positive. However, it is important to note that the reasons for ruling in Washington Mutual Bank’s favor on this case had to do with proper disclosures regarding the institution’s overdraft practices and the fact that the Social Security funds were directly deposited to the overdrawn account in question. 

Related Links: 

42 USC 407 
Lopez v. Washington Mutual  

Legal Briefs 

National Credit Union Administration (NCUA) 

NCUA published rule for delay in the Risk-Based Capital Rule.  Comments due July, 26, 2019. 

Consumer Financial Protection Bureau (CFPB) 

CFPB to co-host webinar on July 25, 2019 to outline strategies to address and prevent elder financial abuse. 
CFPB extends comment period for ANPR on HMDA Data points. 
CFPB issued the Fair Lending Report for 2018. 

U.S. Department of Labor (DOL) 

DOL issued new wage and hour opinion letters. 

Office of Foreign Assets Control (OFAC) 

OFAC has updated the SDN list as of June 28, 2019. The last update prior to this was June 24, 2019. 

Questions? Contact the Compliance Hotline: 1.800.546.4465;

Posted in Compliance News.