Regulatory Update for April 2023: 1071 support, zombie mortgages, and a $30 million Wells Fargo settlement
With March’s big Section 1071 final rule release by the Consumer Financial Protection Bureau, it’s understandable if you’ve missed some of April’s regulatory news.
Not to worry! The Ncontracts team of regulatory compliance experts is here with this month’s regulatory podcast. We’re bringing you an overview and analysis of the latest regulatory updates to help you stay ahead.
Remember: You can also log into Ncomply for updates and implementation guides on changes to state and federal regulations.
Here are the highlights from the Ncast regulatory brief for April 2022:
CFPB establishes 1071 support program. The Consumer Financial Protection Bureau (CFPB) launched a regulatory and technical support program called SBLHelp to aid financial institutions in complying with the final 1071 rule, requiring collecting and reporting credit application data for small businesses. For a deep dive into 1071 requirements check out Ncontracts’ recent webinar or our 1071 FAQ.
CFPB issues “zombie mortgage” guidance. The CFPB also issued guidance on debt collectors threatening to foreclose on homes with mortgages past the statute of limitations (aka “zombie mortgages”). The advisory opinion clarifies that a covered debt collector who brings or threatens to bring a state court foreclosure action to collect a time-barred mortgage debt may violate the Fair Debt Collection Practices Act.
FHFA adjusts Loan-Level Price Adjustment Matrix. The Federal Housing Finance Agency (FHFA) adjusted its Loan-Level Price Adjustment Matrix (LLPAM) for both Freddie Mac and Fannie Mae. As a result, borrowers with higher credit scores are likely to see an increase in their interest rates while those with a lower credit score may see a decrease. It applies to loans purchased after May 1.
USDA Extends COVID-19 Forbearance Deadline to May 31, 2023: The U.S. Department of Agriculture (USDA) announced servicers are authorized to approve initial payment forbearances upon request for borrowers impacted by the COVID-19 National Emergency until May 31, 2023.
Wells Fargo settles alleged sanctions violations for $30 million. Wells Fargo agreed to pay $30,000,000 to settle its potential civil liability for alleged violations of sanctions against Iran, Syria, and Sudan. From 2008 to 2015, Wells Fargo and its predecessor, Wachovia Bank, provided a foreign bank located in Europe with software that the foreign bank then used to process trade finance transactions with U.S.-sanctioned jurisdictions and persons. What’s the lesson for your FI? Listen to the podcast to find out.
For more regulatory news including state laws and bills on firearms-related transactions, the OCC’s new Office of Financial Technology, what bank advocacy groups are saying about the FDIC proposal on misrepresenting deposit insurance coverage, securities transactions settlements, and industry feedback on the CFPB’s proposed nonbank registry, listen to the podcast.
Topics: Regulatory Compliance