Fair Lending/Responsible Banking

Fair lending principles are embraced by CBA members. Regulatory enforcement, however, is an increasingly complex area of compliance, and has become even more challenging with the intense search at the state and federal levels for 'predatory lending' practices. To encourage self-evaluation, CBA helped establish a privilege for self-testing for fair lending compliance. CBA also is responding to new fair lending guidelines and protecting banks from unnecessary and burdensome small business data collection.
  • February 10, 2016
    On Wednesday, February 10, 2015, the CFPB published a notice in the Federal Register to correct a typo regarding tolerances for property taxes and certain other property-related costs. The error was found in the “Supplementary Information” to the TILA-RESPA Integrated Disclosure rule. According to the CFPB’s addendum, the supplementary information to the TILA-RESPA Final Rule, which was released...
  • February 5, 2016
    Many CBA Members Already Serving Unbanked Earlier this week, in conjunction with a Wednesday field hearing in Louisville, KY, the CFPB made headlines by calling on the nation’s 25 largest banks to offer alternative (i.e. low-cost, no overdraft) checking accounts to consumers. CBA strongly believes all U.S. consumers should have access to checking accounts with upfront fee disclosures and clear...
  • February 2, 2016
    On Tuesday, February 2, 2016, the CFPB announced a settlement , in conjunction with a Department of Justice (DOJ) action , with Toyota Motor Credit Corporation to resolve discriminatory outcomes in auto lending. Under the agreement, Toyota Credit will pay $21.9 million in restitution to African American and Asian or Pacific Islander consumers for pricing disparities from non-Hispanic white...
  • February 2, 2016
    On Tuesday, February 2, 2016, the House Financial Services Committee adopted by a vote of 33 to 24 its Budget Views and Estimates for financial services programs for Fiscal Year 2017. The Views and Estimates will now be submitted to the Budget Committee for consideration in formulating a budget resolution, which, by statute, is to be completed by April 15 of each year. In his opening statement,...
  • January 29, 2016
    On Friday, January 29, 2016, the CFPB announced the settlement administrator distributed checks to consumers for restitution under the Ally Bank indirect auto settlement. As a reminder, the Ally enforcement action was filed in December of 2013 and ordered Ally to pay $80 million in consumer restitution and $18 million to the CFPB in civil money penalties.
  • January 28, 2016
    On Thursday, January 28, 2016, the OCC released economic and financial market scenarios to be used in upcoming stress tests for covered institutions with more than $10 billion in assets. The supervisory scenarios include baseline, adverse, and severely adverse scenarios, as described in the OCC’s final rules implementing stress test requirements of the Dodd-Frank Act.
  • January 27, 2016
    On Wednesday, January 27, 2016, CBA and other trade associations requested the U.S. Department of Defense (DOD) extend until March 1, 2016 its deadline for financial institutions to opt-in for access to the Pentagon’s Defense Manpower Data Center database (DMDC). The DMDC database allows lenders to verify military status for applicants applying for consumer credit other than a mortgage or...
  • January 27, 2016
    The Credit Union National Association (CUNA) and its trade association partners are asking for relief from a fast-approaching deadline involving financial institutions' responsibilities to identify borrowers covered under the Military Lending Act (MLA). Beginning Oct. 3, lenders must determine the military status of all applicants for many forms of consumer credit. The MLA places certain...
  • January 26, 2016
    January 26, 2016 The Honorable Brad Carson Acting Under Secretary of Defense (Personnel & Readiness) 3E989, The Pentagon Washington, DC 20301 Dear Secretary Carson, The undersigned Associations appreciate the Defense Manpower Data Center’s (DMDC) outreach and commitment to working with us and other stakeholders on issues related to the Military Lending Act (MLA) Database. Together, our...
  • January 22, 2016
    The new Military Lending Act (MLA) regulations require banks to determine military status for applicants applying for consumer credit other than a mortgage or purchase money loan. Lenders who verify military status through the U.S. Department of Defense (DOD) database or a nationwide credit bureau will be provided a compliance safe harbor. By February 1, 2016, bankers must email dodhr.dodc-mb...

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