Product Updates for April 2023
The Product Updates for April 2023 from BankPolicies.com feature the following new and revised form and policy template products:
BSA Suspicious Activity Report Notices Template
The update to this product is in response to FinCEN’s “Business Email Compromise in the Real Estate Sector: Threat Pattern and Trend Information, January 2020 to December 2021” dated 03/30/23 that provides threat pattern and trend information on Business Email Compromise (BEC) incidents in the real estate sector, based on Bank Secrecy Act (BSA) data filed with the Financial Crimes Enforcement Network (FinCEN) between January 2020 and December 2021 (the Review Period). The perpetrators of these attacks typically aim to defraud individuals and entities in connection with real estate transactions; their techniques include obtaining unauthorized access to networks and systems to misappropriate confidential and proprietary information. Individual homebuyers suffer disproportionately from these incidents. The sector remains a target for BEC attacks exploiting the high monetary values generally associated with real estate transactions and the various communications between entities involved in the real estate closing process.
As a reminder, the BSA Suspicious Activity Report Notices Template is included in the purchase price of the Bank Secrecy Act Policy Template – Comprehensive Version.
Fair Credit Reporting Act Summary of Consumer Rights Form Template
The update to this product is in response to the CFPB’s final rule dated 03/17/23 that makes non-substantive corrections and updates to CFPB and other federal agency contact information found at certain locations in Regulations B, E, F, J, V, X, Z, and DD, including federal agency contact information that must be provided with Equal Credit Opportunity Act adverse action notices and the Fair Credit Reporting Act Summary of Consumer Rights. This final rule also revises the chapter heading, makes various non-substantive changes to Regulations B and V, and provides a CFPB website address where the public may access certain APR tables referenced in Regulation Z.
As a reminder, the Fair Credit Reporting Act Summary of Consumer Rights Form Template is included in the purchase price of the Fair Credit Reporting Act Policy Template and FCRA Forms Template Package.
The update to this product is in response to the Federal Reserve’s Final Rule entitled “Regulation A: Extensions of Credit by Federal Reserve Bank” dated 03/29/23 that announced final amendments to its regulations to reflect the Federal Reserve Board’s approval of an increase in the rate for primary credit at each Federal Reserve Bank. The secondary credit rate at each Reserve Bank automatically increased by formula as a result of the Board’s primary credit rate action.
The amendments to part 201 (Regulation A) are effective March 29, 2023. The rate changes for primary and secondary credit were applicable on March 23, 2023.
Regulation B Data Collection Form Template – NEW!
The update to this product is in response to the CFPB’s final rule entitled “Small Business Lending Under the Equal Credit Opportunity Act (Regulation B)” dated 03/30/23 that amends Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) made by section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). Consistent with section 1071, covered financial institutions are required to collect and report to the CFPB data on applications for credit for small businesses, including those that are owned by women or minorities. The final rule also addresses the CFPB’s approach to privacy interests and the publication of data; shielding certain demographic data from underwriters and other persons; recordkeeping requirements; enforcement provisions; and the rule’s effective and compliance dates.
The new Regulation B Data Collection Form Template is included in the purchase price of the Regulation B Policy Template.
The update to this product is in response to the Federal Reserve’s Final Rule entitled “Regulation D: Reserve Requirements of Financial Institutions” dated 03/29/23 that announced final amendments to its regulations to revise the rate of interest paid on balances (“IORB”) maintained at Federal Reserve Banks by or on behalf of eligible institutions. The final amendments specify that IORB is 4.90 percent, a 0.25 percentage point increase from its prior level. The amendment is intended to enhance the role of IORB in maintaining the federal funds rate in the target range established by the Federal Open Market Committee (“FOMC” or “Committee”).
The amendments to part 204 (Regulation D) are effective March 29, 2023. The IORB rate change was applicable on March 23, 2023.
Unfair, Deceptive, or Abusive Acts or Practices Policy Template
The update to this product is in response to the CFPB’s:
”Policy Statement on Abusive Acts or Practices” dated 04/03/23 that explains the legal prohibition on abusive conduct in consumer financial markets and summarizes over a decade of precedent. The CFPB leads enforcement and supervision efforts to identify and end abusive conduct against consumers. In 2010, in response to the financial crisis, Congress passed the Consumer Financial Protection Act, and created the prohibition on abusive conduct. The Act tasks the CFPB, federal banking regulators, and states with the responsibility to enforce the prohibition, and puts the CFPB in charge of administering it. The policy statement will assist consumer financial protection enforcers in identifying wrongdoing, and will help firms avoid committing abusive acts or practices.
Bulletin 2023-01 entitled “Unfair Billing and Collection Practices After Bankruptcy Discharges of Certain Student Loan Debts” dated 03/16/23 that warns servicers of their obligation to halt unlawful conduct with respect to private student loans that have been discharged by bankruptcy courts. The bulletin details recent findings by CFPB examiners that certain loan servicers were illegally returning loans to collections after bankruptcy courts had discharged the loans.
The CFPB is directing these servicers to return illegally collected payments to affected consumers and immediately cease these unlawful collection tactics. The bulletin also makes clear that the CFPB will continue to examine student loan servicers’ handling of these loans to detect whether these illegal practices persist at other companies.
Keeping You Informed
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