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04.01.2021
CFPB Rescinds Policies Related to COVID Relief
The CFPB Wednesday rescinded several of its policy statements – and withdrew itself from some interagency statements – that provided reporting relief and temporary flexibilities amid the coronavirus pandemic. The statements impact Home Mortgage Disclosure Act (HMDA) reporting, loan modifications, electronic credit card disclosures, and more.

The rescissions take effect today.

The rescissions come as the bureau reorients its work to focus on consumers. CFPB Acting Director Dave Uejio in the announcement said "providing regulatory flexibility to companies should not come at the expense of consumers. Because many financial institutions have developed more robust remote capabilities and demonstrated improved operations, it is no longer prudent to maintain these flexibilities. The CFPB’s first priority, today and always, is protecting consumers from harm."

The rescinded policy statements cover:

• supervisory and enforcement efforts that indicated the bureau would work with affected institutions to minimize the burden of these activities;

• HMDA reporting, which temporarily lifted quarterly reporting requirements for certain mortgage lenders but still directed entities to collect and record HMDA data for annual submissions;

• credit card and prepaid account reporting under the Truth in Lending Act (TILA), Regulation Z, and Regulation E;

• credit reporting company and furnisher responsibilities related to a CARES Act provision that directed lenders to report a credit account as current if the consumer has sought payment relief related to difficulties caused by the national emergency;

• Interstate Land Sales Full Disclosure Act (ILSA) and Regulation J reporting for land developers;

• Regulation Z billing error resolution timeframes, in which the bureau acknowledged financial institutions' operational disruptions that could impact resolving billing error notices and said it would take a flexible supervisory and enforcement approach during the pandemic;

• electronic credit card disclosures, which provided some NAFCU-sought e-sign relief as the bureau indicated it would not cite violations or bring an enforcement action against a card issuer if the issuer obtained oral consent to electronic delivery of disclosures; and

• a 2018 bulletin related to supervisory communications.

NAFCU urged the CFPB to provide regulatory relief to credit unions amid the coronavirus pandemic and consistently spoke with the bureau on the industry's efforts to support members facing financial hardships. The association will continue to advocate for relief measures and flexibility that allow credit unions to focus on serving their members.

Copyright 2021. NAFCU. (link)
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