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CFPB Relaxing Rules in Light of COVID-19

Mar 27, 2020
The Consumer Financial Protection Bureau has announced that it has taken measures to make it easier for consumers with urgent financial needs to obtain access to mortgage credit more quickly in the middle of the COVID-19 pandemic

The Consumer Financial Protection Bureau (CFPB) has announced that it is providing needed flexibility to enable financial companies to work with customers in need as they respond to the Coronavirus pandemic. The CFPB is postponing some data collections from industry on Bureau-related rules to allow companies to focus on responding to consumers in need and making changes to its supervisory activities to account for operational challenges at regulated entities.
 
“As consumers seek temporary relief from lenders, the pandemic is impacting the operations of financial companies that are eager to help their customers during this unprecedented time,” said Director Kathleen L. Kraninger. “Our actions today are temporary and targeted to support consumers by allowing financial companies to focus their resources on assisting consumers.
 
The CFPB will not expect quarterly information reporting by certain mortgage lenders as required under the Home Mortgage Disclosure Act (HMDA) and Regulation C. During this time, entities should continue collecting and recording HMDA data in anticipation of making annual submissions. The Bureau will provide information on when and how institutions will be expected to commence what would have been new quarterly HMDA data submissions.
 
The Bureau also will not expect the reporting of certain information related to credit card and prepaid accounts under the Truth-in-Lending Act (TILA), Regulation Z and Regulation E. This includes the annual submissions concerning agreements between credit card issuers and institutions of higher education; quarterly submission of consumer credit card agreements; collection of certain credit card price and availability information; and submission of prepaid account agreements and related information.
 
“The Mortgage Bankers Association (MBA) appreciates Director Kathy Kraninger and the Bureau’s efforts to work with industry to ensure all our resources can be used to help consumers during this unprecedented time,” said MBA President and CEO Bob Broeksmit, CMB. “We appreciate the suspension of quarterly HMDA reporting, working to limit examination burdens, and the commitment to consider these unique circumstances in subsequent supervision. These measures will help our members continue to direct their focus to serving their customers’ needs during this pandemic.”

 
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Published
Mar 27, 2020
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