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CRA examination schedules for the first quarter of 2016 have been released by the OCC and the FDIC.

The FDIC has released a list of fourteen enforcement orders issued in October 2015 (and one from September), including one civil money penalty (CMP), six removal and prohibition orders, one voluntary termination of insurance, one Section 19 order, and six orders terminating earlier enforcement actions. The CMP was a $4,550 order against an Ohio bank for Flood Act violations. See our Flood CMP record of the order for further information.

The Federal Reserve Board and Consumer Financial Protection Bureau have jointly announced that the dollar thresholds in Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing), both currently $54,600, will remain unchanged for 2016. Transactions above the thresholds are exempt from the regulations, except that the exemption under Regulation Z does not apply to extensions of credit that are private education loans or loans secured by real property or by personal property that is the consumer's primary residence. The BankersOnline pages for these two regulations have been updated to reflect the announcement. The amendments to the Official Interpretations of the regulations were published in today's Federal Register.

• Final Rule amending Regulation M Supplement I
• Final Rule amending Regulation Z Supplement I

The CFPB November 2016 monthly complaint spotlight highlights bank account and service complaints. The report shows many consumers are experiencing problems opening and managing accounts, while other consumers found their accounts closed without explanation. This month’s snapshot also highlights trends seen in complaints coming from Connecticut.  

• Monthly Complaint Report, Vol. 5

The CFPB has posted an article and announced its issuance of Bulletin 2015-06 on automatic debits. The article explains to consumers the way an auto debit to a financial institution account works and the protections for the account owner, and provides links to action letter templates consumers can use to invoke those protections. The bulletin alerts  companies that they must obtain authorization before automatically debiting a consumer’s account. The bulletin also reminds companies they are required by law to provide notifications to consumers that clearly describe the terms of preauthorized auto debits. In addition, the Bureau is publishing action letters today for consumers seeking to revoke a company’s authorization to auto debit an account.

• Bulletin 2015-06

The Bureau has announced its 2015 fall rulemaking agenda. Current and long-term initiatives were listed. Current items include

• mandatory arbitration clauses
• payday, auto title, and similar lending products
• prepaid accounts
• overdraft services
• debt collection
• larger participants and non-depository lender registration
• women-owned, minority-owned, and small businesses data collection
• mortgage servicing
• facilitating implementation of the Home Mortgage Disclosure Act, Know Before You Owe disclosures, and other mortgage rules

Long-term items include credit reporting and  student loan servicing.

The Federal Reserve has issued the November 2015 update of the Consumer Compliance Handbook. 

The Federal Reserve Board has posted an update of the frequently asked questions regarding the Volcker Rule. The rule generally prohibits insured depository institutions and any company affiliated with an insured depository institution from engaging in proprietary trading and from acquiring or retaining ownership interests in, sponsoring, or having certain relationships with a hedge fund or private equity fund. These prohibitions are subject to a number of statutory exemptions, restrictions, and definitions.

The Federal Trade Commission has announced final amendments to its Telemarketing Sales Rule (TSR), including a change that will help protect consumers from fraud by prohibiting four discrete types of payment methods favored by con artists and scammers. The amendments also make changes to requirements relating to the nationwide Do Not Call (DNC) registry and entity-specific DNC lists. Most of the changes to the TSR will be effective 60 days after publication in the Federal Register.

The Department of Housing and Urban Development (HUD) has announced it has completed a Conciliation Agreement with Mortgage One, Inc., of Sterling Heights, Michigan, resolving allegations of lending discrimination against an applicant with disabilities. HUD claimed Mortgage One and loan officer Nancy Doody (Doody) required the mortgage applicant to provide intrusive and unnecessary documentation regarding his disabilities before approving his FHA-insured mortgage. The case came to HUD’s attention when an applicant for a loan with Mortgage One filed a complaint alleging that the lender delayed his application because of his disabilities. Specifically, the man alleged that before closing on the loan, Mortgage One requested that he provide verification from his doctor that his disability is permanent and/or a letter from the Social Security Administration stating that he would remain on disability for at least three years. Under the Conciliation Agreement, Mortgage One will provide monetary relief to the man and notify its loan officers, underwriters, and processors that they may not discriminate against FHA borrowers who derive income from a public assistance program such as Social Security Disability Insurance by seeking personal medical information.

In addition, Doody, the loan processor who handled the man’s application, will attend a Fair Housing Act course regarding the obligations of lenders and their loan officers to comply with federal fair housing laws.