Top Story Lending Related

HUD has published a proposed rule [81 FR 28037] that would amend the regulations for its Native American and Native Hawaiian programs at 24 CFR parts 1000, 1003, and 1005-1007 to incorporate existing rules that require HUD programs to be open to all eligible individuals and families regardless of sexual orientation, gender identity, or marital status. Comments are due by July 8, 2016.

CFPB Director Cordray sent a letter late last month to the leadership and members of several industry trade groups reporting that the agency has begun drafting a Notice of Proposed Rulemaking on the TRID rules, with the goal of issuing it in late July. Although the content of the proposal is not yet known, the Director suggested it would likely incorporate some of the Bureau's informal guidance into the regulatory text and commentary "where adjustments would be useful for greater certainty and clarity." Like you, we will be watching for the proposal, and we will report it in our Top Stories and our Daily Compliance Briefing.

March G.19 Consumer Credit data have been posted by the Federal Reserve Board. Consumer credit increased at a seasonally adjusted annual rate of 6-1/2 percent during the first quarter. Revolving credit increased at an annual rate of 6 percent, while nonrevolving credit increased at an annual rate of 6-1/2 percent. In March, consumer credit increased at an annual rate of 10 percent.

The FFIEC has released the 2016 Informational Guide Letter as a reminder of previously announced information on Community Reinvestment Act (CRA) data collection and updated geographic designations for calendar year 2016 data that will be reported by March 1, 2017.

The Federal Reserve System has announced it will cosponsor a policy forum next week to explore changing demographic and economic trends that affect housing and community development policy in rural communities. The aim of "The Future of Rural Communities: Implications for Housing" is to explore methods and resources for encouraging initiatives and partnerships that increase access to capital and strengthen local economies. The conference will begin at 8:30 a.m. EDT on May 10, and it will be streamed live. The conference is cosponsored by the Federal Reserve Bank of St. Louis, and U.S. Department of Agriculture Rural Development, with key partners NeighborWorks America and the Housing Assistance Council.

• Conference agenda

HUD has announced the first-time allocation to states from the Housing Trust Fund of $174M. The Housing Trust Fund is a new affordable housing production program that will complement existing Federal, state and local efforts to increase and preserve the supply of decent, safe, and sanitary affordable housing for extremely low- and very low-income households, including families experiencing homelessness. By law, each state is allocated a minimum of $3 million.

The Consumer Financial Protection Bureau announced early this morning proposed rules that would prohibit mandatory arbitration clauses in new contracts that deny groups of consumers their day in court. Under the proposal, which would add a new 12 C.F.R. part 1040 (Regulation NN?), companies would still be able to include arbitration clauses in their contracts. However, for contracts subject to the proposal, the clauses would have to say explicitly that they cannot be used to stop consumers from being part of a class action in court. The proposal would provide the specific language that companies must use. Companies with arbitration clauses would be required to submit to the CFPB claims, awards, and certain related materials that are filed in arbitration cases. This would allow the Bureau to monitor consumer finance arbitrations to ensure that the arbitration process is fair for consumers. The Bureau reports that the rules would apply to most consumer financial products and services that the CFPB oversees, including those related to the core consumer financial markets that involve lending money, storing money, and moving or exchanging money. Congress already prohibited arbitration agreements in the largest market that the Bureau oversees – the residential mortgage market. Comments on the proposal will be accepted for 90 days following publication in the Federal Register.

• Bureau press release
• Proposed rule (377-page Federal Register submission)
• Published 5/24/2016 at 81 FR 32829, with comment period ending August 22, 2016

The Consumer Financial Protection Bureau's Regulatory Implementation Team has announced that they have posted the archive recording of the Bureau's April 12 webinar addressing specific questions raised about the implementation of the TRID rule's requirements.

The FDIC has posted its May 2016 list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA) to which the FDIC assigned ratings in February 2016. Of the 71 institutions listed, three received outstanding ratings, two were rated "needs to improve," and 66 received ratings of satisfactory.

The Federal Reserve Board has announced it has executed an Order of Assessment of a Civil Money Penalty in the amount of $6,200 against Farmers & Merchants Bank of Ashland, Ashland, Nebraska, for violations of Regulation H, which implements the National Flood Insurance Act.