Bank Law Monitor

Bank Law Monitor

A Legal Blog for the Financial Services Industry

Category Archives: Trending News

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Oregon Presses Pause on Foreclosures, Payment Defaults, and Evictions

Posted in Banking, Commercial Real Estate, Regulatory Developments, Trending News
In an effort to provide relief to homeowners, businesses, landlords, and tenants affected by COVID-19, Governor Brown signed two bills that impose significant limitations on lenders and landlords. Under HB 4204, lenders cannot foreclose on loans secured by real estate in Oregon and must defer payments for borrowers on those loans who are unable to… Continue Reading

At Long Last, FinCEN Offers Much Awaited Guidance Regarding BSA Due Diligence Requirements for Hemp Businesses

Posted in Banking, Cannabis, Trending News
Ever since Congress passed the 2018 Farm Bill and hemp was declassified under federal law as a Schedule I controlled substance, financial institutions have struggled with whether and how to bank the hemp industry. Many bankers simply feared that the distinction between legal hemp (which cannot contain more than 0.3 percent THC on a dry-weight… Continue Reading

“First Come, First Served:” SBA Issues Critical Guidance for Payroll Protection Program Loans

Posted in Banking, COVID-19, Regulatory Developments, Trending News
The Small Business Administration (SBA) has issued an Interim Final Rule controlling how $349 billion in short-term business loans under the CARES Act will be allocated. While the SBA is seeking comments from the public, the rule is effective immediately to provide immediate relief to businesses affected by the COVID-19 emergency. Applications for lenders and… Continue Reading

Federal Banking Agencies Encourage Small-Dollar Lending

Posted in Banking, COVID-19, Trending News
No, your eyes aren’t deceiving you. On Thursday, March 26, 2020, the federal banking agencies (i.e., the FDIC, CFPB, FRB, NCUA, and OCC) issued a joint statement encouraging banks and credit unions to offer responsible small-dollar loans to consumers and small businesses affected by COVID-19. Many of us might remember the days of “Operation Chokepoint”… Continue Reading

Congress CARES: Federal Stimulus Package to Provide Emergency Relief to Borrowers and Financial Institutions

Posted in COVID-19, Trending News
On Wednesday, March 25, 2020, the Senate unanimously passed a $2 trillion economic stimulus package. Called the Coronavirus Aid, Relief, and Economic Security (or CARES) Act, this unprecedented bill is expected to be passed by the House this Friday and quickly become law. There is much in the Act for the financial services industry to… Continue Reading

CARES Act Expands Small Business Lending and Provides Potential Loan Forgiveness

Posted in COVID-19, Trending News
In its current form, the CARES Act amends the Small Business Administration’s (SBA) Section 7(a) loan program to encourage banks and credit unions to make small business loans under what is known as the “Paycheck Protection Program.” If passed, the Act would appropriate $349 billion for SBA guaranties to protect lenders against the risk of… Continue Reading

Banking Regulators Encourage Lenders to Work with Borrowers Impacted by COVID-19

Posted in Banking, COVID-19, Regulatory Developments, Trending News
Federal banking regulators took a bold, first step this past Sunday, announcing Interagency Guidance (“the Guidance”) to encourage lenders to work with borrowers impacted by the COVID-19 outbreak.[1] The Guidance specifically permits lenders to enter into (prudent, of course) short-term loan modifications with borrowers who are otherwise current on their loans, without classifying the loan… Continue Reading

The OCC Doubles Down on Fintech Banks

Posted in Banking, Trending News
Traditional banks and lenders may soon see some increased competition from actors in the financial technology industry. As we previously discussed, the Office of the Comptroller of the Currency (OCC) has led the regulatory charge by inviting so-called “fintech” companies to apply for special purpose national bank charters. Soon after this invitation was extended in… Continue Reading

Continued Uncertainty Regarding Proof of Water Availability Necessary to Obtain a Permit Follows Whatcom County v. Hirst

Posted in Trending News, Washington Legislation
Last October in Whatcom County v. Hirst, the Washington Supreme Court held that each county must ensure that there is an adequate water supply before it approves a project permit. The Hirst decision upset the existing process by which a county would assume an adequate water supply, including for projects served by “permit exempt wells,”… Continue Reading

Trustee’s Sale Not Subject to the Fair Debt Collection Practices Act, Appeals Court Holds

Posted in Trending News
A trustee is not a “debt collector,” so foreclosing a deed of trust is not subject to FDCPA’s restrictions or damages. A federal appellate court held recently that the trustee of a residential deed of trust was not a “debt collector” under the federal Fair Debt Collection Practices Act (FDCPA), because the trustee was enforcing… Continue Reading

How Does Washington’s New Power of Attorney Statute Impact Banks?

Posted in Trending News, Trust and Estates
Washington has adopted the Washington Uniform Power of Attorney Act (“The Act”) which becomes effective on January 1, 2017 (ESSB 5635). The Act completely replaces Washington’s current law and has some key differences that need to be considered when a bank accepts a power of attorney. The Act applies to all powers of attorney including… Continue Reading

Military Lending Act: It Applies to More Products Than You Think

Posted in Compliance Resources, Trending News
We first posted an article about proposed amendments to the Military Lending Act (MLA) on December 30, 2014. Ultimately, the Department of Defense (DoD) amended its regulation effective October 1, 2015, and extended the MLA’s application to a wide range of closed-end and open-end credit products and to broad classes of creditors as originally proposed.… Continue Reading

Citing Operational Challenges, CFPB May Rewrite TRID

Posted in CFPB, Compliance Resources, Mortgage Servicing, Regulatory Developments, TILA/RESPA, Trending News
Today, the CFPB issued a letter to various industry trade groups, including the Mortgage Bankers Association, the American Bankers Association, and the Independent Community Bankers of America,  acknowledging that the implementation of the “Know Before You Owe” rule  (otherwise known as “TRID”) poses many “operational challenges.”   Many financial institutions and industry participants do not have… Continue Reading

The SEC’s New Pay Ratio Rule

Posted in Trending News
The Securities and Exchange Commission (SEC) recently adopted a new executive compensation disclosure requirement which will require comparison of the compensation of a company’s CEO to that of a “median employee” of the company. The pay ratio rule is seemingly simple—compare the CEO’s compensation to that of a median employee, expressed as a ratio. But… Continue Reading

CFPB Issues Final Home Mortgage Disclosure Act Rule

Posted in CFPB, HMDA, Mortgage Servicing, Regulatory Developments, Trending News
The CFPB issued a final rule changing Regulation C, which implements the Home Mortgage Disclosure Act (HMDA) today. This is significant because HMDA requires certain institutions to collect, report, and disclose information about their mortgage lending activity. The CFPB and other banking regulators will use the reported data to determine whether financial institutions are serving… Continue Reading

Beware: Data Breaches May Expose You to UDAP Liability

Posted in CFPB, Cybersecurity, Regulatory Developments, Trending News, UDAAP
Recently, the U.S. Court of Appeals for the Third Circuit ruled that the Federal Trade Commission (FTC) may pursue a lawsuit against Wyndham Worldwide Corporation, a hotel and time share operator for “unfair and deceptive” cybersecurity practices. In its complaint, the FTC alleged that Wyndham “unreasonably and unnecessarily” exposed consumers’ personal data in more than… Continue Reading

New Fannie Mae Lending Product Counts Extended Family Income

Posted in Mortgage Servicing, Trending News
Today, Fannie Mae announced a new lending product, the HomeReady mortgage, which is intended to help creditworthy borrowers with low and moderate incomes to gain access to a mortgage. In order to qualify for the HomeReady mortgage, borrowers will be required to complete an online education course, called “Framework”, to educate and prepare them for… Continue Reading

Updated Compliance Resources for the TILA-RESPA Integrated Disclosure Rule

Posted in CFPB, Compliance Resources, Mortgage Servicing, Regulatory Developments, TILA/RESPA, Trending News
As many of you know, the effective date of the TILA-RESPA Final Rule and the related TILA-RESPA Amendments has been delayed to October 3, 2015. Please take note of the following updates from the CFPB: Freddie Mac and Fannie Mae Data Standards Freddie Mac and Fannie Mae have released a common industry dataset, called the… Continue Reading

New Integrated Loan Disclosure Requirements Become Effective August 1, 2015

Posted in TILA/RESPA, Trending News
On June 3, 2015, the Consumer Financial Protection Bureau (CFPB) issued a statement reminding mortgage lenders that the new integrated loan disclosures required by Dodd-Frank become effective August 1, 2015. Because the TILA/RESPA Integrated Disclosure Rule, or TRID Rule, requires lenders to make substantial changes to their internal procedures for mortgage originations, the industry had… Continue Reading

Why Banks Should Care about Bitcoin and New York’s Proposed Virtual Currency Regulation

Posted in Banking Technology, Regulatory Developments, Trending News, Virtual Currency
On February 25, 2015, the New York Department of Financial Services (NYDFS) published its proposal to regulate virtual currencies in the New York Federal Register. Since the issuance of its initial proposal in July, 2014, the NYDFS received over 3000 public comments on its proposed regulation. Superintendent Benjamin Lawsky claims that the reproposed legislation incorporates many of… Continue Reading

Welcome to Bank Law Monitor: A Legal Blog for the Financial Services Industry

Posted in Auto Finance, Cannabis, CFPB, Compliance Resources, Credit Cards, Debt Collection, Mortgage Servicing, Overdrafts, Regulation AB, Regulatory Developments, TILA/RESPA, Trending News, UDAAP
Welcome! Graham & Dunn’s Financial Services team is pleased to announce the launch of Bank Law Monitor, a legal blog for the financial services industry. Bank Law Monitor will analyze regulatory developments, report on significant news and market trends, and monitor upcoming regulatory changes that impact the financial services industry. Our goal is to help… Continue Reading