Consumer Financial Protection Bureau (CFPB)
CFPB Issues NPRM to Create New Qualified Mortgages Category
The Consumer Financial Protection Bureau issued a Notice of Proposed Rule Making (NPRM) that would create a new category of seasoned qualified mortgages (Seasoned QMs). This new category would hopefully “encourage safe and responsible innovation in the mortgage origination market” according to CFPB Director, Kathleen L. Kraninger. The proposed rule would also ensure that a loan would not be disqualified from becoming a Seasoned QM if the consumer failed to make full payments but received a temporary payment accommodation due to a disaster or pandemic-related national emergency.
The Office of the Comptroller of the Currency (OCC)
OCC and Other Agencies Issue Clarifications of BSA Due Diligence Requirements for Politically Exposed Persons
The Office of the Comptroller of the Currency and other regulatory agencies released a statement clarifying due diligence requirements under the Bank Secrecy Act (BSA) for customers who may be considered “politically exposed persons” (PEPs). The statement clarified that the due diligence given to these customers should be proportionate to the risk posed by the PEP relationship and that the customer due diligence does not create a regulatory requirement.
Securities and Exchange Commission
SEC Proposes Amendments to CAT NMS Plan to Improve Data Security
The Securities and Exchange Commission proposed amendments to the Consolidation Audit Trail national market system plan (the “CAT NMS Plan”) to enhance the data security of the Consolidation Audit Trail (CAT). The plan currently establishes a number of security and confidentiality requirements for CAT data, but the proposed amendments would further the actions taken by the SEC to limit the scope of sensitive information collected by CAT and improve security.
National Credit Union Administration
Federal Financial Institutions Examination Council Issues Statement On COVID-19 Loan Accommodations
The Federal Financial Institutions Examination Council issued a statement establishing new principles for risk management and consumer protection that institutions should consider while they work with borrowers now that COVID-related loan accommodation periods are ending and additional accommodations are considered. The agencies in the Federal Financial Institutions Examination Council encourage institution to continue to consider prudent additional accommodations for those still affected by the pandemic.
Federal Reserve Board
FRB Highlights Enhanced Understanding of Central Bank Digital Currencies
The Federal Reserve highlighted research and experimentation completed to better understand the opportunities and risks related to central bank digital currencies. The FRB looked at opportunities to use digital currency as a “complement to cash” and looked at the possible risks and rewards and experimented with the latest payment technologies.