Compliance

CFPB says it will ask court to void "open banking" rule

NEWS:  In a recent court filing, the CFPB said that it will soon ask a federal trial court in Kentucky to formally void the Bureau’s “open banking” rule.

“After reviewing the rule and considering the issues that this case presents, Bureau leadership has determined that the rule is unlawful and should be set aside,” the CFPB wrote. “To that end defendants intend to file a motion for summary judgment by May 30th, 2025, the date that this court had set for plaintiffs in its March 27th order.”

CFPB withdraws four proposed rules; search for a permanent director continues

NEWS:  The CFPB recently announced that it is withdrawing four proposed regulations.

• The first is a proposed interpretive rule regarding how the Electronic Fund Transfers Act may apply to emerging payment mechanisms. Under the January 2025 proposal, a stablecoin, bitcoin, or other cryptocurrency transaction conducted in connection with a consumer asset account would have been considered an electronic fund transfer subject to Reg. E. 
• The second withdrawn proposal would have banned unfair provisions in credit contracts and specifically prohibited certain terms and conditions. Under the January 2025 proposal, a credit contract could not contain provisions such as a confession of judgment or waiver of exemption. In addition, a covered financial institution could not have enforced any term or condition that permitted it to unilaterally amend a contract or restrain expression. 
• The third withdrawn proposal concerned harmful data broker practices. As explained in this League Comment Call, the proposal would have treated data brokers as consumer reporting agencies, required a permissible purpose to obtain credit header data (e.g., name, address, date of birth, and social security number of a consumer) from a consumer reporting agency, and emphasized that marketing is not a permissible purpose to obtain a credit report under the FCRA.
• Fourth, the CFPB has issued an interim final rule that rescinds the final rule “Protections for Borrowers Affected by the COVID-19 Emergency Under the Real Estate Settlement Procedures Act (RESPA), Regulation X.”  The final rule was implemented in 2021 to provide relief and prevent foreclosures during the height of the pandemic's economic impact.

Bi-Monthly Updated and New ii Releases

NEWS:  The following ii Releases are new or recently updated. Revised text is indicated by blue text in each ii Release. We will not announce individual updates or update the revision date when we only make formatting or other insignificant changes. For example, we will not publish a revision note or update the revision date when we add a hyperlink, fix a typo, or make slight clarifications to the text. As always, we recommend that credit unions access ii Releases directly from the internet when needed so that you can be sure you are viewing the most recent version. Updates to the ii Releases are posted daily on our website here. 

Important announcement about The League’s Compliance Specialist program

NEWS:  As of May 16, Laura Nelson has been promoted to Director of Compliance Specialist Program. Going forward, Laura will oversee the Compliance Specialist team and coordinate their work with our member credit unions around the state. Laura was formerly Manager of the Compliance Specialist Program so she is very familiar with the program and compliance.

League attorney Kim Hoppe will continue her work in Legal Affairs as Vice President of Legal Affairs, along with Paul Guttormsson - SVP & General Counsel, and Nikki Springer - Compliance Resource Manager.