Federal banking regulators are asking the Fifth Circuit Court of Appeals to lift a Texas court injunction barring implementation of new Community Reinvestment Act (CRA) rules. In asking the court to lift the injunction, the FDIC, OCC and Federal Reserve Board contend that U.S. District Judge Matthew Kacsmaryk erred by finding that only the geographic area around a bank’s physical facilities should be taken into account when assessing the financial institution’s record of meeting community needs under the CRA ..read more

We previously reported that, on July 18, the Colorado Attorney General and UCCC Administrator appealed to the 10th Circuit Court of Appeals challenging Judge Domenico’s order dated June 18 D. (Colo.) granting a preliminary injunction to the plaintiffs – trade groups precluding the defendants from enforcing Colorado’s opt-out statute (which became effective on July 1) and usury laws as to out-of-state, state banks making loans outside Colorado to Colorado residents ..read more

“Buy Now, Pay Later” (BNPL) products emerged relatively recently as a new approach enabling consumers to enjoy the ability to make a purchase and then pay for it over time. Today’s episode, during which we explore the evolution of BNPL products and important recent developments in BNPL regulation, is hosted by Alan Kaplinsky, former practice leader and current Senior Counsel in Ballard Spahr’s Consumer Financial Services Group, and features Ballard Spahr Partners Michael Guerrero and Joseph Schuster ..read more

On August 13th, 2024, from 1:30 p.m. to 3:00 p.m. ET, we will hold a webinar covering the CFPB’s BNPL interpretive rule and its proposed earned wage access (“EWA”) interpretive rule.  For more information and to register, click here. On July 18, 2024, the Consumer Financial Protection Bureau (the “CFPB” or “Bureau”) proposed an interpretive rule that states (1) EWA products fall under the definition of “credit” under the Truth in Lending Act (“TILA”) and Regulation Z and (2) fees for certain tips and for expedited funding are finance charges ..read more

Congress must adjust to the demise of the Chevron Deference doctrine by drastically improving its regulatory expertise, witnesses told a House Committee on July 23. “Congress must reclaim its lawmaking and rule-writing authority from the executive branch by marshaling appropriate resources and full-time personnel to perform regulatory oversight, including cost-benefit analysis and disclosures often neglected by the executive branch, sometimes in violation of law,” Clyde Wayne Crews Jr ..read more

We recently reported that on July 18 the CFPB, upon remand from the Fifth Circuit, re-filed its notice of supplemental authority in support of its motion to dismiss or transfer the case, motion to dissolve the preliminary injunction, and brief in support of its motion. (The filings were previously stricken due to the district court’s lack of jurisdiction ..read more

In a recent report, the Congressional Research Service stated that capital formation remains the largest obstacle hampering the formation of de novo banks, but regulatory and legislative changes that have been proposed could risk an increase in bank failures “While each aspect of evaluating an application imposes a cost on the proposed bank, it is likely the capital considerations that present the largest cost and thus the biggest impediment to forming a new bank,” the CRS said in “De Novo Banks: Policy Issues for the 118th Congress ..read more

As previously reported [Link: https://www.consumerfinancemonitor.com/2024/06/13/va-announces-temporary-variance-allowing-veterans-to-pay-broker-commissions-and-announces-a-targeted-foreclosure-moratorium/], in connection with its guaranteed home loan program, in June 2024 the Department of Veterans Affairs (VA) adopted a temporary local variance allowing veterans to pay the commission of the real estate broker or agent assisting them (a “buyer-broker”) in the purchase of a home.  ..read more

The NCUA board on July 18 voted to maintain its interest rate ceiling on most loans at 18% from Sept. 11, 2024 through March 10, 2026. The only exception to that rate cap is loans modeled after the agency’s Payday Alternative Loan program; the interest rate on those loans will remain capped at 28 ..read more

On July 17, Acting Comptroller of the Currency Michael Hsu delivered prepared remarks before the Exchequer Club entitled “Size, Complexity, and Polarization in Banking.” These were his first public remarks about the Supreme Court’s recent opinion in Cantero v. Bank of America. In that case, the Court reversed a Second Circuit opinion which had held that because of preemption a national bank need not comply with a New York law which requires the payment of 2% interest on residential mortgage escrow accounts ..read more