Unified Regulatory Agenda Part 2: CFPB and FinCEN

In our previous post on the Unified Regulatory Agenda (the Agenda), we looked at the NCUA and some of the new items in the Proposed Rule Stage. Today we're looking at some of the other regulatory agencies with rulemakings that could impact credit unions, specifically the CFPB and FinCEN. As we did with NCUA, we're taking a closer look at some of the additions - Agenda items on the Spring 2024 Agenda that were not on the Fall 2023 Agenda.

CFPB

Mortgage Closing Costs

The Agenda lists Mortgage Closing Costs as the only item in the Prerule Stage. It's not a surprise to see this on here - the Bureau has signaled this item as one of their next targets as they continue to wage their war on so-called "junk fees." In March of 2024, the CFPB published a blog post about how mortgage closing costs are driving up housing costs. They followed that up by launching a public inquiry in May. The Agenda states that the Bureau is considering rulemaking or guidance to address this, and lists December 2024 as the possible timeline for "pre-rule activities."

Regulation AA

Regulation AA made it unlawful for financial institutions to include or enforce certain provisions in consumer credit contracts. The CFPB is considering whether to issue regulations regarding the inclusion or enforcement of certain provisions in contracts for consumer financial products or services. This is the first time this item has appeared on the Agenda, and they indicate a possible proposed rule in September of 2024.

As for returning items, the Agenda gives us some proposed timelines on when we might see some items progress to the next stage of rulemaking:

• Fair Credit Reporting Act Rulemaking: Proposed Rule - July 2024
• Financial Data Transparency Act: Proposed Rule - July 2024; Final Action - December 2024
• Open Banking: Final Rule - October 2024
• NSF Fees: Final Rule - October 2024
• Overdraft Lending: Final Rule - January 2025
• PACE Financing: Final Rule - May 2025

FinCEN

Cooperative Information Sharing Under Sections 314(a) and 314(b) of the USA PATRIOT Act 

FinCEN is considering issuing this rulemaking to strengthen the safe harbor that allows financial institutions to cooperatively share information among regulatory authorities, law enforcement authorities, and financial institutions.  In addition, FinCEN is also considering issuing this rulemaking to implement regulatory protections of information shared at FinCEN Exchanges. This item was not on the Fall 2023 Agenda. An Proposed Rule is expected in May of 2025.

Revisions to CDD Requirements for Financial Institutions

FinCEN intends to issue a proposed rule entitled "Revisions to Customer Due Diligence Requirements for Financial Institutions,” relating to Section 6403(d) of the Corporate Transparency Act (CTA).  Section 6403(d) of the CTA requires FinCEN to revise its customer due diligence requirements for financial institutions to account for the changes created by the beneficial ownership information reporting and access requirements set out in the CTA. This was on the previous Agenda as well, but we now have an updated timeline with a proposed rule penciled in for October 2024.

We'll be keeping a close eye out for these and other rulemakings from the CFPB, FinCEN, and other regulatory agencies that may impact credit unions here in Virginia.

Read More About the Agenda from America's Credit Unions