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CFPB Issues Opinion on Fair Credit Reporting

FCRA Advisory Opinion - The Bureau issued an advisory opinion to highlight that a consumer reporting agency that uses inadequate matching procedures to match information to consumers, including name-only matching (i.e., matching information to the particular consumer who is the subject of a consumer report based solely on whether the consumer’s first and last names are identical or similar to the names associated with the information), in preparing consumer reports is not using reasonable procedures to assure maximum possible accuracy under section 607(b) of the Fair Credit Reporting Act.

FDIC Calls for Stablecoin Framework

Stablecoins – Along with the OCC, the FDIC released a Report on Stablecoins which calls for a consistent and comprehensive regulatory framework to “increase transparency into key aspects of stablecoin arrangements. Specifically, the report calls for legislation that would require stablecoin to be issued only by insured depository institutions, and for providers of custodial wallets to be subject to appropriate federal oversight.

FinCEN Renews Geographic Targeting Order

Geographic Targeting Order – FinCEN renewed its Geographic Targeting Orders for 12 metropolitan areas, including King County Washington. The Orders require U.S. title insurance companies to identify the natural persons behind shell companies used in all-cash purchases of residential real estate. The purchase amount threshold remains $300,000 for each covered metropolitan area.

FTC Issues Safeguards Final Rule

Safeguards Final Rule - The FTC’s updated Safeguards Rule requires non-banking financial institutions, such as mortgage brokers, motor vehicle dealers, and payday lenders, to develop, implement, and maintain a comprehensive security system to keep their customers’ information safe. The system requires the designation of a qualified individual responsible for overseeing and implementing the information security program; written risk assessments covering the criteria for identified security risks, confidentiality, and integrity of information systems; encryption and multifactor authentication for all customer information; periodic testing, oversight of service providers, and annual reports to the board of directors.

From the Federal Reserve:

Climate Change – The FR announced that they are supporting the Glasgow Declaration by the Network of Central Banks and Supervisors for Greening the Financial System. The announcement included “The Federal Reserve will address climate-related risks in an analytically rigorous, transparent, and collaborative way through our domestic work with other federal agencies including the Financial Stability Oversight Council; our international engagement through the Financial Stability Board, the Basel Committee on Banking Supervision, and the NGFS; and through our broad and transparent engagement with the private sector.”

NCUA Cybersecurity Resource Center

Cybersecurity – The NCUA launched its new Cybersecurity Resource Center which includes an updated Automated Cybersecurity Evaluation Toolbox (ACET) for credit unions to use when assessing their cybersecurity maturity.

Low Income Tax Assistance

Volunteer Income Tax Assistance – The NCUA issued Letter 21-CU-12 encouraging credit unions to participate in the IRS’ Volunteer Income Tax Assistance program. The program provides education for consumers on refundable credits, such as the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). These refundable federal tax credits can provide thousands of dollars to working individuals and families with low to moderate incomes. The Letter includes a list of benefits that credit unions receive from participating.

NCUA Issues Subordinated Debt Final Rule

Subordinated Debt Final Rule – The NCUA issued a Letter to Credit Unions serves as a reminder to all federally insured credit unions that the final subordinated debt rule becomes effective on January 1, 2022. The final rule amends various parts of the NCUA’s regulations to permit low-income designated credit unions, complex credit unions, and new credit unions to issue subordinated debt for purposes of regulatory capital treatment.

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