Reserve and National Guard Rate Reductions With SCRA

SCRA Protections – The CFPB released a report revealing that Reserve and National Guard members called to active duty are not always receiving the rate reductions on loans under the SCRA. The CFPB provides some recommendations to ensure that servicemembers benefit from the rate reduction provisions: apply SCRA interest rate reductions for all accounts held at an institution if a servicemember invokes their rights for a single account, and automatically apply SCRA rights. 

HMDA Sets New Closed End Mortgage Thresholds

HMDA Threshold – On December 6, the CFPB blogged about the decreased threshold for closed-end mortgage loans. As a result of a recent court vacating the 2020 Final Rule, the threshold for reporting data on closed-end mortgage loans is now 25 loans in each of the two preceding calendar years, which is the threshold established by the 2015 HMDA Final Rule, rather than the 100-loan threshold set by the 2020 HMDA Final Rule.

Mortgage Loan Originators Allowed to Work From Home in WA State

Washington State adopted rules, effective 01/01/2023, under the Consumer Loan Act and Mortgage Broker Practices Act allowing loan originators to work from home. The adopted rules provide authority, under certain circumstances, to licensed companies to allow licensed mortgage loan originators to work from their residences without the company licensing the residence as a branch office of the company.

CFPB to Make a Determination on TILA Preemption

State Preemption under Regulation Z - The CFPB received a request to make a determination that the Truth in Lending Act preempts a New York State commercial financing law with respect to certain provisions. The CFPB’s has made a preliminary conclusion that this law is not preempted by TILA. The CFPB is also providing notice that it is considering whether to make a preemption determination regarding State laws in California, Utah, and Virginia that are potentially similar to the New York law.  

NCUA Expires Emergency COVID Meeting Requirements

In-Person Meeting Requirements – The NCUA released Letter to Credit Unions 22-FCU-03 Expiration of Emergency Exemption from Certain In-Person Meeting Requirements stating that the emergency exemption providing federal credit unions with the flexibility to conduct their membership and board of director meetings completely virtually will expire on December 31, 2022. The Letter states that while virtual-only member meetings will no longer be an option, FCUs may still hold hybrid meetings.