CFPB Reports on Top Financial Concerns for Military Families

The CFPB released its annual report on the top financial concerns facing military families. The report highlights the growth of digital payment app usage in the servicemember community, the unique risks to servicemembers from these services, and the potential abuse from bad actors. Some servicemembers have also indicated in their complaints about incurring serious financial harm from scams and fraud when using these services, and their complaints suggest digital payment app providers often fail to provide timely and substantive resolutions. One of the recommendations that comes out of the report is for digital payment app providers to improve the safety and security of their networks to prevent fraud. 

OCC Updates Asset Management Booklet

The OCC has updated its asset management booklet of the Comptroller’s Handbook to clarify the agency’s expectations regarding fiduciary audit requirements.

The agency said the updated booklet expands the audit section to:

·       clarify the meaning of “significant fiduciary activities” and the OCC’s expectations regarding the frequency of audits under a continuous audit system;

·       incorporate guidance on audit oversight, requirements, risk assessment, planning, independence, and reporting expectations;

·       add language from 12 CFR 150 that applies to federal savings associations;

·       outline audit committee membership requirements and responsibilities;

·       clarify determination of audit scope and coverage;

·       define a robust, well-documented, risk assessment that supports significant fiduciary activities and development of a meaningful audit plan.

CFPB Hosts RegCast on Small Business Lending Rule

On Wednesday, June 28, 2023, the CFPB’s Office of Regulations will host a RegCast on the small business lending rule. It will provide information from the rule to help financial institutions determine whether they are covered financial institutions for purposes of complying with the small business lending rule. This will include how to determine if transactions are covered credit transactions and whether businesses are small businesses.

Joint Statement on Community Reinvestment Act

The Federal Reserve, FDIC, and OCC released the 2023 list of distressed or underserved nonmetropolitan middle-income geographies. The Community Reinvestment Act (CRA) encourages banks to help meet the credit needs of their local communities, including low- and moderate- income communities, in a safe and sound manner. Distressed or underserved nonmetropolitan middle-income geographies are census tracts where revitalization or stabilization activities are eligible to receive CRA consideration. The designations reflect local economic conditions, including unemployment, poverty, and population changes.