As additional rules and regulations continue to be put in place by the Consumer Financial Protection Bureau (CFPB), and the agency’s enforcement approach becomes more aggressive, in-house attorneys at financial institutions throughout the country can help their institutions maintain compliance by understanding new regulations, changes to existing rules that call for increased compliance and proposed new rules. Since the Biden Administration moved into the White House, the CFPB has once again become a federal government priority. In the Administration’s first year alone, the CFPB approved 18 final and interim rules. This number stands in stark contrast to the Trump presidency when 22 final and interim rules were approved during that administration’s first three years in office.
The increased number of CFPB regulations and enforcements are not surprising. The CFPB is actively soliciting public comments for new rules on the horizon in the following areas:
- The use of artificial intelligence by financial institutions in assessing loan risk in lending.
- The collection and reporting of lending data for small businesses owned by women and minorities.
- The offering of buy-now-pay-later products.
- How financial companies use big-tech payment platforms.
Bonnie Hochman Rothell and Jessica Rodriguez break down the final rules for consumers impacted by the pandemic and outline what financial service businesses can do to avoid fines and stay compliant with CFPB rules. Read more from Lawyer Monthly here.