CFPB COVID-19 policy rescissions and what that means to you
When COVID-19 first made its appearance, it affected every part of our lives, including our financial health and well-being. The pandemic also caused a monumental pivot on how we conducted business. The financial industry’s shift to digital and drain on resources could become a compliance nightmare as more and more people and businesses sought relief through loans and other considerations.
To alleviate the strain and ensure that funding would continue to reach those who needed it, the Consumer Financial Protection Bureau (CFPB) released seven Statements of Policy that affected how banks handle their compliance responsibilities. For example, one revision temporarily created a hold on citing or enforcing any action against a financial institution that did not keep up with reporting their Home Mortgage Disclosure Act (HMDA) data quarterly. Another stated that the CFPB “…does not intend to cite a violation in an examination or bring an enforcement action against a creditor that takes longer than required by the regulation to resolve a billing error.”
These temporary measures allowed financial institutions to tend to their customers’ needs without placing an undue burden upon their employees. Banks and credit unions would still need to acquire the same data and follow the same regulations; they just had more time and increased flexibility.
Now that the country is opening up, the CFPB has determined it is time to get back to business as usual. On April 1, 2021, the Bureau rescinded these temporary Statements of Policy. However, business as usual will not be the same as experienced over the last four years. Under the new administration, the CFPB will be looking for non-compliance issues more “actively and aggressively” than the previous administration.
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