CFPB Monitor

JULY 14, 2022

The California Department of Financial Protection and Innovation (DFPI) has filed its opposition to Opportunity Financial, LLC’s (OppFi) Demurrer to the DFPI’s cross-complaint.

California 78

California Innovation Utah Texas 78

CFPB Monitor

SEPTEMBER 10, 2020

In 2019, California enacted AB-539, the Fair Access to Credit Act (FACA), which, effective January 1, 2020, limits the interest rate that can be charged on loans of $2,500 to $10,000 by lenders licensed under the California Financing Law (CFL) to 36% plus the federal funds rate. The FDIC has not yet proposed a similar rule.

Utah 78

Utah California FDIC West Virginia 78

CFPB Monitor

DECEMBER 21, 2021

Last week, the California Department of Financial Protection and Innovation (DFPI) announced that it had entered into a consent order with Wheels Financial Group, LLC d/b/a LoanMart, a California-based company that markets and services automobile title loans. LoanMart holds a CFL license.

California 78

California Utah FDIC Regulation 78

PYMNTS

JANUARY 26, 2021

In terms of the mechanics of the partnership, Johnson explained, Ternio allows other innovative companies access to Visa’s rails, with the ultimate goal of taking the "integrating it into the blockchain world.”. The company also offers an FDIC-insured checking account to help spur crypto-friendly banking, Johnson noted.

cryptocurrency 256

cryptocurrency Bitcoin blockchain FDIC 256

PYMNTS

APRIL 7, 2016

Between the three, about $20 billion has been loaned out, and analysts predict that, by 2020, the marketplace lending sector could represent assets totaling around $122 billion. The Office of the Comptroller of the Currency said last week it was seeking comments on a whitepaper on “responsible innovation” in marketplace lending.

Lending 100

Lending San Francisco FDIC Regulation 100

PYMNTS

DECEMBER 20, 2018

SWIFT , the messaging service, said earlier this week that its SWIFT global payments innovation (gpi) service is being used for a majority — as in 55 percent — of its cross-border traffic. 19) announcement, the company said the application is with the Federal Deposit Insurance Corporation (FDIC). In its Wednesday (Dec.

Utah 134

Utah FDIC System Retail 134

PYMNTS

MARCH 30, 2020

government’s $2 trillion stimulus package allows a number of entities — FDIC banks, credit unions and, most notably for this discussion, FinTechs such as Kabbage — to make loans to smaller firms. percent per credit card transaction until June 2020. The urgency, and speed, of Kabbage’s situation comes even as the U.S.

Lending 151

Lending FDIC Fintech Operations 151

CFPB Monitor

OCTOBER 6, 2022

A California state court has overruled the demurrer filed by Opportunity Financial, LLC (OppFi) to the cross-complaint filed by the California Department of Financial Protection and Innovation (DFPI) in which OppFi asked the court to reject the DFPI’s “true lender” challenge.

California 78

California FDIC Analysis Utah 78

CFPB Monitor

APRIL 1, 2021

In what could be an important step towards needed regulatory updating to accommodate the growing use of artificial intelligence (AI) by financial institutions, the CFPB, FDIC, OCC, Federal Reserve Board, and NCUA issued a request for information (RFI) regarding financial institutions’ use of AI, including machine learning (ML). Uses of AI.

Risk Management 78

Risk Management Training Lending FDIC 78

CFPB Monitor

JANUARY 19, 2022

federal district court in December 2020 seeking to block the OCC from granting a national bank charter to Figure Technologies Inc. The OCC indicated that in connection with this amendment, the bank organizers will apply to the FDIC for deposit insurance, and Figure Technologies, Inc.

Technology 78

Technology National FDIC Fintech 78

CFPB Monitor

MAY 19, 2022

In 2019, California enacted AB 539 which, effective January 1, 2020, limited the interest rate that can be charged on loans less than $10,000 but more than $2,500 by lenders licensed under the California Financing Law (CFL) to 36% plus the federal funds rate.

California 78

California Utah United States FDIC 78

CFPB Monitor

OCTOBER 22, 2020

” It also requires the Bureau to consult with the Fed, OCC, FDIC, and FTC to ensure, to the extent appropriate, that any rule implementing Section 1033 imposes substantively similar requirements on covered persons, takes into account conditions under which covered persons do business both in the U.S.

Data 78

Data FDIC Digital Banking Compliance 78

FICO

MAY 25, 2023

Legislators don’t want to stifle innovation with too-strict regulation, particularly since global competitors such as China are feverishly developing AI technologies. I wrote about how to implement effective AI governance in 2020. Legislators aren’t technologists. There are many ways to approach the AI regulatory challenge.

Regulation 52

Regulation San Diego Analytics blockchain 52

Fintech Labs Insights

JANUARY 15, 2021

Rho has positioned itself for the more sophisticated business touting its $75M in deposit insurance (via a network of FDIC-insured banks), QuickBooks integration, accounts payable tools (ala Bill.com), low-cost FX and global transfers and even access to venture debt providers. 125 Fintech Unicorns of the 21st Century (YE 2020).

Fintech 15

Fintech UX Austin FDIC 15

Fintech Labs Insights

JANUARY 15, 2021

Rho has positioned itself for the more sophisticated business touting its $75M in deposit insurance (via a network of FDIC-insured banks), QuickBooks integration, accounts payable tools (ala Bill.com), low-cost FX and global transfers and even access to venture debt providers. The challengers all have their own unique selling propositions.

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Fintech UX Austin FDIC 15

CFPB Monitor

JUNE 22, 2022

2020 CRA Final Rule: The Rescinded Rule required all OCC-regulated banks to collect and maintain data and supporting information throughout the assessment period. The OCC’s 2020 CRA Final Rule represented an attempt by the OCC to modernize its existing CRA regulations. banking regulators (the “2022 Joint Notice” or the “Proposal”).

Regulation 78

Regulation Community Lending Retail 78

FICO

DECEMBER 13, 2019

In the 2010s, we saw the beginning of a trend that will strengthen in the 2020s — regulations designed to foster competition between incumbents and new market entrants. To date, such regulatory action has run the gamut, from vague (innovation sandboxes and special-use charters) to hyper specific (U.S.

Regulation 52

Regulation Fintech Lending Branding 52

CFPB Monitor

AUGUST 7, 2020

On July 31, 2020, the Office of the Comptroller of the Currency (OCC) approved the national bank charter application of Varo Bank, N.A., The OCC and FDIC both continue to demonstrate keen interest in supporting technology and innovation in the delivery of consumer financial services. The water’s fine!”. Varo Bank, N.A.’s

Fintech 78

Fintech FDIC Utah National 78

CFPB Monitor

MAY 7, 2020

While most of the report recycles information about which we have previously blogged, it does contain the following noteworthy information: The section of the report on “Innovations in access to credit” includes a subsection about “providing adverse action notices when using artificial intelligence and machine learning models.”

Lending 78

Lending Report FDIC Policies 78

CFPB Monitor

APRIL 19, 2022

In 2019, California enacted AB 539 which, effective January 1, 2020, limited the interest rate that can be charged on loans less than $10,000 but more than $2,500 by lenders licensed under the California Financing Law (CFL) to 36% plus the federal funds rate.

California 78

California Innovation Utah United States 78

CFPB Monitor

MAY 22, 2020

The Federal Reserve, OCC, FDIC, and NCUA have issued “ Interagency Lending Principles for Offering Responsible Small-Dollar Loans.” The OCC has rescinded that bulletin and issued a new bulletin (2020-25) that reflects the new interagency guidance.

FDIC 78

FDIC Policies Lending Guidelines 78

Filene

JULY 18, 2018

The FDIC says more than 45 percent of Hispanic households were unbanked or underbanked in 2015. GDP growth by 2020. It’s one of the reasons multicultural consumer groups have accounted for 61 percent of credit union growth over the past five years. This growth is only the tip of the iceberg.

Community 28

Community Study Resources Lending 28

Independent Banker

APRIL 30, 2022

The bank issued 2,182 PPP loans in 2020 and 2021. Reynolds points to BankSouth’s focus on innovation as a contributing factor. I don’t pass an opportunity to make a pitch for innovative ideas,” Reynolds says. Recipients included non-clients, many of whom subsequently moved their banking relationship to BankVista. “We

Community Bank 172

Community Bank Community Montana Taxes 172

CFPB Monitor

JUNE 25, 2020

On May 20, 2020, the OCC issued a final rule to “strengthen and modernize” its existing Community Reinvestment Act (“CRA”) regulations. The final rule is effective October 1, 2020 but sets mandatory compliance dates based on the applicable performance standards. This is the second in a series of five blog posts about the final rule.

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Community Lending Meeting Retail 97

CFPB Monitor

NOVEMBER 22, 2022

While the report does not address “true lender” challenges in bank/fintech lending relationships, it does discuss the risk of “so-called ‘rent-a-charter’ schemes that market themselves as innovative fintech lending platforms, but operate with essentially the same harmful business model as a traditional payday lender.”

Fintech 78

Fintech Report Data Lending 78

CFPB Monitor

FEBRUARY 3, 2020

The leadership and priorities of the CFPB, OCC, FDIC, and FTC have changed under the Trump Administration. The second panel will feature OCC and FDIC representatives. I am again co-chairing the event, as I have for the past 24 years. I will co-moderate both. The first panel will feature a discussion among CFPB and FTC representatives.

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New York City San Francisco FDIC Chicago 78

CFPB Monitor

NOVEMBER 9, 2020

PLI’s 25th Annual Consumer Financial Services Institute will take place on December 7-8, 2020 by live webcast. The second panel will feature OCC and FDIC representatives. I am again co-chairing the event, as I have for the past 24 years. Former CFPB Director Richard Cordray will deliver a keynote address. I will co-moderate both.

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FDIC Regulation Leadership Data 78

CFPB Monitor

OCTOBER 13, 2020

The comment period for the Proposed Rule closed on September 3, 2020. By contrast, all 26 House Financial Services Committee Republicans wrote the OCC and the FDIC in support of the rulemaking. Other supporters explained that the Proposed Rule would make better borrowing alternatives available to more consumers.

Lending 60

Lending Colorado FDIC National 60

CFPB Monitor

OCTOBER 19, 2020

For our webinar last week, “What a Blue Wave in the November 2020 Elections Could Mean for the Consumer Financial Services Industry,” we were joined by special guest Isaac Boltansky, Director of Policy Research at Compass Point Research & Trading.

Leadership 78

Leadership FDIC Exercises Lending 78

FICO

DECEMBER 19, 2018

This month, a group of federal agencies including the Federal Reserve, OCC, FDIC and the Financial Crimes Enforcement Network (FinCEN) issued a joint statement which encourages banks to consider, evaluate, and responsibly implement innovative solutions to BSA/AML compliance.

Policies 40

Policies District of Columbia Regulation California 40