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July 3, 2019

Bureau updates payday loan compliance guide

The delay in the compliance date of the mandatory underwriting provisions of payday lending rules is reflected in an updated “small entity compliance guide” for the rule published by the CFPB Monday. The bureau said the compliance guide (originally published in February, but updated late last week) summarizes the requirements for its rule titled “Payday, Vehicle Title and Certain High-Cost Installment loans Lending.” The rule was adopted by the agency in 2017.

However, on June 6, the bureau announced it was delaying the Aug. 19 compliance date for mandatory underwriting provisions of the rule, to Nov. 19, 2020. The 15-month delay also made certain corrections, the bureau said, to address “several clerical and non-substantive errors it has identified in other aspects of the Rule.” The delay was made final after a 30-day comment period.

The guide also points out that compliance with the payment-related requirements of the rule is stayed, by order of a federal court in Texas, until the agency “reconsiders” the rule overall. “As a result, lenders have no obligation to comply with the Rule until the court-ordered stay is lifted,” the compliance guide states.

CFPB updated small entity compliance guide for payment-related provisions 


Exploration of cutting-edge fair lending issues – including how consumer-friendly innovation can increase access to credit for all consumers and especially unbanked and underbanked consumers and their communities – will be a focal point for the CFPB in the upcoming year, its director states in her introduction to the 2018 Fair Lending Report published this week. Director Kathleen (“Kathy”) Kraninger states in the introduction to the bureau’s report that her agency “will continue to vigorously enforce fair lending laws in our jurisdiction and will stand on guard against unlawful discrimination in credit.” She notes the impact of “consumer-friendly” innovation in that context.

The Fair Lending Report (delivered to Congress as mandated by the 2010 Dodd-Frank Act) also outlines how the bureau last year:

  • Monitored its first “no-action” letter, which was issued in 2017 to a company that uses alternative, or non-traditional, data to make credit and pricing decisions to enable people with limited credit history, among others, to obtain credit or obtain credit on better terms.
  • Issued new guidance to facilitate implementation of HMDA.
  • Convened the “Building a Bridge to Credit Visibility” symposium, which the agency said brought together “diverse stakeholders to expand access to credit to the millions of consumers who currently lack access.”

CFPB Fair Lending Report 2018


While only 81 credit unions – including 31 state-chartered -- submitted a diversity self-assessment form last year, more than half that did (57%) reported a “leadership/organizational” commitment to diversity at their institutions, NCUA reports.

In its 2018 Voluntary Credit Union Diversity Self-Assessment Results, published late last week, the agency acknowledges that submissions from 81 credit unions represent only 1.5% of all federally insured credit unions as of year-end 2018. Therefore, the agency said, the results of the report “are not to be interpreted as representative of the entire credit union industry.”

However, the report notes, submissions by credit unions of the self-assessment form increased in 2018 from both the previous two years (64 self-assessments in 2017 and 35 in 2016). In 2018, 50 federal and 31 federally insured, state-chartered credit unions filed the self-assessments.

NCUA said it uses the assessments to outline best practices for creating a more diverse and inclusive credit union. The agency also asserts that more credit unions are using assessments to monitor their own diversity-related efforts.

Other results from the 2018 assessment results include:

  • 47% of responding credit unions reported “proactive implementation of employment practices that expand outreach efforts to diverse individuals;”
  • 30% reported monitoring and assessment of diversity policy and practices

However, only 5% of credit unions responding said they consider supplier diversity as a factor in procurement and business practices.

NCUA 2018 Voluntary Credit Union Diversity Self-Assessment Results


Three top education events are planned for the remainder of the summer, including the 2019 State System Summit, the top meeting of the year for NASCUS and the state system.

The Aug. 13-16 Summit, set in San Francisco, features more than 18 hours of educational sessions covering a wide variety of topics of specific interest to the state credit union system, while bringing together credit union regulators and practitioners in a unique event for mutual exchange and dialog. Headquartered at the Westin St. Francis San Francisco on Union Square, the Summit will include sessions on the state of the state credit union system, the federal legislative outlook for state credit unions, effective enterprise risk management, interstate branching, addressing sexual harassment claims, the latest in compliance trends – and much more.

Also upcoming:

  • Washington Executive Forum (July 10): NASCUS, the Washington Department of Financial Institutions, Oregon Department of Financial Institutions, Idaho Department of Finance and the Northwest Credit Union Association assemble their resources for this annual one-day session, set in SeaTac, Wash. Designed for examiners, credit union practitioners and board members, the session looks at top topics, including: innovation and data analytics, board governance, and national credit union issues. A highlight of the forum: A roundtable featuring regulators from the three states participating in the event, discussing key local issues.
  • Fraud School (Aug. 27): This one-day session focuses on identifying and preventing occurrences of internal fraud at credit unions, including employee deception, dishonesty, and embezzlement schemes. At the NASCUS Fraud School – held in Ann Arbor, Mich. – participants will hear real-life loss scenarios, identify key warning signs to look for, and learn which loss controls should be implemented to hold individuals responsible for their actions and minimize operational and reputational risk.

NASCUS 2019 Education Agenda

BRIEFLY: Latest updates on our CFPB pages; have a terrific July 4 holiday!

Our web pages cataloging the latest actions by the CFPB now include both the final rule on funds availability (Reg CC) inflation adjustments and the proposed rule on debt collection practices. The Reg CC final rule (issued in conjunction with the Federal Reserve) finalizes inflation-adjusted dollar amounts of funds subject to the rule (as well as some other changes); it is published in the Federal Register today, and takes effect Sept. 3. The debt collection practices proposal (Reg F) would prescribe federal rules governing the activities of debt collectors, as that term is defined in the Fair Debt Collection Practices Act (FDCPA). It would also, among other things, address communications in connection with debt collection; interpret and apply prohibitions on harassment or abuse, false or misleading representations, and unfair practices in debt collection; and clarify requirements for certain consumer-facing debt collection disclosures. Comments are due Aug. 19 … Happy July 4 to all, and here’s to a safe holiday as well!

NASCUS CFPB Pages/rules and summaries

Information Contact:
Patrick Keefe,