A pair of enforcement actions by the Federal Trade Commission (FTC) offer reference points as to what companies should do to adequately protect consumers’ personal data in the eyes of federal regulators. The operators of two companies recently agreed to implement a comprehensive information security program before collecting personal information as part of final settlements with FTC related to allegations that he failed to take reasonable steps to protect personal data.

The Financial Crimes Enforcement Network (FinCEN) recently issued an updated advisory warning businesses about email schemes targeting businesses, which netted fraudsters more than $300 million a month in 2018. Business email compromise schemes target businesses and their fund transfers through a variety of methods which continue to evolve, according to FinCEN.

The Consumer Financial Protection Bureau (CFPB) recently issued its first annual Fair Lending Report to Congress under Director Kathy Kraninger, highlighting its efforts to prevent and address discriminatory activity and advance its new initiatives in connection with that mission throughout 2018. Within the report, the bureau broadly describes progress it has made implementing new initiatives intended to allow companies to test new, innovative approaches to providing consumer credit, as well as the agency's activities in supervision and enforcement fair lending laws.

Numerous financial trade associations indicated that they strongly support the Consumer Financial Protection Bureau’s plan to review all rules issued over the last decade in line with the Regulatory Flexibility Act. At least one commenter suggested that the bureau conduct even more frequent reviews than required by law.

President Donald Trump recently announced his intention to nominate Judy Shelton and Christopher Waller to fill open governor seats at the Federal Reserve. Waller is regarded by many to be a safe, moderate choice to join the Fed. Shelton, on the flipside, could face an uphill battle to being confirmed by the Senate despite having already received Senate approval once.

Reiterating arguments expressed by community banks and credit unions, the National Association of Hispanic Real Estate Professionals recently urged the Consumer Financial Protection Bureau to extend the use of the temporary provision allowing certain loans with high debt-to-income (DTI) ratios to be deemed qualified mortgages (QMs). The group proposed an alternative model for granting QM status to high-DTI loans based on their Average Prime Offered Rate.  

A recent case involving one of the world’s largest multinational hotel organizations highlights the types of add-on charges that regulators may determine to be intended to deceive consumers, resulting in hefty fines for the businesses responsible. The interpretation relying upon by the state attorney general in this case is similar to that used in crafting many federal laws concerning consumer financial protection.   

The House recently voted overwhelming in favor of six bipartisan bills, two of which would better protect borrowers seeking loans secured by the Department of Veterans Affairs (VA) and would provide increased access to housing counseling, respectively. The Mortgage Bankers Association (MBA) and Ginnie Mae expressed strong support for two of the bills – H.R. 1988, the “Protecting Affordable Mortgages for Veterans Act,” and H.R. 2162, the “Financial Literacy Act.”

Alleging that the company acted “abusively” by taking “unreasonable advantage of consumers’ lack of understanding,” the Consumer Financial Protection Bureau (CFPB) reached a $25 million settlement with a debt-relief company in a lawsuit that also included allegations of deceptive acts and practices in its communications with consumers and its telemarketing practices. The bureau’s reasoning in determining that the company acted abusively references the Dodd-Frank Act definition of an abusive act or practice – a hotly contended subject of debate.