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Blog Post
CFPB Will Not Prioritize Enforcement of Payday Lending Rule
Michael Christians • April 3, 2025
On March 28, 2025, the Consumer Financial Protection Bureau (CFPB) announced that it will not prioritize enforcement or supervision actions with regard to the payday lending rule. In its press release, the CFPB said that it is contemplating issuing a notice of proposed rulemaking that would further narrow the scope of the rule.
As a reminder, the payday lending rule, which took effect on March 30th, requires covered financial institutions to:
- Obtain new and specific automatic payment authorization for a covered loan after two consecutive automatic payment attempts have failed, and
- Provide specific disclosures and notices in connection with a covered loan.
Only lenders that originate 2,500 or more covered loans in a calendar year are covered by the requirements of the rule.
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The Financial Crimes Enforcement Network (FinCEN) has issued an interim final rule removing the requirement for domestic reporting companies to file their beneficial ownership information directly with the agency. The Corporate Transparency Act (CTA), passed by Congress in 2020, required reporting companies to submit information about their beneficial owners directly to FinCEN. The interim final rule now exempts domestic reporting companies from this registration requirement. A domestic reporting company is defined as any corporation, limited liability company, or other entity that is created by a filing with the secretary of state (or similar office) under the laws of any state or Indian tribe. Foreign reporting companies will continue to be subject to the reporting requirement; however, will not have to report information about any of its beneficial owners that are US persons. Existing foreign reporting companies will have 30 days from the rule's publication in the Federal Register to submit their information to FinCEN. New foreign reporting companies will have 30 days from formation to submit their information. FinCEN's interim final rule does not change the 2018 customer due diligence requirements, which charge financial institutions with collecting beneficial ownership information about legal entity customers at the time of account opening.
On March 19th, the US Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2025-08 . The letter rescinds, among other things, ML 2024-07, which imposed several borrower-initiated reconsideration of value (ROV) requirements in connection with FHA-insured residential mortgage loans with a case number assigned on or after October 31, 2024. The borrower-initiated ROV requirements rescinded by HUD's most recent mortgagee letter include, but are not limited to: Disclosure at application and again upon delivery of the appraisal copy information about the borrower's ability to initiate an ROV request, Policies and procedures that outline the steps a borrower must take to initiate an ROV request, along with milestones for communication with the borrower as to the status of his/her request, and The actions a creditor may take in response to an ROV request. While underwriter-initiated ROV requirements remain in effect for FHA loans, HUD states that the borrower-initiated requirements are being rescinded in response to President Trump's executive order dated January 20, 2025. That executive order was aimed at reversing policies that the administration feels have adversely affected key sectors, including the housing market. It remains to be seen whether the Federal Housing Finance Agency will follow suit and rescind their borrower-initiated ROV requirements in connection with Fannie Mae and Freddie Mac loans.
In Letter to Credit Unions 25-CU-03 , the National Credit Union Administration (NCUA) announced its new exam scheduling policy. Effective January 1, 2025, federally insured credit unions (FICUs) will be examined according to the following schedule: 8 to 12 months following its last examination date FICUs with ANY of the following characteristics - A CAMELS rating of 3, 4, or 5, Considered less than well capitalized, An outstanding enforcement action, or Assets greater than or equal to $10 billion. FICUs with assets between $1 billion and $10 billion, and A CAMELS rating of 3, 4, or 5, or A change in CEO since its last examination. 12 to 16 months following its last examination date FICUs with assets between $1 billion and $10 billion, and A CAMELS rating of 1 or 2, and No change in CEO since its last examination. 14 to 18 months following its last examination date Federal credit unions (FCUs) not included above Once every 5 years Federally insured state-chartered credit unions (FISCUs) not included above The NCUA believes this revised schedule will allow it to better respond to emerging risks and priorities using available resources. It is important to note that nothing in the new schedule limits the NCUA's authority to examine any FICU as frequently as the agency deems necessary.
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5438 South Prairie View Drive
West Des Moines, IA 50266
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319-325-1171
michael@mchristiansconsulting.com
Michael Christians Consulting, LLC
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