Blog Post

Holiday Hoopla

michaelchristians • December 19, 2019

With only 140 hours remaining until the big day, there is still more than enough time for me to get you up to speed on a couple of regulatory developments AND start/finish my Christmas shopping!

New Implementation Timeline for Revised URLA
Yesterday, Fannie Mae and Freddie Mac announced a new implementation timeline for use of the redesigned Uniform Residential Loan Application (URLA):
• Beginning June 1, 2020, approved participants may begin submitting the redesigned URLA
• Beginning September 1, 2020, any lender may begin submitting the redesigned URLA
• Beginning November 1, 2020, ALL lenders MUST begin submitting the redesigned URLA

What’s Next for the Consumer Financial Protection Bureau?
Back in 2016, a three-judge panel of the United States Court of Appeals for the D.C. Circuit ruled that the leadership structure of the Consumer Financial Protection Bureau (CFPB) was unconstitutional because its director may only be removed by the President for cause. For those of you following this single piece of drama coming out of our nation’s capital, the case I am referring to is PHH Corporation v. CFPB. However, upon rehearing en banc, that decision was reversed in 2018.

On October 18th, the United States Supreme Court (SCOTUS) granted a writ of certiorari to settle once and for all the constitutionality of the CFPB. Oral arguments in Seila Law, LLC v. CFPB are scheduled for March 3, 2020.

Let’s assume for the sake of argument that SCOTUS does indeed find the CFPB unconstitutional. So what happens next? There are a couple of suggested methods for remedying this constitutional defect. First, making the director of the CFPB subject to removal by the President with or without cause would appear to do the trick. However, there are others that argue the agency should be scrapped in its entirety. This argument translates into a 0% ROI on the billions of dollars already spent by the industry on regulatory compliance since the financial crisis. Reminds me of what I used to hear in law school on a pretty consistent basis – that’s an argument, but not a winning argument.

Most Importantly, THANK YOU
2019 has been an exciting year for Michael Christians Consulting, LLC. I’ve had the absolute pleasure of assisting countless financial institutions and organizations across the country. So first and foremost, THANK YOU. THANK YOU to all those who have placed their trust in me to be their compliance partner. The most rewarding part of my job is knowing that my success derives 100% from your success. We are only as good as we make each other. So THANK YOU for your business and your loyalty. I wish each and every one of you the happiest of holiday seasons and I look forward to what the New Year holds for us together.

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NCUA Outlines Changes to Exam Scheduling Policy

By Michael Christians • February 12, 2025

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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By Michael Christians • January 29, 2025

Back in December 2023, the Federal Communications Commission (FCC) adopted a new rule amending the prior express written consent requirements under the Telephone Consumer Protection Act (TCPA). That rulemaking would have done a couple of things. First, it would have clarified that a consumer’s prior express written consent can apply to not more than one seller. In other words, the rule would have prevented a company from obtaining a consumer’s consent to the receipt of advertising and telemarketing messages both for itself as well as its affiliates. Second, the rule would have required that a consumer’s consent be logically and topically associated with the interaction that prompted the consent. That second requirement was particularly concerning for financial institutions. The language of the rulemaking seemed to suggest that an institution that captured prior express written consent at the time of account opening could not later rely on that same consent for purposes of sending advertising or telemarketing messages related to loans, credit cards, or other non-deposit products. The Insurance Marketing Coalition asked for a judicial review of the rulemaking at the Eleventh Circuit Court of Appeals. On January 24, 2025, that court vacated the new requirements. In its order, the court found that the FCC exceeded its statutory authority because the amendments to the definition of prior express written consent impermissibly conflicted with the statutory definition of the same term under the TCPA.

CFPB Reminds Institutions Payday Lending Rule Takes Effect March 30th

By Michael Christians • January 25, 2025

Following years of litigation, the Consumer Financial Protection Bureau’s 2017 payday lending rule will take effect on March 30, 2025. Three types of consumer loans are covered by the payday lending rule: Short-term loans that require repayment within 45 days, Longer term loans with a balloon payment, and Longer term loans for which the APR exceeds 36% and automatic payment is required from the consumer's account. Under the rule, covered lenders will have to adhere to both payment restrictions and notice requirements. First, when two consecutive automatic payment attempts have failed in connection with a covered loan, the lender is prohibited from attempting another withdrawal until it has obtained a new and specific authorization from the consumer. Second, the rule imposes the following notice requirements in connection with a covered loan: Written notice before the lender attempts to withdraw the first automatic payment from the consumer's account, Written notice before a subsequent automatic payment attempt that will differ in amount or effective date, and Written notice when two consecutive payment attempts have failed. Lenders that do not originate more than 2,500 covered loans in a calendar year are exempt from the rule’s requirements. Additional implementation resources regarding the payday lending rule are available from the CFPB here .

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