Roundup: CA DFPI Position; CFPB; NCUA; MSLP; FRB Compliance Outlook

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The job position of deputy commissioner of the office of credit unions is still vacant within the California Department of Financial Protection and Innovation (DFPI). The California Credit Union League is encouraging interested parties to apply for this position. A candidate with a wealth of credit union knowledge and experience would benefit all California state-chartered credit unions.

Applicants are required to submit the online application form AND print, sign, and mail or fax the final page of the application.

The position administers the laws of this state relating to credit unions or the credit union industry; reports to the senior deputy commissioner of financial protection and innovation for the Division of Financial Institutions; and is appointed by California Gov. Gavin Newsom and holds the office at the pleasure of the governor.

If you apply, please let us know by emailing Lisa Quaranta, vice president of regulatory advocacy and compliance for the Leagues. You can also email her if you have any questions.

CFPB Finalizes Debt Collection Rule
The Consumer Financial Protection Bureau (CFPB) issued its final rule on debt collection on Oct. 30. The rule amends Regulation F, 12 CFR Part 1006, which implements the Fair Debt Collection Practices Act (FDCPA). In general, the rule addresses communications in connection with debt collection and prohibitions on harassment or abuse, false or misleading representations, and unfair practices in debt collection.

The final rule is based primarily on the CFPB’s authority under FDCPA and, not its Unfair, Deceptive, or Abusive Acts and Practices (UDAAP) authority under the Dodd-Frank Wall Street Reform and Consumer Protection Act. As a result, the provisions under the final rule only apply to covered debt collectors subject to FDCPA and does not apply to the activities of “first-party debt collectors” that are not FDCPA debt collectors.

The CFPB also indicated it is expected to finalize a supplemental debt collection rule focused on time-barred debt disclosures in December 2020. The final rule is effective one year after its publication in the Federal Register.

Federal Reserve Adjusts Terms of ‘Main Street Lending Program’
On Oct. 30, the Federal Reserve Board (FRB) adjusted the terms of its Main Street Lending Program (MSLP) to help smaller businesses that are struggling due to the COVID-19 pandemic. In particular, the minimum loan size for three Main Street facilities available to for-profit and nonprofit borrowers has been reduced from $250,000 to $100,000, and the fees have been adjusted to encourage the provision of these smaller loans.

The Federal Reserve and the U.S. Treasury Department also issued a new frequently asked questions (FAQ) document clarifying that Paycheck Protection Program (PPP) loans of up to $2 million may be excluded for purposes of determining the maximum loan size under the MSLP, if certain requirements are met. The FRB said this action should also help smaller businesses access Main Street loans.

Consumer Compliance Outlook Latest Issue Is Now Available
The Federal Reserve’s (FRB) latest issue of Consumer Compliance Outlook is now available. Highlights include: The Benefits of a Proactive Compliance Program; Effective Bank Communications Enhance Compliance; The Federal Reserve System’s Ombudsman and Amendments to the Material Supervisory Determination; Regulatory Updates; Recent Federal Court Opinions; and Regulatory Calendar.

Webinar: Consumer Financial Protection for Military Servicemembers
The National Credit Union Administration (NCUA) and the CFPB are co-hosting a webinar on financial literacy and consumer financial protections for servicemembers. Registration for his Nov. 18 webinar (at 11 a.m. Pacific) — “Financial Readiness Resources and Information for Servicemembers, Veterans, and their Families” — is now open.

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