Independent Banker - January 2021 - 35

Next: ICBA is reaching new members of Congress 
collecting and maintaining data, and
systems for reporting.
The Federal Reserve Board issued
an advance notice of proposed
rulemaking for CRA changes. The
comment period goes until Feb. 16.
The Fed proposes a qualifying
activities list, preapproval process,
increased transparency and a clearer,
more quantitative component for a
two-tiered system of small and large
banks. It excludes small banks from
geocoding deposits. Small banks
can choose to follow the current
small bank rules or opt into the new
performance metrics.
As of December, the final threshold
for small bank size had not been set.
The proposal is rooted in the number
of loans, regardless of dollar amount,
and, specifically, loans to small
businesses and low- and moderateincome
families.
Flood insurance
The Federal Emergency Management
Agency (FEMA) published a final
rule to codify certain provisions
of the Biggert-Waters Flood
Insurance Reform Act of 2012 and
the Homeowner Flood Insurance
Affordability Act of 2014, as well as to
clarify existing NFIP rules. The final
rule will become effective Oct. 1, 2021.
Home Mortgage Disclosure
Act (HMDA)
In 2019, the Consumer Financial
Protection Bureau (CFPB) finalized
a HMDA provision to extend the
temporary threshold for collecting
and reporting data about open-end
lines of credit for two years (Jan. 1,
2022). For data collection years 2020
and 2021, financial institutions that
originated fewer than 500 open-end
lines of credit in either of the two
preceding calendar years do not need
to collect and report that data.
The rule includes partial
" ICBA's view is, if you are going to reject
applications for PPP loan forgiveness for
any nonqualifying purpose, the prudent
practice is to comply with Regulation B
adverse action notice requirements. "
-MICKEY MARSHALL, ICBA
exemptions from some HMDA
requirements in the Economic
Growth, Regulatory Relief, and
Consumer Protection Act, or S.2155.
The CFPB issued a separate final
rule in April 2020 to adjust reporting
thresholds. The closed-end threshold
(100) was effective July 1, 2020,
and the open-end threshold (200) is
effective Jan. 1, 2022.
Debt collection practices
CFPB issued a final rule in October
2020 that is effective one year from
publication in the Federal Register
amending Regulation F, which
implements the Fair Debt Collection
Practices Act (FDCPA). The final
rule addresses, among other things,
communications in connection with
debt collection and prohibitions
on harassment or abuse, false or
misleading representations, and
unfair practices in debt collection.
Watch for developments on further
issues in 2021 and beyond.
Implementation of small
business loan reporting
Section 1071 of the Dodd-Frank
Act amends the Equal Credit
Opportunity Act (ECOA) to require
reporting of specific categories of
business loans. The anticipated
rulemaking will require that business
lenders implement new policies and
procedures to ensure compliance.
The CFPB's Small Business Advisory
Review Panel issued an outline of the
proposals it is considering.
Bank Secrecy Act (BSA)
The Financial Crimes Enforcement
Network (FinCEN) and Federal
Reserve Board invited comment
on a proposed rule to amend the
recordkeeping and travel rule
regulations under the BSA.
Consumer access to
financial records
The CFPB issued a notice requesting
information related to consumer
access to financial records under
Section 1033 of Dodd-Frank. It seeks
comments and information on costs
and benefits of consumer data access;
competitive incentives; standardsetting;
access scope; consumer
control and privacy; and data security
and accuracy.
Role of supervisory guidance
In October, the federal financial
regulatory agencies invited comment
on their use of supervisory guidance
for regulated institutions. 
Mary Thorson Wright, a former Federal
Reserve examiner, is a writer in Virginia.
independentbanker.org Q 35
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Independent Banker - January 2021

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