CFPB Provides Flexibility to Financial Institutions in Response to COVID-19
The CFPB recently released the following three policy statements to provide flexibility to financial institutions during the COVID-19 pandemic: (i) Statement on Supervisory and Enforcement Practices Regarding Quarterly Reporting Under HMDA (HMDA Quarterly Reporting Policy Statement); (ii) Statement on Supervisory and Enforcement Practices Regarding Bureau Information Collections for Credit Card and Prepaid Account Issuers (Credit Card and Prepaid Account Information Collection Policy Statement); and (iii) Statement on Bureau Supervisory and Enforcement Response to COVID-19 Pandemic (Supervisory Activities and Examinations Policy Statement) (collectively, the Policy Statements).
The CFPB issued the Policy Statements to give flexibility to financial institutions that are working with customers affected by COVID-19. CFPB Director Kraninger stated that “[o]ur actions today are temporary and targeted to support consumers by allowing financial companies to focus their resources on assisting consumers.”
In the HMDA Quarterly Reporting Policy Statement, the CFPB states that although entities may continue making quarterly HMDA data submissions, until further notice, the CFPB does not intend to cite in an examination or initiate an enforcement action against any institution for failing to report its HMDA data quarterly. The CFPB will provide information on how and when it expects institutions to resume quarterly HMDA data submissions at a later date. However, entities should continue collecting and recording HMDA data in anticipation of making annual data submissions.
Similarly, in the Credit Card and Prepaid Account Information Collection Policy Statement, the CFPB states that until further notice, the CFPB does not intend to cite in an examination or initiate an enforcement action against any entity for failing to submit the following information relating to credit card and prepaid accounts: (i) annual submission of information concerning agreements between credit card issuers and institutions of higher education; (ii) quarterly submission of consumer credit card agreements; (iii) collection of credit card price and availability information from a sample of credit card issuers; and (iv) submission of prepaid account agreements and related information. The CFPB notes that it will notify entities of when and how to submit such information at a later date.
Further, in the Supervisory Activities and Examinations Statement, the CFPB provides that it will work with institutions to schedule examinations and other supervisory activities to reduce disruption and burden. The CFPB notes that it will keep in close contact with affected institutions to determine when supervisory events can be appropriately scheduled. The CFPB also states that its enforcement activities will take into account the staffing and resource challenges that entities are currently facing due to the COVID-19 pandemic.
