Flexibility seems to
be the keyword as government agencies try to adjust to a lot of new realities.
The Federal Housing Finance agency has already empowered the GSEs (Fannie Mae
and Freddie Mac) to be flexible about obtaining appraisals, verifying borrower credit
factors, and working with distressed borrowers. Now the Consumer Financial
Protection Bureau (CFPB) says it is "providing needed flexibility to enable
financial companies to work with customers in need as they respond to the
COVID-19 pandemic."
"As consumers seek temporary relief from lenders, the pandemic is impacting the operations of
financial companies that are eager to help their customers during this
unprecedented time," said CFPB Director Kathleen L. Kraninger. "Our
actions today are temporary and targeted to support consumers by allowing
financial companies to focus their resources on assisting consumers."
Kraninger said the
Bureau had earlier released guidance urging financial institutions to help borrowers
and other customers who are affected by the virus and expect to issue
additional and updated guidance in the future. Thursday's announcement is concerned
primarily with required reporting from financial institutions. Several of these
required or anticipated reports are being postponed so as not to interfere with
a focus on helping consumers in need or on adapting their operations to meet the
current challenges.
She said that CFPB
will not expect quarterly data submissions by certain mortgage lenders as
required under the Home Mortgage Disclosure Act (HMDA) and Regulation C although
the institutions should continue collecting and recording it in anticipation of
their annual reports. There will be additional information forthcoming on the resumption
of quarterly data submissions.
Also postponed is a survey
seeking information from financial institutions on the cost of compliance in
connection with pending rulemaking on Section 1071 of the Dodd-Frank Act and a
survey of firms providing Property Assessed Clean Energy financing to consumers.
Other
"flexibilities" concern reporting of certain information related to credit card
and prepaid accounts under the Truth in Lending Act, Regulation Z, and Regulation
E. These primarily involve credit card issuers and institutions of higher
education.
To the extent that any
of this information is required by law, CFPB said it is issuing policy
statements confirming that the failure to submit it will not be cited in an
examination nor will any enforcement action be taken. It will notify entities
at a later date of when and how the information should be submitted and they
should maintain sufficient data to do so.
The Bureau will also
work with financial institutions to schedule examinations and other supervisory
activities to minimize disruption and burden and will consider the
circumstances that institutions faced as a result of the pandemic in those
examinations with sensitivity toward to good-faith efforts designed to assist
consumers.