ABA ISSUES STAFF ANALYSIS OF CFPB’S
SMALL-DOLLAR LENDING RULE
ABA has issued a staff analysis of the CFPB’s final small-dollar lending rule that curtails short-term, small-dollar
consumer loans, as well as the OCC’s decision to rescind its guidance on direct deposit advance services, which
it noted was inconsistent with the CFPB’s final rule. The analysis summarizes key provisions of the rule, including
a helpful exemption the CFPB granted for banks making small-dollar accommodation loans, following advocacy
by ABA. Under the rule – which was finalized last month – lenders making 2,500 or fewer small-dollar loans in
each of the current and previous years and for whom these loans account for less than 10 percent of revenues
are exempt entirely from the rule. The accommodation loan exemption applies regardless of the size of the
lender offering it. In addition, for banks that exceed the threshold for the accommodation loan exemption, the final
rule preserves the ability of these banks to offer installment loans of 46 days or more, which ABA believes will
allow banks to innovate and increase their responsible small-dollar credit products.
ABA continues to study the 1,690-page rule and will update its staff analysis as needed. In addition, the
association is seeking feedback from bankers on whether banks are planning to increase small-dollar consumer
lending, and if so, whether there are other regulatory impediments that ABA should address. View the staff
CFPB TO SURVEY CONSUMERS ON OVERDRAFT DISCLOSURES
The CFPB has published a notice seeking information on overdraft-related disclosures. Comments on the
request are due by January 18, 2018. The bureau initially sought to conduct this consumer survey in 2015, but
did not move forward after ABA expressed opposition to the “defective and opaque process employed by the
bureau” to conduct research on overdraft. The CFPB is now re-submitting its request for regulatory approval to
conduct a survey of consumers’ understanding of and decision-making in response to overdraft disclosures.
In August, the bureau released four new prototype overdraft disclosure forms and published a report on frequent
overdraft users. The proposed survey will test consumer understanding of the disclosures. ABA will review and
comment on the proposal. Read the notice. Read ABA's 2015 comment letter.
CFPB LAUNCHES BETA VERSION OF NEW HMDA PLATFORM
The CFPB has launched a beta version of its new platform for reporting Home Mortgage Disclosure Act data.
The beta version allows bankers to familiarize themselves with the new system by creating test login credentials,
uploading and validating sample HMDA data files, reviewing edits and filing test data.
Bankers may make unlimited tests using the beta system. All test accounts and data will be removed from the
system when the filing period opens in January 2018. Feedback should be sent to the bureau at
HMDAfeedback@cfpb.gov. Access the platform.
OCC POLICY TO MAKE IT EASIER FOR BANKS TO FIX CRA PROBLEMS
The OCC on November 8 issued a revised policies and procedures manual spelling out its approach to licensing
applications from banks that have non-satisfactory Community Reinvestment Act ratings, either overall or in a
particular geographic region.
While low CRA ratings have historically blocked banks from branching, merging or converting charters, the
revisions allow applicants to document for the OCC how a transaction – such as an acquisition or a branch
relocation – would “help the bank to achieve its CRA objectives.” The OCC manual also spells out factors the
agency will consider when evaluating an application in this situation.
ABA has advocated for regulatory agencies to address this element of CRA compliance, in which a bank can be