The Consumer Financial Protection Bureau is adjusting supervisory and enforcement activities to weigh the circumstances of firms responding to the COVID-19 pandemic, and is postponing reporting requirements including those used to spot discrimination in mortgage lending.
The CFPB said in a press release Thursday that it does not intend to initiate enforcement actions for failure to report certain types of data. That includes reporting related to the Home Mortgage Disclosure Act as well as other credit card and prepaid card data.
The bureau also issued a policy statement on its supervisory and enforcement response to the pandemic, saying it encourages prudent efforts taken by financial institutions to meet the needs of borrowers and customers.
"When conducting examinations and other supervisory activities and in determining whether to take enforcement action, the Bureau will consider the circumstances that entities may face as a result of the COVID-19 pandemic and will be sensitive to good-faith efforts demonstrably designed to assist consumers," it said.
The regulator will also work with affected financial institutions in scheduling exams and other supervisory activities “to minimize disruption and burden.”
On mortgage data collection, the bureau said it does not intend to cite mortgage lenders for failing to report quarterly HMDA data that is due by May 30. Firms still need to continue collecting and recording HMDA data for annual submissions. The bureau will provide information at a later date on how and when to begin quarterly HMDA submissions.
The Federal Reserve committed Monday to conducting more asset purchases of Treasury securities and mortgage-backed securities and announced $300 billion in new financing for credit facilities.
The California Association of Realtors told its members Friday to stop all face-to-face sales activities including showings, listing appointments, open houses and property inspections due to coronavirus concerns.
The COVID-19 pandemic has already given rise to false marketing of test kits and criminals impersonating the FDIC. Consumer advocates say the bureau could issue alerts as well as empower banks to help safeguard their customers’ funds.
In addition, the CFPB said that it is temporarily suspending certain reporting requirements for credit card and prepaid accounts under the Truth in Lending Act, Regulation Z and Regulation E. The agency said it does not expect companies to report quarterly submissions of consumer credit card agreements, annual submissions of agreements between card issuers and institutions of higher education, certain credit card price and availability information, and submission of prepaid account agreements.
The bureau also is postponing two surveys. One is a small-business lending survey required under Section 1071 of the Dodd-Frank Act that would subject small-business lenders to data-reporting obligations similar to HMDA.
The other is a survey of firms that provide green-energy loans that finance home upgrades such as solar panels or cooling and heating systems for Property Assessed Clean Energy financing, known as PACE loans.
“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,” CFPB Director Kathy Kraninger said in the press release. “Our actions today are temporary and targeted to support consumers by allowing financial companies to focus their resources on assisting consumers."
The CFPB released guidance last week along with federal prudential regulators encouraging financial institutions to work constructively with borrowers and other customers affected by COVID-19 to meet their financial needs.
“We will continue to issue additional guidance and policies to facilitate the ongoing collaborative relationship between companies and their customers during this time," Kraninger said.
