Welcome to another issue of LoanPro’s Compliance & Fintech Newsletter, bringing you news from across the industry with a focus on compliance. Expect new editions monthly. Subscribe to the newsletter to make sure you don’t miss an issue.
- In the past month, there has been a noticeable rise in government oversight of consumer experiences. This heightened scrutiny is likely to drive innovation, as both financial organizations and government agencies adapt to and align with new regulations.?
- It’s becoming more common for states to assert themselves in financial compliance matters. As regulations around brokered deposits and other banking activities are updated, federal charters and banking relationships will become less of a solve-all for fintechs and neobanks. Instead, state-by-state compliance will become a larger concern for financial services and software providers.?
- The requirement for financial reporting, especially as it concerns data around who is and isn’t receiving financial services, will lead to the collection of more valuable data. Combined with the data-sharing requirements brought on by open banking, this will pave the way for the development of new, personalized financial products.
- Gramm-Leech-Bliley Act (GLBA) compliance tools.This post from our blog highlights the major provisions of the GLBA that apply to credit providers, and walks you through the compliance tools LoanPro offers to help you keep your operation compliant by default.
- Staying compliant with state-level repossession laws. Another blog post on compliance, this one going over the myriad state-level regulations on repossessing vehicles and other collateral. We explain the general law of the land and where specific states can differ, linking to resources showing state-by-state laws. We also go over the LoanPro tools that can simplify your repossession process and keep it in line with regulatory requirements across multiple jurisdictions.
- The Department of Housing and Urban Development (HUD) has charged three entities—Rocket Mortgage, Maverick Appraisal Group, and Solidifi U.S. Inc.—with housing discrimination after an appraiser allegedly undervalued the property of a refinancing applicant.
- The FDIC is proposing major updates to its rules on brokered deposits, aiming to enhance regulatory oversight and address potential risks—possibly materially affecting banks, neobanks, fintechs, and other third parties.?
- President Biden and Vice President Harris announced their launch of “Time Is Money”—a set of governmentwide initiatives “to crack down on all the ways that corporations…add unnecessary headaches and hassles to people’s days and degrade their quality of life.”
- A bill was introduced by US Senators Martin Heinrich and Mike Rounds to allow financial firms to test AI projects with regulatory flexibility, provided they “serve the public interest…enhance efficiency or increase competitiveness, and not present? a systemic risk to the financial system.”
- Google Wallet is rolling out new features to support a wider range of digital passes, including tickets, IDs, and other documents, to enhance its functionality and convenience.
- Klarna is introducing new balance and cashback features that allow customers to save money while using its "buy now, pay later" services.
- Apple is allowing developers to use NFC transactions on their apps but will impose fees for this functionality.
- PayPal and Fiserv are partnering to enable merchants to offer a guest checkout option, streamlining the payment process for customers without requiring account creation.
- Stripe and Zip are partnering to offer a buy now, pay later option to online retailers.?
- Galileo Financial Technologies announced a new offering for their clients that allows them to connect their business customers to Mastercard’s expense reporting and analytics suite.?
- Amount has secured $30 million in equity funding to enhance its digital lending and account origination solutions for credit unions and banks.?
Thank you for reading this month's edition of Keeping up with Compliance! Don't forget to subscribe, and keep your eyes peeled for our September issue.?
