Compliance Blog

Written by Steve Van Beek

In February 2011, the Philadelphia Federal Reserve conducted a webinar on risk-based pricing notices.  The archived webinar is still available and the Questions & Answers from the webinar were included in the First Quarter 2012 Consumer Compliance Outlook.    

Below are two that might be of interest:

• Must risk-based pricing notices be provided for denied applicants?  Section 1022.72(a) of Regulation V (12 C.F.R. 1022) specifies when a creditor must provide a risk-based pricing notice to a consumer applying for credit, subject to exceptions in 1022.74.  If an application is denied and an adverse action notice is provided, a risk-based pricing or exception notice is not required.  See 1022.74(b).

• If the same rates are charged to all approved applicants for a particular product, do notices need to be provided?  As discussed in 1022.74(a), if a lender offers one rate for a product and the applicant either receives that rate or is denied, no risk-based pricing or exception notice is required for approved applicants but an adverse action notice is still required for denied applicants.

Additional Q&As are available here.  The CFPB's risk-based pricing rules are located in Subpart H to Regulation V (1022.70 - 75).  

***

NAFCU Compliance Webcast.  On July 11th, Carrie Hunt, NAFCU's Vice President of Regulatory Affairs and General Counsel, and I will be presenting a NAFCU webcast that will prepare you for upcoming regulatory changes - from NCUA and the CFPB.  We'll talk about some of the following - which may change as the regulators publish new information between now and July 11:

• Preparing your credit union for numerous, fast-paced regulatory changes;
• How to track and monitor the CFPB's rulemakings;
• Potential changes to overdraft protection and prepaid cards;
• Upcoming comprehensive changes to mortgage lending regulations; and
• Five common struggles with Credit CARD Act compliance.

Learn more here - sign up by July 5th and Save $100!