April 12, 2024

President Biden announced $7.4 billion in student debt cancellation for 277,000 more borrowers. The 277,000 borrowers are enrolled in the Administration’s SAVE Plan, or were approved for relief because of fixes to Income-Driven Repayment Plans and Public Service Loan Forgiveness.

The Department of the Treasury’s Committee on Foreign Investment in the United States (CFIUS) issued a Notice of Proposed Rulemaking (NPRM) intended to enhance certain CFIUS procedures and sharpen its penalty and enforcement authorities.

Office of the Comptroller of the Currency Acting Comptroller Michael Hsu discussed the value of financial literacy for new Americans in remarks during the Financial Literacy and Education Commission’s Public Meeting. In his remarks, Mr. Hsu acknowledged that immigrants are important drivers of our economy, including through entrepreneurship and innovation; however, they are also more likely to be unbanked than other Americans. He also highlighted ways banks can draw new Americans into the financial system, from exploring innovative ways to support account openings to working with trusted community partners to help them thrive.

The Consumer Financial Protection Bureau (CFPB) published a blog on ensuring servicemembers can protect themselves from unlawful financial practices. The blog discusses the Servicemembers Civil Relief Act and the protections it provides, such as the right to reduced interest on certain loans and shielding servicemembers from foreclosure while they are serving the nation.

CFPB Director Rohit Chopra and Didier Reynders, Commissioner for Justice and Consumer Protection of the European Commission, released a joint statement summarizing three meetings of senior staff of the CFPB and European Commission and subject matter experts to discuss shared priority areas, as well as a readout from their meeting in Brussels in February 2024.

CFPB General Counsel and Senior Advisor to the Director Seth Frotman delivered remarks at the National Consumer Law Center/National Association of Consumer Advocates Spring Training. Mr. Frotman discussed the Fair Debt Collection Practices Act (FDCPA) and Fair Credit Reporting Act (FCRA), consumer finance, debt collection, credit reporting, and medical and rental bills.

The Securities and Exchange Commission (SEC) announced settled charges against five registered investment advisers for Marketing Rule violations. All five firms have agreed to settle the SEC’s charges and to pay $200,000 in combined penalties.

Uniswap Labs reported it received a Wells notice from the SEC Enforcement Division. The notice serves as a recommendation from the SEC staff that the Commission should pursue legal action against Uniswap.

Earlier this week, Senators Thom Tillis (R-NC) and Bill Hagerty (R-TN), members of the Senate Banking, Housing, and Urban Affairs Committee, released a discussion draft of the Ensuring Necessary Financial Oversight and Reporting of Cryptocurrency Ecosystems (ENFORCE) Act. Read our summary of the draft legislation here. The section-by-section summary is available here.

House Financial Services Committee Chairman Patrick McHenry (R-NC) and U.S. Representative Brittany Pettersen (D-CO) introduced the bipartisan Ransomware and Financial Stability Act. This legislation is intended to protect critical financial infrastructure by deterring hackers and setting commonsense guide rails for financial institutions to respond to ransomware attacks.

House Financial Services Committee Ranking Member Maxine Waters (D-CA) released a statement following the Government Accountability Office’s (GAO) recently released report on the Federal Home Loan Banks’ (FHLB) role in the lead up to the failures of Silicon Valley Bank, Signature Bank, and First Republic. After the bank failures last year, Waters and Chair McHenry sent a joint letter to the GAO requesting an investigation into different aspects of their failures. In her statement, Rep. Waters stated that she is pleased that the GAO released the report and continues to support the Federal Housing Finance Agency’s (FHFA) ongoing regulatory efforts to ensure the FHLB System uses its advances to support affordable housing and community development.

Senators Gary Peters (D-MI), Chairman of the Homeland Security and Governmental Affairs Committee, Dick Durbin (D-IL), Chair of the Senate Judiciary Committee, and Ron Wyden (D-OR), Chairman of the Senate Finance Committee, introduced legislation intended to address historic levels of fraud within federal funds that were passed to help Americans through the COVID-19 pandemic. The Fraud Prevention and Recovery Act includes resources and programs intended to strengthen efforts to recover stolen pandemic funds, hold bad actors accountable, prevent identity theft and ensure taxpayer dollars are being used effectively. The legislation also includes safeguards to prevent future fraud and improper use of federal relief funds.

The legislation is modeled on President Biden’s Sweeping Pandemic Anti-Fraud Proposal highlighted in the Fiscal Year (FY) 2025 Budget. Read the White House’s fact sheet on the legislation here

The Consumer Financial Protection Bureau (CFPB) published their Spring 2024 Supervisory Highlights report. The report, which cover select examinations in credit reporting and furnishing, found that consumer reporting companies failed to ensure the accuracy of credit reports, including by failing to exclude information resulting from alleged identity theft or human trafficking. The CFPB also found furnishers – companies that provide information to consumer reporting companies – failed to correct false or fraudulent information sent to consumer reporting companies. 

Need to catch up on what happened earlier this week? Check out our April 10th Midweek Update here