August 23, 2023

The Biden-Harris Administration announced the launch of the SAVE Plan, a student loan repayment plan intended to lower monthly payments for borrowers. The SAVE plan is an income-driven repayment (IDR) plan that calculates payments based on a borrower’s income and family size – not their loan balance – and forgives remaining balances after a certain number of years.

The Board of Governors of the Federal Reserve (FRB) issued an enforcement action and fined Regions Bank, of Birmingham, Alabama, approximately $2.95 million for unsafe and unsound practices in its flood insurance compliance program and for flood insurance regulatory violations.

The Securities and Exchange Commission (SEC) announced charges against Titan Global Capital Management, a New York-based FinTech investment adviser, alleging that Titan used hypothetical performance metrics in advertisements that were misleading.

The SEC adopted rule amendments that narrow the exemption from Section 15(b)(8) of the Securities Exchange Act of 1934, which requires any broker or dealer registered with the SEC to become a member of a national securities association unless the broker or dealer effects transactions in securities solely on an exchange of which it is a member.

The Consumer Financial Protection Bureau (CFPB) sued Heights Finance Holding Company, an installment lender, as well as several of Heights’ subsidiaries, alleging that the entities engaged in illegal loan-churning practices that harvested hundreds of millions in loan costs and fees.

The Federal Deposit Insurance Corporation (FDIC) announced it will hold a meeting of the Board of Directors on August 29 at 10:00 a.m. ET. The Board will consider the Notice of Proposed Rulemaking on Long-term Debt Requirements for Large Bank Holding Companies; Resolution Plans Required for Insured Depository Institutions with $100 Billion or More in Total Assets; Publication of Proposed Guidance for Dodd-Frank Act Resolution Plan Submissions of Triennial Full Filers; Conditions to Certain Receivership Delegations of Authority and Procedures; and Board Approval of Midsized and Large Failed Bank Sales. 

The Federal Trade Commission (FTC) announced that it is sending notices to more than 9,000 people that they may be eligible for compensation stemming from an FTC settlement with home security company, Vivint Smart Home, Inc., over charges that the company misused credit reports to help customers obtain financing in violation of the Fair Credit Reporting Act (FCRA).

The FTC announced that as a result of a FTC lawsuit against Automaters, L.L.C., the U.S. District Court of the Southern District of California has temporarily shut down an alleged business opportunity scheme. The FTC alleges that Automaters lured consumers to invest $22 million in online stores by claiming to employ artificial intelligence (AI) to ensure success and profitability.

The FTC announced that the agency has appointed Henry Liu to serve as Director of the FTC’s Bureau of Competition.

Congresswoman Maxine Waters (D-CA), Ranking Member of the House Financial Services Committee, sent a letter to the Government Accountability Office (GAO) expressing concerns about instances in which the use of AI and other housing and property technology (PropTech), such as automated valuation models (AVMs), online housing platforms, tenant screening companies, and rent-setting companies, have been shown to lead to increased housing costs, discrimination, and other barriers to fair and affordable housing. In the letter, Ranking Member Waters asks the GAO to study and assess the effects that AI and PropTech may have on consumers and the U.S. housing market and report to Congress with their findings and policy recommendations.

The House Committee on Small Business announced its September hearing schedule.

The U.S. District Court for the Western District of Texas sided with Treasury in a lawsuit disputing the legitimacy of sanctions added by the Department of the Treasury’s Office of Foreign Assets Control against Tornado Cash in its Specially Designated Nationals and Blocked Persons list in August 2022.

The National Institute of Standards and Technology (NIST) released a major update to its widely used cybersecurity framework (CSF), aiming to reflect changes in the cybersecurity landscape and make it easier for organizations to put the CSF into practice. NIST is accepting public comment on the draft framework until November 4, 2023, and plans to publish the final version of the framework in early 2024. 

Need to catch up on what happened last week? Check out our End of Week Wrap Up here