Compliance History -CARES Act : fintech

Compliance History -CARES Act : fintech


Pasted from my Twitter feed, sorry for the formatting.

Still catching up on #compliance history for March. So here comes the CARES Act.

The CARES Act was signed March 27 of last year & was a doozie of a law. Of course, the main focus was far far from compliance, but there were some key portions of it that reflected lessons learned from Dodd-Frank. & honestly it was pretty good policy.

Specifically CARES put in place carve outs for handling mortgages for borrowers impacted by COVID but most all lenders read the tea leaves and handled all credit products the same way.

And of the most critical parts of the provisions for helping borrowers impacted by the pandemic. The guidance on credit reporting was particularly thoughtful.

By enumerating the explicit expectations that 1. Borrowers need not be required to “prove” negative impacts from the pandemic [to get assistance], & 2. That negative credit reporting for such customers could be postponed…

…leadership dodged the exact same bottleneck for getting financial assistance & also the inability to get new credit that was a critical negative cycle in the mortgage crisis.

Recently the CFPB signaled that the CARES act reg’s were ending but again IMO it really was good policy spun up & launched quickly. To learn more about the portion of the CARES act I’m referencing, see below. Hope you enjoyed the thread!

https://www.consumerfinance.gov/about-us/blog/consumer-reporting-and-cares-act/



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