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MoFo Reenforcement

The Enforcement Blog

HUD to Reconsider Disparate Impact Rule

Posted in Disparate Impact, Fair Lending

The U.S. Department of Housing and Urban Development announced that it will “shortly” seek public comment on whether its controversial disparate impact rule is consistent with the Supreme Court’s Inclusive Communities decision. In Inclusive Communities, the Supreme Court held that disparate impact is a cognizable theory of discrimination under the Fair Housing Act. Thus, a defendant may be liable for a practice that is facially neutral but that nevertheless has a discriminatory impact, unless there is a legally sufficient justification for the practice. Inclusive Communities did not decide the standard for evaluating disparate impact claims; rather, it provided several guideposts for “necessary” “limitations.” HUD’s disparate impact rule is arguably inconsistent with those limitations and the Supreme Court’s decision in several respects. The agency’s announcement suggests it is now considering revising the rule to conform to the Supreme Court’s holdings.

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South Carolina’s Money Transmission Law Comes into Effect

Posted in Regulatory Developments, State Regulators

Yesterday, the Office of the South Carolina Attorney General issued a press release announcing that it has created a Money Services Division within the AG’s office and that, effective May 14, the Division is accepting applications for licensure under South Carolina’s money transmission law. This law, officially known as the South Carolina Anti-Money Laundering Act, will formally take effect on May 25, the date the regulations promulgated to implement the Act are scheduled to be published in final form in the State Register. This will occur nearly two years after the Act’s passage on June 9, 2016.

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EVENT: ETA Spotlight Call: Key Elements of Strategic Partnership Agreements

Posted in Events

Wednesday, May 16, 2018
3:00 p.m. – 3:30 p.m. EDT

Please join Morrison & Foerster attorneys Trevor Salter and Crystal Kaldjob as they speak on key elements of strategic partnership agreements. The speakers will discuss the benefits and drawbacks of partnerships, getting the legals right in your partnership agreements, and best practices from their experience advising major financial institutions and merchants in these transactions.

Please note this call is only open to Electronic Transactions Association members.

EVENT: ETA TRANSACT – Understanding Blockchain & Cryptocurrencies

Posted in Events

Wednesday, April 18, 2018
4:30 p.m. – 5:00 p.m.

Mandalay Bay Convention Center
3950 Las Vegas Boulevard South
Las Vegas, NV 89119

As the adoption of blockchain technology becomes a worldwide phenomenon heading towards mass adoption, it is not surprising that regulators are monitoring all market participants. Since tokens are not a homogeneous asset class – they may feature characteristics of securities, commodities, currency units, or a combination thereof, there is uncertainty and a critical need for experts to offer clear advice. Please join us at ETA TRANSACT for “Understanding Blockchain & Cryptocurrencies,” a compelling talk by Dario de Martino, Co-Chair of Morrison & Foerster LLP’s Blockchain Group, for a discussion on what market participants can do to ensure compliance with applicable laws and regulations.

Click here to register.

CFPB Issues RFI on Guidance and Implementation Support

Posted in CFPB

On March 29, 2018, the CFPB issued a Request for Information on the CFPB’s guidance and implementation support. The RFI is the tenth in a series that solicits public feedback on the Bureau’s operations and the regulations for which it is responsible. A press release accompanying the RFI states that the Bureau will be “assessing the overall effectiveness and accessibility of its guidance materials and activities” and “considering whether it would be appropriate to make changes to the formats, processes, and delivery methods for providing this guidance,” as well as the “disclaimers used on certain forms of guidance.”

Read our client alert.

CFPB Issues RFI on Inherited Regulations

Posted in CFPB

On March 26, 2018, the CFPB published a Request for Information on the CFPB’s inherited regulations and inherited rulemaking authorities. The RFI is the ninth in a series that solicits public feedback on the Bureau’s operations, and the regulations for which it is responsible. Comments on the RFI regarding inherited regulations are due by June 24, 2018.

Read our client alert.

CFPB Requests Feedback on Adopted Regulations

Posted in CFPB

On March 21, 2018, a CFPB Request for Information on the CFPB’s adopted regulations and rulemaking authorities was published in the Federal Register. This RFI is the eighth in a series that, collectively, solicits public input on the full scope of the Bureau’s operations. In this latest RFI, the CFPB seeks input on whether it should “amend those rules it has promulgated since [the Bureau’s 2011] creation or issue certain new rules.” Comments are due by June 19, 2018.

Read our client alert.

EVENT: LendIt Fintech USA 2018

Posted in Events

Tuesday, April 10, 2018
11:10 a.m. – 11:50 a.m.

Moscone West Convention Center
800 Howard St.
San Francisco, CA 94103

On April 10, Senior Counsel Oliver Ireland will moderate the “How Central is Fintech to the Central Bank? Feds Perspective on Fintech” panel at Lendit Fintech USA 2018.

Click here for more information.

Senate Passes Financial Regulatory Reform Bill

Posted in Regulatory Developments

On March 14, 2018, the U.S. Senate passed S. 2155, the “Economic Growth, Regulatory Relief, and Consumer Protection Act.” If enacted into law, S. 2155 would provide modest regulatory relief to regional and community banks, among other things. The bill passed the Senate with bipartisan support through a vote of 67 to 31. In this Client Alert, we provide a general summary of some of the principal components of S. 2155.

Read our client alert.

Financial Services Report – Spring 2018

Posted in Arbitration, CFPB, Credit Cards, Electronic Payments, Enforcement Actions, Fair Lending, Investigations, Mobile Payments, Mortgage, Payday Lending, Preemption, Privacy, Regulatory Developments, State Regulators

The 2018 Winter Olympics are over. We watched two 17-year-olds win gold medals in sports that didn’t exist when we were 17. The Garlic Girls, with nicknames from their favorite breakfasts, and the U.S. men’s team won medals in curling. No Miracle on Ice for the U.S. men’s hockey team, but the U.S. women’s team won gold. With almost 3,000 athletes representing 90 countries plus the Olympic Athletes of Russia, it was three weeks of kissing, cursing on national TV, stress knitting, and cheerleading.

Here at home, Acting CFPB Director Mick Mulvaney has lost no time in issuing a new mission statement and announcing a “call for evidence” about every aspect of the CFPB’s functions. Senator Elizabeth Warren and others are actively and loudly opposing these actions every step of the way. Fasten your seatbelts, we are in for a bumpy ride.

Read on for all the news on the CFPB, the other federal banking agencies, AML/BSA, FinTech, privacy, and the rest of our Reports.

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