CFPB issues No-Action Letter templates
The Consumer Financial Protection Bureau issued two No-Action Letter templates focusing on mortgage relief and small-dollar lending. The No-Action Letter policy is designed to allow banks and fintechs to innovate without fear of the bureau issuing a supervisory or enforcement action.
Under one of the new templates, mortgage servicers seeking to help borrowers avoid foreclosure would be able to apply for their own NAL. The CFPB also approved a template that banks can use to apply for an NAL on small-dollar credit products.
In comment letters last year, ICBA expressed support for the proposals while encouraging the bureau to ensure they have a meaningful impact on innovation and regulatory oversight.