Washington Report 360 | August 12, 2022

Inflation Reduction Act, Data Security, Fair Servicing, Small Business, Private Fund Reporting, and Enforcement Actions

Key Highlights

Inflation Reduction Act. Senate passed the Inflation Reduction Act, which would allocate more than $370 billion toward energy and climate-related programs; House vote scheduled for Friday, August 12 (See KPMG Regulatory Alert, here)
Data Security. FTC issued an ANPR requesting comment on harms stemming from commercial surveillance and whether new rules are needed to protect consumer data privacy; CFPB Circular addresses data security and protection.
Fair Servicing. Updated Fannie Mae/Freddie Mac servicer requirement to obtain and maintain borrower age, race, gender, and preferred language.
Small Business. President signed legislation extending the fraud statute of limitations on PPP and COVID–19 EIDL small business loan programs (See KPMG Regulatory Alert, here)
Private Fund Reporting. SEC and CFTC Form PF proposal to expand information collection, including hedge fund exposures to digital assets/cryptocurrencies.
Enforcement Actions. The SEC, CFPB, and OFAC separately issued enforcement actions against varying entities relating to antifraud, UDAAP, and illicit financing/AML violations.

Financial services regulatory news
SEC	Proposed rules on clearing agency governance and conflicts of interest Proposed, with CFTC, amendments to Form PF on hedge fund cryptocurrency holding reporting. Enforcement against investment advisor company for misleading investors
CFTC	Remarks at “Roadmap for Future Regulation of Digital Assets” event
FINRA	Podcast relating to FINRA’s Complex Investigations and Intelligence (CII) team and Cyber and Analytics Unit (CAU) Reminder of obligations under FINRA Rule 11870, Customer Account Transfer Contracts
FRB	Speech on fighting inflation in challenging times NY FRB blog on Three Key Facts from the Center for Microeconomic Data’s 2022 Student Loan Update NY FRB, ARRC loan remediation survey for LIBOR cessation
CFPB	Enforcement action under UDAAP regarding automated savings algorithm Interpretive rule on digital marketing providers’ and compliance with consumer financial protection laws Remarks on consumer protections in the digital world Consumer Financial Protection Circular on safeguarding consumer data
Treasury	OFAC sanctions against virtual currency mixer regarding illicit finance and AML violations OFAC cyber-related designations
FTC	ANPR on commercial surveillance and data security practices
FHFA	Updated Fannie Mae/Freddie Mac servicer requirement to obtain and maintain fair lending data on their loans Release of Fannie Mae and Freddie Mac Dodd-Frank Act stress test results
GAO	Report on college closures and borrower outreach about loan discharges
BIS	Newsletter on credit risk: real estate and leveraged lending

Financial services policy news
White House	Signed legislation extending the statute of limitation for fraud on PPP and COVID-19 EIDL small business loan programs
Senate	Passed the Inflation Reduction Act; bill moves to the House for consideration