ViClarity Compliance Update

Growing concerns with appraisal bias and deficiencies; U.S. Chamber of Commerce files suit against CFPB; top fraud schemes affecting consumers; and more. 

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ASC Hearing Cites Growing Concerns with Appraisal Bias and Deficiencies
On March 18, 2024, the Consumer Financial Protection Bureau (CFPB) released an article addressing the Appraisal Subcommittee’s (ASC) recent hearing on appraisal bias. ASC examined how state and federal regulators can address appraisal bias and diversity within the profession. ASC is part of the Federal Financial Institutions Examination Council (FFIEC) and provides federal oversight of state regulatory programs.

CFPB Director Chopra attended the hearing and submitted comments addressing some concerns, on behalf of the CFPB. In particular, many minority homeowners still face discrimination during the home appraisal process due to their race, national origin, and community demographics. Director Chopra was concerned that The Appraisal Foundation has been, essentially, acting as a law-making body without having accountability to the public and is not subject to competitive market forces. Click here to read more.
 
U.S. Chamber of Commerce Files Suit Against the CFPB
In response to the Consumer Financial Protection Bureau’s (CFPB) recently released final rule which bans credit card fees, the U.S. Chamber of Commerce filed suit in Fort Worth, Texas. The suit asks for a preliminary injunction against the final rule. In general, the Chamber of Commerce asserts that the CFPB over-extended its statutory authority in creating the final rule. Additionally, the Chamber of Commerce is asserting that not only did the CFPB exceed its statutory authority in the final rule, but it did so by relying on “secret data” that was being used for an unrelated purpose. Read more on the topic here.
 
NCUA Q4 2023 Data Summary Report
According to newly released data by the National Credit Union Administration, federally-insured credit unions grew over the course of the fourth quarter in 2023. Total assets rose by 4.1 percent to total $2.26 trillion. In addition to total assets, the NCUA showed the insured shares and deposits grew by 2.2 percent to $1.7 trillion. Finally, the delinquency rate rose to 83 basis points, which is a 21-point increase from last year. Read more here.
 
 
Visa’s Spring 2024 Biannual Threats Report Addresses Top Fraud Schemes
Last week, Visa published its biannual threats report showing the top fraud schemes affecting consumers. In general, the report showed that the number of consumers scammed decreased, but the total money lost increased.  The report points to more organized schemes with more sophisticated threat actors.
 
The newer scams have become increasingly more targeted against individuals. Generally speaking, scammers have increased the number of scams that use heightened emotions to effectuate the scheme. Additionally, Visa performed a separate survey in which roughly one-third of adults admitted to not reporting being a victim of a scam, suggesting that Visa’s numbers in its threat report are conservative. Click here to learn more about these scams.