Industry Weighs in on 2018 Compliance Trends Through Twitter Chat | Auto Finance News | Auto Finance News

Industry Weighs in on 2018 Compliance Trends Through Twitter Chat

There is a lot of uncertainty surrounding the future of compliance in the auto finance space, so Auto Finance News turned to Twitter for some community input.

No one was able to determine who the next Consumer Financial Protection Bureau director will be, or if Leandra English will be successful in retaking control from current acting director Mick Mulvaney. However, John Redding, a partner at Buckley Sandler LLP, did give followers some advice during this uncertain time.

“Uncertainty in leadership remains, but a commission or Republican appointee may ultimately reduce the burden,” Redding wrote into the chat via Buckley Sandler’s account. “Continued compliance efforts during a time of uncertainty helps mitigate the current risk.”

When asked about the No. 1 compliance issue that will impact lenders in 2018, the online car marketplace startup AutoGravity focused on how new CFPB leadership will impact lenders and dealers alike.

Molly Calkins, a partner at Akerman LLP, previously told AFN that lenders should not assume the new director will be a deregulatory force just because of the current politics of the White House.  

Local enforcement from state attorneys general also weighs heavy in the forefront of lender’s minds. These state offices have become more active since President Donald Trump took office, Redding said, as evidenced by the letter 20 attorneys general sent to the White House urging the president to keep an Obama-era protection for immigrants known as Deferred Action for Childhood Arrivals.  

“The trend toward AG enforcement will continue, and the AG letter to the White House supports this,” Redding wrote. “Engage in outreach to your state AG’s. Monitor actions in other industries for trends. Remember that they work together and share information.”

Still, there remains a lot of optimism that a new CFPB director could change UDAAP rules.

Additionally, many regional and community banks are waiting to see if Congress will vote to raise the designation of which banks are considered systemically important financial institutions (SIFI) to $250 billion of total assets up from the current threshold of $50 billion.

“This impact will be felt in a variety of different ways,” AutoGravity wrote on Twitter. “By raising #SIFI, it ultimately widens the approval tiers traditionally associated with banks in the auto finance space. This is potentially an important value proposition for all entities involved.”

  Like This Post
Latest Magazine Issue
Sign Up Email List