All posts by Daniel Nestel

Risk & Compliance What’s Happening While We Wait for TCPA Reform?

TCPA Reform in 2018?
Dec122017

The election of a new administration along with leadership changes at the Federal Communications Commission (FCC) provided new hope for a broad group of industry and nonprofit organizations who have long been advocating for changes to the Telephone Consumer Protection Act (TCPA). The TCPA reform effort is expected to commence after the United States Court of Appeals for the District of Columbia rules on the challenge (led by ACA International – the Association of Credit and Collection Professionals – and others) to the FCC’s July 2015 Declaratory Ruling and Order. The FCC’s 2015 action is viewed by many as creating additional uncertainty in an area that has witnessed the chilling of the use of modern communications technology.  Nearly 14 months ago, the DC Circuit Court heard oral arguments on this case. I have spoken to legal experts who have reviewed hundreds of DC Circuit cases and they all assert that... [Read More]

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Risk & Compliance Is US Financial Regulatory Reform Dead or Ready for Take Off?

Capitol building
Jul172017

As a result of several recent policy developments, talk of achieving meaningful US financial regulatory reform is getting louder. The passage in the House of the Republican-backed Financial CHOICE Act of 2017 (Choice Act), the ongoing federal agency activity in response to a number of regulatory reform-related Executive Orders by President Trump, and the positive results from the Fed’s annual supervisory stress tests of large banks are examples of efforts that appear to be moving the reform movement forward. Yet formidable political obstacles remain, leading many to ask: What is achievable and what path will regulatory reform follow? Here is my take. A Legislative Solution Is Not on the Horizon … at Least Not Any Time Soon In June, the House adopted, along a party line vote, the Choice Act, which aims to make broad changes to the 2010 Dodd-Frank statute. While Democrats and Republicans have both discussed their willingness... [Read More]

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Risk & Compliance Attention Small Business Lenders!  The CFPB is Calling on You.

May312017

Update: The CFPB has extended the public comment deadline. Comments are now due by September 14. On May 10, the Consumer Financial Protection Bureau (CFPB) issued a Request for Information (RFI) seeking to learn more about the small business lending market.  If you are scratching your head as to why the CFPB is delving into small business lending, you are not alone. The CFPB was created to regulate those engaged in offering or providing consumer financial products or services.  Yet tucked into the massive Dodd-Frank Act is a small provision, section 1071, which requires the CFPB to issue rules regarding the collection of data to help identify needs and opportunities in the small business lending market and to facilitate enforcement of fair lending laws. For many years, this provision has been a lower priority for the CFPB. However, with the issuance of many of the most high profile Dodd-Frank regulations, the... [Read More]

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Collections & Recovery Three Top Regulatory Themes Emerge from Debt Collection Panel

Three Regulatory Themes
Apr102017

I recently moderated a regulatory panel discussion before a group of nearly 100 collections and recovery (C&R) professionals at the FICO® Debt Manager™ User Group Forum. The esteemed panel consisted of a mix of veteran policy and business leaders, including: Maria Wolvin, Vice President and Senior Counsel of Regulatory Affairs at ACA International; Terry Collins, Collections and Recovery Manager at Trustmark National Bank; and Lucia Lebens, Vice President of Government Relations and Public Policy at Navient. Much of the discussion focused on what C&R professionals can expect in the new US regulatory environment that has emerged in the wake of the November elections. While our experts spoke on a number of hot-button topics, three main themes emerged. CFPB Debt Collection Rulemaking Will Likely Move Forward The panel discussed the CFPB’s continued focus on developing new debt collection regulations. The CFPB has indicated that its next pre-rule action will be the... [Read More]

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Risk & Compliance The Skinny on Trump’s Regulatory Reset

regulatory reset
Feb232017

In my 2017 regulatory predictions post last month, I concluded by saying that the new year would be very different for the financial services industry than 2016. This certainly didn’t take long to come to fruition. In the first two weeks of the new administration, President Trump took several steps aimed at slowing down as well as scaling back current and future regulations. Despite these aggressive actions, there remains a number of challenges related to the reach and impact of these directives. Regulatory Reform through Memorandum and Executive Orders Out of the gate, the Trump administration made good on its promise to curtail the pace of federal regulations. Assistant to the President and Chief of Staff Reince Priebus issued a memo on Inauguration Day that, in part, calls for the heads of executive departments and agencies to initiate a regulatory freeze until someone designated by the President has a chance... [Read More]

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Risk & Compliance 2017 Banking Regulatory Predictions—Brace for a Sea Change

2017-Banking-Regulatory-Predictions
Jan092017

Last fall, I suspect that most regulatory compliance professionals in the U.S. consumer lending market anticipated 2017 would be more of the same. This meant a continued focus on implementation of recently adopted rules, while bracing for a wave of new regulations from the federal banking agencies. Everything changed on November 8. The unexpected election of Donald Trump resulted, in many cases, in a 180-degree course correction. The Trump administration, bolstered by the reelection of a Republican majority in both houses of Congress, has fostered a new environment that is expected to promote de-regulation. While I won’t ever be mistaken for Nostradamus, amidst this regulatory sea change, I feel (relatively) confident in sharing with you my top regulatory compliance predictions for 2017. A little-known law will have big impact on regulation. Haven’t heard of the Congressional Review Act (CRA)? You are not alone. This obscure statutory provision was adopted in... [Read More]

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Risk & Compliance New York Proposes Major Changes to Cybersecurity Regulation

Nov012016

These days, cybersecurity is a hot-button issue in policy circles. Look no further than the US presidential debates, where our two candidates have highlighted the need to address hackers, security breaches and even foreign nations that may be using sophisticated cyber tactics to influence the outcome of the upcoming November elections. The pressure to get policies and systems in place to confront these threats is real. Some policy leaders, like those in New York, are not deferring to the federal government to take the lead. On September 13, the New York Department of Financial Services (NYDFS) proposed first-of-its-kind cybersecurity rules covering a wide range of banks, insurers and financial services companies under its jurisdiction. The issuance of the proposed regulations follows a series of industry surveys and discussions with its regulated entities over the course of several years that provided insights on their cybersecurity programs, related costs and future plans.... [Read More]

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Risk & Compliance New CRA Guidance Promotes Use of Alternative Data in Lending

cra regulations alternative data lending featured image
Oct042016

The potential of alternative data in consumer lending decisions continues to be a hot topic in Washington, D.C., with the latest evidence seen in developments related to the Community Reinvestment Act (CRA). When federal banking agencies recently revised their Q&As for CRA compliance, their focus on the use of alternative data caught my eye. This development is welcome news for those here at FICO and for our many existing and prospective customers. Adopted in 1977, the CRA is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods. The Act requires federal banking agencies (the OCC, FDIC and Federal Reserve – “Agencies”) to conduct periodic reviews of each depository institution’s efforts in this area. CRA regulations provide various methods of evaluating bank performance, corresponding to differences in institutions’ asset sizes, structures and operations. After a thorough assessment... [Read More]

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Risk & Compliance Using Analytics to Attack Opioid Abuse

Analytics + Opioid Abuse Blog
Jul282016

Recently, congressional staff requested a briefing from FICO on how our analytics are tackling the opioid epidemic – an issue that, despite pervasive gridlock in Congress, has become a priority for both Democrats and Republicans. Our experts welcomed the opportunity to share their experiences. We believe that the increased use of analytics can play a pivotal role in confronting this challenge. Opioids are a class of drugs that include heroin as well as pain medications such as codeine, oxycodone and morphine. In 2014, according to the Centers for Disease Control, more than 28,000 people died from opioids – a number greater than the deaths from traffic accidents that same year. And the opioid problem is getting worse, with increasingly more deaths involving fentanyl and other synthetic opioids. The House and Senate recently approved a bill addressing the opioid crisis by nearly unanimous votes. Though both parties wanted additional provisions, the... [Read More]

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Risk & Compliance New Compliance Asks: Is Your Risk Data Management Sound?

Compliance
Jun302016

Have you got a handle on IFRS 9, CECL and BCBS 239? If not, and it all just sounds like regulatory alphabet soup, it’s time to familiarize yourself with these critical acronyms. All three requirements highlight the need for financial institutions to ensure the quality of their risk data. Aggregation and effective use of this data are becoming key to meeting new compliance challenges, not to mention an opportunity to derive additional business value. So what specifically are all these acronyms? Here’s a quick overview: IFRS 9 – IFRS 9 is a new international accounting standard that was adopted by the International Accounting Standards Board (IASB). In the aftermath of the financial crisis, the IASB believed that the accounting standards in use (specifically IAS 39) failed to highlight the losses that firms would face because they were based on past events. With the adoption of IFRS 9 beginning in 2018,... [Read More]

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