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Coauthored by Dykema Summer Associate Shaun Sullivan-Towler.

For financial institutions interested in banking state-legal marijuana businesses, 2018 has been a rollercoaster. In January, Attorney General Jeff Sessions rescinded the Obama-era policy of lenient federal enforcement, creating new confusion for banks and credit unions about the future of marijuana-related banking. Many feared that the Financial Crimes Enforcement Network (FinCEN) would withdraw or amend its guidance as well, thereby eliminating the only federal guidance directed to financial institutions on banking marijuana businesses. But FinCEN has since been clear that its guidance remains in place and announced that, as of March 31, 2018, a total of 411 banks and credit unions now provide services to marijuana-related businesses, up from 365 a year ago.
Continue Reading The STATES Act, Rooted in Federalism, Would Address Systemic Risk in Cannabis-Related Banking

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2018 has a tough act to follow, after a 2017 full of momentous developments—starting with a new Administration and wrapping up with a showdown over the right to serve as Acting Director of the Consumer Financial Protection Bureau (CFPB) (a fight that continues as of this writing, as discussed below).

But 2018 is unlikely to be a quiet year. In addition to developments in the CFPB leadership battle and other litigation, the year is expected to bring developments such as effective and compliance dates for major regulations on data protection, Bank Secrecy Act/anti-money-laundering (BSA/AML), mortgage servicing, and other topics, and could bring changes in supervisory focus at multiple federal agencies. 
Continue Reading Fasten Your Seatbelts: Are You Ready for Another Eventful Year?

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On May 10, 2017, the Consumer Financial Protection Bureau (CFPB) announced steps toward issuing regulations to impose data reporting requirements on the small business lending industry, a rulemaking required under the Dodd-Frank Act of 2010. To help it draft a proposed rule, the CFPB requested public feedback through a Request for Information (RFI) Regarding the Small Business Lending Market. At the same time, the CFPB released a white paper, Key Dimensions of the Small Business Lending Landscape, discussing the data currently available regarding small business lending.
Continue Reading CFPB Asks for Input on Small Business Lending Data Collection; Agency Sees Small Business As Fair Lending Priority

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As discussed in our previous post, the Consumer Financial Protection Bureau (CFPB) has proposed a regulation that would impose numerous requirements regarding small-dollar lending. Unquestionably, that rule would be significant because it would establish a nationwide, federal standard for covered small-dollar loans, and lenders could not circumvent the rule’s requirements by choosing which state or states to operate in. But a CFPB rule also would not displace the role of the states. State regulators would continue to be able to license and supervise small-dollar lenders, and would be able to maintain their own laws, including those more protective of consumers and not inconsistent with the CFPB rule. State authorities would also continue to investigate and prosecute small-dollar lenders for unlicensed activity and other activity alleged to violate state law.
Continue Reading The Enduring Role of the States and Cities in Small-Dollar Lending

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In the three weeks since the Inauguration of President Donald J. Trump, there have been many questions, but few answers for financial services practitioners. Uncertainty remains on matters such as the fate of the Dodd-Frank Act of 2010 and the many programs and regulations created under that law, including the Financial Stability Oversight Counsel (FSOC), the Consumer Financial Protection Bureau (CFPB), and the regulations for which the CFPB is responsible. President Trump has expressed a desire to revisit and change the Dodd-Frank Act (stating, for instance, that “We expect to be cutting a lot out of Dodd-Frank”), and leaders in the Republican-controlled Congress have long criticized the CFPB and articulated their desire to amend, or repeal, Dodd-Frank.
Continue Reading Taking Stock of the First Few Weeks of the Trump Administration – Uncertainty Continues

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With the new Trump Administration and Republican majorities in both the House and Senate, Republicans have complete control of the executive and legislative branches of government for the first time in 10 years. As a result, many in the banking industry are cautiously optimistic that it will be possible to enact policy changes that loosen some of the restrictive regulations that resulted from Dodd-Frank and the Obama Administration’s implementation of the law. Burdensome regulation is often blamed for holding back our nation’s economy and preventing a full economic recovery. With the Republican take-over of Washington, leading banking organizations, like the American Bankers Association (ABA) and the Independent Community Bankers of American (ICBA), are expected to pursue a robust policy agenda that focuses on easing regulation and improving consumers’ access to credit and increasing economic growth.
Continue Reading Banking Industry to Pursue Robust Policy Agenda