Federal Regulatory and Georgia Legislative Update

Federal Regulatory and Georgia Legislative Update

The Consumer Financial Protection Bureau (“CFPB”) recently published Consumer Protection Principles: Consumer-Authorized Financial Data Sharing and Aggregation to provide principles to follow when sharing consumer financial data. The Georgia legislature recently amended its laws governing bond requirements for licensing and registration, effective December 31, 2017.

 

CFPB Consumer Protection Principles

 

These principles express the CFPB’s vision for realizing a robust, safe, and workable data aggregation market, but do not alter, interpret, or otherwise provide guidance on existing statutes and regulations.  A summary of the principles are as follows:

  • Access – Consumers are able, upon request, to obtain information about their ownership or use of a financial product or service from their product or service provider in a safe and timely manner.
  • Data Scope and Usability – Consumers may authorize third parties to access the data necessary to provide the products or services selected by the consumer and only maintain such data as long as necessary.
  • Control and Informed Consent – Consumers should understand the terms of data access and revocation.  Revocation of access should be implemented by providers in a timely and effective manner and, at the discretion of the consumer, provide for third parties to delete personally identifiable information.
  • Authorizing Payments – Product or service providers that access information and initiate payments must obtain separate and distinct consumer authorizations for both payment and data sharing.
  • Security – Consumer data must be accessed, stored, used and distributed securely.
  • Access Transparency – Consumers are informed of, or can readily ascertain, which third parties that they have authorized are accessing or using information regarding their accounts or other use of financial services.
  • Accuracy – Consumers can expect the data they access or authorize others to access or use to be accurate and current.
  • Ability to Dispute and Resolve Unauthorized Access – Consumers have reasonable and practical means to dispute and resolve instances of authorized access and data sharing, unauthorized payments, and failures to comply with other obligations.
  • Efficient and Effective Accountability Mechanisms – Commercial parties are accountable for the risks, harms and costs they introduce to consumers and have incentives to prevent, detect, and resolve unauthorized access and data sharing.

 

A full copy of the publication may be found by clicking on the link below:

 

CFPB Consumer Protection Principles:  Consumer-authorized financial data sharing and aggregation

 

Georgia House Bill 143

 

Each licensed or registered mortgage broker must provide the Department of Banking and Finance (“Department”) with a bond. The bond for a mortgage broker must be in the principal sum of $150,000.00 (previously $50,000.00) or such greater sum as the Department may require as set forth by regulation based on an amount that reflects the dollar amount of loans originated and must meet all other requirements specified by law.

 

Except as otherwise provided, the Department may not license or register any mortgage lender unless the applicant or registrant provides the Department with a bond. The bond for a mortgage lender must be in the principal sum of $250,000.00 (previously $150,000.00) or such greater sum as the Department may require as set forth by regulation based on an amount that reflects the dollar amount of loans originated and must meet all other requirements specified by law.