Financial Services Enforcement Actions Tracker

During the Trump administration, Guidehouse observed an overall low volume of enforcement actions. With the transition to the Biden administration, key leadership roles in financial regulatory agencies are being filled by the new administration.  In the coming years, Guidehouse believes that financial institutions can expect more aggressive regulatory enforcement. We also expect that federal regulators will collaborate more with state regulators to enforce financial regulations.  With overall administrative priorities currently aimed at addressing COVID relief, protecting minorities, and equitability, financial institutions should be prepared for more strict oversight on topics of unfair and deceptive practices, fair lending, and other borrower-centered regulations. 

• September 29th, 2020: Federal bank regulatory agencies finalized two rules allowing individuals and businesses to more quickly access real estate equity to help address needs for liquidity as a result of the coronavirus and to support the flow of credit to households and businesses affected by the coronavirus.
• November 2nd, 2020: The CFPB published a guide for consumers on Mortgage Forbearance and Foreclosure Moratoriums as they pertain to the CARES Act. This guide is intended to educate consumers on the protections they have, but also serves to indicate where the CFPB might focus their enforcement efforts in 20212
• November 3rd, 2020: United States Presidential Election results in transition from Republican Donald Trump to Democrat Joe Biden as president. Guidehouse believes that this transition from a Republican to a Democrat will likely result in increase in regulatory supervision and enforcement actions over the next four years.
• January 20, 2021: President Joe Biden is inaugurated and nominates Rohit Chopra to serve as CFPB director and Gary Gensler to lead the SEC, indicating an increase in regulatory enforcement action in the coming years.

Regulatory agencies have shown some leniency throughout 2020 as COVID-19 impacted businesses, but Guidehouse has noted an increase in enforcement activity in Q3 2020 and anticipates that this trend will continue as regulatory agencies further adjust to COVID-19 and are encouraged to increase enforcement, especially around fair lending.

Guidehouse’s Financial Services Enforcement Actions Tracker compiles publicly available data from both federal and state regulators regarding quarterly enforcement actions against financial institutions.  First published in 2016, the Tracker showcases the types of activities that consumer finance-focused regulators are currently monitoring and helps the audience better address the trends and challenges in today’s regulatory environment.

Special thanks to contributing author Siwen Tang.