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.
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.