Feb. 10: CFPB Updates This Week

Today, the CFPB published the Regulatory and Reporting Overview Reference Chart for HMDA Data Collected in 2023. Resources to help industry understand, implement, and comply with the Home Mortgage Disclosure Act and Regulation C.

Data spotlight: Banks’ overdraft/NSF fee revenue declines significantly compared to pre-pandemic levels
Third quarter of 2022 is down more than 40% compared to third quarter of 2019, suggesting $5B reduction in fees on annual basis.

Since late 2021, several banks have announced changes to their overdraft programs that have been expected to reduce overdraft/non-sufficient fund (NSF) fee revenue. Our most recent analysis finds that bank overdraft/NSF fee revenue:

  • was 43% lower in the third quarter of 2022 than in the third quarter of 2019 before the COVID-19 pandemic onset – suggesting $5.1 billion less in fees on an annualized basis;
  • was 33% lower over the first three quarters of 2022 compared to the same period in 2019; and
  • has trended downward in each quarter since the fourth quarter of 2021.

At the same time, we have not observed correlating increases in other listed checking account fees, which suggests that banks are not replacing overdraft/NSF fee revenue with other fees on checking accounts.

This analysis of bank call report data follows our previous analyses of trends in checking account fee revenue published in December 2021 and July 2022.


CFPB Issues Guidance to Protect Mortgage Borrowers from Pay-to-Play Digital Comparison-Shopping Platforms

The Consumer Financial Protection Bureau (CFPB) issued an advisory opinion to protect Americans from double dealing on digital mortgage comparison-shopping platforms. Companies operating these digital platforms appear to shoppers as if they provide objective lender comparisons, but may illegally refer people to only those lenders paying referral fees. When shoppers use a lender that is not the best option for their needs, they may end up with a lower quality lender or paying thousands more in closing costs or interest. The advisory opinion outlines how companies violate the Real Estate Settlement Procedures Act (RESPA) when they steer shoppers to lenders by using pay-to-play tactics rather than providing shoppers with comprehensive and objective information.