The Roundup: CFPB Nominee Says Bureau Will Continue Its Work, The Rise of Misleading Marketing, and AI-Powered Compliance
Welcome to the PerformLine Regulatory Compliance Roundup, home of the latest news, articles, and reports from our industry, curated for you. Let’s get into it.
In this edition: Takeaways from Rodney Hood’s first public speech as OCC acting chief, CFPB nominee says Bureau will continue its work, concerns mount over FDIC hiring freeze, AI-powered compliance helps fintechs navigate regulation and innovation, and marketing compliance industry benchmark data
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CFPB Nominee McKernan: Bureau Will Continue Its Work
During his Senate confirmation hearing, CFPB nominee Jonathan McKernan committed to enforcing consumer financial laws while promoting greater accountability and efficiency. He acknowledged concerns about the agency’s legitimacy, criticized past regulatory overreach, and emphasized a balanced approach that targets bad actors without unnecessary burdens. Despite skepticism from lawmakers like Senator Elizabeth Warren, McKernan assured that the CFPB would continue its mission but in a more streamlined and effective manner.
5 Key Takeaways from Rodney Hood’s First Public Speech as OCC Acting Chief
In his first speech as Acting Comptroller, Rodney Hood prioritized reducing regulatory burdens, enhancing financial inclusion, and tailoring rules to bank size and complexity. He advocated for a principles-based approach to cybersecurity, raising the Bank Secrecy Act reporting threshold, and improving merger evaluations, particularly regarding credit union market share.
Significant Stat: $2.8 Billion: In 2024, both federal and state regulators issued 67 misleading marketing enforcement actions across various industries, totaling over $2.8 billion in fines. Read more
Concerns Mount Over FDIC Staffing Challenges
The Federal Deposit Insurance Corporation (FDIC) is facing significant staffing challenges due to a federal hiring freeze and an anticipated exodus of experienced personnel. These issues are expected to hinder the agency’s ability to conduct thorough bank examinations and effectively manage the resolution of failed banks.
The hiring freeze has led to the rescission of over 200 job offers for bank examiners, exacerbating an already critical shortage of qualified staff. Additionally, approximately 30% of the FDIC’s workforce is eligible for retirement, raising concerns about a potential loss of institutional knowledge. Experts warn that these staffing deficiencies could compromise the FDIC’s mission to maintain the safety and soundness of the U.S. banking system.
AI-Powered Compliance Helps Fintechs Navigate Regulation and Innovation
FinTechs are turning to AI-powered compliance solutions to navigate increasing regulatory scrutiny, especially in KYC and sponsor bank relationships. By streamlining onboarding, underwriting, and transaction monitoring, AI helps firms reduce costs, enhance user experiences, and maintain compliance while fostering financial inclusion.
Marketing Compliance Industry Benchmark Data
The 2025 State of Marketing Compliance Report offers a comprehensive analysis of current trends and challenges in marketing compliance for consumer finance companies.
Key insights reveal that small compliance teams are increasingly relying on technology to enhance efficiency, with technological investments leading compliance budgets. Additionally, there’s a growing concern over third-party compliance risks. The report serves as a valuable resource for organizations aiming to benchmark their compliance practices and navigate the evolving regulatory landscape.
