b'What Were Watching: 2022 Emerging IssuesEnforcement & Regulatory TrendsFinally, towards the end of 2021, the CFPB expressed interest in expanding the scope of payment processing-Although enforcement in the mortgage space may haverelated regulation. In October 2021, the CFPB issued been down in 2021 relative to years past, a number ofan information request to several major technologies agenciesmost notably the CFPB and DOJhavein the payment services sector, seeking information indicated that mortgage lenders and servicers willon their business and process. The orders indicate the be under enhanced scrutiny in the year ahead. First,Bureaus increasing interest in big techs management the CFPB issued policy guidance urging servicersof payment systems and utilization of consumer to dedicate sufficient resources and staff to assistinformation, and a focus on fintech markets. The orders borrowers with their post-forbearance payment and losswere issued under the CFPBs rulemaking authority mitigation options, and signaled it will resume a pre- under the CFPA, as opposed to its enforcement or pandemic enforcement posture. Additionally, in June ofsupervisory authorities. Although only an initial step, 2021 the CFPB issued its final amendments to Regulationthe move signals the Bureaus interest in rulemaking X, establishing new protections for borrowers as therelated to payment processing amid industry growth, CARES Act provisions and other Federal and Statewhich could ultimately bring about a future increase in foreclosure moratoria are phased out over the summer.related enforcement actionsFair lending will also be an area of federal regulatory scrutiny. In October, Attorney General Garland statedConsumer Data Rights in Financial Services that combatting redlining will be a top DOJ priority in the year to come. Similarly, CFPB Director Chopra madeIn July, President Biden issued an Executive Order public remarks signaling fair lending issues a focuson Promoting Competition in the American Economy for his agency. Director Chopra noted the Bureau willin July 2021 (Order) impacting privacy and data pursue bad actors, but also plans to watch practicessecurity in the financial services industries. Two goals that may result from implicit biases or oversight, raisingof the Executive Order are to ensure an open and the specter of enforcement exposure where lenderscompetitive economy, but also to protect consumers rely on stale or incomplete data, artificial intelligence, orprivacy rights with respect to new industries and algorithms to drive lending decisions.technologies. In October 2020, the Consumer Financial Director Chopra likely also will bring renewed federalProtection Bureau (CFPB) had issued advance notice regulator interest into payday lending. Directorof proposed rulemaking (ANPR), asking the public how Chopra announced that his agenda will also includethe CFPB might most efficiently and effectively develop re-evaluation of rules eased under the Trumpregulations to implement Section 1033 of the CFPA administration, such as the rules applicable to paydaywhich governs consumers rights to access their records lending. In addition to revisiting Director Kraningersfrom financial service providers. The Presidents Order efforts at regulator relief, we anticipate increased Bureaudirects the CFPB to consider rulemaking to facilitate activity under UDAAP that would target those practicesthe portability of consumer financial transaction data sosuch as misrepresentations in connection with theconsumers can more easily switch financial institutions collection of debt or the extension of creditthatand use new, innovative financial products, and also to are often identified by the Bureau in the course of itsenforce the UDAAP prohibition in the CFPA to ensure supervisory examinations. The CFPB is likely to continuethat actors engaged in unlawful activities do not distort to focus on certain billing and collection practices relatedthe proper functioning of the competitive process or to pay day lending, such as erroneous debiting orobtain an unfair advantage over competitors who follow unauthorized, duplicative debits.the law. The CFPB is analyzing both the benefits to consumers in accessing their data, as well as the costs 58'