The Consumer Financial Protection Bureau released three policies on Tuesday aimed at helping lenders get comfortable when working on innovative products. The regulator introduced a compliance assistance sandbox policy, a revised no-action letter policy and a trial disclosure program policy.
“These efforts can contribute to an environment where innovation can flourish — giving consumers more options and better choices,” said Kathy Kraninger, director of the CFPB. She added that the policies will help reduce regulatory uncertainty.
Firms accepted into the sandbox will be provided with a safe harbor from liability for certain conduct during a testing period. The safe harbor will apply to liability from the Truth in Lending Act, the Equal Credit Opportunity Act and the Electronic Fund Transfer Act.
The no-action letter policy updates a policy established by the CFPB in 2016. And the trial disclosure program policy allows lenders to test alternative disclosures for a limited time after receiving permission from the CFPB.
For more details, see this week’s upcoming issue of Inside Mortgage Finance.
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