CFPB seeks to rescind guidance on fair lending for noncitizens; OCC floats guidance for bank CRA compliance; CFPB publishes report on BNPL; court reduces payment in CFPB student loan servicer settlement.

The trade group said the bureau’s open banking rule is a productive step toward encouraging a consumer-authorized data-sharing system.

While trade groups representing banks are seeking a major overhaul of the current rule, fintechs said the rule preserves the principle that financial data belongs to consumers and not banks.

The bureau is seeking input on the proper understanding of who can serve as a “representative” making a request on behalf of the consumer and the optimal approach to the assessment of fees to defray the costs incurred in responding to a customer-driven request.

The Bank Policy Institute and others stressed that industry participants shouldn’t have to comply with a rule given that the CFPB plans to substantially revise it.

Amid litigation and disagreements among industry participants over the Section 1033 open banking rule, the CFPB said it will soon issue a revised version of the rule.

The financial services industry can move forward with open banking efforts even without standards established by the CFPB, according to industry experts.

The rule, required by the Dodd-Frank Act, will allow consumers to have greater control over their financial data.

Two trade groups representing banks filed a lawsuit the same day the CFPB released its final rule.

The final rule doesn’t apply to mortgage companies, but the CFPB is considering a future rulemaking tied to the mortgage industry. For now, the new rule could help mortgage lenders approve more borrowers.