Independent Banker - January 2022 - 35

Next: ICBA's 2021 advocacy track record 
partnered with other associations
on written comments to encourage
HUD to codify a standard of
disparate impact consistent with
U.S. Supreme Court precedent,
FHA requirements and a clear legal
framework to address unlawful
discrimination.
Potential issues in 2022
Credit reporting. Discussion has
ensued regarding changes to the
credit reporting system, including
the use of alternative data, credit
scoring and limits on the uses of
credit information. The Financial
Services Committee has constructed
legislation to those ends.
Data access and UDAAP. In July
2021, President Biden issued an
executive order about customer data
access and the Unfair, Deceptive,
or Abusive Acts and Practices
(UDAAP) Act. It encourages the
CFPB to commence rulemaking about
customer access to financial data and
to keep enforcing UDAAP. In March
2021, the CFPB rescinded a policy
statement that adopted restraint
in the agency's enforcement of the
prohibition on " abusive " acts and
practices. As of November 2021,
there had been no further action.
However, community banks should
continue to be mindful of UDAAP and
its potential impact.
Potential climate change compliance
In May 2021, President Biden issued an executive order directing
federal agencies to act regarding climate change-related financial
risks. In response, the Financial Stability Oversight Council (FSOC)
issued a report in October identifying climate change as an
emerging and increasing threat to U.S. financial stability. The report
recommends new actions on climate change data, disclosure and
scenario analysis. ICBA has issued a white paper in response to
the order. Congress has also introduced its own bills concerning
climate change regulation, including:
f The Climate Risk Disclosure Act. It would direct the Securities
and Exchange Commission (SEC) to issue rules for a public
company to annually disclose its climate change risk exposure.
f H.R. 1549. It would require federal banking regulators to include
climate risk in supervision and examinations.
f H.R. 3571. It would require the Federal Reserve to conduct stress
tests on large financial institutions to measure their resilience
to climate-related financial risks, including the risk of their
customers and customers' businesses.
The community bank view
" The opportunities for fraud and
cyber intrusion to bank clients
and internal network structures
is an ongoing focus, " says Jamie
Santistevan, vice president of
compliance, Bank Secrecy Act (BSA),
anti-money laundering (AML),
CRA and operations officer of
$166 million-asset Native American
Bank in Denver. " Supply chain
issues and our current economic
climate increases our ongoing risk
of exposure. "
Tim Grooms, vice president
and chief risk officer of
$800 million-asset First State
Bank in Winchester, Ohio, remains
committed to strong compliance
practices. " Our overall focus will
continue to be a strong compliance
management system, including
increased fraud risk often
associated with COVID-19-related
programs, " he says.
ICBA partnered with other associations ... to
encourage HUD to codify a standard of disparate
impact consistent with U.S. Supreme Court
precedent, FHA requirements and a clear legal
framework to address unlawful discrimination.
Community banks will continue
to address operational challenges,
serve their communities and deliver
on regulatory compliance. 
Mary Thorson-Wright is a writer in
Washington, D.C.
independentbanker.org Q 35
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Independent Banker - January 2022

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