RegFi Podcast

Bob Broeksmit, President and CEO of the Mortgage Bankers Association, joins RegFi co-hosts Jerry Buckley and Caroline Stapleton to discuss the transformative impact of technology on the mortgage industry. Bob highlights the industry’s tradition of innovation, such as algorithmic underwriting and credit scoring, which has streamlined loan origination and reduced bias in lending decisions. The conversation also delves into the current interest in generative AI and how the Mortgage Industry Standards Maintenance Organization (MISMO) is creating a forum for market participants to discuss AI’s potential applications, guardrails for implementation, and the associated regulatory challenges. Links: Mortgage Bankers Association MISMO Artificial Intelligence Community of Practice Orrick Financial & Fintech Advisory RegFiPodcast.com

The FUTURES Act, a bipartisan legislative initiative recently reported by the House Financial Services Committee as part of a larger financial institutions legislative package, aims to foster technological modernization within financial regulatory agencies. In this episode, RegFi co-hosts Jerry Buckley and Sasha Leonhardt discuss the FUTURES Act and how it would address key findings from a pro bono report they authored with the Alliance for Innovative Regulation (AIR): “Financial Regulators’ Dilemma: Administrative and Regulatory Hurdles to Innovation.” The conversation highlights challenges Federal regulators currently face when adopting new technologies, including a burdensome procurement process and cultural resistance across agencies, and how the proposed legislation seeks to address these hurdles by mandating comprehensive assessments of current technology systems and requiring regular reporting on improvements and future plans. Jerry and Sasha also discuss the bill’s current status, potential impact and prospects of advancing through Congress in a contested election year. Links: Financial Regulators’ Dilemma: Administrative and Regulatory Hurdles to Innovation Orrick Financial & Fintech Advisory RegFiPodcast.com

Kate Flocken, Principal at FS Vector, shares her insights from a career steeped in legislative experience. She discusses the increasing regulatory scrutiny faced by fintechs as they transition from startups to key players. Kate emphasizes the need for proactive engagement with regulators amidst complex legislative hurdles. The potential shifts in congressional leadership during an election year are explored, shedding light on the evolving landscape of fintech public policy, including data privacy and AI challenges. A must-listen for those navigating the fintech space!

This week, RegFi co-hosts Jerry Buckley and Sasha Leonhardt welcome Ignacio Sandoval, a partner at Orrick and former special counsel in the SEC's Office of Chief Counsel, to explore the timely and complex subject of artificial intelligence in the securities industry. Their conversation covers developments at the intersection of AI technology and securities regulation and offers valuable insights into current applications, regulatory challenges and future trends. Links: Orrick Financial & Fintech Advisory RegFiPodcast.com

This discussion features Nat Hoopes, an AI expert in financial services, Chris Hilliard, who focuses on AI for legal compliance, and Ed Vincent, CEO developing AI risk management tools. They dive into AI's revolutionary role in financial regulation, emphasizing the need for transparency and ethical compliance. Topics include generative AI for legal research, challenges of AI regulation in the U.S. versus the EU, and enhancing compliance processes to prevent bias while promoting innovation. A lively exploration of the future of fintech awaits!

Not all of our listeners will be familiar with the Depository Institutions Deregulation and Monetary Control Act of 1980, but pending litigation on state DIDMCA opt outs could upend the bank partnership models employed by many fintechs. RegFi co-hosts Jerry Buckley and Sasha Leonhardt welcome Orrick partner James McGuire for an overview of DIDMCA’s interest rate exportation rules for state-chartered financial institutions and the lawsuit filed by industry groups in response to Colorado’s recent opt-out legislation. The conversation explores the critical balance between state regulations and national lending practices, including the potential implications to traditional banking, fintech innovation and consumer access to credit. Links: Orrick Financial & Fintech Advisory RegFiPodcast.com

RegFi co-hosts Jerry Buckley and Caroline Stapleton welcome Eugene Ludwig to discuss the decline in economic opportunities for middle- and low-income Americans. Gene, former Comptroller of the Currency and founder of Promontory Financial Group, shares insights from his book The Vanishing American Dream and the work of the Ludwig Institute for Shared Economic Prosperity to develop better statistical indicators for reporting economic conditions. The conversation explores regulatory, technological, and policy solutions to improve economic prospects for working-class Americans, emphasizing the role of the private sector in creating living wage jobs and proposing financial regulation reforms to foster innovation and consumer empowerment while ensuring safety and soundness. Links: Ludwig Institute for Shared Economic Prosperity The Vanishing American Dream: A Frank Look at the Economic Realities Facing Middle- and Lower-Income Americans Orrick Financial & Fintech Advisory RegFiPodcast.com

RegFi co-hosts Jerry Buckley and Sasha Leonhardt in 2020 collaborated with the Alliance for Innovation and Regulation (AIR) to author a report titled “Financial Regulators’ Dilemma: Administrative and Regulatory Hurdles to Innovation.” The report — based in large part on interviews with heads of innovation at the principal federal financial regulatory agencies — outlines technological, structural and cultural impediments to regulatory innovation. In this episode, Jerry and Sasha provide an overview of their research and the report’s key findings. The conversation then zooms out to consider how technological developments in recent years have confirmed — or challenged — some of these conclusions, as well as administrative and legislative efforts to spur innovation at federal financial regulators. Links: Financial Regulators’ Dilemma: Administrative and Regulatory Hurdles to Innovation Alliance for Innovation and Regulation (AIR) Orrick Financial & Fintech Advisory RegFiPodcast.com

Orrick partner Beth McGinn joins RegFi co-hosts Jerry Buckley and Sasha Leonhardt for our second episode focused on the proposed American Privacy Rights Act and its potential impact on the financial services industry. Beth sets the stage with an overview of the current data privacy regulatory landscape for financial services providers, including updates to the GLBA Safeguards Rule, reporting and disclosure requirements from the SEC and CISA, and state data privacy developments. Turning to the APRA, the group discusses how the FTC’s expansive rulemaking authority might interact with existing federal regulatory regimes, whether state requirements could be exempt from federal preemption, and new executive responsibility and impact assessment requirements in the proposed legislation. The conversation closes with a quick round-up of early industry and policymaking reactions to the APRA and provisions that would benefit from clarification before the bill is finalized. Links: RegFi Episode 30: A Closer Look at the American Privacy Rights Act The American Privacy Rights Act: 5 Things You Need to Know (Orrick Insight) Orrick Cyber, Privacy & Data Innovation Orrick Financial & Fintech Advisory RegFiPodcast.com

If passed, the proposed American Privacy Rights Act would dramatically transform data privacy compliance obligations for companies operating in the United States. Shannon Yavorsky  — head of Orrick’s global Cyber, Privacy & Data Innovation group — joins RegFi co-hosts Jerry Buckley and Sherry Safchuk for a conversation about the background and purpose of the APRA, key provisions in the bill and implications for the financial services industry. The discussion covers potential exemptions based on existing federal financial regulations, which state laws are preempted and which are not, how a federal privacy enforcement and oversight regime might be structured, and the prospects for legislative action as policymakers focus on the upcoming election season. Links: The American Privacy Rights Act: 5 Things You Need to Know (Orrick Insight) Orrick Cyber, Privacy & Data Innovation Orrick Financial & Fintech Advisory RegFiPodcast.com