Sallie Mae 2013 Annual Report Download - page 19

Other Significant Sources of Regulation
Many aspects of our businesses are subject to regulation by federal and state regulation and administrative
oversight. Some of the most significant of these are described below.
HEA
We are subject to the HEA and our student loan operations are periodically reviewed by ED and Guarantors.
As a servicer of federal student loans, we are subject to ED regulations regarding financial responsibility and
administrative capability that govern all third-party servicers of insured student loans. In connection with our
servicing operations, we must comply with, on behalf of Guarantor clients, ED regulations that govern Guarantor
activities as well as agreements for reimbursement between ED and our Guarantor clients.
Federal Financial Institutions Examination Council
As a third-party service provider to financial institutions, we are also subject to examination by the Federal
Financial Institutions Examination Council (the “FFIEC”). The FFIEC is a formal interagency body of the U.S.
government empowered to prescribe uniform principles, standards, and report forms for the federal examination
of financial institutions by the FRB, the FDIC, the National Credit Union Administration, the Office of the
Comptroller of the Currency and the CFPB and to make recommendations to promote uniformity in the
supervision of financial institutions.
Consumer Protection and Privacy
Our originating and servicing of federal and Private Education Loans and our debt collection and
receivables management activities subject us to federal and state consumer protection, privacy and related laws
and regulations. Some of the more significant laws and regulations that are applicable to our business include:
• various laws governing unfair, deceptive or abusive acts or practices;
• the federal Truth-In-Lending Act and Regulation Z issued by the FRB, which governs disclosures of
credit terms to consumer borrowers;
• the Fair Credit Reporting Act and Regulation V issued by the FRB, which governs the use and provision
of information to consumer reporting agencies;
• the ECOA and Regulation B issued by the FRB, which prohibits discrimination on the basis of race, creed
or other prohibited factors in extending credit;
• the SCRA, which applies to all debts incurred prior to commencement of active military service
(including education loans) and limits the amount of interest, including service and renewal charges and
any other fees or charges (other than bona fide insurance) that are related to the obligation or liability;
• the Fair Debt Collection Act, which governs the manner in which consumer debts may be collected by
collection agencies;
• the Truth in Savings Act and Regulation DD issued by the FRB, which requires disclosure of deposit
terms to consumers;
• Regulation CC issued by the FRB, which relates to the availability of deposit funds to consumers;
• the Right to Financial Privacy Act, which imposes a duty to maintain the confidentiality of consumer
financial records and prescribes procedures for complying with administrative subpoenas of financial
records;
• the Electronic Funds Transfer Act and Regulation E issued by the FRB, which governs automatic deposits
to and withdrawals from deposit accounts and customers’ rights
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