Articles
Filter
A Broader Application of Fair Debt Collection Principles
On July 10, the Consumer Financial Protection Bureau issued new debt collection guidance and announced broad application of the Fair Debt Collection Practices Act under Sections 1031 and 1036 of the Dodd-Frank Act. The guidance suggests that the CFPB views the acts and practices made illegal by the...
ArticlesCFPB Investigations in Focus: Navigating CIDs
The Consumer Financial Protection Bureau was established in July 2011, with the mission of making “markets for consumer financial products and services work for Americans.” Over the last two years, it has been actively engaged in carrying out this mission using the arsenal of implements in its...
ArticlesMore Scrutiny for Short-Term, Small-Dollar Loans
On June 17, the U.S. Department of Defense issued advance notice of proposed rulemaking (ANPR) related to installment loans used by members of the armed forces and their families. The rule, which would revise 32 C.F.R. Part 232, comes in the wake of the April 2013 proposed guidance on deposit...
ArticlesHow the CFPB's Servicing Rules Apply to Small Servicers
On Jan. 17, the Consumer Financial Protection Bureau issued its final servicing rules, amending both Regulations X and Z. The final rules, which become effective Jan. 10, 2014, make significant changes to existing servicing requirements likely to result in significant operational and compliance...
ArticlesHAMP Risk on the Rise: A Complicated Regulatory Scheme Under the Spotlight
The Home Affordable Modification Program (“HAMP”) has had a rocky history in the three short years since its inception. Although participation in the Treasury Department’s HAMP program is voluntary, loan investors, including Fannie Mae and Freddie Mac, require their mortgage servicers to...
ArticlesHelp the Fed Get Out of the Mortgage Business
In 2008, when our nation's housing finance system imploded, the Federal Reserve was forced to step in as "lender of last resort" to America's homeowners. Five years later, the Fed remains the principal source of funding for home mortgages, buying mortgage backed bonds issued by Fannie Mae and...
ArticlesChapter 35A: Fair Lending Litigation
Valerie Hletko authored chapter 35A, "Fair Lending Litigation," in the Litigation Services Handbook: The Role of the Financial Expert fifth edition, 2013 cumulative supplement. Fair lending has become an increasingly active area of litigation by government agencies and private litigants. At their...
ArticlesThe Unconventional Lending Path
Potential risks and compliance considerations in making ‘non-qualified’ mortgages under the CFPB’s ability-to-repay rule When the Consumer Financial Protection Bureau issued its final “ability to repay” rule under Regulation Z in January, the bureau formally set a new regulatory standard requiring...
ArticlesPrivacy and Data Security: The Role of the US Regulators
In the wake of the Dodd-Frank Wall Street Reform and ConsumerProtection Act and in light of the rapid pace of innovation in the online and mobile payments industry, those involved in payment systems need to understand the US regulatory scheme for privacy and data security under which they operate...
ArticlesThe New Qualified Mortgage (QM) Requirements Negatively Affect Affiliate Settlement Service Providers
After considering a proposed rule and numerous comments, on January 10, 2013, the CFPB issued its long-awaited Ability-to-Repay rule (Rule). Generally, the Rule sets forth strict underwriting standards that require a lender to obtain and verify information to support a consumer’s ability-to-repay...
Articles