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D.C. Circuit Grants PHH Request to Respond to Solicitor General's Brief
Over the objections of the CFPB, the D.C. Circuit today granted the request of PHH Corp. to file a supplemental brief responding to arguments in support of en banc review that were raised for the first time in a brief filed by the U.S. Solicitor General on the December 22, 2016. PHH’s supplemental brief is due on or before January 27, 2017. For additional background, please see our summaries of the panel decision, the CFPB’s petition for rehearing, and the D.C. Circuit’s order directing PHH to respond and the Solicitor General to provide views.
CFPB Announces Leadership Changes
On January 6, the CFPB announced several leadership changes. Specifically, Leandra English is returning to the CFPB to serve as the Chief of Staff; Jerry Horton will serve as the CFPB's Chief Information Officer; Paul Kantwill will serve as the Bureau's Assistant Director for Servicemember Affairs; John McNamara will serve as Assistant Director of Consumer Lending, Reporting, and Collections Markets; and Elizabeth (Eli) Reilly will serve as the CFPB's Chief Financial Officer.
Rep. Wilson Introduces Bill to Delay Fiduciary Rule
On January 6, Rep. Joe Wilson (R-S.C.) introduced the Protecting American Families’ Retirement Advice Act, a bill that would delay by two years the effective date of the Department of Labor’s “fiduciary rule.” As discussed previously on InfoBytes, the fiduciary rule—which is presently set to take effect in April 2017—expands the definition of “investment advisor” to include a “wider array of advice relationships,” thereby imparting new standards on financial advisors and brokers handling retirement accounts. In a statement, Rep. Wilson described the Fiduciary Rule as “one of the most costly, burdensome regulations to come from the Obama Administration.” Wilson’s proposed legislation seeks to delay the rule’s implementation in order to “giv[e] Congress and President-elect Donald Trump adequate time to re-evaluate.”
Trump Announces CFPB Transition Team
On January 5, 2016, the Trump Transition team announced the names of the four individuals assigned to lead the President-elect’s CFPB “Landing Team.” Generally, each landing team is tasked with collect information on each agency—ranging from the agency's budget and policies to the status of various rulemakings and the current administration's priorities—all with the overarching purpose of facilitating an orderly transfer of power at the federal financial regulators. The CFPB Landing Team includes:
- Paul Atkins, former GOP Commissioner for the SEC and current CEO of Patomak Global Partners LLC, which provides consulting services concerning financial services industry matters, regulatory compliance, risk and crisis management, public affairs, independent reviews, litigation support, and strategy.
- Kyle Hauptman, Senior Development Manager and occasional writer about financial & political issues for the American Enterprise Institute (AEI), member of the SEC’s Advisory Committee on Small and Emerging Companies, and former chief economic adviser on the issues of Financial Markets, Housing to the Romney For President (RFP) campaign.
- Consuala “CJ” Jordan, a public relations executive and Republican political consultant who is currently CEO of The Jordan Management Group, LLC, a full service Government Relations and Public Affairs Firm, specializing in strategic business development.
- Julie B. Lindsay, Managing Director and General Counsel of Capital Markets and Corporate Reporting at Citigroup Inc., and former Counsel to Commissioner Glassman at the SEC.
GAO Issues Report on TARP Housing Programs
On January 11, the GAO announced the release of its report providing an update on the status and condition of Treasury’s TARP-funded housing programs as of October 31, 2016. According to the report, Treasury had disbursed nearly 60 percent or $22.6 billion of the $37.51 billion assigned to TARP for the purpose of helping struggling homeowners avoid foreclosure. The report also notes that the GAO’s latest review yielded no new recommendations and that only five of the 29 recommendations GAO has previously made related to the TARP-funded housing programs remain open or not fully implemented. The report states that the GAO will continue to monitor and assess the status of these recommendations.
FTC Chief Ramirez Announces Resignation
On January 13, the FTC announced that Chairwoman Edith Ramirez will be stepping down effective February 10. Chairwoman Ramirez was appointed by President Barack Obama and has served as a commissioner since April 2010. She became chairwoman in March 2013, after former FTC Chairman Jon Leibowitz resigned. Her departure means that President-elect Donald Trump will have the chance to fill three vacancies at the agency.
European Commission Publishes Draft ePrivacy Regulation
Commission announced the release of its Proposal for a Regulation of the European Parliament and of the Council on Privacy and Electronic Communications (Proposed Regulation), which is set to repeal Directive 2002/58/EC (ePrivacy Directive). The Proposed Regulation as discussed previously on InfoBytesis intended to update the current rules to keep up with technical developments and adapting them to the General Data Protection Regulation (GDPR). Among other things, the Proposed Regulation will expand the scope of the ePrivacy rules to include internet-based voice and internet-messaging services, and to cover the content of communications, including metadata such as the time and location of a call. Furthermore, with regards to cookies, the Proposed Regulation does not require the consent of the user for non-privacy intrusive cookies, which either improve internet experience or measure the number of visitors to a specific website. The proposed Regulation also includes an opt-in requirement for telemarketing calls, unless national laws provide the recipient with a right to object. The Proposed Regulation also contains language extending the remedies currently provided under the GDPR. Once passed, the Proposed Regulation would become effective on May 25, 2018. Links to other related documents and information may be accessed through the following links:
CFPB Publishes Rule Implementing Civil Penalty Inflation Adjustments
On January 12, the CFPB published a final rule adjusting upward the maximum amount of each civil penalty within its jurisdiction, as required by provisions of the Inflation Adjustment Act and OMB Guidance. As explained in the rule, the new penalty amounts for 2017 are calculated by multiplying the corresponding 2016 penalty by a “cost-of-living adjustment” multiplier—which for 2017 has been set by the OMB at 1.01636—and then rounding to the nearest dollar. The new penalty amounts apply to civil penalties assessed after January 15, 2017.
CFPB Proposes Amending Ethical Standards for Employees
On January 10, the CFPB issued a notice of proposed rulemaking concerning amendments to its existing Supplemental Standards of Ethical Conduct for Employees. Among other things, the proposed rule would amend CFPB Ethics Regulations that address: (i) outside employment for covered employees; (ii) Bureau employee ownership or control of certain securities; (iii) restrictions on seeking, obtaining, or renegotiating credit; and (iv) disqualification requirements based on existing indebtedness. The proposed rule is also intended to clarify certain definitions. Comments on the proposal must be received on or before February 9.
Special Inspector General for TARP Issues Report on "Hardest Hit Fund"
On January 12, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) announced the release of its report on TARP’s “Hardest Hit Fund” (HHF). Created in 2010, the HHF provides a temporary safety net to help save the homes of unemployed and underemployed Americans in 19 states deemed to be the hardest-hit areas of the country. Among other things, the report noted that a majority of the more than 160,000 people denied funds through the program earned less than $30,000. The report notes that SIGTARP is unable to determine why denial rates for homeowners making less than $30,000 are so high, in part, because state agencies' records are non-existent, missing, or incomplete. Indeed, according to the report, some state agencies were unable to provide “even basic aggregate information about why homeowners were denied, let alone a specific reason for each person turned away.” The report emphasized, among other things, the need for all such records-related deficiencies be “immediately remedied.” The report also recommended that state agencies “remove unnecessary restrictions for participation in the program.”