Consumer Financial Protection Bureau
A destination firm for entities engaged in CFPB investigations.Legal 500
Practice Overview
The Consumer Financial Protection Bureau — an agency focused on protecting consumers of financial products and services — has become a preeminent financial regulator in its first decade of existence. It is endowed with extensive powers to write rules, supervise financial institutions and their service providers, and enforce a broad range of federal laws.
Buckley attorneys have helped clients navigate all facets of CFPB regulation and oversight since its inception. Our firm has advised on hundreds of CFPB-related matters that relate to policy, rulemaking, supervision, investigation, and enforcement. These matters have run the gamut on industries, products, and practices, and have included mortgage lending and servicing, auto finance, credit bureau reporting, debt collection, overdraft programs, deposit products, payment cards, student lending and servicing, credit card origination and servicing, alternative finance, fintech, and telecommunications, among others.
Buckley attorneys routinely:
- Provide clear and practical regulatory advice for navigating consumer financial protection laws and regulations
- Draft comment letters on proposed rulemakings
- Prepare clients for routine and special examinations, including conducting mock examinations
- Assist clients with matters that arise during bureau examinations, including responses to first-day letters, follow-on requests, and presentations to the CFPB
- Draft responses to official CFPB supervisory communications, such as fact verification letters, Potential Supervisory Action (PSA) letters, and Potential Action and Request for Response (PARR) letters
- Defend clients in investigations and enforcement actions, handling civil investigative demands (CIDs), investigational hearings, and Notice and Opportunity to Respond and Advise letters (NORA) letters, through to the resolution of enforcement matters
- Facilitate interactions with the CFPB Office of Innovation, including assisting with the No Action Letter process
As federal and state regulators increasingly coordinate oversight and investigation, Buckley attorneys assist clients in matters in which the CFPB leads or joins investigations that also involve state attorney generals or prudential regulators. Many of these matters remain confidential. Some of the representations we can disclose, whether specifically or generally, include:
- Represented Flagstar Bank in the first CFPB enforcement action of its mortgage servicing rules that was based, in part, on allegations of unfair acts and practices and resulted in an administrative consent order settlement for $37.5 million relating to default servicing loss-mitigation practices
- Represented a credit card issuer in the second CFPB enforcement action, issued jointly with the Federal Deposit Insurance Corporation, in which the agencies alleged deceptive marketing and sales practices related to add-on products
- Preparing comment letters on behalf of the Consumer Bankers Association, Financial Services Roundtable, and Mortgage Bankers Association to provide feedback to the CFPB on their rulemaking, examination, and enforcement practices
- Representing BSI Financial Services in a settlement with the CFPB alleging violations of mortgage servicing laws
- Conducting a mock examination for a top-20 depository institution in advance of mortgage origination and servicing examinations
- Representing Enova in a settlement with the CFPB alleging the company debited consumer bank accounts without first obtaining authorization, and failed to honor loan extensions granted to consumers
- Representing Verizon Wireless in a settlement with the CFPB, Federal Communications Commission (FCC), and 51 state attorneys general alleging that the company permitted third parties to place unauthorized charges on consumers’ wireless telephone bills
- Representing various student loan companies in investigations initiated by the CFPB and state regulators, including matters closed without further action
- Representing one of the largest consumer credit reporting agencies in a CFPB enforcement action alleging unfair, deceptive, or abusive acts or practices and Fair Credit Reporting Act (FCRA) violations relating to the marketing of credit score monitoring products to consumers and the use of negative option billing
- Represented numerous institutions in the CFPB’s investigations into alleged deceptive marketing and sales practices related to its add-on products, including a major credit card lender, a major jewelry finance company, and First National Bank of Omaha
- Represented a money transmitter in a multiyear CFPB examination and enforcement initiative related to the company’s remittance transfer business and compliance with Regulation E’s Remittance Transfer Rule
A destination firm for entities engaged in CFPB investigations.Legal 500
Articles
"CFPB makes it clear: Fair servicing is back, for real this time" by Jonice Gray Tucker and H Joshua Kotin (HousingWire)
A new presidential administration and a clarion call from the Consumer Financial Protection Bureau has transformed fair servicing from a seemingly remote risk into a front and center mandate. After the 2008 financial crisis, regulators enhanced long-standing fair lending examination guidelines to...
Articles"CFPB order offers insight into pandemic mortgage servicing" by Jeffrey P. Naimon and H Joshua Kotin (Law360)
The U.S. Consumer Financial Protection Bureau in December issued a consent order based on alleged violations of its 2014 mortgage servicing regulations. The consent order, which also bootstraps claims of unfairness and deception to alleged technical violations of the servicing regulations —...
ArticlesSpecial Alert: CFPB redefines Qualified Mortgage; “GSE Patch” to expire
The Consumer Financial Protection Bureau last week released two final rules further defining what types of loans can be a “qualified mortgage loan” for purposes of the bureau’s Ability-to-Repay/Qualified Mortgage Rule (ATR/QM Rule). The General QM Final Rule substantially revamps the general rules...
Special Alerts"CFPB credit stance has broad specialty finance implications" by Jeffrey P. Naimon and H Joshua Kotin (Law360)
The Consumer Financial Protection Bureau issued an advisory opinion at the end of November that could compel specialty-finance companies — including those offering income-share agreements, litigation funding, merchant cash advances and earned wage access products — to take a fresh look at whether...
Articles"Square peg meets round hole: Regulatory responses to challenges created by innovation in banking" by Jonice Gray Tucker, Kari K. Hall, Brendan Clegg, and Anthony Carral (The Business Lawyer)
During the past decade, an underlying tension between the financial sector’s embrace of innovative products and services and the regulatory framework that governs the industry surfaced—and that tension has since become even more acute during the COVID-19 pandemic. Facing pressure from customers’...
Articles"Data security best practices for licensed lenders' telework" by Sherry-Maria Safchuk and James C. Chou (Law360)
State-licensed/registered brokers, lenders and servicers have increased their focus on data security as the spread of COVID-19 has extended work-from-home orders, and what now seems to be a lasting acceptance of remote work means that the tools used to secure data will remain relevant when the...
ArticlesSpecial Alert: CFPB proposes new Qualified Mortgage definition for Seasoned QMs
On August 18, the CFPB released a Notice of Proposed Rulemaking (NPRM) to create a new category of Qualified Mortgages to be called “Seasoned QMs”. The CFPB concluded that if a loan has performed for a long enough period of time and meets certain underwriting conditions and product restrictions, it...
Special Alerts"Educational tools may bring regulatory risk for fintech cos." by H Joshua Kotin, Michelle L. Rogers, and Kathryn R. Goodman (Law360)
Financial services providers are increasingly combining delivery of products and services with advice designed to help consumers make better-informed financial decisions. Fintech companies, which typically rely upon data and analytics as fundamental components of their business proposition, should...
ArticlesSpecial Alert: CFPB takes first-ever agency redlining action against nonbank lender
On July 15, the Consumer Financial Protection Bureau filed a complaint against a Chicago-based nonbank mortgage company alleging fair lending violations predicated, in part, on statements made by the company’s owner and other employees during radio shows and podcasts from 2014 through 2017. The...
Special AlertsSpecial Alert: Supreme Court preserves CFPB through severance
The U.S. Supreme Court on Monday issued its long-awaited opinion in Seila Law LLC v. Consumer Financial Protection Bureau , with a 5-4 split along ideological lines holding that the structure of the CFPB is unconstitutional. Specifically, the clause in the underlying statute that requires cause to...
Special Alerts"School of hard knocks: Federal student loan servicing and the looming federal student loan crisis" by Jeffrey P. Naimon, Sasha Leonhardt, and Sarah B. Meehan (American University Administrative Law Review)
Nearly forty-three million Americans collectively owe $1.5 trillion in outstanding student loan debt. Of that, approximately ten percent of student loan debt is over ninety days delinquent or in default, while the actual delinquency rate is estimated to likely be double this amount due to the fact...
ArticlesSpecial Alert: CFPB proposes changes to qualified mortgage definition; delays expiration of “GSE patch” until final rule becomes effective
On June 22, the CFPB released two Notices of Proposed Rulemaking (NPRM) to address the January 2021 expiration of the so-called GSE Patch for the Qualified Mortgage (QM) Rule. The GSE Patch provided QM status to mortgage loans eligible for purchase by either of the GSEs even if the loans did not...
Special Alerts"Ruling on anti-hacking law may guide fair lending tests" by Jeffrey P. Naimon and H Joshua Kotin (Law360)
Regulators, consumer groups, academics and private litigants are grappling with the fair lending implications of the credit models powering the explosive growth in online lending by banks and financial technology firms. The U.S. District Court for the District of Columbia in late March concluded...
Articles"A new era of FCRA scrutiny for consumer data furnishers" by Jessica L. Pollet (Law360)
Furnishers provide information to consumer reporting agencies on over 1.3 billion consumer credit accounts or other tradelines each month, with the three largest national consumer reporting agencies holding the personal information of over 200 million consumers. Given the extent of the consumer...
Articles"Email notice lessons from 7th Circ. debt collection ruling" (Lavallee v. Med-1 Solutions LLC) by Marshall T. Bell (Law360)
Consumers increasingly expect to have access to information and the ability to conduct business at the time and place of their choosing, whether shopping for goods and services or managing their finances. Often, that means they expect service providers to communicate with them by email, text or...
ArticlesSpecial Alert: CFPB issues Advance Notice of Proposed Rulemaking to end GSE patch
On July 25, the CFPB issued an Advance Notice of Proposed Rulemaking (ANPR) that is intended as a first step in an orderly expiration of the so-called GSE patch, which confers Qualified Mortgage status for loans purchased or guaranteed by Fannie Mae and Freddie Mac while those entities operate...
Special Alerts"Alternative data and fair lending face off: The relationship is complicated" by Jonice Gray Tucker and Caroline M. Stapleton (Mortgage Compliance Magazine)
Thinking of getting into a relationship with alternative data? You're not alone. Use of "alternate data," a term broadly used to describe consumer information gathered from non-conventional sources, is becoming increasingly attractive to mortgage lenders, their service providers, and even consumers...
Articles"What to expect from increased FTC-state AG collaboration" by Michelle L. Rogers and Katherine L. Halliday (Law360)
In prepared remarks at the winter meeting of the National Association of Attorneys General on March 5, 2019, Federal Trade Commission Chairman Joseph Simons advocated for increased collaboration with state attorneys general and noted that such collaboration is critical to the FTC’s mission. His...
Articles"Breaking down (language) barriers: A practical approach to LEP borrowers" by Jessica L. Pollet and Susanna K. Sedrak (Westlaw Journal)
In roughly 5.3 million households in the United States, the head of the house doesn’t speak English as the primary language or has limited ability to understand it.1 But like most individuals seeking full participation in the U.S. economy, those with limited English proficiency need access to...
Articles
News & Blogs
CFPB denies lending agency’s petition to set aside CID
On April 26, the CFPB denied a petition by a title lending company to set aside a civil investigative demand (CID) issued by the Bureau in February. The CID requested information from the company to determine, among other things, whether “consumer-lending companies or title-loan companies, in...
InfoBytesCFPB enters $34.1 million in judgments against debt-relief companies
On May 7, the U.S. District Court for the Central District of California entered two default judgments totaling more than $34.1 million in an action by the CFPB against a mortgage lender and several related individuals and companies (collectively, “defendants”) for alleged violations of the...
InfoBytesCFPB Office of Servicemember Affairs releases annual report on servicemembers’ financial needs
On May 6, the CFPB’s Office of Servicemember Affairs (OSA) released its annual report , which provides an overview of OSA’s activities in fulfilling its statutory responsibilities for fiscal year 2020 and covers the period between January 1, 2020 to December 31, 2020. The report also addresses...
InfoBytesCFPB argues eviction disclosure rule does not require false speech
On May 11, the CFPB urged the U.S. District Court for the Middle District of Tennessee to deny a request for a temporary injunction of a CFPB rule that would require all landlords to disclose to tenants federal protections put in place as a result of the ongoing Covid-19 pandemic, arguing that the...
InfoBytesCFPB reports on use of payday, auto title, and pawn loans
On May 5, the CFPB released a new report surveying the prevalence, persistence of use, and other credit sources accessible for consumers who utilize payday, auto title, and pawn loans. The report uses the first two rounds of the Bureau’s Making Ends Meet survey, which was conducted before the Covid...
InfoBytesCFPB settles with additional debt-relief defendants
On May 4, two additional settlements were reached with defendants in an action by the CFPB against a mortgage lender and several related individuals and companies (collectively, “defendants”) for alleged violations of the Consumer Financial Protection Act (CFPA), Telemarketing Sales Rule (TSR), and...
InfoBytesCFPB reports on Covid-19 mortgage borrower challenges
On May 4, the CFPB released two reports analyzing mortgage borrowers’ challenges due to the ongoing Covid-19 pandemic. The first report explores the characteristics of borrowers who are delinquent or in forbearance based a sample of nearly 662,000 loans for owner-occupied properties. The report...
InfoBytesCFPB, FTC remind landlords of tenant pandemic protections
On May 3, the CFPB acting Director Dave Uejio and FTC acting Chairwoman Rebecca Kelly Slaughter released a joint notification letter to the nation’s largest apartment landlords that together own over 2 million units. The letter serves as a reminder of federal protections put in place to keep...
InfoBytesCFPB sued over Covid-19 FDCPA eviction rule
On May 3, plaintiffs, including members of the National Association of Residential Property Managers, sued the CFPB asserting the Bureau’s recently issued interim final rule (IFR) violates their First Amendment rights. As previously covered by InfoBytes , the IFR amended Regulation F to require...
InfoBytesCFPB releases county-level info on consumer complaints
On April 28, the CFPB released a newly updated consumer complaint bulletin analyzing complaints submitted in 2020 in counties nationwide and providing a county-level visualization of identified trends. According to the report, while a total of 514,102 complaints were reported to the Bureau in 2020...
InfoBytes
Press Releases & Announcements
Legal 500 2020 recognizes 21 Buckley attorneys in six practice areas
“Buckley attorneys are incredibly responsive while providing top quality legal services,” is how respondents described the firm in the 2020 edition of Legal 500, which ranked Buckley as a top law firm and recognized it in six categories:
- Corporate Investigations and White ...
Buckley files amicus brief in CFPB constitutionality case
Buckley LLP on Dec. 16 filed an amicus brief on behalf of the Mortgage Bankers Association, the National Association of Home Builders, and the National Association of...
AnnouncementsThe Legal 500 2019 recognizes 17 Buckley attorneys in five practice areas
The Legal 500 once again ranked Buckley as a top law firm and recognized it in five categories:
- Corporate Investigations and White Collar Criminal Defense: Corporate – Tier 4
- Corporate Investigations and White Collar Criminal Defense: Individuals – Tier 2 ...
The Legal 500 2018 recognizes five practice areas and 17 attorneys at Buckley Sandler
Buckley Sandler LLP again has been noted as one of the nation’s top law firms by The Legal 500 in its 2018 rankings, with recognition in five practice areas:
- Financial Services: Litigation
- Financial Services: Regulation
- Corporate ...
Buckley Sandler Issues Second Edition of CFPB Mortgage Origination Rules Deskbook
Buckley Sandler today announced the publication of the second edition of the CFPB Mortgage Origination Rules Deskbook. Produced in partnership with the American Bankers Association, the book is the definitive guide for bank and nonbank mortgage originators navigating the Consumer...
AnnouncementsThe Legal 500 2017 Recognizes Four Practice Areas and 20 Attorneys at Buckley Sandler
Buckley Sandler has again been cited as one of the nation’s top law firms by The Legal 500 in its 2017 rankings, with the recognition of four practice areas:
- Financial Services: Litigation
- Financial Services: Regulatory
- Cyber Law (Data Protection and ...
BuckleySandler Hosts Eighth Annual Fair Lending Today Conference
BuckleySandler LLP hosted its eighth annual Fair Lending Today conference in Washington, DC on March 13-14, 2016. The two-day event featured an evening of interactive roundtable discussions on fair lending issues, followed by a full day of seminars. The sessions were led by BuckleySandler attorneys...
Press ReleasesBuckley Sandler Files Amicus Curiae Brief on Behalf of Industry Group in RESPA Case; Marks First Appeal Against CFPB Director Decision
On October 5, 2015, Buckley Sandler attorneys filed an amicus curiae brief on behalf of the Consumer Mortgage Coalition (CMC) in the first case to come up on appeal to the District of Columbia Circuit since the CFPB was founded in 2011. In the CMC’s brief, Buckley Sandler attorneys argued that the...
Press ReleasesBuckley Sandler & American Bankers Association Release CFPB Mortgage Origination Deskbook
WASHINGTON, D.C. (October 9, 2014) – Buckley Sandler LLP , a leading financial services and criminal and civil enforcement defense law firm, is pleased to announce the availability of “The New CFPB Mortgage Origination Rules Deskbook.” Published in partnership with the American Bankers Association...
Press Releases
Our Consumer Financial Protection Bureau Team
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FYI
"CFPB makes it clear: Fair servicing is back, for real this time" by Jonice Gray Tucker and H Joshua Kotin (HousingWire)
"CFPB order offers insight into pandemic mortgage servicing" by Jeffrey P. Naimon and H Joshua Kotin (Law360)
Special Alert: CFPB redefines Qualified Mortgage; “GSE Patch” to expire
Recent Blog Posts
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May 13, 2021
CFPB denies lending agency’s petition to set aside CID
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May 13, 2021
CFPB enters $34.1 million in judgments against debt-relief companies
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May 12, 2021
CFPB Office of Servicemember Affairs releases annual report on servicemembers’ financial needs
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May 11, 2021
CFPB argues eviction disclosure rule does not require false speech
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May 7, 2021
CFPB reports on use of payday, auto title, and pawn loans