CFPB Resource Center
Introduction
Buckley's CFPB practice includes more than 40 partners and counsel who have advised on CFPB regulatory, examination, and enforcement matters.
The firm has advised or is still advising on more than 50 examinations, investigations, and enforcement actions in connection with CFPB rulemakings. On this page, we outline some of the knowledge, insights and observations we have developed based on our work on CFPB matters.
The majority of our lawyers have experience working on CFPB matters, including 40 of our partners and counsel. Our recent representations have included the following industries:
- Auto finance
- Credit cards
- Mortgage origination and servicing
- Payday lending
- Student loans
- Specialty lending
- Homeowners Protection Act
- Credit reporting
Thought Leadership & Analysis
CFPB settles with defunct schools’ student loan management company
On June 14, the CFPB announced a proposed settlement, subject to approval by a federal district court, with a company that manages student loans for a defunct for-profit educational institution resolving allegations it provided substantial assistance to the institution in engaging in unfair acts...
InfoBytes11th Circuit: Motion to reschedule foreclosure does not violate RESPA
On June 11, the U.S. Court of Appeals for the 11th Circuit affirmed the dismissal of a RESPA action against a mortgage servicer, concluding that rescheduling a foreclosure sale is not a violation of Regulation X’s prohibition on moving for an order of foreclosure sale after a borrower has submitted...
InfoBytesCFPB symposium on “abusive” standard set for June 25
On June 11, the CFPB announced that its first symposium, regarding the meaning of “abusive acts or practices” under Section 1031 of the Dodd-Frank Act, will be held on June 25. As previously covered by InfoBytes , the CFPB announced a symposia series that will convene to discuss consumer...
InfoBytesDemocratic Senators ask CFPB to reconsider debt collection rulemaking
On June 6, twenty six Democratic Senators sent a letter to the CFPB requesting that the Bureau reconsider the recent debt collection rulemaking proposal to “pursue more meaningful reforms that put consumers . . . first.” As previously covered by InfoBytes , in May, the CFPB released its highly...
InfoBytesCFPB partially modifies two CIDs
On May 21, the CFPB issued two orders partially modifying civil investigative demands (CID) issued by the Bureau in 2017 and 2018. In 2017, a revised CID was issued to a provider of tax debt relief products and services concerning potential violations of UDAAP provisions under the Consumer...
InfoBytesCFPB delays underwriting compliance of Payday Rule
On June 6, the CFPB released a final rule to delay the August 19, 2019 compliance date for the mandatory underwriting provisions of the agency’s 2017 final rule covering “Payday, Vehicle Title, and Certain High-Cost Installment Loans” (the Rule). Compliance with these provisions of the Rule is now...
InfoBytesCFPB report explores ties between credit score fluctuations and credit applications
On May 30, the CFPB released the latest quarterly consumer credit trends report , which examines the fluctuations in consumers’ credit scores and the timing of consumers’ applications for credit. The report analyzes consumers whose credit scores showed large increases or decreases between 2009 and...
InfoBytesCFPB releases TRID FAQs for construction loans
On May 31, the CFPB released FAQs to assist with TILA-RESPA Integrated Disclosure Rule (TRID) compliance. The two new FAQs relate to the application of TRID to construction loans. Highlights include: Most construction-only and construction-permanent loans are covered by TRID as long as such a loan...
InfoBytesCFPB publishes spring 2019 rulemaking agenda
On May 22, the Office of Information and Regulatory Affairs released the CFPB’s spring 2019 rulemaking agenda . According to a Bureau blog post , the information presented represents regulatory matters it “reasonably anticipates having under consideration during the period of May 1, 2019, to April...
InfoBytes25 state AGs reject CFPB payday proposal in comment letter
On May 15, a group of 25 Democratic Attorneys General submitted a comment letter in response to the CFPB’s February proposal to rescind certain provisions related to the underwriting standards of the “Payday, Vehicle Title, and Certain High-Cost Installment Loans” (the Rule) (covered by InfoBytes...
InfoBytesCFPB files suit against New York-based debt-collection law firm
On May 17, the CFPB announced it filed a lawsuit in the U.S. District Court for the Eastern District of New York against a New York debt-collection law firm. According to the Bureau’s complaint , between 2014 and 2016 the law firm allegedly initiated more than 99,000 collection lawsuits in an...
InfoBytesHouse committee examines CFPB’s proposal to repeal payday rule
On May 16, the House Committee on Oversight and Reform’s Subcommittee on Economic and Consumer Policy held a hearing to examine the CFPB’s proposal to repeal parts of its “Payday, Vehicle Title, and Certain High-Cost Installment Loans” (the Rule). (See previous InfoBytes coverage on the proposed...
InfoBytesCalifornia Reinvestment Coalition sues CFPB alleging data collection failures
On May 14, the California Reinvestment Coalition (CRC) announced it filed a lawsuit in the U.S. District Court for the Northern District of California against the CFPB for allegedly failing to implement Section 1071 of the Dodd-Frank Act, which requires the Bureau to collect and disclose data on...
InfoBytesKraninger says Dept. of Ed hindering CFPB's supervision of student loan servicers
On May 16, Senator Warren (D-MA) released an April 23 letter from CFPB Director Kathy Kraninger outlining the Bureau’s efforts to oversee student loan servicers, which was sent in response to an inquiry by six democratic senators. As previously covered by InfoBytes , the senators wrote to the CFPB...
InfoBytesCFPB announces regulatory review plan; seeks comment on Overdraft Rule impact on small businesses
On May 13, the CFPB announced a plan to review its regulations under Section 610 of the Regulatory Flexibility Act (RFA), which specifies that agencies should review certain rules within 10 years of their publication, consider the rules’ effect on small businesses, and invite public comment on each...
InfoBytesCFPB proposes debt collection rules
On May 7, the CFPB issued its Notice of Proposed Rulemaking (NPRM) amending Regulation F, to implement the Fair Debt Collection Practices Act (FDCPA) (the “Proposed Rule”). The Bureau also released a Fact Sheet on the Proposed Rule. The proposed effective date is one year after the final rule is...
InfoBytes9th Circuit: CFPB structure is constitutional; law firm must comply with CID
On May 6, the U.S. Court of Appeals for the 9th Circuit held that (i) the CFPB’s single-director structure is constitutional, and that (ii) the district court did not err when it granted the Bureau’s petition to enforce a law firm’s compliance with a 2017 civil investigative demand (CID). As...
InfoBytesWarren W. Traiger quoted in National Mortgage News article, “CFPB turns its reg relief focus to HMDA”
Warren W. Traiger was quoted on May 2, 2019 in a National Mortgage News article, “CFPB turns its reg relief focus to HMDA,” which discussed the Consumer Financial Protection Bureau’s steps to ease reporting requirements under the Home Mortgage Disclosure Act after the agency has previously...
In The NewsCFPB sues credit repair telemarketers
On May 2, the CFPB announced that it had filed a lawsuit against Utah-based credit repair telemarketers and their affiliates (defendants) for allegedly committing deceptive acts and practices in violation of the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act (CFPA)...
InfoBytesCFPB issues fact sheet on TRID disclosures with assumption transactions
On May 1, the CFPB released a factsheet addressing when loan estimates and closing disclosures are required for assumption transactions under the TILA-RESPA Integrated Disclosure Rule (TRID Rule). The factsheet includes a flowchart and a narrative summary to demonstrate when the disclosures would...
InfoBytesCFPB proposes permanent HMDA thresholds
On May 2, the CFPB issued a Notice of Proposed Rulemaking (NPRM), which would permanently raise coverage thresholds for collecting and reporting data about closed-end mortgage loans and open-end lines of credit under the HMDA rules. Specifically, the proposal would permanently raise the reporting...
InfoBytesCFPB fines student loan servicer $3.9 million for unfair practices
On May 1, the CFPB announced a $3.9 million settlement with a student loan servicing company. The settlement resolves allegations that the company engaged in unfair practices by failing to make adjustments to loans made under the Federal Family Education Loan Program to account for circumstances...
InfoBytesDemocratic senators concerned with CFPB retiring HMDA search tool
On April 29, nine Democratic Senators, led by Sherrod Brown (D-Ohio), wrote to the CFPB expressing “deep concern” regarding the Bureau’s plan to retire its tools for public exploration of HMDA data— HMDA Explorer Tool and the Public Data Platform API . In the letter, the Senators argue that...
InfoBytes"TRID 2.0 and the disappearance of the black hole" by Brandy A. Hood (The Business Lawyer)
INTRODUCTION The Know Before You Owe: TILA-RESPA Integrated Disclosures Rule (“TRID Rule”) and its initial accompanying amendments have now been in effect for several years, and the rule continues to evolve. In response to industry requests, the Consumer Financial Protection Bureau (“CFPB”)...
ArticlesCFPB updates Prepaid Small Entity Compliance Guide
On April 26, the CFPB released version 3.1 of its Prepaid Small Entity Compliance Guide to incorporate previously issued submission instructions for issuers submitting account agreements pursuant to the prepaid account rule through the electronic submission system “Collect.” (See previous InfoBytes...
InfoBytesCFPB issues RFI on Remittance Rule
On April 25, the CFPB issued a Request for Information (RFI) on two aspects of the Remittance Rule, which took effect in 2013, and requires financial companies handling international money transfers, or remittance transfers, to disclose to individuals transferring money information about the exact...
InfoBytesCFPB updates CID policy
On April 23, the CFPB announced updates to its policy on Civil Investigative Demands (CIDs). According to the Bureau, the new policy is consistent with comments received in response to a 2018 Request for Information, which solicited public feedback on “how best to achieve meaningful burden...
InfoBytesDistrict Court enters first significant decision under CFPB’s ATR/QM Rule
On March 26, the U.S. District Court for the Southern District of Ohio, in what appears to be the first significant decision on claims brought against a mortgage lender under the CFPB’s Ability-to-Repay/Qualified Mortgage Rule, granted summary judgment in favor of the lender. The court rejected...
InfoBytesKraninger’s focus is preventing consumer harm, clarifying “abusive”
On April 17, Kathy Kraninger, Director of the CFPB, spoke before the Bipartisan Policy Center where she reiterated the Bureau’s focus on prevention of harm and announced a symposium that will explore the meaning of “abusive acts or practices” under Section 1031 of the Dodd-Frank Act. In her remarks...
InfoBytesFederal regulators discuss national bank’s remediation progress
On April 9, Senators Elizabeth Warren (D-Mass) and Sherrod Brown (D-Ohio) released responses to inquiries sent last month to the Federal Reserve Board, the OCC, and the CFPB, which expressed, among other things, concern about the level of response taken by a national bank regarding its auto-lending...
InfoBytesSenate Democrats question the CFPB on PSLF oversight
On April 3, six Democratic Senators wrote to the CFPB seeking additional information on the Bureau’s oversight of student loan companies and servicers involved in the administration of the federal Public Service Loan Forgiveness Program (PSLF). In the letter, the Senators expressed concern that the...
InfoBytesCFPB and Federal Reserve update HMDA examination procedures; CFPB updates ECOA baseline review procedures
On April 1, the CFPB and the Federal Reserve Board (Federal Reserve) issued revisions to the HMDA examination procedures covering data collected since January 1, 2018, under the HMDA amendments issued by the Bureau in October 2015 and August 2017, as well as section 104(a) of the Economic Growth,...
InfoBytesCFPB issues Consumer Response Annual Report
On March 29, the CFPB published its Consumer Response Annual Report , providing a review of the Bureau’s complaint process and a description of complaints received from consumers from across all 50 states and the District of Columbia between January 1 and December 31, 2018. According to the report...
InfoBytesCFPB settles with online lead aggregator for $4 million
On March 28, the U.S. District Court for the Central District of California entered a stipulated final judgment and order resolving the CFPB’s allegations against a California-based company for allegedly buying and selling personal information from payday and installment loan applications without...
InfoBytesLaw firms settle with CFPB over debt relief fee allegations
On March 27, the U.S. District Court for the Central District of California entered a consent judgment ending a CFPB lawsuit against a group of affiliated law firms and their managing attorneys. As previously covered by InfoBytes in 2017, the Bureau’s enforcement action alleged that the defendants...
InfoBytesDistrict Court partially grants summary judgment in favor of CFPB in debt collection action
On March 21, the U.S. District Court for the Northern District of Georgia partially granted the CFPB’s motion for summary judgment against a New York-based company and three individuals for allegedly violating the CFPA and the FDCPA in a debt collection operation, but denied the motion for the...
InfoBytesCFPB releases 50-state servicemember complaint snapshot
On March 19, the CFPB released the “ Complaint Snapshot: Servicemembers, Veterans, and Military Families 50 State Report ,” which provides state-specific data on the nearly 34,000 complaints received from servicemembers, veterans, and their families in 2018 (which the CFPB collectively defines as...
InfoBytesFFIEC releases 2019 HMDA reporting guide
On March 25, the CFPB announced that the Federal Financial Institutions Examinations Council (FFIEC) issued the 2019 edition of the “Guide to HMDA Reporting: Getting It Right!,” which reflects the amendments made to HMDA by the May 2018 Economic Growth, Regulatory Relief, and Consumer Protection...
InfoBytesCFPB updates payday section of the Supervision and Examinations Manual
In March, the CFPB updated its examination procedures for short-term, small-dollar lending (payday lending) in its Supervision and Examinations Manual . The procedures are comprised of modules and each examination will cover one more module. Prior to using the procedures, examiners will complete a...
InfoBytesCFPB seeks to extend ECOA and credit card plan information collections
On March 20, the CFPB published in the Federal Register two requests to renew information collections, one on the “Report of Terms of Credit Card Plan,” which collects data from at least 150 financial institutions on credit card pricing and availability, and the other on ECOA and Regulation B. For...
InfoBytesCFPB enhances advisory committees
On March 21, the CFPB announced the Bureau’s advisory committee programs will be enhanced as a result of Director Kraninger’s engagement with current and former committee members during her three-month listening tour. Effective 2020, the committees—Consumer Advisory Board (CAB), Community Bank...
InfoBytesCFPB and FTC release 2018 FDCPA report
On March 20, the CFPB and the FTC released ( here and here ) their annual report to Congress on the administration of the FDCPA, which highlights the 2018 efforts of the agencies. The agencies coordinate in enforcement; share supervisory and consumer complaint information; and collaborate on...
InfoBytesCFPB and NYAG defend Bureau’s constitutionality in 2nd Circuit
On March 15, the CFPB and the New York Attorney General (NYAG) filed opening briefs in the U.S. Court of Appeals for the 2nd Circuit in their appeal of the Southern District of New York’s (i) June 2018 ruling that the CFPB’s organizational structure, as defined by Title X of the Dodd-Frank Act, is...
InfoBytesDemocratic AGs threaten legal action over proposed Payday Rule compliance delay
On March 18, a coalition of 25 Democratic state Attorneys General urged the CFPB not to delay the August 19, 2019 compliance date for any aspect of the Payday, Vehicle Title, and Certain High-Cost Installment Loans rule (Rule) and warned that they would consider taking legal action if the Bureau...
InfoBytesWhite House releases 2020 budget proposal; key areas include appropriations and efforts to combat terrorist financing
On March 11, the White House released its fiscal 2020 budget request, A Budget for a Better America . The budget was accompanied by texts entitled Major Savings and Reforms (MSR), which “contains detailed information on major savings and reform proposals”; Analytical Perspectives , which “contains...
InfoBytesCFPB issues winter 2019 Supervisory Highlights
On March 12, the CFPB released its winter 2019 Supervisory Highlights , which outlines its supervisory and enforcement actions in the areas of auto loan servicing, deposits, mortgage servicing, and remittances. The findings of the report cover examinations that generally were completed between June...
InfoBytesCFPB does not request lift of compliance date stay for payment-related provisions of Payday Rule
On March 8, the CFPB and two payday loan trade groups filed a joint status report with the U.S. District Court for the Western District of Texas in the litigation over the Bureau’s final rule on payday loans, vehicle title loans, and certain other installment loans (Rule). As previously covered by...
InfoBytesCFPB defends MLA and Payday Rule position in Senate hearing
On March 12, Director of the CFPB, Kathy Kraninger, testified at a hearing held by the Senate Banking, Housing, and Urban Affairs Committee on the CFPB’s Semi-Annual Report to Congress. While Kraninger’s opening statement and question responses were similar to her comments made last week during a...
InfoBytesOCC identifies key data fields for HMDA reporters
On March 7, the OCC released Bulletin 2019-12 , which identifies the key HMDA data fields for full and partial reporters. Specifically, the Bulletin highlights the 37 key data fields for banks required to report all of the data set forth in the CFPB’s October 2015 and August 2017 HMDA amendments,...
InfoBytesJonice Gray Tucker extensively quoted in Dodd Frank Update article, “Detailing challenges to greater state consumer protection efforts”
Jonice Gray Tucker was extensively quoted on March 1, 2019 in a Dodd Frank Update article, “Detailing challenges to greater state consumer protection efforts,” where she outlined reasons for the growth in state-level enforcement activity on consumer protection as well as how states are overcoming...
In The NewsKraninger tells Hill CFPB will emphasize supervision rather than enforcement
On March 7, Director of the CFPB, Kathy Kraninger, testified at a hearing held by the House Financial Services Committee entitled “Putting Consumers First? A Semi-Annual Review of the Consumer Financial Protection Bureau.” Pursuant to the Dodd-Frank Act, the hearing covered the semi-annual report...
InfoBytes"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...
ArticlesCourt rejects dismissal bid in veteran pension case
On March 5, the U.S. District Court for the District of South Carolina affirmed the recommendation of a Magistrate Judge and denied the motion of a law firm, one of its partners, and others’ (collectively, “defendants”) to dismiss an action alleging that the defendants violated the Federal Anti-...
InfoBytesSenate Democrats: CFPB already has authority to supervise for MLA
On March 5, U.S. Senate Democrats issued a letter urging CFPB Director, Kathy Kraninger, to resume reviews for compliance with the Military Lending Act (MLA) during routine lender examinations. The Senators argue that the existing statutory authorities for the Bureau “are more than sufficient to...
InfoBytesCFPB seeks comments on PACE financing
On March 4, the CFPB issued an Advance Notice of Proposed Rulemaking (ANPR) on Property Assessed Clean Energy (PACE) financing, which often takes the form of loans to facilitate residential solar energy and other home improvement projects. The ANPR was issued in response to Section 307 of the...
InfoBytesCFPB analyzes first-time homebuying data for servicemembers
On March 1, the CFPB released its latest Quarterly Consumer Credit Trends report titled, “Mortgages to First-time Homebuying Servicemembers,” which analyzes mortgages made to first-time homebuying active duty servicemembers and veterans (collectively defined as “servicemembers”). The report, using...
InfoBytes"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...
ArticlesCFPB petitions court to force law firm to comply with CID
On February 25, the CFPB petitioned the U.S. District Court for the Southern District of New York for an order requiring a debt collection law office to comply with a civil investigative demand (CID) issued by the Bureau in June 2017. The CID requested information from the debt collection firm as...
InfoBytesFTC issues annual summary of ECOA activity to CFPB
On February 26, the FTC announced it had recently provided the CFPB with its annual summary of work on ECOA-related policy issues including the following FTC research and policy development initiatives: The FTC held a series of public hearings on competition and consumer protection in the 21st...
InfoBytesCFPB announces electronic submission system for prepaid issuers
On February 27, the CFPB released new technical specifications for prepaid account issuers to use when submitting account agreements pursuant to the prepaid account rule. Issuers can now register to use the new electronic submission system “Collect” before the April 1, 2019 effective date of the...
InfoBytesFTC and CFPB reauthorize cooperation MOU
On February 26, the FTC announced its coordination with the CFPB to reauthorize their memorandum of understanding (MOU), which outlines the two agencies’ cooperation under the Consumer Financial Protection Act to prevent duplication of efforts and ensure consistency. The interagency agreement...
InfoBytesCFPB updates Supervision and Examinations Manual
In February, the CFPB released an updated version of the Supervision and Examination Manual , which includes changes to the examination and targeted reviews section of the manual. The Bureau noted that the purpose of a risk-focused review is to direct Bureau resources toward the areas with higher...
InfoBytesCFPB releases Small Entity Compliance Guide on parts of the Payday Rule
On February 20, the CFPB released the Small Entity Compliance Guide covering the payment-related requirements of the Payday, Vehicle Title, and High-Cost Installment Lending Rule , which, among other things, prohibits payday and certain other lenders from making a new attempt to withdraw funds from...
InfoBytesJeffrey P. Naimon quoted in American Banker article, “Why Kraninger's CFPB is mandating fewer consumer refunds”
Jeffrey P. Naimon was quoted on February 20, 2019 in an American Banker article, “Why Kraninger's CFPB is mandating fewer consumer refunds,” which discussed how the Consumer Financial Protection Bureau appears to be shifting away from requiring financial institutions to refund customers in response...
In The NewsDemocratic AGs object to CFPB sandbox
On February 11, a coalition of 22 Democratic state Attorneys General responded to the CFPB’s proposed policy on No-Action Letters (NAL) and a new federal product sandbox, pushing back on the Bureau’s efforts to provide relief to financial institutions looking to implement new consumer financial...
InfoBytesCFPB releases semi-annual report to Congress
On February 12, the CFPB issued its semi-annual report to Congress covering the Bureau’s work from April 1, 2018, through September 30, 2018. The report, which is required by the Dodd-Frank Act, addresses issues including problems faced by consumers with regard to consumer financial products or...
InfoBytesCFPB releases 2019 lists of rural or underserved counties
On February 12, the CFPB released its annual list of rural counties and rural or underserved counties for lenders to use when determining qualified exemptions to certain TILA regulatory requirements. In connection with the release of the lists, the Bureau also directed lenders to use its web-based...
InfoBytesGlobal Financial Innovation Network seeking cross-border testing applications
On January 31, the United Kingdom’s Financial Conduct Authority (FCA) announced that the Global Financial Innovation Network (GFIN) officially launched and is now seeking cross-border testing applications. As previously covered by InfoBytes , in August 2018, the FCA announced the creation of the...
InfoBytesOCC praises CFPB’s payday rule proposal
On February 11, the OCC released a statement from Comptroller of the Currency Joseph Otting supporting the CFPB’s proposed rule rescinding certain requirements relating to underwriting standards for short-term small-dollar loans. (Covered by InfoBytes here .) Calling the proposal “important and...
InfoBytesJeffrey P. Naimon quoted in an American Banker article, “Government shutdowns add new wrinkle to credit bureau reform”
Jeffrey P. Naimon was quoted on February 11, 2019 in an American Banker article, “Government shutdowns add new wrinkle to credit bureau reform,” which discussed an effort to reform the credit bureaus due to the effects on federal workers and consumers during the government shutdown, and the...
In The NewsCFPB announces settlement with payday lending operation
On February 6, the CFPB announced a settlement with an Indiana-based payday retail lender and affiliates (companies) in seven states to resolve alleged violations of the Consumer Financial Protection Act (CFPA), Truth in Lending Act (TILA), and Gramm-Leach-Bliley Act (GLBA) privacy protections. The...
InfoBytesCFPB proposes to rescind ability-to-repay standards in payday rule
On February 6, the CFPB released two notices of proposed rulemaking (NPRM) related to certain payday lending requirements under the agency’s 2017 final rule covering “Payday, Vehicle Title, and Certain High-Cost Installment Loans” (the Rule). As previously covered by InfoBytes , last October the...
InfoBytes"Takeaways from military member complaints at CFPB" by Jeffrey P. Naimon, Sasha Leonhardt, and Christina R. Smith (Law360)
The Consumer Financial Protection Bureau ’s Office of Servicemember Affairs recently released a report highlighting issues facing military consumers based on complaints submitted by service members, veterans and their families. This report identifies categories and trends among the approximately 48...
ArticlesCFPB releases TRID FAQs
On January 25, the CFPB released FAQs to assist with TILA-RESPA Integrated Disclosure Rule (TRID) compliance. Three of the four FAQs relate to corrected closing disclosures and the three business-day waiting period, while the fourth FAQ relates to the use of model forms. Highlights of the FAQs...
InfoBytesCFPB files proposed consent order banning certain Canadian and Maltese payday lenders from U.S. consumer lending
On February 1, the CFPB and a group of payday lenders, including individuals and corporate officials based in Canada and Malta (collectively, “defendants”), filed a proposed consent order with the U.S. District Court for the Southern District of New York that would resolve allegations that the...
InfoBytesCFPB seeks information on debt collection disclosures
On February 4, the CFPB released a request for public comment on a new information collection titled, “Debt Collection Quantitative Disclosure Testing.” The proposed collection—which seeks Office of Management and Budget approval to conduct a web survey as part of the Bureau's debt collection...
InfoBytesCFPB releases complaint snapshot on mortgages
On January 29, the CFPB released a report on mortgage complaints, and a corresponding blog post , which provide a high-level overview of the mortgage complaints received by the Bureau during the last 24 months. According to the report, mortgage complaints accounted for 11 percent, or approximately...
InfoBytesCFPB releases RFI on consumer credit card market
On January 31, the CFPB published a request for information (RFI) on the consumer credit card market. Section 502 of the Credit Card Accountability and Responsibility Disclosure Act (CARD Act) of 2009 requires the Bureau to conduct a review of the consumer credit card market every two years and to...
InfoBytesCFPB settles with loan broker over veteran pension loans
On January 23, the CFPB announced a settlement with an online loan broker resolving allegations that the broker violated the Consumer Financial Protection Act by operating a website that connected veterans with companies offering high-interest loans in exchange for the assignment of some or all of...
InfoBytesCFPB releases annual report on servicemember complaint issues
On January 24, the CFPB’s Office of Servicemember Affairs (OSA) released an annual report , which highlights issues facing military consumers based on complaints submitted by servicemembers, veterans, and their families (collectively “servicemembers”). The OSA report covers the period between April...
InfoBytesCFPB asks Congress for clear authority to supervise for MLA compliance
On January 17, the CFPB issued a statement from Bureau Director Kathy Kraninger announcing she has asked Congress to grant the Bureau “clear authority to supervise for compliance with the Military Lending Act (MLA).” The statement expresses Kraninger’s interest in protecting servicemembers and...
InfoBytesCFPB issues five-year lookback for 2013 ATR/QM and Mortgage Servicing Rule
On January 10, the CFPB released the assessment reports required by Section 1022(d) of the Dodd-Frank Act for two of its 2013 mortgage rules: the TILA Ability-to-Repay and Qualified Mortgage (ATR/QM) Rule and the RESPA Mortgage Servicing Rule. The assessment reports were conducted using the Bureau’...
InfoBytesDistrict Court orders mortgage company to pay $260,000 in civil money penalties for deceiving veterans about refinance benefits
On December 21, the U.S. District Court for the District of Nevada ordered a non-bank mortgage company to pay $268,869 in redress to consumers and a civil penalty of $260,000 in an action brought by the CFPB for engaging in allegedly deceptive lending practices to veterans about the benefits of...
InfoBytesCFPB releases final policy on HMDA data disclosure
On December 21, the CFPB announced final policy guidance covering the loan-level HMDA data the Bureau intends to make publicly available in 2019. The proposed policy was issued in September 2017 (covered by InfoBytes here ) and, after reviewing public comments, the Bureau agreed to modify certain...
InfoBytesCFPB releases annual adjustments to HMDA, TILA, and FCRA; agencies release CRA asset-size threshold adjustments
On December 31, the CFPB published final rules adjusting both the asset-size thresholds under HMDA (Regulation C) and TILA (Regulation Z), and the maximum amount consumer reporting agencies may charge consumers for providing the consumer the consumer’s credit file under FCRA. All rules take effect...
InfoBytesDistrict Court approves $480 million settlement between national bank and investors over incentive compensation sales program
On December 18, the U.S. District Court for the Northern District of California granted final approval following a fairness hearing to a $480 million settlement with a national bank to resolve a consolidated class action related to the bank’s previous incentive compensation sales program. As...
InfoBytesKraninger rejects CFPB name change
On December 19, new CFPB Director, Kathy Kraninger emailed staff stating she has decided to not move forward with changing the name of the agency to the Bureau of Consumer Financial Protection. Former acting Director Mick Mulvaney—to whom Kraninger previously reported at the Office of Management...
InfoBytesHouse Democrats urge Kraninger to resume MLA examinations
On December 14, Maxine Waters (D-CA) and 22 other House Democrats issued a letter urging the new CFPB Director, Kathy Kraninger, to resume supervisory examinations of the Military Lending Act (MLA). As previously covered by InfoBytes , according to reports citing “internal agency documents,” the...
InfoBytesDOJ says CFPB structure is unconstitutional, but urges Supreme Court to deny writ since case is a “poor vehicle”
On December 10, the DOJ filed a brief in response to a Texas bank and two associations’ (petitioners) petition for writ of certiorari with the U.S. Supreme Court, challenging the constitutionality of the CFPB’s structure, with the DOJ arguing that the Bureau’s structure infringes on the president’s...
InfoBytesCFPB releases new No-Action Letter policy and new product sandbox
On December 10, the CFPB released a new proposed policy on No-Action Letters (NAL) and a new federal product sandbox. The new NAL proposal, which would replace the 2016 NAL policy, is “designed to increase the utilization of the Policy and bring certain elements more in line with similar no-action...
InfoBytesCFPB releases beta version of HMDA Platform
On December 10, the CFPB announced the beta release of the new HMDA Platform . The beta version enables financial institutions to become familiar with the platform and permits entities to establish log-in credentials, upload sample files, validate data, and confirm their submissions of test data...
InfoBytesCFPB sues mortgage company for allegedly deceiving veterans about refinance benefits
On December 6, the CFPB announced the filing of a complaint and proposed final judgment in the U.S. District Court for the District of Nevada against a non-bank mortgage company for allegedly deceiving veterans about the benefits of refinancing their mortgages in violation of the Consumer Financial...
InfoBytesCFPB’s latest fair lending report focuses on promoting fair, equitable, and nondiscriminatory access to credit
On December 4, the CFPB issued its sixth fair lending report to Congress, which outlines the Bureau’s efforts in 2017. According to the report, in 2017, the Bureau continued to focus on promoting fair, equitable, and nondiscriminatory access to credit, highlighting several fair lending priorities...
InfoBytesSenate confirms Kraninger as new CFPB director
On December 6, the U.S. Senate confirmed, in a 50 to 49 vote, Kathy Kraninger as the new Director of the CFPB for a five year term. Kraninger replaces acting CFPB Director Mick Mulvaney, under whom she served at the Office of Management and Budget (OMB) as the associate director for general...
InfoBytesCFPB publishes quarterly report examining how natural disasters affect credit reporting
On November 21, the CFPB released the latest quarterly consumer credit trends report , which examines how natural disasters affect consumers’ credit reports based on a sample of approximately 5 million credit records. The report notes that while financial institutions are not required to report...
InfoBytesJohn P. Kromer quoted in PaymentsJournal article, “The BCFP’s 'disclosure sandbox' is shovel ready – Who will be the first!”
John P. Kromer was quoted on November 28, 2018 in a PaymentsJournal article, “The BCFP’s 'disclosure sandbox' is shovel ready – Who will be the first!” which discussed the agency’s program that would allow companies to experiment with new product disclosures to consumers. The article stated, “The...
In The NewsAgencies finalize new 2019 thresholds for TILA and CLA
On November 21, the CFPB and the Federal Reserve Board finalized the annual dollar threshold adjustments that govern the application of Regulation Z (Truth in Lending Act) and Regulation M (Consumer Leasing Act) to credit transactions, as required by the Dodd-Frank Act. Each year the thresholds...
InfoBytesAuto lender pays $11.8 million to resolve investigation into add-on product and loan extension program
On November 20, the CFPB announced a settlement with a Texas-based auto lender to resolve allegations that the lender violated the Consumer Financial Protection Act by deceptively marketing an auto-loan guaranteed asset protection (GAP) add-on product and misrepresenting the impact on consumers of...
InfoBytesCFPB updates HOEPA and Loan Originator Rule small entity compliance guides
On November 16, the CFPB released versions 3.0 of its Home Ownership and Equity Protection Act (HOEPA) Rule small entity compliance guide and Loan Originator Rule small entity compliance guide to reflect the changes made by Section 107 of the Economic Growth, Regulatory Relief, and Consumer...
InfoBytesCFPB issues semi-annual report to Congress
On November 9, the CFPB issued its semi-annual report to Congress , covering the Bureau’s work from October 1, 2017 to March 30, 2018. The report, which is required by the Dodd-Frank Act, addresses, among other things, problems faced by consumers with regard to consumer financial products or...
InfoBytesCourt grants request to stay CFPB payday rule compliance date
On November 6, the U.S. District Court for the Western District of Texas granted two payday loan trade groups’ request to reconsider the court’s June decision to deny a stay of the compliance date (August 19, 2019) of the Bureau’s final rule on payday loans, vehicle title loans, and certain other...
InfoBytesFHFA and CFPB release dataset from National Survey of Mortgage Originations
On November 8, the FHFA and the CFPB announced the release of a new loan-level dataset that was collected through the National Survey of Mortgage Originations (NSMO). Since 2014, in each quarter, FHFA and the CFPB send the NSMO survey to borrowers who recently obtained a mortgage to gather feedback...
InfoBytesJohn C. Redding quoted in an Auto Finance News article, “Attorneys seek CFPB definition of abusive practices”
John C. Redding was quoted on November 5, 2018 in an Auto Finance News article, “Attorneys seek CFPB definition of abusive practices,” which discussed the announcement from the CFPB to define the term “abusive” in the Dodd-Frank Act. The article stated, “The Consumer Financial Protection Bureau has...
In The NewsCFPB updates HMDA Small Entity Compliance Guide
On October 30, the CFPB released an updated HMDA Small Entity Compliance Guide to reflect Section 104(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (the Act) and the 2018 HMDA interpretive and procedural rule. As previously covered by InfoBytes , on August 31, the CFPB...
InfoBytesCFPB releases Remittance Rule assessment report
On October 26, the CFPB released an assessment report of its Remittance Rule, in accordance with the Dodd-Frank Act’s requirements that the Bureau conduct an assessment of each significant rule within five years of the rule’s effective date. The Bureau’s 2013 Remittance Rule (Rule), including its...
InfoBytesCFPB imposes $200,000 fine on small dollar lender for deceptive debt collection practices
On October 24, the CFPB announced a settlement with a Tennessee-based small dollar lender, resolving allegations that the lender violated the Consumer Financial Protection Act (CFPA). Specifically, as stated in the consent order , the CFPB alleges that the lender (i) deceptively threatened to sue...
InfoBytesCFPB will propose changes to ability-to-repay provisions in Payday Rule in January 2019
On October 26, the CFPB announced it expects to publish proposed rules reconsidering the ability-to-repay provisions of the rule covering Payday, Vehicle Title, and Certain High-Cost Installment Loans (the Rule) in January 2019. The Bureau does not intend to reconsider the payment provisions of the...
InfoBytesCFPB releases 50-state complaint snapshot
On October 23, the CFPB released its Complaint snapshot: 50 state report , which covers complaints received by the Bureau from January 2015 through June 2018. According to the report, the Bureau has received more complaints from consumers in California than any other state, followed by Florida and...
InfoBytesBipartisan state Attorneys General coalition urge CFPB to examine for MLA compliance
On October 23, a bipartisan coalition of 33 state Attorneys General sent a letter to acting Director of the CFPB, Mick Mulvaney, expressing concern over reports that the Bureau is no longer supervising financial institutions for compliance with the Military Lending Act (MLA). The Attorneys General...
InfoBytesDistrict Court rejects request for attorneys’ fees in dismissed CFPB debt collection suit
On October 19, the U.S. District Court for the Northern District of Ohio entered an order rejecting a request that the CFPB pay $1.2 million in attorney’s fees after the Bureau lost its debt collection lawsuit, finding no evidence of bad faith. As previously covered by InfoBytes , the court entered...
InfoBytesCFPB urges 9th Circuit to reverse district court’s order and impose higher penalty in tribal lending action
On October 19, the CFPB filed its opening brief before the U.S. Court of Appeals for the 9th Circuit in Consumer Financial Protection Bureau v. CashCall, Inc. , an action brought by the CFPB to limit the reach of the so-called “tribal model” of online lending. In the original action, the court...
InfoBytesCFPB launches innovation webpage
On October 16, the CFPB announced the launch of its new webpage for innovation , which aims to engage with entrepreneurs and the innovation community to promote competition, innovation, and consumer access within financial services. The webpage is a result of the Bureau’s new Office of Innovation (...
InfoBytes"Finding the purpose in bureau civil investigative demands" by Aaron C. Mahler (Bloomberg BNA)
“Why me?” It’s a common refrain whenever something bad happens. It’s also one of the first questions companies ask when finding themselves on the receiving end of a civil investigative demand from the Consumer Financial Protection Bureau. The logical place to look should be the notification of...
ArticlesCFPB publishes fall 2018 rulemaking agenda
On October 17, the Office of Information and Regulatory Affairs released the CFPB’s fall 2018 rulemaking agenda . According to the Bureau’s preamble , the information presented is current as of August 30 and represents regulatory matters it “reasonably anticipates” having under consideration during...
InfoBytesCFPB solicits comments on proposed rule regarding civil penalty inflation adjustments
On October 12, the CFPB published an amendment to its rule regarding inflation adjustments for the maximum amount of each civil penalty within its jurisdiction, pursuant to the 2015 Inflation Adjustment Act amendments. Under the Bureau’s amendment, adjusted penalty amounts would only apply to...
InfoBytesCFPB announces settlement with companies that allegedly delayed transfer of consumer payments to debt buyers
On October 4, the CFPB announced a settlement with a group of Minnesota-based companies that allegedly violated the Consumer Financial Protection Act when consumers made payments on debts that the companies had already sold to third parties, and the companies improperly delayed the forwarding of...
InfoBytesJeffrey P. Naimon quoted in American Banker article, “CFPB faces legal minefield in crafting rule on small-business loan data”
Jeffrey P. Naimon was quoted on September 21, 2018 in an American Banker article, “CFPB faces legal minefield in crafting rule on small-business loan data,” which discussed a report from the Consumer Financial Protection Bureau that discusses the issues regulators are facing as they consider asking...
In The NewsCFPB bulletin announces changes to supervisory communications
On September 25, the CFPB issued Bulletin 2018-01 , which announces changes to how it communicates supervisory expectations to institutions. According to the bulletin, effective immediately, examination reports and supervisory letters will include two categories of findings that convey supervisory...
InfoBytesCourt dismisses action by a tribal nation against a national bank for claims relating to the bank’s incentive compensation sales program
On September 25, the U.S. District Court for the District of New Mexico dismissed an action brought by a tribal nation against a national bank alleging, among other things, that the bank’s incentive compensation sales program resulted in the bank’s employees opening deposit and credit card accounts...
InfoBytesCFPB issues report and RFI on data sources and use
On September 25, the CFPB released a report on the Bureau’s data governance program, including what data the Bureau collects, from where the data is sourced, and how the data is used and reused within the Bureau. The report emphasizes that data informs a large portion of the Bureau’s work,...
InfoBytesFederal Reserve seeks to repeal SAFE Act regulations to reflect CFPB authority
On September 21, the Federal Reserve Board (Board) issued a notice of proposed rulemaking seeking comment on the repeal of certain provisions of regulations that incorporate the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act), which the Board states are intended to reflect the...
InfoBytesCFPB studies geographic patterns in credit invisibility
On September 19, the CFPB released a new Data Point report from the Office of Research titled, “The Geography of Credit Invisibility,” which examines geographic patterns in the prevalence of “credit invisible” consumers, a term for those who do not have a credit record maintained by a national...
InfoBytesCFPB files lawsuit against pension advance company citing alleged CFPA and TILA violations
On September 13, the CFPB filed a complaint against a pension advance company, its owner, and related entities (defendants) based upon alleged violations of the Consumer Financial Protection Act (CFPA) and the Truth in Lending Act (TILA). In a complaint filed with the U.S. District Court for the...
InfoBytesCourt dismisses NYAG’s claims under CFPA after determining Title X is invalid
On September 12, the U.S. District Court for the Southern District of New York issued an order dismissing the New York Attorney General’s (NYAG) claims against a New Jersey-based finance company and its affiliates (defendants) under the Consumer Financial Protection Act (CFPA). In doing so, the...
InfoBytesCFPB argues structure is constitutional under current precedent
On September 10, the CFPB rejected the arguments made by two Mississippi-based payday loan and check cashing companies (appellants) challenging the constitutionality of the CFPB’s single director structure. The challenge results from a May 2016 complaint filed by the CFPB against the appellants...
InfoBytesCFPB publishes final rule relating to disclosure of confidential records and information
On September 12, the CFPB published a final rule to modify its procedures for the disclosure of records and information. As previously covered in InfoBytes , the notice of proposed rulemaking—published August 2016—sought to amend procedures used to obtain information from the Bureau under the...
InfoBytesAgencies say supervisory guidance does not have the “force and effect” of law
On September 11, five federal agencies (the Federal Reserve Board , CFPB , FDIC , NCUA , and OCC ) issued a joint statement confirming that supervisory guidance “does not have the force and effect of law, and [that] the agencies do not take enforcement actions based on supervisory guidance.” The...
InfoBytesCFPB issues updated FCRA model disclosures to implement Economic Growth, Regulatory Relief, and Consumer Protection Act amendments
On September 12, the CFPB issued an interim final rule to comply with the Economic Growth, Regulatory Relief, and Consumer Protection Act (the “Act”) (previously Senate bill S. 2155). Section 301(a)(1) of the Act amends the FCRA to add section 605A(i), which requires consumer reporting agencies to...
InfoBytesTexas bank petitions Supreme Court over CFPB constitutionality
On September 6, a Texas bank and two associations (petitioners) filed a petition for writ of certiorari with the U.S. Supreme Court challenging the constitutionality of the CFPB’s structure. Specifically, the petition asks the Court (i) whether the CFPB as an independent agency headed by a single...
InfoBytesCFPB announces all new advisory committee members
On September 7, the CFPB released the new membership details of the Consumer Advisory Board, the Community Bank Advisory Council, and the Credit Union Advisory Council. As previously covered by InfoBytes , in June, acting Director, Mick Mulvaney, removed all the current members of the advisory...
InfoBytesCFPB proposes revisions to trial disclosure policy, creating “Disclosure Sandbox”
On September 10, the CFPB published a proposal to revise its trial disclosure policy in order to “more effectively encourage companies to conduct trial disclosure programs.” The current trial disclosure policy, authorized by Section 1032(e) of the Dodd-Frank Act, was finalized in 2013 and allows...
InfoBytesJeffrey P. Naimon quoted in Inside Mortgage Finance article, “Will CFPB abandon or limit the use of disparate impact?”
Jeffrey P. Naimon was quoted on September 3, 2018 in an Inside Mortgage Finance article, “Will CFPB abandon or limit the use of disparate impact?” which discussed how the Consumer Financial Protection Bureau is expected to view the disparate impact theory under the Trump administration. The article...
In The NewsCFPB issues summer 2018 Supervisory Highlights
On September 6, the CFPB released its summer 2018 Supervisory Highlights , which outlines its supervisory and oversight actions in the areas of auto loan servicing, credit card account management, debt collection, mortgage servicing, payday lending, and small business lending. The findings of the...
InfoBytes14 state Attorneys General urge CFPB not to change ECOA disparate impact liability
On September 5, a coalition of 14 state Attorneys General sent a comment letter to the CFPB raising concerns about statements made by acting Director Mick Mulvaney in May suggesting that the Bureau may reexamine its requirements and enforcement of the Equal Credit Opportunity Act (ECOA). The letter...
InfoBytesCFPB issues HMDA interpretive rule to implement EGRRCPA amendments
On August 31, the CFPB issued an interpretive and procedural rule to implement and clarify the HMDA amendments included in Section 104(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (the Act) (previously Senate bill S. 2155). Section 104(a) of the Act amends section 304(i...
InfoBytesCFPB publishes final rule adjusting annual dollar amount thresholds under TILA regulations
On August 27, the CFPB issued a final rule amending Regulation Z, which implements the Truth in Lending Act (TILA), including as amended by the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act of 1994 (HOEPA), and the Dodd...
InfoBytesCFPB publishes quarterly consumer credit trends on telecommunications-debt collection reporting
On August 22, the CFPB released the latest quarterly consumer credit trends report , which focuses on the reporting of telecommunications-debt collections to nationwide consumer reporting agencies based on a sample of approximately 5 million credit records. The report notes that during the past...
InfoBytesCourt opens door for CFPB to appeal constitutionality determination to 2nd Circuit
On August 23, the U.S. District Court for the Southern District of New York granted the CFPB’s request for entry of final judgment with respect to the court’s June decision to terminate the CFPB as a party to an action. The court has previously concluded that the CFPB could not proceed with its...
InfoBytesSenate Banking Committee narrowly approves Kraninger to head CFPB
On August 23, the Senate Banking Committee approved , in a 13-12 party-line vote, Kathy Kraninger to be the next Director of the CFPB, which carries a five-year term. Kraninger’s nomination next moves to the full Senate. Acting Director, Mick Mulvaney, will remain in his position for the...
InfoBytesAppellants petition 5th Circuit for en banc hearing of CFPB constitutionality challenge
On August 13, two Mississippi-based payday loan and check cashing companies (appellants) filed an unopposed petition for initial hearing en banc with the U.S. Court of Appeals for the 5th Circuit regarding a challenge to the constitutionality of the CFPB’s single director structure. In April, the...
InfoBytesCFPB urges court for final judgment in order to appeal constitutionality determination
On August 10, the CFPB submitted a request to the U.S. District Court for the Southern District of New York for a pre-motion conference to discuss approval to file a motion requesting entry of final judgment with respect to the court’s June decision, which would allow the Bureau to appeal that...
InfoBytes3rd Circuit rules student loan servicer must comply with CID
On August 13, in a divided opinion that is not precedential, the U.S. Court of Appeals for the 3rd Circuit affirmed a lower court’s decision to grant a petition filed by the CFPB to enforce a civil investigative demand (CID) issued to a student loan servicer, rejecting arguments that the scope of...
InfoBytesCFPB Succession: Bureau reportedly no longer examining for MLA compliance
According to reports citing “internal agency documents,” acting Director of the CFPB Mick Mulvaney intends to cease supervisory examinations of the Military Lending Act (MLA), contending the law does not explicitly prescribe the Bureau the authority to examine financial institutions for compliance...
InfoBytesCFPB settles unauthorized payday loan allegations
On August 10, the CFPB announced a settlement with multiple defendants that allegedly made unauthorized payday loans. The settlement results from a 2014 complaint that alleged, among other things, that the defendants accessed consumer checking accounts to illegally deposit the proceeds of payday...
InfoBytesCourt again denies request to stay CFPB payday rule compliance date
On August 7, the U.S. District Court for the Western District of Texas denied a request by two payday loan trade groups to reconsider its June decision denying a stay of the compliance date (August 19, 2019) of the Bureau’s final rule on payday loans, vehicle title loans, and certain other...
InfoBytesRegulators create Global Financial Innovation Network
On August 7, the United Kingdom’s Financial Conduct Authority (FCA) announced the creation of the Global Financial Innovation Network (GFIN) in collaboration with 11 global financial regulators, including the CFPB. As set forth in the GFIN Consultation Document , the three major functions of the...
InfoBytesCFPB updates “workpapers” section of Supervision and Examination Manual
In August, the CFPB released an updated version of the Supervision and Examination Manual , which includes minor changes to the workpapers section of the examination process and an updated scope summary template . According to the manual, workpapers are the records documenting the review conducted...
InfoBytesWashington state updates mortgage provisions of Consumer Loan Act
On July 24, the Washington Department of Financial Institutions adopted new mortgage-related provisions of the state’s Consumer Loan Act (CLA). In addition to technical changes and certain definition modifications, the rulemaking, among other things, (i) adds a requirement that if electronic...
InfoBytesDistrict Court denies service provider’s motion to dismiss on several grounds, rules Bureau’s structure is constitutional
On August 3, the U.S. District Court for the District of Montana denied a Texas-based service provider’s motion to dismiss a suit brought by the CFPB over allegations that the service provider engaged in unfair, deceptive, and abusive acts or practices in violation of the Consumer Financial...
InfoBytesCFPB denies debt collector’s petition to set aside CID
On July 23, the CFPB denied a petition by a debt collector to modify or set aside a civil investigative demand (CID) issued by the Bureau in September 2017. The CID requested information from the debt collector “to determine whether debt collectors, depository institutions, or other persons have...
InfoBytesThomas A. Sporkin quoted in RESPA News article, “How will Supreme Court’s Lucia decision impact CFPB?”
Thomas A. Sporkin was quoted on July 30, 2018 in a RESPA News article, “How will Supreme Court’s Lucia decision impact CFPB?” which discussed the ruling by the Supreme Court in Lucia v. SEC that administrative law judges that are used by the Securities Exchange Commission were appointed improperly...
In The NewsBuckley Sandler Special Alert: OCC announces it will accept fintech charter applications, following the release of Treasury report on nonbank financial institutions
On July 31, the OCC announced that nondepository financial technology firms engaged in one or more core banking functions may apply for a special purpose national bank (SPNB) charter. The announcement follows a report released the same day by the Treasury Department, which discusses a number of...
InfoBytesJonice Gray Tucker interviewed for Dodd Frank Update article, “What truly is surprising about CFPB under Mulvaney?”
Jonice Gray Tucker was interviewed for a Dodd Frank Update article, “What truly is surprising about CFPB under Mulvaney?” which discussed the priorities of the Consumer Financial Protection Bureau under Mick Mulvaney’s leadership, and the potential shift in priorities under nominated CFPB director...
In The NewsDistrict court approves stipulated final judgment in favor of CFPB against one of the operators of online lending operation
On July 23, the U.S. District Court for the Western District of Missouri approved a stipulated final judgment and order against one of the two dozen defendants in the CFPB’s suit against an alleged online payday lending operation. In 2014, the Bureau filed a complaint against numerous entities and...
InfoBytesDistrict court dismisses CFPB suit against law firm over debt collection letters
On July 25, the U.S. District Court for the Northern District of Ohio entered judgment against the CFPB in its lawsuit against a law firm that had previously collected debts for the State of Ohio under the direction of former Ohio Attorney General and Bureau Director Richard Cordray. The Bureau’s...
InfoBytesHouse passes appropriations bill that includes several financial services provisions, brings CFPB into the appropriations process
On July 19, the House passed H.R. 6147 , the “Interior, Environment, Financial Services, and General Government Appropriations Act, 2019” by a vote of 217 to 199. Under the appropriations bill, the CFPB would be brought into the appropriations process, and a change to Dodd-Frank would strike the “...
InfoBytesCFPB Succession: Kraninger testifies before Senate Banking Committee; Bureau nominates Paul Watkins to lead Office of Innovation
On July 19, the Senate Banking Committee held a confirmation hearing for Kathy Kraninger on her nomination as permanent director of the CFPB. Prior to the hearing, the White House issued a fact sheet asserting that “Kraninger has the management skills and policy background necessary to reform and...
InfoBytesCFPB announces settlement with Alabama-based operation for allegedly failing to properly disclose finance charges
On July 19, the CFPB announced a settlement with a small-dollar lending operation that allegedly failed to properly disclose finance charges and annual percentage rates associated with auto title loans in violation of the Truth in Lending Act (TILA) and the prohibition on deceptive practices in the...
InfoBytesCFPB settles with Kansas-based company and part-owner for debt collection violations
On July 13, the CFPB announced a settlement with a Kansas-based company and its former CEO and part-owner for using a network of debt collection agencies (the Agencies) that allegedly engaged in improper debt collection tactics in violation of the prohibitions in the Consumer Financial Protection...
InfoBytesTexas Attorney General leads 14-state brief to 5th Circuit challenging CFPB structure
On July 10, the Attorney General of Texas and 13 other state Attorneys General filed an amici curiae brief with the U.S. Court of Appeals for the 5th Circuit, challenging the constitutionality of the CFPB. As previously covered by InfoBytes , in April, the 5th Circuit agreed to hear a challenge by...
InfoBytesNew York Attorney General: Don’t delay action if CFPB appeals constitutionality determination
On July 9, the New York Attorney General and a New Jersey-based litigation funding company and its affiliates filed a joint letter in the U.S. District Court for the Southern District of New York addressing how the parties would like to proceed in the legal matter after the court terminated the...
InfoBytesFTC, CFPB discuss scope of Fair Credit Reporting Act during Senate Banking Committee hearing
On July 12, the Senate Committee on Banking, Housing, and Urban Affairs held a hearing entitled “An Overview of the Credit Bureaus and the Fair Credit Reporting Act” to discuss the scope and enforcement of the Fair Credit Reporting Act (FCRA), the measures undertaken by the CFPB and the FTC to...
InfoBytesCFPB Succession: Leandra English steps down, seeks to dismiss appeal; Mulvaney selects close advisor to be new deputy
On July 9, Leandra English filed a motion for voluntary dismissal with the U.S. Court of Appeals for the D.C. Circuit, effectively ending her eight-month legal battle over the appointment of Mick Mulvaney as acting director of the CFPB. The motion follows an announcement released via Twitter on...
InfoBytesCFPB, OCC, and FDIC release statement on HMDA exemption in regulatory relief act
On July 5, the CFPB issued a statement regarding the implementation of the partial HMDA exemptions in the Economic Growth, Regulatory Relief, and Consumer Protection Act (the Act), S.2155/ P.L. 115-174, which was signed into law by President Trump on May 24. As previously covered by InfoBytes , the...
InfoBytesCFPB announces settlement with national bank to resolve alleged TILA violations
On June 29, the CFPB announced a $335 million settlement with a national bank who allegedly violated the Truth in Lending Act by failing to properly implement annual percentage rate (APR) reevaluation requirements, which would reduce APRs for certain consumer credit card accounts, consistent with...
InfoBytesCFPB studies how borrowers transition out of student loan debt
On June 29, the CFPB released a new Data Point report from the Office of Research titled, “Final Student Loan Payments and Broader Household Borrowing,” which examines how student borrowers transition out of their student loan debt and repayment patterns are interconnected with general household...
InfoBytesNY District Court holds CFPB structure is unconstitutional
On June 21, the U.S. District Court for the Southern District of New York terminated the CFPB as a party to an action against a New Jersey-based finance company and its affiliates (defendants), concluding that the CFPB’s organizational structure is unconstitutional and therefore, the agency lacks...
InfoBytesSupreme Court holds SEC ALJs are subject to the Appointments Clause of the Constitution
On June 21, the U.S. Supreme Court held , in Lucia v. SEC , that SEC administrative law judges (ALJs) are “inferior officers” subject to the Appointments Clause (Clause) of the Constitution. The case began when the SEC instituted an administrative proceeding against the petitioner resulting in a...
InfoBytesNew York Fed report finds CFPB oversight does not significantly reduce volume of mortgage lending
The Federal Reserve Bank of New York (New York Fed) released a June 2018 Staff Report titled “Does CFPB Oversight Crimp Credit?” which concludes that there is little evidence that CFPB oversight significantly reduces the overall volume of mortgage lending. The report compared the lending outcomes...
InfoBytesTrump intends to nominate Kathleen Kraninger to be director of the CFPB
On June 18, the White House announced President Trump’s selection of Kathleen Kraninger to be the director of the CFPB for a five-year term. Kraninger currently serves as the associate director for general government at the Office of Management and Budget (OMB). Prior to OMB, Kraninger worked at...
InfoBytesCFPB fines installment lender $5 million for improper collection and credit reporting practices
On June 13, the CFPB ordered a South Carolina-based installment lender and its subsidiaries to pay $5 million in civil money penalties for allegedly making improper in-person and telephonic collection attempts in violation of the Consumer Financial Protection Act (CFPA) and inaccurately furnishing...
InfoBytesDistrict Court denies joint request to stay payday rule but agrees to stay lawsuit
On June 12, the U.S. District Court for the Western District of Texas denied a joint request by the CFPB and two payday loan trade groups to stay the compliance date (August 19, 2019) of the Bureau’s final rule on payday loans, vehicle title loans, and certain other high-cost installment loans (...
InfoBytesCFPB publishes quarterly consumer credit trends: End-of-year credit card borrowing
On June 7, the CFPB released the latest quarterly consumer credit trends report , which focuses on credit card borrowing patterns at the end of the year using data from the CFPB’s Consumer Credit Panel. The report notes that consumer spending peaks each year during the “holiday shopping season” in...
InfoBytesJonice Gray Tucker interviewed by Dodd Frank Update in “What states can, cannot do to supervise financial marketplace”
Jonice Gray Tucker was interviewed on June 4, 2016 in a Dodd Frank Update article “What states can, cannot do to supervise financial marketplace,” which examined the many questions the financial industry may have regarding the states’ role in supervising the financial marketplace, a task which,...
In The NewsCourt denies attorney’s move for summary judgment against CFPB as premature
On June 4, the U.S. District Court for the District of Maryland issued a Memorandum to Counsel denying defendants’ dispositive motions in a UDAAP action brought by the CFPB alleging the defendants employed abusive practices when purchasing structured settlements from consumers in exchange for lump-...
InfoBytesCFPB dismisses PHH suit and removes all members of three advisory councils
On June 7, acting Director of the CFPB, Mick Mulvaney, dismissed the Bureau’s action against PHH, which spawned years of litigation and a constitutional challenge to the CFPB’s structure. In January, the U.S. Court of Appeals for the D.C. Circuit issued its en banc decision concluding the CFPB’s...
InfoBytesSixteen State Attorneys General urge the CFPB to maintain the public consumer complaint database
On June 4, the New York Attorney General, Barbara Underwood, along with fourteen other state Attorneys General submitted a comment letter in response to the CFPB’s Request for Information (RFI) on the public reporting of consumer complaints, previously covered by InfoBytes here . The Attorneys...
InfoBytesFTC reports on certain 2017 enforcement activities to the CFPB
On May 17, in response to a request from the CFPB, the FTC transmitted a letter summarizing its 2017 enforcement activities related to Regulation Z (TILA), Regulation M (Consumer Leasing Act), and Regulation E (Electronic Fund Transfer Act) for the CFPB’s use in preparing its 2017 Annual Report to...
InfoBytesCFPB releases complaint snapshot on debt collection
On May 31, the CFPB released a complaint snapshot on debt collection , which provides a high-level overview of trends from all consumer complaints and additional details related to debt collection complaints. The CFPB reports that it has received approximately 1,492,600 total complaints as of April...
InfoBytesWarren W. Traiger quoted in American Banker article, “CFPB’s Mulvaney plots HMDA rollback, but it may not matter”
Warren Traiger was quoted on May 25, 2018 in an American Banker article, “CFPB’s Mulvaney plots HMDA rollback, but it may not matter,” which discussed acting director of the Consumer Financial Protection Bureau Mick Mulvaney's remarks to scale back Home Mortgage Disclosure Act requirements,...
In The NewsCFPB Succession: Bureau asks court to stay payday rule litigation; Mulvaney: Bureau may resume PII collection; working on a fintech regulatory “sandbox”; will consider scale and frequency of violations in future actions
On May 31, the CFPB filed a joint motion with two payday loan trade groups, requesting a stay of litigation pending the Bureau’s reconsideration of its final rule on payday loans, vehicle title loans, and certain other high-cost installment loans (Rule) and requesting a stay of the compliance date—...
InfoBytesOCC encourages banks to offer short-term, small-dollar installment lending
On May 23, the OCC released Bulletin 2018-14 , which encourages banks to meet the credit needs of consumers by offering short-term, small-dollar installment loans subject to the OCC’s core lending principles. The Bulletin acknowledges the CFPB’s final rule on Payday, Vehicle Title, and Certain High...
InfoBytesDistrict court sanctions banker for violating consent order issued by CFPB and Maryland Attorney General
On May 21, the U.S. District Court for the District of Maryland granted in part and denied in part a motion for sanctions brought by the CFPB and the Consumer Protection Division of the Maryland Attorney General’s Office (plaintiffs) against a banker (defendant) previously held in civil contempt...
InfoBytesTrump signs legislation enacting bipartisan regulatory relief bill
On May 24, President Trump signed the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) (the bill) — which modifies provisions of the Dodd-Frank Act and eases certain regulations on certain smaller banks and credit unions. Upon signing, the White House released a statement...
InfoBytesCourt enters default judgment in favor of CFPB against debt relief companies
On May 22, the U.S. District Court for the District of Maryland entered a default judgment, in favor of the CFPB, against two debt relief companies, their service provider, and their owners (defendants) for allegedly misleading consumers about their debt validation program. As previously covered by...
InfoBytesTrump signs legislation repealing CFPB auto guidance, Mulvaney praises action; CFPB to reexamine ECOA requirements
On May 21, President Trump signed resolution S.J. Res. 57 , which repeals CFPB Bulletin 2013-02 on indirect auto lending and compliance with the Equal Credit Opportunity Act (ECOA). The president’s signature completes the disapproval process under the Congressional Review Act (CRA), which began...
InfoBytesCFPB updates TRID Small Entity Compliance Guide and Guide to Forms
On May 15, the CFPB released the 2018 updated versions of the “Know Before You Owe” mortgage disclosure rule Small Entity Compliance Guide (versions 4.1 and 5.2 ) and Guide to Forms (versions 1.5 and 2.1 ). Because the optional compliance period with the 2017 TILA-RESPA Integrated Disclosure Rule (...
InfoBytesDOJ, CFPB agree to early termination of consent order with indirect auto lender
On May 15, the auto lending branch of an international automobile company (indirect auto lender) reported in an 8-K filing that the DOJ and CFPB had reached an agreement that the indirect auto lender has met the requirements for early termination of a consent order entered into in 2016 over...
InfoBytesHouse approves repeal of CFPB’s 2013 indirect auto guidance
On May 8, the House voted to repeal, under the Congressional Review Act (CRA), CFPB Bulletin 2013-02 (Bulletin) on indirect auto lending and compliance with the Equal Credit Opportunity Act (ECOA). As previously covered by InfoBytes , the Senate approved the resolution on April 18 and the White...
InfoBytesCFPB Succession: Bureau dismantles Office for Students; no longer plans student loan regulations; and more
On May 9, according to multiple reports, the CFPB internally announced that the Bureau would eliminate the Office of Students & Younger Consumers and move its staff into the Office of Financial Education as part of acting Director Mulvaney’s agency reorganization. The Bureau will continue to...
InfoBytesFFIEC releases 2017 HMDA data; CFPB releases new annual report on mortgage market activity and trends
On May 7, the Federal Financial Institutions Examinations Council released the 2017 Home Mortgage Disclosure Act (HMDA) data on mortgage lending transactions covering information submitted by financial institutions on or before April 18. The data will not remain static, but instead will be updated...
InfoBytesNational bank reaches $480 million settlement with investors over incentive compensation sales program
On May 4, a national bank announced it reached an agreement in principle to pay $480 million to certain investors to resolve a consolidated securities fraud class action, related to the bank’s previous incentive compensation sales program. The class action stems from the September 2016 consent...
InfoBytesPennsylvania adopts CFPB mortgage servicing regulations
On April 28, the Pennsylvania Department of Banking and Securities adopted regulations to effectively incorporate Subpart C of the CFPB’s RESPA mortgage servicing regulations (Regulation X), which were amended effective as of April 19. The adopted regulations address, among other things, (i)...
InfoBytesDistrict Court partially denies defendants’ time-barred claims, rules certain TSR violations may proceed
On May 3, the U.S. District Court for the Central District of California addressed time-barred claims raised by a group of affiliated law firms and their managing attorneys (defendants) that partnered with a now-defunct entity to offer debt relief services to consumers. The court granted in part...
InfoBytesPHH will not challenge CFPB’s constitutionality with Supreme Court
PHH will not seek to appeal the January 31 decision by the U.S. Court of Appeals for the D.C. Circuit, which upheld the CFPB’s constitutionality in a 7-3 decision. (Covered by a Buckley Sandler Special Alert .) The Supreme Court requires petitions for writ of certiorari to be filed within 90 days...
InfoBytesSenators release report on credit reporting agency from data in CFPB’s public complaint database
On April 30, three Democratic Senate Banking Committee members released a report addressing publicly available complaints the CFPB received regarding the 2017 data breach announcement by a national credit reporting agency. In a letter to the CFPB, which accompanied the release of the report, the...
InfoBytesCoalition of state Attorneys General oppose efforts to weaken CFPB’s investigative authority
On April 25, a coalition of 16 state Attorneys General issued a comment letter responding to the CFPB’s Request for Information (RFI) on Civil Investigative Demands (CIDs). (See previous InfoBytes coverage on the RFI here and here .) According to the letter, the coalition opposes “any effort to...
InfoBytes5th Circuit will hear CFPB constitutionality challenge
On April 24, the U.S. Court of Appeals for the 5th Circuit agreed to hear a challenge by two Mississippi-based payday loan and check cashing companies to the constitutionality of the CFPB’s single-director structure. The CFPB filed a complaint against the two companies in May 2016 alleging...
InfoBytesCFPB finalizes KBYO amendment to address “black hole”
On April 26, the CFPB issued a final amendment to its “Know Before You Owe” mortgage disclosure rule to address when mortgage lenders with a valid changed circumstance or other justification are permitted to reset tolerances and pass on increased closing costs to consumers using the Closing...
InfoBytesFederal Reserve releases updates to interagency examination procedures for Regulations X and Z
On April 19, the Federal Reserve Board (Fed) issued a consumer affairs letter ( CA 18-3 ) announcing revised interagency examination procedures for Regulation X (RESPA) and Regulation Z (TILA) that supersede procedures previously issued in September 2015. The updated procedures account for...
InfoBytesStudent loan servicer must comply with CFPB CID pending appeal
On April 17, the U.S. District Court for the Western District of Pennsylvania ordered a student loan servicer to comply with a CFPB Civil investigative Demand (CID), while the servicer awaits appeal. As previously covered by InfoBytes , in February the court enforced a CFPB CID issued against the...
InfoBytesCFPB and OCC fine national bank $1 billion for mortgage and auto lending practices
On April 20, the CFPB, in coordination with the OCC, announced a $1 billion settlement with a national bank for certain auto and mortgage lending practices the bank had previously discontinued and for which voluntary consumer remediation was initiated by the bank. According to the CFPB consent...
InfoBytesSenate votes to block CFPB’s 2013 indirect auto guidance
On April 18, the Senate voted to strike down, under the Congressional Review Act, the CFPB’s Bulletin 2013-02 (Bulletin) on indirect auto lending and compliance with the Equal Credit Opportunity Act (ECOA). The vote follows a December 2017 letter issued by the Government Accountability Office (GAO...
InfoBytesCFPB Succession: Mulvaney pleads for Congress to restructure the CFPB; oral arguments held in English litigation
On April 11 and 12, acting Director of the CFPB, Mick Mulvaney, testified before the House Financial Services Committee and the Senate Banking Committee regarding the Bureau’s semi-annual report to Congress. (Previously covered by InfoBytes here ). Mulvaney’s prepared testimony , which was...
InfoBytesDistrict court rejects motions for summary judgement on FDCPA claims filed by CFPB, debt collection law firm
On April 9, the U.S. District Court for the Northern District of Ohio rejected motions for partial summary judgment and summary judgment filed respectively by the CFPB and a law firm accused of making false representations regarding attorney involvement in debt collection calls in violation of the...
InfoBytesCFPB releases RFI on consumer complaints and inquiries
On April 11, the CFPB released its twelfth (and apparently final) Request for Information (RFI) in a series seeking feedback on the Bureau’s operations. This RFI solicits public comment to assist the Bureau in assessing its handling of consumer complaints and consumer inquiries. Pursuant to the...
InfoBytesCFPB releases RFI on financial education programs
On April 4, the CFPB released its eleventh Request for Information (RFI) in a series seeking feedback on the Bureau’s operations. This RFI solicits public comment to assist the Bureau in “assessing the overall efficiency and effectiveness of its consumer financial education programs.” Pursuant to...
InfoBytesMulvaney requests more oversight and accountability for the Bureau in semi-annual report to Congress
On April 2, the CFPB issued its semi-annual report to Congress covering the Bureau’s work from April 1, 2017 to September 30, 2017. The report details, among other things, problems faced by consumers with regard to consumer financial products or services; significant rules and orders adopted by the...
InfoBytesCFPB appeals $10 million order in payday lender suit
On March 27, the CFPB filed a notice of appeal to the U.S. Court of Appeals for the 9th Circuit in response to a district court’s order that an online loan servicer and its affiliates pay a $10 million penalty for offering high-interest loans in states with usury laws barring the transactions—a...
InfoBytesCFPB updates mortgage servicing Small Entity Compliance Guide, releases mortgage servicing coverage chart
On March 29, the CFPB released version 3.1 of its mortgage servicing Small Entity Compliance Guide . The updated guide supports the implementation of the 2016 Mortgage Servicing Final Rule, including the amendment to the Rule released earlier this month. The Rule replaces the previous single-...
InfoBytesCFPB Succession: CFPB drops payday lawsuit, new CRA measures introduced in Congress
On March 22, Senator Moran, R-Kan, with 15 GOP co-sponsors introduced a resolution under the Congressional Review Act to block the CFPB’s Bulletin 2013-02 (Bulletin) on indirect auto lending and compliance with the Equal Credit Opportunity Act (ECOA). The resolution follows a December 2017 letter...
InfoBytesCFPB releases RFI on guidance and implementation materials
On March 28, the CFPB released its tenth Request for Information (RFI) in a series seeking feedback on the Bureau’s operations. This RFI solicits public comment to assist the Bureau in “assessing the overall effectiveness and accessibility of its guidance materials and activities (including...
InfoBytesFTC responds to CFPB RFI on CIDs
On March 27, the FTC’s Bureau of Consumer Protection (BCP) released its comment letter responding to the CFPB’s Request for Information (RFI) on Civil Investigative Demands (CIDs) – the first RFI in a series seeking feedback on the CFPB’s operations (previously covered by InfoBytes here )...
InfoBytesCFPB and FTC issue annual report on 2017 debt collection activities
On March 20, the CFPB and the FTC issued an annual report to Congress on the agencies’ collective actions to combat illegal debt collection practices based on their shared enforcement responsibilities under the FDCPA. The report was released pursuant to a 2012 Memorandum of Understanding between...
InfoBytesCourt denies CFPB motion to reconsider, applies new RESPA safe harbor
On March 22, the U.S. District Court for the Western District of Kentucky denied the CFPB’s motion to reconsider an opinion issued in July 2017, which held that a safe harbor provision for affiliated business arrangements under Section 8(c)(4) of RESPA protects a Louisville law firm's relationship...
InfoBytesCFPB releases RFI on inherited rules, extends comment period for first three RFIs
On March 22, the CFPB released its ninth Request for Information (RFI) in a series seeking feedback on the Bureau’s operations. This RFI solicits public comment to assist the Bureau in deciding “whether it should amend the regulations or exercise the rulemaking authorities that it inherited from...
InfoBytesCFPB releases FAQs on bankruptcy issues under the 2016 Mortgage Servicing Final Rule
On March 20, the CFPB released updated FAQs to support the implementation of the 2016 Mortgage Servicing Final Rule. Specifically, the updated FAQs pertain to the mortgage-servicing provisions regarding bankruptcy, which are effective April 19. The CFPB released ten bankruptcy-related question and...
InfoBytesCFPB releases RFI on adopted regulations and new rulemaking authorities
On March 14, the CFPB released its eighth Request for Information (RFI) in a series seeking feedback on the Bureau’s operations. This RFI solicits public comment to assist the Bureau in deciding “whether it should amend any rules it has issued since its creation or issue rules under new rulemaking...
InfoBytesSenate passes bipartisan financial regulatory reform bill
On March 14, by a vote of 67-31, the Senate passed the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) (the bill)—a bipartisan regulatory reform bill crafted by Senate Banking, Housing, and Urban Affairs Committee Chairman Mike Crapo, R-Idaho—that would repeal or modify...
InfoBytesDistrict Court denies payment company’s request to set aside judgment
On March 12, the U.S. District Court for the Northern District of California denied a company’s post-trial motions to set aside September 2017 judgments in a lawsuit brought by the CFPB for alleged violations of the Consumer Financial Protection Act (CFPA). Specifically, the bi-weekly payments...
InfoBytesCFPB updates prepaid rule Small Entity Compliance Guide
On March 13, the CFPB released version 3.0 of its prepaid rule Small Entity Compliance Guide and the guide to Preparing Short Form Disclosure for Prepaid Accounts . The updated guides reflect the 2018 final rule governing prepaid accounts (Rule). As previously covered by Infobytes , in December...
InfoBytesJudge orders student loan servicer to comply with CFPB CID
On February 28, the U.S. District Court for the Western District of Pennsylvania granted the CFPB’s petition to enforce a Civil Investigative Demand (CID) issued against a student loan servicer. According to the opinion, the student loan servicer filed a petition with the CFPB to set aside a June...
InfoBytesCFPB releases RFI on rulemaking process
On March 7, the CFPB released its seventh Request for Information (RFI) in a series seeking feedback on the Bureau’s operations. This RFI solicits public comment regarding “the overall efficiency and effectiveness of its rulemaking processes.” The RFI emphasizes that the Bureau is not seeking...
InfoBytesCFPB releases 2018 lists of rural, underserved counties
On March 6, the CFPB released its annual list of rural counties and rural or underserved counties for lenders to use when determining qualified exemptions under certain TILA regulatory requirements. In addition to these lists, the Bureau also directed lenders to use its web-based Rural or...
InfoBytesCFPB issues final rule on periodic statements during bankruptcy
On March 8, the CFPB issued a final rule updating technical aspects of the upcoming periodic statement requirements for borrowers in bankruptcy under Regulation Z. The Bureau adopted the proposed rule, released in October 2017, without revision (previously covered by InfoBytes here ). Specifically...
InfoBytesBuckley Sandler Special Alert: Mulvaney says the CFPB will depend heavily on state Attorneys General for enforcement of consumer protection laws
Buckley Sandler Special Alert Mick Mulvaney, the acting director of the Consumer Financial Protection Bureau, in a February 28 speech, outlined the Bureau’s overall direction and strategic priorities, and described plans to coordinate with state Attorneys General in enforcing federal consumer...
InfoBytesCFPB releases RFI on complaint reporting
On March 1, the CFPB released its sixth Request for Information (RFI) in a series seeking feedback on the bureau’s operations. This RFI solicits public comment regarding “potential changes that can be implemented to the Bureau’s public reporting practices of consumer complaint information.” Under...
InfoBytesCFPB reviews removal of public records from credit reports
On February 22, the CFPB released a report finding that the removal of public records from consumer credit reports may have had an effect on consumers’ credit scores. The report reviewed the impact of the civil public records minimum information standards established pursuant to the National...
InfoBytesCFPB releases RFI on external engagements
On February 21, the CFPB released its fifth Request for Information (RFI) in a series seeking feedback on the bureau’s operations. This RFI solicits public comment on how the Bureau can best “conduct future external engagements while continuing to achieve the Bureau’s statutory objectives.”...
InfoBytesCFPB Succession: CFPB releases five-year strategic plan; Trump’s budget proposal suggests cuts
On February 12, the CFPB released its five-year strategic plan , which establishes the agency’s long-term strategic goals with corresponding objectives and achievement strategies. The strategic plan also introduces a new stated mission for the CFPB, which is based on Sections 1011(a) and 1013(d) of...
InfoBytesPresident Trump releases 2019 budget proposal; key areas of reform include appropriation shifts, cybersecurity, and financial crimes
On February 12, the White House released its fiscal 2019 budget request, Efficient, Effective, Accountable, an American Budget (2019 budget proposal), along with Major Savings and Reforms (MSR) and an Appendix . The mission of the President’s budget sets forth priorities, including imposing fiscal...
InfoBytesCFPB releases RFI on supervision process
On February 14, the CFPB released its fourth Request for Information (RFI) in a series seeking feedback on the Bureau’s operations. While prior RFIs have focused on various aspects of the Bureau’s enforcement process, this RFI solicits public comment on “how best to achieve meaningful burden...
InfoBytesCFPB Succession: Senators express concern over CFPB’s investigation into data breach; Otting praises Mulvaney; & more
On February 7, a bipartisan group of 32 senators wrote to the CFPB expressing concerns over reports that the Bureau may have halted an investigation into a large credit reporting agency’s significant data breach. The letter requests specific information related to agency’s oversight over the issue...
InfoBytesCFPB releases RFI on enforcement process
On February 7, the CFPB released its third Request for Information (RFI) in a series seeking feedback on the bureau’s operations. This RFI solicits public comment on “information to help assess the overall efficiency and effectiveness of [the bureau’s] processes related to the enforcement of...
InfoBytesJohn C. Redding quoted in an American Financial Services Association article, “Circuit court upholds constitutionality of CFPB structure”
John C. Redding was quoted on January 31, 2018 in an American Financial Services Association article, “Circuit court upholds constitutionality of CFPB structure,” which discussed the D.C. Circuit Court of Appeals 7-3 ruling to keep the constitutionality of the Consumer Financial Protection Bureau’s...
In The NewsCFPB releases HMDA formatting tool and updates filing instructions
On February 1, the CFPB launched their 2018 Loan/Application Register (LAR) Formatting Tool (the “Tool”). According to the website, the Tool is intended to assist small volume lenders in creating an electronic file to submit to the HMDA Platform . The Tool is only intended to be used by...
InfoBytesDistrict judge enters final judgment against company posing as a direct lender; rules in favor of CFPB
On January 30, a federal judge for the U.S. District Court for the Southern District of New York ordered a New Jersey-based company along with two associated individuals (defendants) to pay civil money penalties totaling $75,000 for allegedly offering loans to consumers who were awaiting payouts...
InfoBytesCFPB Succession: Mulvaney removes Fair Lending office enforcement power; Warren sends payday congressional inquiry
On February 1, it was reported that Mulvaney has moved The Office of Fair Lending and Equal Opportunity from the Supervision, Enforcement and Fair Lending division (SEFL) of the CFPB to the Office of the Director. According to sources, Mulvaney sent an email which states that the Fair Lending...
InfoBytesCFPB releases RFI on administrative adjudications
On January 31, the CFPB released its Request for Information (RFI) on administrative adjudications, which solicits public comment on the process for the Bureau to “better understand the benefits and impacts of its use of administrative adjudications, and how its existing process may be improved.”...
InfoBytesBuckley Sandler Special Alert: D.C. Circuit upholds CFPB’s constitutionality but rejects its interpretation of RESPA
On January 31, the U.S. Court of Appeals for the D.C. Circuit issued its long-awaited en banc decision in CFPB v. PHH Corporation . In a 7-3 decision, the court concluded that the CFPB’s single-director structure is constitutional, even though the president can only remove the director for cause...
InfoBytesNYDFS promises to fill CFPB regulatory void
On January 25, the New York Department of Financial Services (NYDFS) Superintendent, Maria T. Vullo, issued a statement critical of the recent policy changes by the CFPB’s new leadership. As previously covered by InfoBytes , acting CFPB Director Mick Mulvaney announced, among other things, that the...
InfoBytesCFPB finalizes prepaid rule updates; moves effective date
On January 24, the CFPB released updates to the final rule governing prepaid accounts (Rule) delaying the effective date of the rule by one year, to April 1 2019. In December, as previously covered by InfoBytes , the Bureau announced its plan to delay the effective date and adopt final amendments...
InfoBytesCFPB releases RFI on CIDs
On January 25, the CFPB released its Request for Information (RFI) on Civil Investigative Demands (CIDs), which solicits public comment on “how best to achieve meaningful burden reduction or other improvement to the CID processes while continuing to achieve the Bureau’s statutory and regulatory...
InfoBytesJohn C. Redding Quoted in Auto Finance News Article, “Acting Director Mulvaney Issues Review of CFPB Enforcement Operations”
John C. Redding was quoted on January 22, 2018 in an Auto Finance News article, “Acting Director Mulvaney Issues Review of CFPB Enforcement Operations,” which discussed CFPB acting Director Mick Mulvaney’s decision to review and request public comments regarding all areas of the agency, starting...
In The NewsCFPB Succession: An end to “regulation by enforcement,” says Mulvaney
On January 23, acting CFPB Director Mick Mulvaney sent an email to staff (a similar version was later published as an op-ed in the Wall Street Journal) outlining his vision for how the CFPB will enforce consumer protection laws. In the email, Mulvaney emphasizes that the CFPB will no longer “push...
InfoBytesJudge’s $10 million order against payday lender falls far short of CFPB request
On January 19, a federal judge for the U.S. District Court for the Central District of California ordered an online loan servicer and its affiliates to pay a $10 million penalty for offering high-interest loans in states with usury laws barring the transactions. The judge denied the CFPB’s...
InfoBytesHouse passes HMDA relief for small banks
On January 18, by a vote of 243-184, the House passed H.R. 2954 , to amend HMDA to exempt low-volume mortgage lenders from certain disclosure requirements. If enacted, the bill would exempt depository institutions from maintenance of records and disclosure requirements if, (i) for closed-end...
InfoBytesCFPB succession update: CFPB requests zero funding; seeks public comment regarding Bureau’s activities; & more
On January 17, in a letter to Federal Reserve Chair Janet Yellen, acting CFPB Director Mick Mulvaney requested zero dollars for the Bureau’s quarterly operating funds. Each fiscal quarter, as required by law, the CFPB formally requests that the Federal Reserve transfer a specified amount of money...
InfoBytesCFPB plans to reconsider payday rule
On January 16, the CFPB announced plans to reconsider its final rule addressing payday loans, vehicle titles loans, and certain other extensions of credit (previously covered in a Buckley Sandler Special Alert ) by engaging in a rulemaking process. While the announcement was made on the effective...
InfoBytesCFPB succession update: Judge denies English’s motion
On January 10, Judge Timothy Kelley denied CFPB Deputy Director Leandra English’s request for a preliminary injunction to prevent OMB Director Mick Mulvaney from serving as the acting director of the CFPB. In his opinion , Judge Kelley emphasized that English failed to show a likelihood of success...
InfoBytesBuckley Sandler Insights: OMB releases updated and possibly outdated CFPB rulemaking agenda
OMB has released the CFPB’s Fall 2017 rulemaking agenda. Although this is the first update to the agenda since Richard Cordray left the agency in November 2017, delays in the publication of rulemaking agendas are common so the updated agenda may not reflect the views of new CFPB leadership. The...
InfoBytesCFPB Releases Biennial Credit Card Report
On December 27, the CFPB released its biennial report on the state of the U.S. credit card market, finding that the total amount of credit lines, the total number of credit accounts, the total number of enrollments in online services, and the total amount of debt have increased since 2015. The...
InfoBytesCFPB Releases HMDA Tools; Updates HMDA Asset Threshold
On December 27, the CFPB announced the launch of a HMDA Check Digit Tool and a Rate Spread Calculator to assist financial institutions in the calculation of data field values required for reporting HMDA data. According to the CFPB, the HMDA Check Digit Tool and the Rate Spread Calculator will...
InfoBytesArguments Heard in English Litigation; CFPB Announces Relaxed Compliance Requirements for HMDA; Other Proposed Rulemakings
On December 22, Judge Timothy Kelley heard arguments from both parties related to Leandra English’s litigation against President Trump and Mick Mulvaney. Judge Kelley did not rule on the matter at the close of the hearing. As previously covered by InfoBytes , English filed an amended complaint for...
InfoBytesAndrew L. Sandler and Jeremiah S. Buckley Mentioned in Wall Street Journal Article, “The Internal Divide Behind Trump’s Takeover of Consumer Watchdog”
On December 21, 2017, the Wall Street Journal article, “The Internal Divide Behind Trump’s Takeover of Consumer Watchdog,” which discussed candidates that were considered to head the Consumer Financial Protection Bureau, noted that Treasury Secretary Steven Mnuchin “also considered Keith Noreika,...
In The NewsDistrict Court Rules CFPB Violates FOIA in Withholding Documents Produced in Response to CID; Upholds Other CFPB Interpretations of FOIA
On December 14, the U.S. District Court for the District of Columbia ruled that any CFPB policy considering information provided to the CFPB in response to CID requests to have been submitted “voluntarily” and therefore exempt from public disclosure violates the Freedom of Information Act (FOIA)...
InfoBytesSeventeen State AGs Express Mulvaney Concerns to Trump and Emphasize AG Consumer Protection Authority
On December 12, seventeen state attorneys general sent a letter to President Trump expressing concern about OMB Director Mulvaney leading the CFPB. The AGs emphasize Mulvaney’s past criticisms of the Bureau as evidence that Mulvaney should be disqualified from the position, even in the acting...
InfoBytesCFPB Ombudsman’s Office Publishes Fiscal Year 2017 Annual Report
The CFPB’s Ombudsman’s Office published its annual report to the Director for fiscal year 2017, entitled Advocating for Fair Process in Consumer Financial Protection . The December 6 report details Ombudsman initiatives undertaken in 2017 and highlights the Bureau’s selection as one of four case...
InfoBytesEnglish Litigation Continues as Mulvaney Delays CFPB Enforcement Cases and Lawmakers Begin New Payday CRA Action
On December 6, Deputy Director of the CFPB, Leandra English, filed an amended complaint for declaratory and injunctive relief and a motion for preliminary injunction with a supporting memorandum . In her amended complaint, English adds, among other things, a constitutional claim alleging that...
InfoBytesJohn C. Redding Quoted in Auto Finance News Article, “With Mulvaney at the Helm, CFPB Debt Collection Rule Faces Elimination”
John C. Redding was quoted on December 4, 2017 in an Auto Finance News article, “With Mulvaney at the Helm, CFPB Debt Collection Rule Faces Elimination,” which discussed fate of the CFPB’s debt collection rule following the reaffirmation of Mick Mulvaney as interim CFPB director. The article stated...
In The NewsMichelle L. Rogers Quoted in Reuters Wire story, “U.S. States Gird for Fight as Trump Targets Consumer Finance Watchdog”
Michelle L. Rogers was quoted on December 1, 2017 in a Reuters wire story, “U.S. States Gird for Fight as Trump Targets Consumer Finance Watchdog,” which discussed how changes in Consumer Financial Protection Agency leadership might affect state enforcement initiatives. The article stated, “When it...
In The NewsMulvaney Completes First Week as Acting Director of CFPB
In his first week at the Bureau, Mulvaney ordered freezes on hiring and any new regulations for 30 days, and also announced a halt to payouts from the enforcement fund. It is also reported that Mulvaney has put new enforcement actions on hold as he reviews on-going matters. Additionally, on...
InfoBytesWarren W. Traiger Quoted in American Banker Article, “Five Big Questions About Mulvaney-led CFPB”
Warren W. Traiger was quoted on November 29, 2017 in an American Banker article, “Five Big Questions About Mulvaney-led CFPB,” which discussed the potential changes that are anticipated to occur with Mick Mulvaney as interim director of the CFPB. The article stated, “Mulvaney, who is also the...
In The NewsCFPB Fines Large Bank for Alleged Student Loan Servicing Issues
On November 21, the CFPB announced it had entered into a consent order with a large national bank over allegations that the bank engaged in unfair and deceptive practices in violation of the Consumer Financial Protection Act of 2010 (CFPA) related to its student loan servicing activities. The order...
InfoBytesCFPB Releases Report on Consumers’ Overdraft Experiences
On November 21, the CFPB released a report summarizing findings from a qualitative study about consumers’ experiences with overdraft programs. The study consisted of one-on-one interviews by telephone with 88 individual consumers from May 2014 through June 2014 (the report does not comment on the...
InfoBytesCFPB Reports on Financial Institution Outreach to Limited English Proficient Consumers
On November 22, the CFPB released a report focusing on ways financial institutions can expand and improve services to Limited English Proficient consumers (LEP consumers) who often face challenges related to language access and financial literacy. According to findings in the report, LEP consumers...
InfoBytesCFPB Publishes Notices and Requests for Comment Concerning Collection of Consumer Complaints
On November 28, the CFPB published two notices of its intention to obtain OMB approval to continue its existing consumer complaint collection activities using its “Consumer Response Intake Form” and “Generic Information Collection Plan for Consumer Complaint and Information Collection System (...
InfoBytesCourt Denies Restraining Order Preventing Mulvaney’s Appointment
On November 28, Judge Timothy Kelly denied a request by Leandra English, who was appointed Deputy Director of the CFPB by Richard Cordray on the same day as his resignation, for a temporary restraining order preventing the President from appointing anyone other than English as Acting Director and...
InfoBytesLegal Battle Begins Over Mulvaney Appointment as Acting Director of CFPB
On November 26, the newly appointed Deputy Director of the CFPB, Leandra English, filed a lawsuit in U.S. District Court for the District of Columbia against President Trump and Mick Mulvaney, the Director of the Office of Management and Budget (OMB), seeking declaratory judgments that English is...
InfoBytesCFPB Fines Loan-Servicing Software Company $1.1 Million for Flaws Leading to the Reporting of Inaccurate Consumer Information
On November 17, the CFPB ordered a loan-servicing software company to pay a $1.1 million penalty for errors that resulted in the company furnishing incorrect consumer information related to over one million borrowers to the credit reporting agencies. The consent order alleges that the company...
InfoBytesBuckley Sandler Special Alert: CFPB director Cordray resigns, attempts to name successor
Today, CFPB Director Richard Cordray named the agency’s chief of staff, Leandra English, as the bureau’s deputy director, and submitted his resignation to President Trump. The moves follow media reports that President Trump planned to appoint OMB Director Mick Mulvaney as the acting director of the...
ArticlesBuckley Sandler Special Alert: CFPB director Cordray resigns, attempts to name successor
Today, CFPB Director Richard Cordray named the agency’s chief of staff, Leandra English, as the bureau’s deputy director, and submitted his resignation to President Trump. The moves follow media reports that President Trump planned to appoint OMB Director Mick Mulvaney as the acting director of the...
InfoBytesTrump to Select Mulvaney as Interim CFPB Director
According to media sources, President Trump is expected to select Mick Mulvaney, the current Director of the White House Office of Management and Budget (OMB), to serve as the interim Director of the CFPB upon Richard Cordray’s resignation at the end of this month. Mulvaney would keep his current...
InfoBytesBuckley Sandler Special Alert: Cordray to resign as director of CFPB
Richard Cordray said today in an email to the staff of the Consumer Financial Protection Bureau that he will resign as director before the end of November. While it has long been expected that he would seek the Democratic nomination for the governorship of Ohio, he did not specify his plans in the...
ArticlesCFPB Initiates Complaint Against Company for Deceptive, Unfair, and Abusive Loan Collection Practices
On November 15, the CFPB announced it had filed a complaint against a Texas-based service provider, alleging that it had assisted in the collection of loans that were, in whole or in part, void under state law. The complaint filed in the U.S. District Court for the District of Montana alleges that...
InfoBytesFredrick S. Levin Quoted in HousingWire Article, “Vice President Pence Casts Tie-breaking Vote to Kill CFPB Arbitration Rule”
Fredrick S. Levin was quoted on October 25, 2017 in a HousingWire article, “Vice President Pence Casts Tie-breaking Vote to Kill CFPB Arbitration Rule,” which discussed the 51 to 50, tie breaking vote by Vice President Pence to revoke the CFPB’s new arbitration rule. The article stated, “The House...
In The NewsCFPB Requests Comments on Overdraft Disclosures; CFPB Announces Final Language Access Plan; Holds Ceiling at $12.00 for Allowable FCRA Charges
On November 15, the CFPB published a request for comment on a proposal to the Office of Management and Budget (OMB) to conduct online testing of point of sale/ATM (POS/ATM) overdraft disclosure forms. In the request, the Bureau invited comments on, (i) “[w]hether the collection of information is...
InfoBytesBuckley Sandler Special Alert: Cordray to resign as director of CFPB
Richard Cordray said today in an email to the staff of the Consumer Financial Protection Bureau that he will resign as director before the end of November. While it has long been expected that he would seek the Democratic nomination for the governorship of Ohio, he did not specify his plans in the...
InfoBytesCFPB Urges Supreme Court to Reject Tribal Lenders' Petition
On November 9, the CFPB filed a brief with the Supreme Court opposing the petition for a writ of certiorari submitted by online tribal lending entities. The lenders are challenging a January decision by the Ninth Circuit Court of Appeals, which ordered the entities to comply with a CFPB...
InfoBytesCFPB Publishes Two RFIs Concerning Free Access to Credit Scores
On November 13, the CFPB’s Office of Financial Education (OFE) published two requests for information (RFI) in the Federal Register concerning free access to credit scores. The first RFI requests information related to (i) consumers’ experience when accessing free credit scores, and (ii) the...
InfoBytesAgencies Announce Changes to Threshold Amounts for Truth in Lending Act and Consumer Leasing Act
On November 8, the CFPB and the Federal Reserve Board (Board) finalized the annual dollar threshold adjustments that govern the application of Regulation Z (Truth in Lending Act) and Regulation M (Consumer Leasing Act) to credit transactions as required by the Dodd-Frank Act. Each year the...
InfoBytesCFPB Takes Action Against Largest Debt Settlement Provider
On November 9, the CFPB announced the filing of a complaint against the largest debt settlement provider in the country and its co-CEO for allegedly deceiving consumers about its debt settlement services. According to the complaint, the defendants engaged in deceptive acts and practices in...
InfoBytes"CFPB Issues Rule Regarding Payday, Title, Deposit Advance, and Certain Other Installment Loans" By Marshall T. Bell (Thomson Reuters)
On October 5, 2017, the CFPB published its final rule (the “Rule”) addressing payday loans, vehicle title loans, and certain other extensions of credit (collectively, “covered loans”). Among the Rule’s key provisions, it requires lenders to determine a borrower’s ability to repay for “covered short...
ArticlesCordray Speaks at Consumer Advisory Board Meeting
On November 2, CFPB Director Richard Cordray delivered prepared remarks at the Consumer Advisory Board (CAB) Meeting in Tampa, Florida addressing, among other things, the new rule (Rule) covering payday loans and certain other installment products (previously covered by a Buckley Sandler Special...
InfoBytesCFPB Reports Increase in Longer-Term Auto Loans
On November 1, the CFPB released a report finding an increase in the number of auto loans with terms of six years or longer. Specifically, the report notes that these longer-term loans made up 42 percent of auto loans originated in 2017, an increase from 26 percent of auto loans originated in 2009...
InfoBytesTrump Signs Legislation to End Arbitration Rule
On November 1, President Trump signed a resolution repealing the CFPB’s embattled arbitration rule (Rule). The resolution, which passed the Senate two weeks ago, was issued under the Congressional Review Act (previously covered by InfoBytes here ). Trump’s signature came two days after Richard...
InfoBytesCFPB Launches Beta Version of HMDA Platform
On November 3, the CFPB announced the beta release of the new HMDA Platform . The beta version enables financial institutions to become familiar with the platform and permits entities to establish test log-in credentials, upload sample files and validate data, receive edit reports, and confirm test...
InfoBytesCFPB Releases Web-Based Tool to Track Trends in Mortgage Delinquency Rates
On October 30, the CFPB announced the release of a “ Mortgage Performance Trends ” tool that tracks delinquency rates across the nation. The tool is comprised of data from the National Mortgage Database (jointly launched by the CFPB and the FHFA in 2012) and tracks monthly changes in delinquencies...
InfoBytesCFPB Releases 50-State Snapshots of Student Debt, Servicemember Complaints
On October 27, the CFPB published a blog post highlighting the Bureau’s October 20 “ 50-state snapshot of student debt ,” which illustrates how the “more than $1.4 trillion in student loan debt” is spread across the country. The snapshot also provides data on the more than 50,000 student loan...
InfoBytesCFPB Posts Strategic Plan for Fiscal Years 2018-2022
On October 18, the CFPB released and requested feedback on its draft strategic plan for fiscal years 2018-2022. This strategic plan identifies the Bureau’s long-term goals and objectives. The proposed strategic plan outlines four broad goals for the next five years with multiple objectives and...
InfoBytesCFPB Consumer Advisory Board Public Meeting Notice
The CFPB Consumer Advisory Board will host a public meeting on Thursday, November 2, at 10:00am EST in Tampa, Florida. According to the notice , published in the Federal Register on October 17, the board will discuss Know Before You Owe: Reverse Mortgages; financial well-being; trends and themes;...
InfoBytesOCC to Host Workshop for Bank Directors in December; FDIC, CFPB Announce Webinar to Discuss Financial Education Resources
On October 23, the OCC announced it will host a workshop December 4-6 in Albuquerque, New Mexico, for directors, senior management team members, and other key executives of OCC-supervised national community banks and federal savings associations. The “Building Blocks for Directors” workshop will (i...
InfoBytesSenate Nullifies CFPB Arbitration Rule
On October 24, the Senate cleared a resolution under the Congressional Review Act to nullify the CFPB’s recently adopted final arbitration rule, with Vice President Mike Pence casting the deciding vote to break the 50-50 tie. As previously covered in InfoBytes , the House passed H.J. Res. 111...
InfoBytesTreasury Releases Report Criticizing CFPB Arbitration Rule
On October 23, the Treasury Department released a report criticizing the CFPB’s arbitration rule (Rule)—finding the Rule did not satisfy the statutory prerequisites under the Dodd-Frank Act for banning arbitration agreements. Specifically, the report concludes that “the Bureau has not made a...
InfoBytesCFPB Publishes Mortgage Servicing Small Entity Compliance Guide and Executive Summary
On October 19, the CFPB released version 3.0 of its mortgage servicing Small Entity Compliance Guide . The updated guide supports implementation of amendments to the Bureau’s mortgage servicing interim final rule issued October 4, which provides servicers, who are subject to a cease in...
InfoBytesCFPB Updates HMDA Implementation Materials; Federal Regulatory Agencies Release Key Data Fields
On October 17, the CFPB published a new reference chart titled “ Reportable HMDA Data: A Regulatory and Reporting Overview Reference ” designed to be used as a reference tool for required data points to be collected, recorded, and reported under Regulation C. The chart takes into account HMDA rules...
InfoBytesCFPB Issues Principles Concerning Security and Transparency for Financial Data Sharing and Third-Party Aggregation
On October 18, the CFPB published guidelines entitled “ Consumer Protection Principles ” (Principles), which are “intended to reiterate the importance of protecting consumers” when companies, including “fintech” firms, banks, and other financial institutions, get authorization from consumers to...
InfoBytesCFPB Issues Report: Student Loan Complaints Initiated Actions Bringing Relief to Borrowers
On October 16, the CFPB published its annual report analyzing consumer complaints submitted between September 1, 2016 and August 31, 2017. The report, titled “ Annual Report of the CFPB Student Loan Ombudsman ,” is based on more than 22,000 complaints, which related to federal student loan...
InfoBytesCFPB Takes Action Against Debt Relief Companies for Allegedly Violating the TSR and Claiming to be Affiliated With the Federal Government
On October 12, the CFPB announced the filing of a complaint in the U.S. District Court for the District of Maryland against two companies, their service provider, and their owners (defendants) for allegedly misleading consumers about their debt validation program. According to the complaint, the...
InfoBytesBuckley Sandler Special Alert: CFPB Issues Rule Regarding Payday, Title, Deposit Advance, and Certain Other Installment Loans
On October 5, 2017, the CFPB published its final rule (the “Rule”) addressing payday loans, vehicle title loans, and certain other extensions of credit (collectively, “covered loans”). Among the Rule’s key provisions, it requires lenders to determine a borrower’s ability to repay for “covered short...
ArticlesBuckley Sandler Special Alert: CFPB Issues Rule Regarding Payday, Title, Deposit Advance, and Certain Other Installment Loans
On October 5, 2017, the CFPB published its final rule (the “Rule”) addressing payday loans, vehicle title loans, and certain other extensions of credit (collectively, “covered loans”). Among the Rule’s key provisions, it requires lenders to determine a borrower’s ability to repay for “covered short...
InfoBytesTrade Groups Lobby for Exemption of Small Independent Mortgage Lenders from CFPB Examinations
On September 18, the Community Home Lenders Association and the Community Mortgage Lenders of America sent a joint letter to Treasury Secretary Mnuchin urging relief for smaller independent mortgage bankers from CFPB supervision, enforcement, and vender management audits. Specifically, the trade...
InfoBytesCFPB Issues Final Rule Regarding Payday, Title, Deposit Advance, and Other Installment Loans
On October 5, the CFPB published its final rule (Rule) addressing payday loans, vehicle title loans, deposit advance products, and longer-term balloon loans (collectively, “covered loans”). The CFPB previously announced the proposed rule in June 2016 (covered by a Buckley Sandler Special Alert )...
InfoBytesCFPB Issues Interim Final Rule Regarding Foreclosure Communications; Seeks Comment on Proposed Rule About Periodic Statements During Bankruptcy
On October 4, the CFPB announced one change and one proposed change to the amendments to its mortgage servicing rules under Regulations X and Z. These amendments, which were previously covered by a Buckley Sandler Special Alert , are scheduled to take effect in two phases on October 19, 2017 and...
InfoBytesCFPB Publishes Updated Reference Material for HMDA
On September 28, the CFPB released, on its website, updates to the reference material for the Home Mortgage Disclosure Act (HMDA). The Bureau updated the, (i) institutional coverage criteria ; (ii) transactional coverage criteria ; and (iii) key dates timeline . These updates are associated with...
InfoBytesFinancial Industry Groups Sue the CFPB Over Arbitration Rule
On September 29, the U.S. Chamber of Commerce (Chamber) and other financial industry groups joined together to file a lawsuit in a Texas District Court against the CFPB over the constitutionality and legality of the Bureau’s arbitration rule (rule). The complaint alleges four reasons why the rule...
InfoBytesCFPB Issues Consent Order for Steering to Real Estate Settlement Services Provider
On September 27, the CFPB issued a consent order against a real estate settlement services provider for allegedly steering consumers to a title insurer owned in part by three of its executives without disclosing its affiliated business interests, as required by RESPA. According to the consent order...
InfoBytesJeffrey P. Naimon and Jon David D. Langlois Authored a Law360 Article, "Ignore Borrower Preference In Loss Mitigation? CFPB Says Yes"
Mortgage servicers should not listen to borrowers when it comes to loss mitigation. At least, that’s what the Consumer Financial Protection Bureau says. More specifically, servicers should disregard when a borrower tells the servicer they do not want to keep their home. Officially, this has been...
ArticlesOIG Report: Potential for Improvement Within CFPB Examiner Commissioning and On-the-Job Training Programs
On September 20, the Office of Inspector General (OIG) for the CFPB issued findings in a report entitled The CFPB Can Enhance the Effectiveness of Its Examiner Commissioning Program and On-the-Job Training Program (the Report) stemming from an evaluation to assess the Bureau’s effectiveness when...
InfoBytesAG Coalition Urges Department of Education to Reconsider Termination of MOUs With CFPB
On September 26, Pennsylvania Attorney General Josh Shapiro, along with 18 other state attorneys general (state AGs) and the Executive Director of the Hawaii Office of Consumer Protection, issued a letter to U.S. Department of Education (Department) Secretary Betsy DeVos in reaction to the...
InfoBytesFTC Launches Military Task Force Website, CFPB Blog Post Discusses Servicemember Debt Collection Rights
On September 25, the FTC launched a new website to showcase the work of the agency’s Military Task Force. The Military Task Force identifies the needs of military consumers and their families and develops initiatives such as workshops that examine financial issues and scams more likely to affect...
InfoBytesAndrew L. Sandler and Michelle L. Rogers Authored a Law360 Article, "The Rise Of The Consumer"
The financial crisis had a profound impact on the regulatory structure applicable to the financial services industry and the consumer experience when purchasing financial products and services. The prudential regulation model whereby regulators worked with financial institutions to ensure safe and...
ArticlesCFPB Clarifies Remittance Transfer Rule Compliance
As previously covered in InfoBytes , the CFPB recently released its summer 2017 Supervisory Highlights ( Highlights ) outlining its supervisory progress this year. Included among the issues highlighted by the Bureau is its recent activity in the remittance transfer rule (RTR) space under Regulation...
InfoBytesHouse Financial Services Committee Issues Second Interim Report on Bureau’s Role in Fraudulent Accounts Scandal Investigation
On September 19, the Majority Committee Staff of the House Financial Services Committee (Committee) released a second interim report and supporting documents on the investigation of the role the CFPB played in detecting and remedying a major national bank’s practice of opening unauthorized bank...
InfoBytesCFPB Files Complaint Against Company that Allegedly Made False Loan Offers
On September 19, the CFPB announced it had filed a complaint in the U.S. District Court for the Southern District of New York against a New Jersey-based company and two associated individuals (defendants) that allegedly offered loans to consumers who were awaiting payouts from legal settlements or...
InfoBytesCFPB Announces Final Rule Modifying ECOA Regulations, Seeks Public Comment on Proposed Disclosure of HMDA Data
On September 20, the CFPB announced its Final Rule amending Regulation B, which implements the Equal Credit Opportunity Act (ECOA), as well as a notice of proposed policy guidance requesting public comment on modifications to loan-level HMDA data that will be made publicly available beginning in...
InfoBytesCFPB Publishes Small Entity Compliance Guide on Arbitration Rule
On September 15, the CFPB published a small entity compliance guide concerning the Bureau’s final arbitration rule that became effective this month. Compliance is required for “pre-dispute arbitration agreements” entered into on or after March 19, 2018. This guide provides a summary of the rule and...
InfoBytesCFPB Takes Action Against Delaware Trusts, Debt Collector for Allegedly Filing Illegal Student Loan Debt Collection Lawsuits
On September 18, the CFPB announced it had filed a complaint in the U.S. District Court for the District of Delaware against a collection of 15 Delaware statutory trusts and their debt collector for, among other things, allegedly filing lawsuits against consumers for private student loan debt that...
InfoBytesCFPB UDAAP Claim in Structured Settlement Factoring Case Moves Forward
On September 13, the U.S. District Court for the District of Maryland allowed a UDAAP claim brought by the CFPB to move forward in which the defendants allegedly employed abusive practices when purchasing structured settlements from consumers in exchange for lump-sum payments. The court also...
InfoBytesCFPB’s Summer Edition of Supervisory Highlights Discloses Findings Across Many Financial Services Areas
On September 12, the CFPB released its summer 2017 Supervisory Highlights , which outlines its supervisory and oversight actions in areas such as auto loan servicing, credit card account management, debt collection, deposit account supervision, mortgage origination and servicing, remittances,...
InfoBytesCFPB’s Project Catalyst Issues First “No-Action” Letter to Consumer Lending Firm
On September 14, the CFPB’s Project Catalyst initiative issued its first “no-action” letter to a consumer lending firm that provides an online lending platform that uses alternative data when making lending decisions. As previously discussed in InfoBytes , Project Catalyst explores innovation in...
InfoBytesCFPB Announces September 28 Community Bank Advisory Council Meeting
On Thursday, September 28, the CFPB will hold its next Community Bank Advisory Council meeting in Washington, DC. According to the September 12 Federal Register publication providing notice of the meeting, the Council’s discussion topics will focus on “Know Before You Owe: Overdraft” services and...
InfoBytesCFPB Issues Consent Order to Online Lead Aggregator, Settles Separate 2016 Lead Aggregator Action
On September 6, the CFPB ordered an online loan lead aggregator to pay $100,000 for its alleged involvement in selling leads to small-dollar lenders and installment loan purchasers who then extended loans that were void in whole or in part under the borrower’s state laws. The consent order alleges...
InfoBytesCFPB, Federal and State Banking Agencies Issue Guidance for Financial Institutions on Providing Disaster Relief to Consumers
As previously reported in InfoBytes , several federal banking agencies have already issued guidance and resources for national banks and federal savings associations aiding consumers affected by recent disasters. On September 1, the CFPB issued a statement for CFPB-supervised entities on ways to...
InfoBytesDepartment of Education Terminates Student Loan Sharing Agreements with CFPB, Announces Expanded Focus on Enforcement and Consumer Protection
On August 31, the U.S. Department of Education submitted a letter notifying the CFPB that it intends to terminate two Memoranda of Understanding (MOUs) between the agencies regarding the sharing of information in connection with the oversight of federal student loans. The MOUs that will terminate...
InfoBytesCFPB, Treasury, and FinCEN Release Memorandum Emphasizing Financial Institutions’ Role in Preventing Elder Financial Exploitation
On August 30, the CFPB, Treasury Department, and Financial Crimes Enforcement Network (the agencies) issued a joint memorandum concerning elder financial exploitation (EFE). The agencies note that EFE—which is defined as “the illegal or improper use of an older person’s funds, property or assets”—...
InfoBytesCFPB Releases Updated Compliance Management Procedures in Supervision and Examination Manual
On August 30, the CFPB posted revisions to its Compliance Management Review Examination Procedures —part of its Supervision and Examination Manual —that is intended to provide guidance for institutions when developing and maintaining compliance management systems (CMS). The Bureau advises that to...
InfoBytesCFPB Proposes Permanent Ban on Credit Repair Company for Misleading Consumers, Illegal Fees
On August 30, the CFPB and a credit repair company requested a California federal court to enter a final judgment and order to end the CFPB’s lawsuit against the company. The Bureau claimed that the company had violated the Consumer Financial Protection Act of 2010 and the Telemarketing Sales Rule...
InfoBytesCFPB Issues Summary of Changes and Clarifications to 2017 TILA-RESPA Rule
On August 30, the CFPB released “ 2017 TILA-RESPA Rule: Detailed Summary of Changes and Clarifications ” to assist the mortgage industry in implementing the disclosure requirements of the CFPB’s recently finalized TILA-RESPA Rule. The summary provides an in-depth outline of modifications to the...
InfoBytesCFPB Publishes Final Rule Amending Annual Dollar Threshold in TILA Regulations
On August 30, the CFPB issued a final rule amending Regulation Z, which implements the Truth in Lending Act (TILA), under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act of 1994 (HOEPA), and the Dodd-Frank ability-to-...
InfoBytesDistrict Court Dismisses CFPB Lawsuit Against Payment Processors, Cites “Blatant Disregard” for Discovery Order
On August 25, a federal judge in the U.S. District Court for the Northern District of Georgia filed an order dismissing claims brought by the CFPB against four payment processors for allegedly engaging in an illegal robocall phantom debt collection operation involving certain payment processors and...
InfoBytesCFPB Consent Order to Banking Subsidiaries Resolves Discriminatory Credit Card Term Practices in Puerto Rico and U.S. Territories
On August 23, the CFPB announced it was taking action against two banking subsidiaries of a multi-bank holding corporation for violating the Equal Credit Opportunity Act (ECOA) by allegedly offering credit card products and services to consumers in Puerto Rico, the U.S. Virgin Islands, and other U...
InfoBytesCFPB Issues Final Rule Amending 2015 HMDA Rule
On August 24, the CFPB issued a final rule amending Regulation C, which implements the Home Mortgage Disclosure Act (HMDA) . The changes are primarily for the purpose of clarifying the new data collection and reporting requirements published in October 2015, with most of the clarifications and...
InfoBytesCFPB Files Amicus Brief Supporting Reversal of Preliminary Injunction Freezing Department of Education’s Student Debt Collection
On August 21, the CFPB filed an amicus brief in the Court of Appeals for the Federal Circuit, urging the court to reverse a trial court’s order and arguing that precluding the Department of Education (Department) from sending billions of dollars in defaulted student loans to debt collection...
InfoBytesCFPB, 13 State Attorneys General Take Action Against Private Equity Firm for Allegedly Aiding For-Profit College Company’s Predatory Lending Scheme
On August 17, the CFPB announced a proposed settlement against a private equity firm and its related entities for allegedly aiding a now bankrupt for-profit college company in an illegal predatory lending scheme. In 2015, the CFPB obtained a $531 million default judgment against the company based...
InfoBytesCFPB Issues New Student Loan Repayment Study
On August 16, the CFPB published a study of student loan repayment patterns over a 14-year period. The report, entitled “ Data Point: Student Loan Repayment ,” analyzed borrower balance and payment status data from the Bureau’s Consumer Credit Panel (CCP). By tracking overall repayment history for...
InfoBytesHouse Financial Services Committee Issues Report Accusing Bureau of Contempt Charges Relating to Investigation into Arbitration Rulemaking
On August 4, the Majority Committee Staff of the House Financial Services Committee (Committee) released a report accusing CFPB Director Richard Cordray of failing to comply with an April 4, 2017 Congressional subpoena concerning the Committee’s on-going investigation into the Bureau’s arbitration...
InfoBytesDistrict Judge Denies Student Loan Servicer’s Motion to Dismiss, Rules CFPB is Constitutional
On August 4, a federal judge in the U.S. District Court for the Middle District of Pennsylvania denied a motion to dismiss brought by a student loan servicer, ruling that the CFPB is constitutional, and that it has the authority to act against companies without first adopting the rules used to...
InfoBytesCFPB Releases New Overdraft Protection Study and Prototype “Know Before You Owe” Disclosures
On August 4, the CFPB concurrently announced the release of a new study titled “Data Point: Frequent Overdrafters” on the use of overdraft services by consumers, as well as four new “Know Before You Owe” overdraft disclosure prototype templates. The announcement highlights findings in the study...
InfoBytesBuckley Sandler Special Alert: CFPB Releases Four Prototype Overdraft Disclosure Forms and a Report on Frequent Overdrafters
On August 4, the CFPB released four new prototype overdraft opt-in model disclosure forms and a report titled “Data Point: Frequent Overdrafters.” A summary of the forms and report are provided below. The prototype forms are still in the process of being developed, and the Bureau is requesting...
InfoBytesCFPB Fines National Bank $4.6 Million for FCRA Violations
On August 2, the CFPB ordered a national bank to pay $4.6 million for allegedly failing to establish adequate policies and procedures for providing consumer deposit account information to nationwide specialty consumer reporting agencies (NSCRAs). The consent order alleges that the bank violated the...
InfoBytesCFPB Monthly Complaint Report Focuses on Consumer Complaint Process
On August 1, the CFPB released a special edition of its monthly complaint report , highlighting company and consumer responses to the Bureau’s consumer complaint process. According to the Bureau, it has handled over 1.2 million complaints from 2011 through July 1 of this year. In the last three...
InfoBytesCFPB Issues Bulletin Warning Service Providers About Pay-By-Phone Fees
On July 31, the CFPB issued a bulletin to warn service providers that misleading consumers about pay-by-phone fees may potentially be a violation of Dodd-Frank’s prohibition on unfair, deceptive, or abusive acts or practices. The Bureau also provided guidance regarding its expectations for UDAAP...
InfoBytesMassachusetts AG Leads AG Coalition Urging Senate to Oppose Joint Resolution to Set Aside CFPB Arbitration Rule
On July 28, Massachusetts Attorney General Maura Healey, along with 20 other state attorneys general, issued a letter to Senate Majority leader Mitch McConnell and Minority Leader Charles Schumer, urging Senate leaders to oppose S.J.Res. 47 —a joint resolution that would set aside the CFPB’s...
InfoBytesCFPB Ombudsman’s Office Issues Mid-Year Update
In July, the CFPB Ombudsman’s Office issued its mid-year update for 2017. Each year, the Ombudsman is required to submit an annual report to the CFPB Director. The mid-year update outlines issues related to individual inquires made to the Ombudsman’s Office, the accessibility of CFPB print...
InfoBytesHouse Votes to Repeal CFPB Arbitration Rule
On July 25, the House voted along party lines to strike down the CFPB’s final arbitration rule by a vote of 231 to 190, exercising its authority under the Congressional Review Act to overturn a new agency rule within 60 days of its publication. H.J. Res. 111 , sponsored by Rep. Keith Rothfus (R-Pa...
InfoBytesMichelle L. Rogers and Edward W. Somers Authored a Law360 Article, "CFPB Shines Spotlight On Consumer Remittance Transfers"
The Consumer Financial Protection Bureau recently closed a 60-day public comment period on a plan to conduct an assessment of the effectiveness of its May 2013, final rule governing consumer remittance transfers under Subpart B of Regulation E (remittance transfer rule). The remittance transfer...
ArticlesBuckley Sandler Insights: CFPB Updates Rulemaking Agenda
On July 20, the CFPB released its Spring 2017 rulemaking agenda. The agenda was last updated in Fall 2016. The summer release date, and the fact that certain deadlines listed in the updated agenda have already passed, indicates that the agenda’s release may have been delayed after the CFPB drafted...
InfoBytesOCC Acting Comptroller Reiterates Request for CFPB Arbitration Rule Data
On July 17, OCC Acting Comptroller Keith Noreika delivered a letter to the CFPB reiterating his request to review the supporting data used to develop the Bureau’s final arbitration rule prohibiting the use of mandatory pre-dispute arbitration clauses in certain contracts for consumer financial...
InfoBytesDaniel P. Stipano Quoted in Bloomberg BNA Article, “Banking Regulators Engage in Unusually Public Spat”
Daniel P. Stipano was quoted on July 17, 2017 in a Bloomberg BNA article, “Banking Regulators Engage in Unusually Public Spat,” which discussed the disagreement between Consumer Financial Protection Bureau Director Richard Cordray and acting Office of the Comptroller of the Currency agency head...
In The NewsABA, CFPB to Host Webinar for Financial Institutions on New HMDA Submission Platform
On July 17, the ABA and CFPB announced a joint webinar on August 8 at 2:00 pm EDT, which will instruct compliance, operations, and loan processing professionals on how to use the new platform for submitting HMDA data. The webinar will provide an overview of the new tool and data collection process...
InfoBytesHouse Appropriations Committee Approves Fiscal 2018 Funding Bill Designed to Overhaul Existing Financial Regulations
On July 13, the House Appropriations Committee approved the fiscal year 2018 financial services funding bill by a vote of 31-21. The bill totaling $20.231 billion—$1.284 billion below fiscal year 2017 and $2.483 billion less than President Trump’s budget request—incorporates several provisions of...
InfoBytesJudge Issues Ruling that Federal Safe Harbor Provision Applies in RESPA Case
On July 13, a federal judge in the U.S. District Court for the Western District of Kentucky issued an opinion holding that a safe harbor provision for affiliated business arrangements under Section 8(c)(4) of RESPA protects a Louisville law firm's relationship with a string of now-closed title...
InfoBytesABA, State Banking Associations Request HMDA Implementation Delay
Following up on comments submitted to the CFPB on its proposal to amend the 2015 HMDA rule ( see previous InfoBytes coverage here ), the American Bankers Association (ABA)—along with state banking associations representing all 50 states and Puerto Rico—sent a letter on July 12 to the Bureau...
InfoBytesCFPB Seeks Comments on Proposed Amendments to HMDA Reporting Threshold
On July 14, the CFPB announced and requested comments on proposed amendments to Regulation C, which concerns reporting requirements for banks and credit unions issuing home-equity lines of credit under HMDA. The amendments would raise the threshold from 100 loans to 500 for calendar years 2018 and...
InfoBytesCFPB Extends Comment Deadline for Small Business Lending Request for Information
On July 12, the CFPB issued a notice in the Federal Register announcing that, in response to a request from 13 industry trade associations for an additional comment period extension, the Bureau has extended the comment period of the “Request for Information Regarding the Small Business Lending...
InfoBytesSpecial Alert: CFPB Issues Arbitration Rule Banning Future Use of Mandatory Arbitration Clauses
On July 10, the Consumer Financial Protection Bureau (CFPB) issued its Arbitration Agreements Rule (Rule), which prohibits the use of mandatory pre-dispute arbitration clauses in certain contracts for consumer financial products and services. The Rule is a product of the CFPB’s rulemaking process,...
ArticlesSpecial Alert: CFPB Finalizes Amendments to Know Before You Owe/TRID Rule and Proposes Additional Changes to Address “Black Hole”
On Friday, the CFPB issued amendments to the KBYO/TRID rule . The Bureau billed the changes as clarifying and technical in nature but stated that the final rule “also makes a limited number of additional substantive changes where the Bureau has identified discrete solutions to specific...
ArticlesSpecial Alert: CFPB Issues Arbitration Rule Banning Future Use of Mandatory Arbitration Clauses
On July 10, the Consumer Financial Protection Bureau (CFPB) issued its Arbitration Agreements Rule (Rule), which prohibits the use of mandatory pre-dispute arbitration clauses in certain contracts for consumer financial products and services. The Rule is a product of the CFPB’s rulemaking process,...
InfoBytesSpecial Alert: CFPB Finalizes Amendments to Know Before You Owe/TRID Rule and Proposes Additional Changes to Address “Black Hole”
On July 7, the CFPB issued amendments to the KBYO/TRID rule . The Bureau billed the changes as clarifying and technical in nature but stated that the final rule “also makes a limited number of additional substantive changes where the Bureau has identified discrete solutions to specific...
InfoBytesCFPB Monthly Complaint Snapshot Focuses on State-Level Consumer Complaints
On June 27, the CFPB released its monthly complaint report , highlighting complaints from around the country. According to the Bureau, it has handled over 1.2 million complaints from 2011 through June 1 of this year. The report shows nationwide complaint statistics and statistics for service...
InfoBytesJeffrey P. Naimon and Moorari K. Shah Authored a Mortgage Compliance Magazine Article, "Divide & Conquer"
The Consumer Financial Protection Bureau (CFPB or Bureau) continues to expand its gaze, announcing this past April that it has begun implementation of a program to directly supervise service providers of financial institutions, particularly those that cater to the mortgage industry. As regulatory...
ArticlesBuckley Sandler Insights: CFPB Releases Proposed Changes to Final Rule on Prepaid Accounts
On June 15, 2017, the Consumer Financial Protection Bureau (CFPB) released proposed changes (Proposal) to its final rule, published last November, which created consumer protections for prepaid accounts under Regulation E and Regulation Z (Final Rule). The CFPB is proposing these revisions because...
InfoBytesCFPB Sues Credit Repair Companies for $2 Million
On June 27, the CFPB filed two complaints in the District Court for the Central District of California against several credit repair companies and affiliated individuals. The CFPB alleged that these defendants violated the Consumer Financial Protect Act and the Telemarketing Sales Rule by charging...
InfoBytesCFPB Issues Semi-Annual Report to Congress
On June 26, the CFPB issued its eleventh semi-annual report to Congress , covering the period October 1, 2016 through March 31, 2017. The report highlights various supervisory and enforcement actions, regulations, and other guidance. The report focuses on Regulations E and Z, which “create a...
InfoBytesCFPB Director Challenges House Financial Services’ Report on Bureau’s Role in Fraudulent Accounts Scandal Investigation
On June 14, CFPB Director Richard Cordray issued a letter to Rep. Jeb Hensarling (R-Tex.) in response to the House Financial Services Committee’s (Committee) June 6 interim majority staff report on the investigation of the role federal financial regulators played in detecting and remedying a major...
InfoBytesPHH v. CFPB Update: PHH Counters CFPB’s Statute of Limitations Interpretation
On June 13, PHH Corporation sent a letter to the U.S. Court of Appeals for the District of Columbia Circuit responding to a June 7 letter from the CFPB that stated RESPA’s three-year statute of limitations is not applicable in its enforcement action against the company. In its letter, the CFPB...
InfoBytesCFPB Withdraws CID, Petition to Enforce CID is Moot Due to Lack of Subject-Matter Jurisdiction
On June 8, the CFPB filed a petition to withdraw a 2015 CID issued to a financial services company concerning its structured settlement and annuity payment purchasing activities, and subsequently agreed to the dismissal of the petition to enforce the CID as moot due to lack of subject-matter...
InfoBytesCFPB’s CARD Act Request for Information Garners Consumer and Industry Comments
As previously covered in InfoBytes , the CFPB issued a notice and request for information seeking public comments regarding the consumer credit card market. The request, which closed for public comment on June 8, received 32 public comments from consumer education groups as well as retail industry...
InfoBytesCFPB Encourages Alternatives to Deferred Interest Promotional Offers to Provide Transparency to Consumers
On June 8, the CFPB reported that it sent letters encouraging top retail credit card companies to consider consumer financing promotions that are more transparent than the often-used deferred-interest credit card. These deferred-interest cards offer no interest on the promotional balance, but only...
InfoBytesSpecial Alert: Treasury Issues Report Encouraging Sweeping Reforms to Regulation of Consumer Financial Products and Services
On June 12, the Treasury Department issued the first of four reports to the president detailing its review of financial regulation in the United States and making recommendations to reform federal regulatory oversight of depository institutions. For depository (and nondepository) institutions...
ArticlesCFPB Releases Study on Credit Visible Consumers
On June 7, the CFPB published analysis of how consumers transition out of credit invisibility. “Credit invisibility” refers to an individual who lacks a credit record at any of the three nationwide credit reporting agencies. The report, entitled CFPB Data Point: Becoming Credit Visible , highlights...
InfoBytesSpecial Alert: Treasury Issues Report Encouraging Sweeping Reforms to Regulation of Consumer Financial Products and Services
On June 12, the Treasury Department issued the first of four reports to the president detailing its review of financial regulation in the United States and making recommendations to reform federal regulatory oversight of depository institutions. For depository (and nondepository) institutions...
InfoBytesCFPB Fines Mortgage Servicer for RESPA Violations
On June 7, the CFPB ordered a mortgage servicer to pay up to $1.15 million in restitution for failing to provide borrowers with required foreclosure protections when handling loss-mitigation applications. The consent order alleges the servicer violated RESPA by failing to send critical information...
InfoBytesCordray Speaks at Consumer Advisory Board Meeting; Extends Comment Period for RFI on Small Business Lending Market
On June 8, CFPB Director Richard Cordray delivered prepared remarks at the Consumer Advisory Board Meeting in Washington, DC announcing, among other things, that the Bureau has extended the comment period of the “Request for Information Regarding the Small Business Lending Market” an additional 60-...
InfoBytesHouse Passes Financial CHOICE Act of 2017
On June 8, by a vote of 233-186 with no Democrats voting in favor of the bill and one Republican voting against, the House passed the Financial CHOICE Act of 2017 ( H.R. 10 ), as amended , which would repeal or modify provisions of Dodd-Frank and restructure the CFPB. Committee Report 115-163...
InfoBytesWhite House Issues Statement Supporting Substitute Amendment to H.R. 10; CBO Releases Cost Estimate
On June 6, the White House Administration issued a statement supporting the Substitute Amendment to the Financial CHOICE Act of 2017. In the statement, the White House announced it is “committed to reforming the Nation’s financial system” and believes the substitute amendment drafted by House...
InfoBytesCFPB Monthly Complaint Snapshot Highlights Complaints from Older Consumers
On May 31, the CFPB released Vol. 23 of its Monthly Complaint Report . This month’s report highlights complaints from “older consumers” defined as those who voluntarily report their age as 62 or older. Since it began accepting complaints, the Bureau has received over 1 million complaints—more than...
InfoBytesCordray Discusses Youth Financial Education, CFPB Responsibilities
Recently, CFPB Director Richard Cordray delivered prepared remarks at the Financial Literacy and Education Commission Meeting in Washington, DC on May 24 and at the People and Places Conference in Arlington, VA on May 31. Financial Literacy and Education Commission (Commission) . Coordinated by the...
InfoBytesFTC Submits Annual Report on 2016 Enforcement Actions to CFPB
On June 1, the FTC announced that it submitted its 2016 Annual Financial Acts Enforcement Report to the CFPB . The report—requested by the Bureau for its use in preparing its 2016 Annual Report to Congress—covers the FTC’s enforcement activities related to compliance with Regulation Z (Truth in...
InfoBytesCFPB Seeks Public Comment on its Plans for Assessing the Ability-to-Repay/Qualified Mortgage Rule
On May 25, the CFPB issued a request for comment on its plans for assessing the 2014 Ability-to-Repay/Qualified Mortgage Rule’s effectiveness in meeting the purposes and objectives outlined in the Dodd-Frank Act, which requires the Bureau to assess each significant rule or order it adopts under...
InfoBytesCFPB Announces Plans to Directly Supervise Service Providers
As previously discussed in InfoBytes , the CFPB released its Spring 2017 Supervisory Highlights , which outlined its supervisory and oversight actions in areas such as mortgage servicing and student loan servicing. The Supervisory Highlights also announced the CFPB’s plans to develop and implement...
InfoBytesHouse to Consider Financial CHOICE Act of 2017 the Week of June 5
On May 26, the House announced that the Financial CHOICE Act of 2017 is scheduled to hit the House floor the week of June 5. House Financial Services Committee Chairman, Jeb Hensarling (R-Tex.), drafted a Substitute Amendment and a corresponding summary of changes , which clarify that “rules...
InfoBytesFlorida Attorney General Rolls Out Military Consumer Protection Program; CFPB Publishes Annual Servicemember Report
On May 17, Attorney General Pam Bondi announced a new consumer protection program designed to spread awareness and help prevent deceptive business practices affecting military and veteran communities. The Military and Veterans Assistance Program (MVAP) will provide resources and information to...
InfoBytesOIG Recommends CFPB Improve Enforcement Data Security
On May 15, the Office of Inspector General for the Consumer Financial Protection Bureau issued findings in a report entitled The CFPB Can Improve Its Practices to Safeguard the Office of Enforcement’s Confidential Investigative Information (the Report), stemming from an evaluation to determine...
InfoBytesHouse Democrats Seek Full Review of Financial CHOICE Act by Appropriate Committees; Investor Group Claims Act Will Undercut Shareholder Rights
As previously covered in InfoBytes , on May 4 the House Financial Services Committee approved the revised Financial CHOICE Act of 2017, H.R. 10 , in a party-line vote, 34-26. Earlier this month the Ranking Members of two House committees sent letters to their respective Chairmen, urging their...
InfoBytesLegislation Reintroduced to Make CFPB Spending Accountable to Congress
On May 19, Rep. Andy Barr, (R-Ky.) reintroduced legislation that would amend the Consumer Financial Protection Act of 2010 to make the CFPB’s budget subject to congressional appropriations. As set forth in a press release issued by Rep. Barr’s office, the Taking Account of Bureaucrats’ Spending Act...
InfoBytesCFPB Issues Report Finding That 90 Percent of Student Borrowers Are Not Enrolled in Income Driven Repayment Plans
On May 16, the CFPB published analysis of a student loan industry data sample, which indicates that nine out of ten of the highest-risk borrowers are not enrolled in federal affordable repayment plans. The report, entitled Update from the CFPB Student Loan Ombudsman , is based on data the Bureau...
InfoBytesPHH v. CFPB Update: D.C. Circuit Hears Oral Arguments Before En Banc Court
On May 24, the en banc U.S. Court of Appeals for the D.C. Circuit heard oral arguments in the matter of PHH Corp. v. CFPB . The parties and the Department of Justice generally presented their arguments as expected based on their briefs . However, questions from some members of the court indicated...
InfoBytesCompany Accused of Bilking 9/11 First Responders Out of Millions of Dollars Says CFPB Action Unlawful
On May 15, a New Jersey-based finance company and its affiliated parties filed a motion to dismiss allegations that it scammed first responders to the World Trade Center attack and NFL retirees with high-cost loans. As previously covered in InfoBytes , the CFPB and the New York Attorney General’s...
InfoBytesCFPB, DOJ Argue Against State AGs Request to Redirect Unused Consumer Redress Funds
On May 10, the CFPB filed a brief and the DOJ filed a separate “ Statement of Interest of the United States of America ” opposing a request by the Attorneys General of Connecticut, Indiana, Kansas, and Vermont (State AGs) to intervene in a CFPB lawsuit to address the distribution of unclaimed...
InfoBytesCFPB Issues Request for Information on Small Business Lending; Prepares to Implement Section 1071 of Dodd Frank Act
On May 10, the CFPB announced the issuance of a Request for Information on various aspects of the market for small business loans as the Bureau prepares to implement Section 1071 of the Dodd-Frank Act, which amends the Equal Credit Opportunity Act (ECOA) to require financial institutions to compile...
InfoBytesD.C. Circuit Holds CID Unenforceable Due to “Perfunctory” Notification of Purpose
On April 21, the U.S. Court of Appeals for the D.C. Circuit held that a civil investigative demand (“CID”) did not advise a non-profit organization that accredits for-profit colleges of “’the nature of the conduct constituting the alleged violation which is under investigation and the provision of...
InfoBytesCFPB Seeks Public Comment on its Plans for Assessing RESPA Mortgage Servicing Rule
On May 4, the CFPB issued a request for comment on its plans for assessing the 2013 Real Estate Settlement Procedures Act (RESPA) servicing rule’s effectiveness in meeting the purposes and objectives outlined in the Dodd-Frank Act, which requires the CFPB to assess each significant rule or order it...
InfoBytesFHFA Director Appeared Before the Senate Banking Committee on May 11; Discussed Fannie/Freddie, Proposed "Underserved Markets Plans"
On May 11, the Senate Committee on Banking, Housing, and Urban Affairs met in open session at 10:00 a.m. to discuss “The Status of the Housing Finance System After Nine Years of Conservatorship.” Federal Housing Finance Agency (FHFA) Director Mel Watt was the only witness scheduled to testify. The...
InfoBytesAdvocacy Organization Argues Need for CFPB Prepaid Rule Communications Before CRA Vote
On April 28, an advocacy organization filed a reply to the CFPB’s opposition for expedited handling of two FOIA requests issued to the Bureau on April 12. The organization filed a lawsuit in the U.S. District Court for the District of Columbia on April 18 contending that the Bureau failed to comply...
InfoBytesPHH v CFPB Update: D.C. Circuit Grants CFPB’s Request to Go Last at May 24 En Banc Oral Arguments
In an per curium order handed down on May 1, the U.S. Court of Appeals for the D.C. Circuit granted an uncontested motion brought by the CFPB seeking to revise the order of the oral arguments in the upcoming PHH Corp. v. CFPB hearing before the en banc court. With all briefing on the merits having...
InfoBytesCFPB Releases “Core Outcomes” for Financial Empowerment Programs
On April 27, the CFPB announced in a blog post its release of a core set of financial outcomes designed to help human services organizations integrate financial empowerment and capability initiatives into their programs. Strategies include implementing financial education tools and financial...
InfoBytesCFPB Releases Report on Diversity and Inclusion in the Mortgage Industry, Banking Agencies Attend Roundtable Meeting
On April 27, the Consumer Financial Protection Bureau published its report summarizing strategies intended to promote diversity and inclusion by mortgage industry participants. The report, Diversity and Inclusion in the Mortgage Industry: Readout from an Opening Roundtable , is the result of the...
InfoBytesFollowing Hearing, House Financial Services Committee Chairman Formally Introduces Financial CHOICE Act of 2017
On April 26, the House Financial Services Committee held a hearing to discuss The Financial CHOICE Act – a GOP proposal to “reform the financial regulatory system” that was initially introduced and considered, though differing in a number of respects from the current version, but not adopted in the...
InfoBytesCFPB Sues Online Lenders Following Investigation into Debt Collection Practices
On April 27, the CFPB announced that it filed a suit against four online installment lenders for allegedly deceiving customers by collecting debts that were not legally owed. In a complaint filed in the United States District Court for the Northern District of Illinois, the Bureau claims, among...
InfoBytesCFPB to Discuss Small Business Lending at May 10 Field Hearing
On May 10, the CFPB will hold a field hearing on small business lending in Los Angeles, CA. The announcement, which is posted on the Events page of the CFPB’s website, indicates that the hearing will feature “remarks from Director Cordray, as well as testimony from community groups, industry...
InfoBytesCFPB Releases Supervisory Highlights Focused on Student Lending and Mortgage Servicing
On April 26, the CFPB released its Supervisory Highlights for spring 2017, which outlines its supervisory and oversight actions in areas such as mortgage servicing and student loan servicing. According to the Supervisory Highlights , recent supervisory resolutions have “resulted in approximately $6...
InfoBytesCFPB Monthly Complaint Snapshot Highlights Issues Related to Student Loans
On April 25, the CFPB released its monthly complaint report highlighting consumer complaints year-to-date April 1. The Bureau has handled approximately 1,163,200 consumer complaints across all categories since it began collecting complaints. Of the roughly 28,000 received in March, 2,033 focused on...
InfoBytesCFPB Provides Resources for Consumers During Money Smart Week
On April 22, the CFPB highlighted a series of consumer education resources as part of its participation in Money Smart Week—(April 22-29)—and Financial Literacy Month. The CFPB blog post is here. Among the financial decision-making resources are: (i) Ask CFPB —an online tool that the Bureau states...
InfoBytesCFPB Orders Law Firm to Comply with CID
On April 10, the CFPB issued a Decision and Order denying a law firm’s petition to set aside a civil investigative demand (CID) asking for information about the firm’s business practices to determine whether debt relief providers or lead generators engaged in “unlawful acts or practices in the...
InfoBytesCFPB Issues Final Rule Delaying Effective Date for Prepaid Accounts Rule to April 1, 2018
On April 20, the CFPB released a final rule delaying the general effective date of its rule governing prepaid accounts by six months, to April 1, 2018. As previously covered in InfoBytes , the Bureau, after reviewing comments, decided last month to delay the effective date of the rule—which, among...
InfoBytesCFPB Releases Updates to Rulemaking Ex Parte Policy
On April 18, the CFPB issued a release revising its Policy on Ex Parte Presentations in Rulemaking Proceedings . The Policy, originally posted on the Bureau’s website on August 16, 2011, generally requires public disclosure of ex parte communications made to the CFPB’s decision-making staff about...
InfoBytesCFPB Takes Action Against Law Firm for Alleged FDCPA Violations Concerning Claims of Attorney Involvement in Debt Collection
On April 17, the CFPB announced that it was seeking a permanent injunction and fines against a law firm for allegedly engaging in illegal debt collection practices by making false representations regarding attorney involvement in debt collection calls and in “millions of collection letters sent to...
InfoBytesCFPB’s Latest Fair Lending Report Focuses on Credit Discrimination
On April 14, the CFPB issued its fifth fair lending report to Congress, which outlines the Bureau’s efforts in 2016 as well as its plans for 2017. According to the report, in 2016, the CFPB (i) engaged in significant outreach to both consumers and lenders to better understand fair lending...
InfoBytesSpecial Alert: CFPB Proposes Amendments to 2015 HMDA Rule
On April 13, the Consumer Financial Protection Bureau (CFPB) issued a proposal to amend the 2015 Home Mortgage Disclosure Act (HMDA) rule. The changes are primarily for the purpose of clarifying data collection and reporting requirements, and most of the clarifications and revisions would take...
InfoBytesSpecial Alert: CFPB Proposes Amendments to 2015 HMDA Rule
On April 13, the Consumer Financial Protection Bureau (CFPB) issued a proposal to amend the 2015 Home Mortgage Disclosure Act (HMDA) rule. The changes are primarily for the purpose of clarifying data collection and reporting requirements, and most of the clarifications and revisions would take...
ArticlesJonice Gray Tucker Quoted in Dodd Frank Update Article, “Panelists Discuss Opposition to CFPB, Dodd-Frank”
Jonice Gray Tucker was quoted on April 14, 2017 in a Dodd Frank Update article, “Panelists Discuss Opposition to CFPB, Dodd-Frank.” The article covers the 2017 Consumer Bankers Association’s national convention, CBA LIVE, and the panel’s discussion on “President Trump, the Future of the CFPB and...
In The NewsCordray Discusses Consumer Credit Reporting at Operation HOPE Global Forums Annual Meeting
On April 11, CFPB Director Richard Cordray delivered prepared remarks at the Operation HOPE Global Forums Annual Meeting in Atlanta addressing, among other things, financial challenges facing the “economically vulnerable”—most notably with respect to credit reporting and the handling of consumer...
InfoBytesPHH Submits Reply Brief in Case Against CFPB; DOJ Allocated 10 Minutes at May 24 Oral Argument
As recently covered by InfoBytes , on March 31 the CFPB and seven amicus curiae respondents each filed briefing in PHH Corp. v CFPB urging the D.C. Circuit to uphold the constitutionality of the Bureau’s single-director, independent-agency structure. On April 10, PHH filed a reply brief responding...
InfoBytesState AGs, Industry Groups Submit Comments Addressing CFPB’s Proposed Delay of Prepaid Accounts Rule
As previously covered in InfoBytes , the Bureau released its final rule (the “Prepaid Accounts Rule”) on prepaid financial products in October of last year in order to provide consumers with additional federal protections under the Electronic Fund Transfer Act and also to offer consumers standard,...
InfoBytesFed/CFPB OIG Releases Strategic Plan 2017-2020
On April 11, the Office of Inspector General (OIG) for the Fed and the CFPB published its Strategic Plan 2017–2020 , providing an overview of the OIG’s organizational objectives for the next four years, as well as the indicators it will use to measure its performance as the “trusted oversight...
InfoBytesCase Update: PHH Corp. v CFPB
March 31 marked the deadline for the CFPB to file its brief in response to PHH Corporation in the U.S. Court of Appeals for the District of Columbia Circuit’s en banc review of the CFPB’s enforcement action against PHH for alleged violations of the Real Estate Settlement Procedures Act (RESPA). As...
InfoBytesCFPB Issues Annual Consumer Complaint Report
On April 3, the CFPB published its Consumer Response Annual Report , providing a review of the CFPB’s complaint process and a description of complaints received during January 1 through December 31, 2016. According to the report, the Bureau handled 291,400 consumer complaints—a 7 percent increase...
InfoBytesCFPB Director Cordray Faces Tough Questioning During House Financial Services Committee Hearing
On April 5, CFPB Director Richard Cordray appeared before the House Financial Services Committee in order to “report on the Bureau’s activities and face questions from lawmakers about the harm those activities cause consumers.” As explained in a memorandum issued by the Committee in advance of the...
InfoBytesCFPB Releases Updated Supervision and Examination Materials
On March 31, the CFPB released updates to sections of its Supervision and Examination Manual as required by the updated Federal Financial Institutions Examination Council’s Uniform Interagency Consumer Compliance Rating System. The revised CFPB Supervision Examination Cycle Overview highlights the...
InfoBytesCFPB Director to Testify Before Financial Services Committee on April 5 to Discuss Semi-Annual Reports
On March 31, the Financial Services Committee announced it will hold a hearing on Wednesday, April 5 at 10:00 a.m., entitled “The 2016 Semi-Annual Reports of the Bureau of Consumer Financial Protection.” According to the Committee Memorandum , the hearing—which will be held in room 2128 of the...
InfoBytesFHFA Releases Credit Risk Transfer Progress Report; Fannie Mae, Freddie Mac Transfer $49 Billion in Risk to Investors
On March 27, the Federal Housing Finance Agency (FHFA) released its Credit Risk Transfer Progress Report , presenting a comprehensive overview of the status and volume of credit risk transfer transactions to the private sector for Fannie Mae and Freddie Mac (the Enterprises) through year-end 2016...
InfoBytesCFPB Director Speaks at National Community Reinvestment Coalition Conference; Discusses Regulatory Review at Chamber of Commerce 11th Annual Capital Markets Summit
On March 29, CFPB Director Richard Cordray spoke at the National Community Reinvestment Coalition Conference in Washington, D.C. to discuss, among other things, the Equal Credit Opportunity Act and the difficulties faced by individuals who cannot obtain mainstream credit. As previously covered in...
InfoBytesCFPB Fines National Credit Reporting Company $3 Million for Alleged Deceptive Practices
On March 23, the CFPB ordered a nationwide credit reporting company and its subsidiaries to pay $3 million for allegedly deceiving consumers about how credit scores they marketed and sold were used by lenders. The consent order claims the company developed its own proprietary credit scoring model (...
InfoBytesFed/CFPB OIG Recommends CFPB Strengthen Conflicts-of-Interest Controls
On March 15, the Office of Inspector General for the Board of Governors for the Federal Reserve Board and Consumer Financial Protection Bureau (OIG) issued its findings in the evaluation report titled The CFPB Can Strengthen Its Controls for Identifying and Avoiding Conflicts of Interest Related to...
InfoBytesCFPB Releases "Remittance Rule" Assessment; Seeks Public Comment
On March 20, the CFPB issued a request for comment on its plan for assessing the effectiveness of its May 2013 final rule governing consumer remittance transfers. According to a March 17 blog post on the CFPB’s website, the self-assessment—which is required under Section 1022(d) of the Dodd-Frank...
InfoBytesHouse Financial Institutions and Consumer Credit Subcommittee Hearing Examines Decline in New Bank/Credit Union Charter Applications
In an afternoon hearing on March 21 entitled “ Ending the De Novo Drought: Examining the Application Process for De Novo Financial Institutions ,” Members of the House Financial Services Financial Institutions and Consumer Credit Subcommittee met to examine the impact that the Dodd-Frank Act has...
InfoBytesHouse Financial Services Committee Holds Hearing to Consider the “Unconstitutional Structure of the CFPB”
On March 21, the Oversight and Investigations Subcommittee of the House Financial Services Committee held a hearing entitled “The Bureau of Consumer Financial Protection's (CFPB's) Unconstitutional Design.” The majority staff memorandum issued prior to hearing stated that its purpose was to: (i) “...
InfoBytesTrump Administration Files Brief in PHH Corp. v. CFPB
On March 17, the Trump Administration’s Department of Justice (“DOJ”) filed its amicus brief in the D.C. Circuit’s en banc review of the CFPB’s enforcement action against PHH Corporation for alleged violations of the Real Estate Settlement Procedures Act (“RESPA”). In October 2016, a panel of the D...
InfoBytesIn a Split Decision, D.C. Circuit Denies John Doe Company’s Request to Remain Anonymous Pending Appeal Challenging CFPB Subpoena; Judge Kavanaugh Dissents, Reiterates Critique of CFPB
On March 3, 2017, the U.S. Court of Appeals for the District of Columbia Circuit denied the request of an anonymous California-chartered, finance company based in the Philippines to remain anonymous pending the resolution of its challenge to a CFPB administrative subpoena. See John Doe Co. v. CFPB...
InfoBytesTwo Trade Associations File Notices of Intent to Submit Amicus Briefs in PHH v. CFPB
On March 8 and 9, two separate Notices of Intention to Participate as Amicus Curiae were filed in PHH Corp. v. CFPB . The first was filed by ACA International, a trade association for the credit and collections industry. The second was filed on behalf of the following parties: American Bankers...
InfoBytesTrump Administration Given March 17 Filing Date for Amicus Brief in PHH v CFPB; Requests to Intervene by Outside Organizations Denied by D.C. Circuit
On March 7, the U.S. Court of Appeals for the D.C. Circuit granted the United States’ unopposed motion , filed through the Office of the Solicitor General (“SG”), which requested an extension to file its amicus brief in PHH Corp. v. CFPB . Notably, amicus briefs supporting PHH must be filed by...
InfoBytesSpecial Alert: D.C. Circuit Grants Petition For Rehearing in PHH v. CFPB; Vacates Judgment Based on Bureau’s Unconstitutionality
On February 16, the U.S. Court of Appeals for the D.C. Circuit granted the CFPB’s petition for rehearing en banc of the October 2015 panel decision in CFPB v. PHH Corporation. Among other things, the panel decision declared the Bureau’s single-Director structure unconstitutional and would have...
ArticlesSpecial Alert: President Signs Executive Order Calling For Review of Financial Regulations
On February 3, President Trump signed an executive order (the Executive Order) directing the Treasury Secretary and the heads of the member agencies of the Financial Stability Oversight Council (FSOC) to review financial laws and regulations—including the Dodd-Frank Act and regulations implementing...
ArticlesSpecial Alert: CFPB Consent Orders Address Wide Range of Real Estate Referral Practices Under Section 8(a) of RESPA
On January 31, the CFPB announced consent orders against mortgage lender Prospect Mortgage, LCC (“Prospect”), real estate brokers Willamette Legacy, LLC d/b/a Keller Williams Mid-Willamette , and RGC Services, Inc. d/b/a Re/Max Gold Coast Realtors (together, “the Brokers”), and mortgage servicer...
ArticlesIndustry Groups Submit Letters in Response to CFPB’s Request for Input on Comment Letter
As previously covered in InfoBytes , on November 17 the CFPB launched an inquiry into the benefits and risks associated with consumers authorizing third-parties to access their financial and account information held by financial service providers. In response to the Bureau’s Request for Information...
InfoBytesSpecial Alert: Trump Administration Initiates “Regulatory Freeze”
On January 20, Reince Priebus, Chief of Staff to President Trump, issued a memorandum to the heads of executive departments and agencies initiating a regulatory review to be headed by the Director of the Office of Management and Budget (“OMB”). Congressman Mick Mulvaney (R-SC) has been nominated to...
ArticlesCFPB Releases Second Webinar on New HMDA Rule
On February 14, the CFPB announced the availability of a second Webinar on the New Home Mortgage Disclosure Act (HMDA) Rule (amending Regulation C), a Rule that was itself finalized in late 2015 but that is predominantly not effective until January 1, 2018, or later. The new Webinar, with audio and...
InfoBytesSpecial Alert: D.C. Circuit Grants Petition For Rehearing in PHH v. CFPB; Vacates Judgment Based on Bureau’s Unconstitutionality
Buckley Sandler Special Alert On February 16, the U.S. Court of Appeals for the D.C. Circuit granted the CFPB’s petition for rehearing en banc of the October 2015 panel decision in CFPB v. PHH Corporation. Among other things, the panel decision declared the Bureau’s single-Director structure...
InfoBytesSpecial Alert: President Signs Executive Order Calling For Review of Financial Regulations
On February 3, President Trump signed an executive order (the Executive Order) directing the Treasury Secretary and the heads of the member agencies of the Financial Stability Oversight Council (FSOC) to review financial laws and regulations—including the Dodd-Frank Act and regulations implementing...
InfoBytesCFPB Releases Annual Report to Congress on Transparency, Accountability in 2016
On January 3, the CFPB announced the release of its annual report to the Senate and House Committees on Appropriations for 2016 . The report—which covers October 1, 2015 through September 30, 2016—identifies the specific responsibilities that the Dodd-Frank Act tasked to the CFPB and explains how...
InfoBytesSpecial Alert: Election Results - Preliminary Thoughts and Reactions
As a result of last Tuesday’s election, Republicans will control the White House and both houses of Congress in 2017. It is likely there ultimately will be some significant changes affecting financial services regulation and enforcement, but they will take time to implement. The President-elect has...
ArticlesElection Results: Preliminary Thoughts and Reactions
As a result of last Tuesday’s election, Republicans will control the White House and both houses of Congress in 2017. It is likely there ultimately will be some significant changes affecting financial services regulation and enforcement, but they will take time to implement. The President-elect has...
InfoBytesCFPB Mortgage Servicing Rule Published in Federal Register
Last week, the CFPB’s final rule amending the mortgage servicing provisions of Regulations X and Z was published in the Federal Register . The amendments were previously covered in BuckleySandler’s August 9 Special Alert . The majority of the final rule will take effect on October 19, 2017, exactly...
InfoBytesSpecial Alert: Summary of CFPB's Prepaid Rule
I. Overview of the CFPB’s Final Prepaid Rule On October 5, 2016, the Consumer Financial Protection Bureau (Bureau) issued a final rule (Prepaid Rule) amending Regulations E and Z to extend consumer protections to prepaid card accounts. The new protections include pre-acquisition disclosures, error...
ArticlesSpecial Alert: D.C. Circuit Panel Rejects CFPB's RESPA Interpretation and Alters its Structure in PHH Corp. v. CFPB
On October 11, a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit issued an opinion vacating a $109 million penalty imposed on PHH Corporation under the anti-kickback provisions of the Real Estate Settlement Procedures Act (RESPA), concluding that the CFPB...
ArticlesSpecial Alert: CFPB Finalizes Amendments to Mortgage Servicing Rules
On August 4, the CFPB issued its long-awaited final amendments to the mortgage servicing provisions of Regulations X and Z. The Bureau had sought comment on the proposed rule in December 2014, more than 18 months ago. Spanning 900 pages, the final rule makes significant changes that will impact...
ArticlesSpecial Alert: CFPB Releases Outline of Proposed Rule for Third Party Debt Collectors
On July 28, the CFPB announced that it is considering proposing a rule to “overhaul the debt collection market by capping collector contact attempts and by helping to ensure that companies collect the correct debt.” The CFPB released several related documents, including a report on third-party debt...
ArticlesSpecial Alert: CFPB's Proposed Rule Regarding Payday, Title, and Certain Other Installment Loans
On June 2, 2016, the CFPB published its proposed rule (the “ Proposed Rule ”) addressing payday loans, vehicle title loans, and certain other installment loans (collectively “covered loans”). This alert summarizes the Proposed Rule and compares the Proposed Rule to the CFPB’s March 26, 2015 outline...
Articles"Key Points in the CFPB’s Outline of Proposed Rule for Third Party Debt Collectors" By Marshall T. Bell, John C. Redding, and Walter E. Zalenski (Consumer Finance Law Quarterly Report)
On July 28, 2016 the Bureau of Consumer Financial Protection (CFPB) announced that it is considering proposing a rule to “overhaul the debt collection market by capping collector contact attempts and by helping to ensure that companies collect the correct debt.” The CFPB released several related...
ArticlesSpecial Alert: CFPB Plans to Propose TRID Amendments in July
Director Cordray announced yesterday in a letter to industry trade groups that the CFPB has "begun drafting a Notice of Proposed Rulemaking (NPRM) on the Know Before You Owe Rule.” However, contrary to some reports, the proposal is not imminent. Instead, Director Cordray stated that the Bureau “...
ArticlesCFPB Announces Community Bank Advisory Council Meeting, April 21
On Thursday, April 21, the CFPB will hold its next Community Bank Advisory Council meeting in Washington, DC. According to the April 5 Federal Register publication providing notice of the meeting, both the CFPB’s strategic outlook and elder financial abuse are discussion topics included in the...
InfoBytesSpecial Alert: CFPB Enters into First Consent Order with Online Payment Platform for Misrepresenting Data Security Practices
On March 2, the CFPB took action against an Iowa-based online payment platform and entered into a Consent Order for deceptive acts and practices relating to false representations regarding the company’s data security practices in violation of 1031(a) and 1036 (a)(1) of the Consumer Financial...
ArticlesTRID Liability Will Be A Dominant Issue In 2016
Oct. 3, 2015, was a watershed moment for the mortgage origination industry and the Consumer Financial Protection Bureau. On that date, the CFPB’s long-awaited Know Before You Owe: TILA-RESPA Integrated Disclosure (TRID) rule finally became effective, marking the end — for most mortgages — of 30...
ArticlesSpecial Alert: CFPB Director Opines on TRID Liability
On December 29, 2015, CFPB Director Richard Cordray issued a letter in response to concerns raised by the Mortgage Bankers Association regarding violations of the CFPB’s new TILA-RESPA Integrated Disclosure (“TRID”) rule, also known as the Know Before You Owe rule. In an effort to address concerns...
ArticlesThe CFPB Doesn't Like Your MSA
It is no secret that marketing service agreements (“MSAs”) are under increased scrutiny. In addition to initiating numerous enforcement actions, the Consumer Financial Protection Bureau (“CFPB”) recently issued Compliance Bulletin 2015-05, titled “RESPA Compliance and Marketing Service Agreements...
ArticlesRedlining Cases in 2015 And A New Discrimination Standard
Limited access to mortgage credit for credit-impaired and low- and moderate-income (and, therefore, disproportionately minority) borrowers has become a significant public policy challenge in the post-financial crisis era. There are many reasons for this problem. Among them are mortgage lender...
ArticlesConsumer Financial Services Answer Book 2016
The fifth edition of the Practising Law Institute’s Consumer Financial Services Answer Book was published this month, with 29 Buckley Sandler attorneys contributing to this leading desk reference. The 2016 edition of the Consumer Financial Services Answer Book continues to provide practitioners...
ArticlesAncillary Products Are Anything but Ancillary for the CFPB
It’s no secret that the Consumer Financial Protection Bureau (CFPB) has its sights set on the U.S. automobile finance industry. As evidenced by recent CFPB Bulletins and consent orders with indirect auto finance sources, the CFPB’s current focus within the industry is largely on the practice of...
ArticlesSpecial Alert: CFPB Adopts Significant Expansion of HMDA Reporting Requirements
On October 15, the Consumer Financial Protection Bureau (the CFPB or Bureau) issued a final rule that will expand the scope of the Home Mortgage Disclosure Act (HMDA) data reporting requirements while seeking to streamline certain existing requirements. Although some of the new data points the...
InfoBytesSpecial Alert: CFPB Issues Guidance Regarding Marketing Services Agreements
On October 8, 2015, the Consumer Financial Protection Bureau (“CFPB”) published a compliance bulletin providing guidance to mortgage industry participants regarding the permissibility of marketing services agreements (“MSAs”) under the Real Estate Settlement Procedures Act (“RESPA”). The bulletin...
ArticlesMarketing Services Agreements: Reinterpreting the Wheel
Marketing services agreements (“MSAs”) have been standard mortgage industry practice for decades. While Section 8 of the Real Estate Settlement Procedures Act (“RESPA”) prohibits entities and individuals from giving or receiving “any fee, kickback, or thing of value” pursuant to an agreement to...
ArticlesRegulators Turn Up Heat on Vendor Management
The vendor landscape for companies in the mortgage industry has shifted significantly in recent years. State and federal regulators have levied hefty and often unprecedented fines against a number of supervised institutions because of inadequate vendor-management policies and ineffective vendor...
ArticlesSpecial Alert: CFPB Officially Delays TRID Rule Until October 3
The CFPB finalized a rule today that delays the effective date of the TILA-RESPA Integrated Disclosure (“TRID”) rule, including all amendments, from August 1 to October 3, 2015 . This is consistent with the proposed rule issued last month, which we wrote about here . The CFPB considered...
ArticlesSpecial Alert: CFPB Launches First Monthly Complaint Report Providing Snapshot of Consumer Trends
On July 16, 2015, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) launched the first in a new series of monthly complaint reports highlighting key trends from consumer complaints submitted to the CFPB. Importantly, its monthly report provides significant detail on the complaints the...
ArticlesCFPB Readies Guidance to Help Prevent Elder Financial Exploitation
On July 13, CFPB Director Richard Cordray delivered remarks at the White House Conference on Aging, expressing the need to protect older consumers in light of recent studies that have found that financial exploitation is the most prevalent form of elder abuse. Accordingly, Cordray revealed that the...
InfoBytesMortgage Industry Continues to Bear Brunt of CFPB Regulatory Burdens
In recent years, mortgage industry players have had to quickly adapt to the evolving regulatory environment. The latest scramble for mortgage lenders includes the downstream effects of pending rule changes related to disclosures required in implementing regulations of the Truth-in-Lending Act ("...
ArticlesLost in Translation: Financial Services for Consumers with Limited English Proficiency
Susanna Khalil and Jessica Pollet authored "Lost in Translation: Financial Services for Consumers with Limited English Proficiency," which was published May 18, 2015 in the WestLaw Journal Bank & Lender Liability. They discuss the emerging area of access to credit for people with limited...
ArticlesRegulatory Blue Pencil: CFPB Guidance, Enforcement Actions Signal Expanding Focus on Vendor Management
In April 2012, the Consumer Protection Financial Bureau (the ‘‘CFPB’’ or ‘‘Bureau’’) issued Bulletin 2012-03 (the ‘‘Service Provider Bulletin’’), a guidance document setting forth the CFPB’s high-level expectations related to the engagement of third party service providers by supervised financial...
ArticlesSpecial Alert: CFPB Releases Outline of Proposed Rule for Payday, Vehicle Title, and Similar Loans
On March 26, the CFPB announced that it is considering proposing a rule to “end payday debt traps” and released several related documents, including a fact sheet and an outline of the proposal that will be presented to a panel of small businesses pursuant to the Small Business Regulatory...
InfoBytesTrending: A Principles-Based Approach To US Financial Regs
While the United States has traditionally utilized rules-based policies, there has been a recent trend toward integrating principles-based policies and behavioral economics in regulating consumer financial products. For a framework of applying behavioral economics- and principles-based regulations...
ArticlesThe CFPB's Proposed HMDA Rule: "Getting It Right" in Light of Major Changes to HDMA
The Consumer Financial Protection Bureau’s (the “Bureau” or the “CFPB”) proposed rule to amend Regulation C (the “HMDA Proposal”) to implement changes to the Home Mortgage Disclosure Act (“HMDA”) will drastically expand the amount of mortgage loan application data that lending institutions will be...
ArticlesNew Day For RESPA: The UDAAPification Of Section 8
The Real Estate Settlement Procedures Act has gone the "UDAAPified" way of debt collection — this time, through enforcement rather than guidance. In July 2013, Consumer Financial Protection Bureau Bulletin 2013-07 announced that the principles underlying the Fair Debt Collection Practices Act...
ArticlesSpecial Alert: CFPB States Supervisory Obligations Trump Nondisclosure Agreements
On January 27, the CFPB issued Compliance Bulletin 2015-01 to remind supervised financial institutions of their obligations concerning the disclosure of confidential supervisory information (CSI) to the CFPB and to third parties. Specifically, the Bulletin addresses the interaction between a...
ArticlesCaveat Emptor or Caveat Vendor? The Evolution of Unfairness in Federal Consumer Protection Law
Under the Federal Trade Commission’s original interpretation of unfair or deceptive acts or practices law, financial institutions could feel some sense of security that, if they provided a consumer with a clear understanding of a proposed transaction, the burden was on the consumer to determine...
ArticlesSpecial Alert: CFPB Finalizes Amendments to TILA-RESPA Integrated Mortgage Disclosures
On January 20, 2015, the CFPB finalized amendments to the TILA-RESPA Integrated Disclosure (“TRID”) rule that make a number of amendments, clarifications, and corrections, including: Relaxing the redisclosure requirements after a rate lock. The final rule permits creditors to provide a revised Loan...
ArticlesSpecial Alert: Supreme Court Holds That Notice of Rescission Is Sufficient For Borrowers to Exercise TILA's Extended Right to Rescind
The Supreme Court on January 13, 2015 held in Jesinoski v. Countrywide Home Loans, Inc. that a borrower seeking to rescind a loan pursuant to the Truth In Lending Act’s (“TILA’s”) extended right of rescission need only submit notice to the creditor within three years to comply with the three-year...
ArticlesSpecial Alert: CFPB Takes Enforcement Action Against "Buy-Here, Pay-Here" Auto Dealer for Alleged Unfair Collection and Credit Reporting Tactics
On November 19, the CFPB announced an enforcement action against a ‘buy-here, pay-here’ auto dealer alleging unfair debt collection practices and the furnishing of inaccurate information about customers to credit reporting agencies. ‘Buy-here, pay-here’ auto dealers typically do not assign their...
ArticlesJustices' Questioning in Jesinoski May Be Cause for Concern
Section 1635 of the Truth in Lending Act provides that a borrower may rescind certain mortgage loans within three days as a matter of right, and within three years if certain conditions are satisfied. The three-year extended rescission right applies only if a borrower does not receive certain...
ArticlesSpecial Alert: CFPB Finalizes Points-and-Fees Cure and Other Mortgage Rule Amendments
Last week, the CFPB finalized an important amendment to its ATR/QM Rule that provides a mechanism for curing points-and-fees overages on qualified mortgage (“QM”) loans, as well as more minor amendments to its mortgage origination and servicing rules. The new rules, which were proposed in April,...
ArticlesSpecial Alert: Lessons Learned from Arab Bank's U.S. Anti-Terrorism Act Verdict
On September 22, 2014, following a two-month trial, a federal jury in the Eastern District of New York ruled in favor of a group of 297 individual plaintiffs in a civil suit accusing Arab Bank PLC, headquartered in Amman, Jordan, of supporting terrorism. Linde vs. Arab Bank PLC , No. 1:04-CV-2799 (...
ArticlesBuckley Sandler Hosts Inaugural CFPB Today Conference
Buckley Sandler LLP hosted its inaugural CFPB Today conference in Washington, DC October 5-6, 2014. The two-day event featured an evening of interactive roundtable discussions on CFPB trends, followed by a full day of seminars. The roundtables and seminars were led by approximately 30 Buckley...
In The NewsSpecial Alert: Class Action Suit Filed Based on CFPB Consent Order
In what may be the first action of its kind, a consumer who received restitution under the CFPB consent order has filed a class action lawsuit based on the same alleged violations. While this litigation is still in its early stages, it serves as an important reminder that an institution’s exposure...
ArticlesSpecial Alert: Proposed Amendments to the TRID Rule and Introducing Buckley Sandler's TRID Resource Center
Buckley Sandler is pleased to announce our new TILA-RESPA Integrated Disclosure (“TRID”) Resource Center . The TRID Resource Center is a one-stop shop for TRID issues, providing access to Buckley Sandler’s analysis of the TRID rule and the CFPB’s amendments, transcripts of CFPB webinars providing...
ArticlesCFPB And FDIC Develop Spanish-Language Tool To Stop Financial Exploitation of Older Adults
On October 7, the CFPB and the FDIC announced a Spanish-language version of Money Smart for Older Adults, a free financial resource tool intended to prevent the elder financial exploitation that is affecting millions of senior citizens each year. The English-language version, which “includes...
InfoBytesThe CFPB's 'UDAAPification' of Consumer Protection Law
Questions about the scope of the Consumer Financial Protection Bureau's jurisdiction abound for financial institutions and other entities that work with them. What are the boundaries of the CFPB’s authority? How might these parameters expand in the future? Are there other ways the CFPB may take...
ArticlesSpecial Alert: CFPB Bulletin Re-Emphasizes Focus on Mortgage Servicing Transfers
On August 19, 2014, the CFPB issued Bulletin 2014-01 to address “potential risks to consumers that may arise in connection with transfers of residential mortgage servicing rights.” The bulletin, which is the latest in a series of CFPB regulations, statements, and guidance on this subject, replaces...
ArticlesSpecial Alert: CFPB Proposes Significant Expansion of HMDA Reporting Requirements
On July 24, the Consumer Financial Protection Bureau (the CFPB or Bureau) issued a proposed rule that would expand the scope of the Home Mortgage Disclosure Act (HMDA) data reporting requirements and streamline certain existing reporting requirements. Although some of the new data points the Bureau...
ArticlesSpecial Alert: VA Adopts Its QM Rule
On May 9, 2014, the Department of Veterans Affairs (VA) issued an interim final rule defining what constitutes a “qualified mortgage” (QM) for purposes of the loans it guarantees, insures, or originates. The VA stated that, to quell persistent uncertainty among lenders regarding the treatment of VA...
ArticlesSpecial Alert: CFPB Issues Guidance on Supervision and Enforcement of Mini-Correspondent Lenders
This afternoon, the CFPB issued policy guidance on supervision and enforcement considerations relevant to mortgage brokers transitioning to mini-correspondent lenders. The CFPB states that it “has become aware of increased mortgage industry interest in the transition of mortgage brokers from their...
ArticlesSpecial Alert: CFPB Guidance States That Successors Are Not Subject to the ATR/QM Rule
On July 8, 2014, the CFPB issued an interpretive rule stating that the addition of a successor as an obligor on a mortgage does not trigger the Ability-to-Repay/Qualified Mortgage Rule (“ATR/QM Rule”) requirements if the successor previously received an interest in the property securing the...
ArticlesPom v. Coke Will Impact Financial Services Too
Legal and compliance departments, take note: the U.S. Supreme Court’s recent decision in Pom Wonderful LLC v.Coca-Cola Co. confirms that even if an institution’s conduct meets the specific requirements established by the federal agency responsible for implementing one federal consumer protection...
ArticlesComplaint Management Lessons from Dr. Seuss
To paraphrase a poem by the great Dr. Seuss, Oh, the places they’ve been. Oh, the places they’ll go! Consumer complaint management has been top of mind for the Consumer Financial Protection Bureau since the agency opened its doors in July 2011. Under the Dodd-Frank Act, matters related to the...
ArticlesSpecial Alert: CFPB Proposes Amendments to Mortgage Rules
On April 30, the Consumer Financial Protection Bureau (CFPB or Bureau) proposed targeted amendments to the Dodd-Frank Act mortgage rules that took effect in January 2014. Comments are due 30 days after publication of the proposal in the Federal Register. Ability-to-Repay/Qualified Mortgage Points...
ArticlesCFPB in Focus: Navigating Investigational Hearings
The Consumer Financial Protection Bureau has been actively engaged in investigations of banks and nonbanks since it was established nearly three years ago. To further its mission “to ensure that consumer financial markets actually work for people,” the bureau has stated that it will use “strong and...
ArticlesThe British (Financial Regulatory Principles) Are Coming!
Regulation of financial products and services in the U.S. historically has relied on rules-based regulatory policy, governing business processes including disclosures relating to terms, pricing, structure and marketing. The U.K. has been a leader in applying principles-based regulation, which...
ArticlesSpecial Alert: CFPB Finalizes Additional Amendments to the 2013 Mortgage Rules
On September 13, the CFPB finalized another set of amendments to its January 2013 mortgage rules. Whereas previous amendments focused largely on the ability-to-repay/qualified mortgage rule, these amendments – originally proposed in late June 2013 – principally address several important questions...
ArticlesSpecial Alert: HUD Proposes Its Own QM Rule
On September 27, HUD released a proposal defining what constitutes a “qualified mortgage” (QM) for purposes of loans insured by the FHA. We have prepared a Special Alert regarding this proposal, which, once it is finalized and takes effect, will replace the temporary QM definition for FHA loans...
ArticlesSpecial Alert: CFPB Announces First HMDA Enforcement Actions, Issues HMDA Guidance
On October 9, the CFPB (or Bureau) announced it had assessed civil money penalties totaling $459,000 against two financial institutions—one bank and one nonbank—after examinations identified significant data errors in mortgage loans reported pursuant to the Home Mortgage Disclosure Act (HMDA). The...
ArticlesSpecial Alert: Agencies Issue Joint Statement On Fair Lending Compliance And The CFPB's ATR/QM Rule
On October 22, the CFPB, the OCC, the FDIC, the Federal Reserve Board, and the NCUA (collectively, the Agencies) issued a joint statement (Interagency Statement) in response to inquiries from creditors concerning their liability under the disparate impact doctrine of the Equal Credit Opportunity...
ArticlesCFPB's New "Responsible Conduct" Guidelines: Will They Incentivize Greater Self-Reporting and Self-Regulation by Consumer Finance Firms?
On June 25, 2013, the Consumer Financial Protection Bureau (CFPB or the Bureau) issued CFPB Bulletin 2013-6, titled ‘‘Responsible Business Conduct: Self-Policing, Self-Reporting, Remediation, and Cooperation.’’ The CFPB issued the guidance to provide entities with a set of ‘‘activities’’ that they...
ArticlesSpecial Alert: HUD Adopts Its Own QM Rule
On December 11, 2013, the Department of Housing and Urban Development (“HUD”) issued a final rule defining what constitutes a “qualified mortgage” (“QM”) for purposes of loans insured by the Federal Housing Administration (“FHA”). With limited clarifications and adjustments, the rule tracks the...
ArticlesCFPB Finalizes Rule Combining TILA and RESPA Mortgage Disclosures
UPDATED OCTOBER 15, 2014: Updated to reflect amendments proposed by the CFPB on October 10, 2014. On November 20, 2013, the CFPB finalized its long-awaited rule combining the mortgage disclosures consumers receive under the Truth in Lending Act (“TILA”) and the Real Estate Settlement Procedures Act...
ArticlesA Practical Guide to CFPB Compliance Examination Management
CFPB compliance examinations tend to be more adversarial and yield more severe consequences for supervised entities than the banking industry has experienced with the prudential banking regulators. The authors describe what to expect and suggest practical steps - before, during, and after the...
ArticlesSpecial Alert: CFPB Issues Mortgage Servicing Rule Amendments and Guidance Addressing Conflicts with Bankruptcy and Debt Collection Rules
On October 15, 2013, the Consumer Financial Protection Bureau (“CFPB”) issued an interim final rule amending certain provisions of its mortgage servicing rules and making technical changes to other January 2013 mortgage rules (the “Interim Amendments”). In particular, the amendments address issues...
ArticlesSpotlight on the Short-Term Credit Crackdown
Short-term lending is under a new round of attacks, and this time some banks are feeling the heat. The New York State Department of Financial Services recently issued a letter to 117 banks requesting that they “choke off" automated clearing house (ACH) payment access to their customers’ accounts,...
ArticlesWhich One of Us Is the Service Provider? The Dodd-Frank Act's Infinite Loop of Oversight
Prudential regulators have advised supervised banks for nearly 30 years about the need for careful diligence of their service providers, but the expectations of the Consumer Financial Protection Bureau (“CFPB” or the “Bureau”) raise both the intensity of these warnings, and the stakes. Title X of...
ArticlesThe CFPB's Amicus Program - Friend or Foe?
Jonice Gray Tucker and Amanda Raines wrote, "The CFPB's Amicus Program - Friend or Foe?" in the August 6, 2013 issue of BNA's Banking Report . They discuss the Consumer Financial Protection Bureau’s amicus program which advocates for policy within the context of pending litigation, and how the CFPB...
ArticlesAn Overview of the CFPB's Ability-to-Repay/Qualified Mortgage Rule
The Consumer Financial Protection Bureau (CFPB) has issued an avalanche of new mortgage rules slated to become effective next January 10, and probably none will have as broad an impact on residential credit as the “Ability-to-Repay” rule (the Rule). The Rule will require nearly all lenders to make...
ArticlesSpecial Alert: CFPB Finalizes Additional Amendments to ATR/QM Rule; Agencies Propose Appraisal Rule Amendments
On July 10, the Consumer Financial Protection Bureau (“Bureau”) finalized important amendments (the “Amendments”) to its ability-to-repay / qualified mortgage rule (the “QM / ATR Rule”) that are intended to ease certain compliance challenges with making qualified mortgages (“QMs”). In response to...
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...
ArticlesA 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...
ArticlesCFPB's Vague New 'Responsible Conduct' Guidelines
Jonice Gray Tucker and Valerie Hletko authored, "CFPB's Vague New 'Responsible Conduct' Guidelines," which appeared on Law360 on June 28, 2013. On Tuesday, the Consumer Financial Protection Bureau issued CFPB Bulletin 2013-6, titled "Responsible Business Conduct: Self-Policing, Self-Reporting,...
ArticlesSpecial Alert: CFPB Proposes Additional Changes to Mortgage Rules
On June 24, 2013, the Consumer Financial Protection Bureau (“CFPB”) issued another set of proposed amendments to its January 2013 mortgage rules. Whereas the proposed and final amendments issued by the CFPB in April and May focused largely on the Ability-to-Repay/Qualified Mortgage rule, this...
ArticlesSpotlight on Student Lending (Part 2 of 2): Lessons Learned from CFPB Reports
In 2012 and 2013, the Consumer Financial Protection Bureau released several major reports and held field hearings focused on private student lending and servicing. In addition to recent CFPB activity, on June 25, 2013, the Senate Banking Committee held a hearing regarding private student loans at...
InfoBytesSpecial Alert: CFPB Issues Guidance on "Responsible Conduct"
This afternoon, the CFPB issued CFPB Bulletin 2013-6 , which identifies four pillars of “responsible conduct” on the part of potential targets of enforcement action by the Bureau. The CFPB expressly states that such conduct may be rewarded with (i) resolution of an investigation with no public...
ArticlesSpotlight on Student Lending (Part 1 of 2): Facing Increased Regulatory Scrutiny, Student Loan Lenders Prepare for CFPB Examinations
Currently, total outstanding student debt (both federal loans and private loans) has risen to roughly $1.1 trillion dollars. That figure represents an over 50% increase since 2008 and makes student loans the largest source of unsecured consumer debt – surpassing credit cards. At the same time, at...
InfoBytesHAMP 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...
ArticlesSpecial Alert: CFPB Finalizes Amendments to the Ability-to-Repay/Qualified Mortgage Rule
Yesterday afternoon, the Consumer Financial Protection Bureau ("Bureau") finalized important amendments (the "Amendments") to its ability-to-repay / qualified mortgage rule (the "Rule") concerning the extent to which loan originator compensation must be included as "points and fees" under the Rule...
ArticlesSpecial Alert: CFPB Issues Final Civil Penalty Fund Rule with Request for Comment
On April 26, the Consumer Financial Protection Bureau (CFPB or the Bureau) issued a final rule , effective immediately, that sets forth procedures for the administration of the Consumer Financial Civil Penalty Fund (Civil Penalty Fund or Fund). Under Dodd-Frank, all civil penalties obtained by the...
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...
ArticlesMortgage Crisis Triggers Stronger Focus on Vendors
The use of outside vendors by loan servicers is not new, but their role in default servicing and the adequacy of their work has drawn increasing regulatory scrutiny during the last two years. Work performed by Notaries has taken center stage, garnering particular attention in the context of...
ArticlesSpecial Alert: Summary of CFPB Mortgage Servicing Rules Proposals
Following years of discussion about the wisdom of “national servicing standards” and piecemeal efforts to impose rules of conduct through enforcement actions against individual servicers, the Consumer Financial Protection Bureau (“CFPB”) has released proposed servicing rules (the “Proposed Rules”...
ArticlesPetitions to Modify or Set Aside CFPB Civil Investigative Demands (CIDs): Analysis of Recent Decisions
Amanda M. Raines of Buckley Sandler LLP discuss how the power of civil investigative demands (CIDs) has been brought into focus by two CFPB decisions denying positions to modify or set aside CIDs and how those decisions provide guidance for parties assessing whether to challenge the CFPB's request...
ArticlesSpecial Alert: Detailed Analysis of CFPB's Final Ability-to-Repay/Qualified Mortgage Rule
As promised in our earlier flash Alert on the Consumer Financial Protection Bureau's (the "Bureau") highly anticipated final "Ability-to-Repay" rule governing residential mortgage lending under Regulation Z (the "Rule"), we are providing in this Alert a detailed summary and analysis of the Rule,...
ArticlesSpecial Alert: CFPB Issues Ability-to-Repay/Qualifed Mortgage Rule
On January 10, the Consumer Financial Protection Bureau (CFPB) issued its keenly awaited final "Ability-to-Repay" rule under Regulation Z that will require lenders to verify a consumer's ability to repay a mortgage loan as required by Sections 1411 and 1412 of the Dodd-Frank Wall Street Reform and...
ArticlesThe CFPB and an End to 'Unwarranted Regulatory Burdens'?
On July 21 the Consumer Financial Protection Bureau officially became the regulator of record for a majority of institutions in the consumer financial services industry. Much has been made of the CFPB’s sweeping, unprecedented powers to protect consumers from “unfair, deceptive or abusive” acts and...
ArticlesHow the CFPB Can Turn Restrictive Mortgage Rule Into a Win for All
Several recent reports in American Banker reflect widespread concern among both lenders and consumer advocates that the Qualified Mortgage Rules being developed by the CFPB, while well intentioned, could significantly impact the availability and price of home mortgage credit. The CFPB may want to...
ArticlesConsumer Complaint Management: Meeting Regulatory Expectations
The CFPB has identified consumer complaint data as a valuable tool in informing its consumer protection duties. It is taking steps to collect such data from various sources and has identified effective complaint management as a key component of a sound compliance program. This focus on consumer...
ArticlesMinifinance: CFPB Supervision of Short-Term, Small-Dollar Financial Products and Services
What acts and practices related to short-term, small-dollar (minifinance) products and services are "abusive?" Until a clearer definition emerges and the Consumer Financial Protection Board's examination and enforcement agenda plays out, Valerie L. Hletko and John P. Kromer of Buckley Sandler LLP...
ArticlesThe Consumer Financial Protection Bureau's Whistleblower Program: How It Works and What It Means for Financial Services Companies
Whistleblowers are "often the best source of information about waste, fraud, and abuse...." -President Barack Obama On December 15, 2011, the Consumer Financial Protection Bureau (Bureau or CFPB) issued a bulletin announcing its program to collect whistleblower information and law enforcement tips...
ArticlesThe CFPB's Early Warning Notice: The Devil's in the Details
Lauren Randell and Stephen LeBlanc of Buckley Sandler LLP say the Consumer Financial Protection Bureau's release of details regarding its early-warning notice is a welcome indication that it will follow the lead of the Securities and Exchange Commission by informing investigation targets of its...
ArticlesFirst Do No Harm: An Analysis of the Broad Powers of the CFPB
In his remarks at the signing ceremony for the Dodd-Frank Wall Street Reform and Consumer Protection Act, President Obama promised that the arsenal of consumer protections included in the new law would be "enforced by a new consumer watchdog with just one job: looking out for people -- not big...
Articles
Regulatory Resources
Key Resources and Statutes from the CFPB
- CFPB Regulations
- CFPB Reports
- Supervision and Examination Manual – Version 2.0
- Full text of Dodd-Frank Act
- CFPB Compliance Guides
- CFPB Regulatory Implementation Web Site
- CFPB Video Presentations
- Supervisory Highlights (Fall 2012 to Present)
Final Rule and Amendment Analyses
- Final Ability to Repay/Qualified Mortgage Rule
- Final High-Cost Mortgage Rule
- Final High Priced Mortgage Loan (HPML) and Equal Credit Opportunity Act (ECOA) Rules
- Final Mortgage Servicing Rules
- Final Escrow Rule
- Amendments to Ability to Repay/Qualified Mortgage Rule
- Additional Amendments to the Ability to Repay/Qualified Mortgage Rule and Other 2013 Mortgage Rules (7/12/13)
- Additional Amendments to the 2013 Mortgage Rules (9/17/13)
- Mortgage Servicing Rule Amendments and Guidance Addressing Conflicts with Bankruptcy and Debt Collection Rules (10/16/13)
- Rule Combining TILA and RESPA Disclosures (12/2/13; updated 10/15/14)
- CFPB Resource Center Speaking Engagements
CFPB Webinars and Transcripts
- October 2013 Unofficial CFPB Staff Guidance: Origination Rules Inquiries (presented to the Mortgage Bankers Assoc.)
- October 2013 Unofficial CFPB Staff Guidance: Mortgage Servicing Rule Inquiries (presented to the Mortgage Bankers Assoc.)
- April 2014 Mortgage Q&A with the CFPB Staff (presented to the American Bankers Assoc.)
- May 2017 CFPB Staff on the 2016 Amendments to the Mortgage Servicing Rules (presented to the Mortgage Bankers Assoc.)
Related Lawyers
- Jeremiah S. Buckley
- Philip M. Cedar
- Kari K. Hall
- Valerie L. Hletko
- Jonathan D. Jerison
- Caitlin M. Kasmar
- Joseph M. Kolar
- John P. Kromer
- Melissa Klimkiewicz
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- Aaron C. Mahler
- Elizabeth E. McGinn
- Jeffrey P. Naimon
- Matthew P. Previn
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