Tag Archives: Consumer Financial Protection Bureau

D.C. Circuit Agrees to Hear Controversial PHH Case En Banc

On Feb. 16, 2017, the D.C. Circuit granted the CFPB’s petition to rehear en banc the court’s landmark October 2016 decision finding that the structure of the CFPB was unconstitutional. We covered the panel decision here. In its Feb. 16, 2017, order the D.C. Circuit directed the parties to brief three specific issues: (1)        … Continue Reading

CFPB Fines Lender and Real Estate Brokers for Improper Kickback Scheme

On Jan. 31, 2017, the Consumer Financial Protection Bureau (CFPB) filed consent orders against one of the largest independent residential mortgage lenders, two real estate brokers and a mortgage servicer for their roles in an improper “kickback” scheme involving mortgage referrals. The fines here were notable given that the CFPB targeted realtors for accepting payments … Continue Reading

CFPB Warns Mortgage Lenders and Brokers of Possible HMDA Violations

On Oct. 27, 2016, the Consumer Financial Protection Bureau (CFPB) warned 44 unnamed mortgage lenders and brokers that they may be in violation of data reporting requirements of the Home Mortgage Disclosure Act (HMDA). Enacted in 1975, HMDA requires financial institutions to collect data about housing-related lending activity – including home purchase loans, home improvement … Continue Reading

CFPB Finalizes New Rules Governing Prepaid Card Products

On Oct. 5, 2016, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray announced a final rule governing the burgeoning consumer prepaid card industry. The CFPB estimates that the amount of money consumers load onto “general purpose reloadable” prepaid cards increased from less than $1 billion in 2003 to nearly $65 billion in 2012. The scope … Continue Reading

CFPB Fines TMX Finance LLC $9 Million for Unfair and Abusive Practices

On September 26, 2016, the Consumer Financial Protection Bureau (CFPB) entered into a consent order with one of the country’s largest auto title lenders, TMX Finance LLC, the parent company of TitleMax. The CFPB took action against TMX Finance for engaging in unfair, deceptive, and abusive lending acts and practices, and for engaging in unfair … Continue Reading

CFPB Releases Latest Supervisory Highlights Focused on Mortgage Servicing

The Consumer Financial Protection Bureau released their 11th edition of Supervisory highlights, a special edition with a direct warning to mortgage servicers.  The report typically shares findings and examination observations in various areas of oversight like student loan servicing, mortgage origination and debt collection.  However this edition focuses on mortgage servicing technology; loss mitigation acknowledgement … Continue Reading

CFPB Announces Dollar Threshold Adjustments to the Truth in Lending Act

The Consumer Financial Protection Bureau (CFPB) recently released a final rule amending the dollar thresholds in Regulation Z, which implements the Truth in Lending Act (TILA). The CFPB’s final rule has two primary effects. First, the final rule adjusts select dollar amounts in accordance with the annual change reflected in the Consumer Price Index – … Continue Reading

CFPB Releases Expansive Payday Lending Rule

The Consumer Financial Protection Bureau (CFPB) released its much anticipated proposed rule aimed at ending what it calls “payday lending debt cycles.” The 1,334-page rule will require small-dollar lenders to undertake comprehensive steps to ensure that the consumer has the ability to repay the short-term or high-cost installment loan. This proposed rule would be the … Continue Reading

CFPB Takes Enforcement Action Against Loan Officer for Alleged Mortgage Fee Kickback Scheme

Yesterday, the Consumer Financial Protection Bureau (CFPB) announced the issuance of a consent decree with a former mortgage loan officer arising out of alleged violations of the Real Estate Settlement Procedures Act’s (RESPA) anti-kickback laws and Dodd-Frank’s prohibition on unfair, deceptive or abusive acts or practices (UDAAP). The officer was required to pay an $85,000 … Continue Reading

CFPB to Announce Small-dollar Lending Rule on June 2

On May 18, 2016, the Consumer Financial Protection Bureau (CFPB) announced that it will hold a field hearing in Kansas City, Missouri, on June 2 regarding small-dollar lending, commonly referred to as payday lending. It is widely speculated that the CFPB will announce the long-awaited payday lending rules, which would be the first federal regulation for … Continue Reading

CFPB Announces Proposed Ban to Mandatory Class Action Waivers in Arbitration Agreements

On May 5, 2016, the Consumer Financial Protection Bureau (CFPB) announced the issuance of a Notice of Proposed Rulemaking soliciting comments on a proposed rule to prohibit covered institutions from including, in most core consumer contracts, “pre-dispute arbitration agreements” that contain class waivers. The proposed regulations would explicitly require the inclusion of the following disclaimer … Continue Reading

CFPB Announces $2.5 Million Fine, Compliance Monitoring for Deceptive Debt Collection Practices

On April 25, 2016, the Consumer Financial Protection Bureau (CFPB) entered into consent orders with a debt collection law firm, two of the firm’s principal partners, and New Century Financial Services, Inc., a company that purchases and collects consumer debts. The orders resolve allegations by the CFPB that each party violated the Fair Debt Collection … Continue Reading

CFPB Announces May 5 Field Hearing on Arbitration

The CFPB announced that it is holding a field hearing on May 5, 2016, in Albuquerque, New Mexico, on arbitration. Previously, CFPB field hearings have resulted in the announcement of proposed rules. We anticipate that this field hearing could result in the release of the CFPB’s proposed rule on arbitration provisions in some consumer financial … Continue Reading

CFPB Identifies Hidden Costs and Fees Associated With Online Payday Loans

On April 20, 2016, the Consumer Financial Protection Bureau (CFPB) issued a report regarding online payday lenders’ efforts to debit payments from a borrower’s checking account. Based on an 18-month observation period, the report focused on the hidden costs of online payday and installment loans provided by over 330 lenders. The report is the latest … Continue Reading

CFPB’s Office of Minority and Women Inclusion Publishes Annual Report

The CFPB’s Office of Minority and Women Inclusion (OMWI) published its third annual report to Congress highlighting its 2015 activities. Dodd-Frank requires the CFPB and other federal regulators to establish an office of minority and women inclusion, requires each office to gather certain data, and then requires each office to provide Congress with an annual report. Under … Continue Reading

Disparate Impact Continues to be a Viable Discrimination Theory for the CFPB under the ECOA

On Wednesday, March 16, 2016, the House Financial Services Committee hosted the Consumer Financial Protection Bureau’s (“CFPB”) Director Richard Cordray for a hearing on “The Semi-Annual Report of the Bureau of Consumer Financial Protection.” The purpose of the hearing was to review the CFPB’s eighth semi-annual report to the President and Congress, covering its activities … Continue Reading

CFPB Returns Millions to Consumers Using Supervisory Authority

On March 8, 2016, the Consumer Financial Protection Bureau (CFPB) announced that, through its supervisory authority, it recovered $14.3 million for approximately 228,000 consumers. This recovery spans CFPB work completed in the last three months of 2015. Using its supervisory and examination authority, the CFPB discovered violations in the money transmitter, student lending, and debt … Continue Reading

CFPB Issues TRID Revision

On February 10, 2016, the Consumer Financial Protection Bureau (CFPB) issued a correction in the Federal Register to the Integrated Mortgage Disclosures Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z) final rule (TRID Rule). The final TRID Rule, which went into effect on October 3, 2015, … Continue Reading

CFPB Encourages Financial Institutions to Improve Checking Account Access

In remarks delivered yesterday at a field hearing in Louisville, Kentucky, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray announced three actions the CFPB is taking to encourage financial institutions to expand access to checking accounts to the 10 million households it claims lack access to basic checking or savings accounts. These steps focus on … Continue Reading

CFPB Releases Guidance on Construction Loan Disclosures

On January 12, the CFPB released a Construction Loans Fact Sheet reviewing the basics of construction loan disclosures under the TILA/RESPA Integrated Disclosure (“TRID”) Rule. This resource briefly summarizes the TRID requirements for construction loans. Scope As closed-end consumer credit transactions secured by real property, most construction loans are covered by the TRID Rule. Construction … Continue Reading

CFPB Issues RFI for HMDA Data Resubmission Final Rule

On January 7, 2016, the Consumer Financial Protection Bureau (CFPB) issued a request for information (RFI) seeking feedback and additional information on what modifications may be appropriate to the CFPB’s Home Mortage Disclosure Act (HMDA) Resubmissions Guidelines under Regulations C. In October 2015, the CFPB announced its final rule on amended Regulation C, which implements … Continue Reading

CFPB Settles With Debt-Collection “Mill” That Filed 350,000+ Lawsuits Over Four Years

The Consumer Financial Protection Bureau (CFPB) has settled a lawsuit with a Georgia law firm allegedly functioning as a debt-collection mill. As reported by Credit Union Insight, the CFPB and the Georgia law firm agreed on a Stipulated Judgment on December 28. The CFPB’s lawsuit alleges Georgia law firm Frederick J. Hanna & Associates and … Continue Reading

CFPB Expands “Small Creditor” and “Rural Area” Definitions for Qualified Mortgages

On September 21, the Consumer Financial Protection Bureau (“CFPB”) released final and revised versions of mortgage rules regarding small creditors. These changes should ease lenders’ ability to originate qualified mortgages in rural areas. These revisions comport with Director Richard Cordray’s stated position that community banks and credit unions did not cause the financial crisis—and thus, … Continue Reading
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