Ms. Twohig, a recognized consumer finance expert, shares her insights regarding the CFPB’s supervisory program. Our discussion topics include: the differences between the CFPB’s supervisory program and the programs of the federal and state banking regulators; the CFPB’s approach to allocating resources, conducting exams, and examiner training; the origins and objectives of Supervisory Highlights; how
CFPB Supervision
This week’s podcast episode: CFPB invokes its “dormant authority” to supervise nonbanks that present risks to consumers: What it means for nonbank providers of consumer financial products and services
By Barbara S. Mishkin on
Posted in CFPB Supervision
We first review the scope of the CFPB’s supervisory authority granted by Dodd-Frank and the source of its authority to supervise nonbanks that present risks to consumers. We then discuss how we expect the CFPB to use its risk-based authority, including the types of products it may target and its decision to make public the…
CFPB Spring 2022 Supervisory Highlights looks at auto servicing, credit reporting, credit card account management, debt collection, deposits, mortgage origination, prepaid accounts, remittance transfers, and student loan servicing
The CFPB has released the Spring 2022 edition of its Supervisory Highlights. The report discusses the Bureau’s examinations in the areas of auto servicing, consumer reporting, credit card account management, debt collection, deposits, mortgage origination, prepaid accounts, remittance transfers, and student loan servicing that were completed between July 2021 and December 2021. Accordingly, many…
CFPB announces plans to supervise more nonbanks; Ballard Spahr to hold May 11 webinar on Director Chopra’s first six months in office
By Michael Gordon & Lisa Lanham on
Posted in CFPB Supervision, Fintech
The CFPB has announced that it plans to invoke its “dormant authority” to supervise nonbanks engaged in conduct that poses risk to consumers. In conjunction with the announcement, the CFPB issued a procedural rule concerning the confidentiality of proceedings in which the CFPB invokes such authority. These moves by the CFPB are notable for two…
CFPB blog post and report focus on student loan servicing
By John L. Culhane, Jr. on
Posted in CFPB Supervision, Student Loans
Student loan servicing was the focus of recent CFPB attention in the form of a blog post, “Busting myths about bankruptcy and private student loans,” and a report (labeled a “special issue brief”) titled “Student Loan Borrowers Potentially At-Risk when Payment Suspension Ends.” Both items raise areas of compliance risk for…
This week’s podcast: The CFPB takes aim at discrimination as “unfair”: What does it mean for your business?
By Barbara S. Mishkin on
Posted in CFPB Supervision, UDAAP
The CFPB recently announced that it is updating its exam manual to direct its examiners to consider discriminatory conduct an “unfair” act or practice represents a significant expansion of its UDAAP authority. We discuss: the CFPB’s legal theory; types of products/services/bases for discrimination the CFPB could reach using unfairness and role of disparate impact analysis;…
CFPB updates examination manual to use UDAAP authority to target discriminatory practices, including those involving non-credit products or services
Consistent with expectations that the CFPB under Director Chopra’s leadership would take an expansive view of its statutory authorities, the CFPB has announced its intention to use its authority to prohibit unfair, deceptive, or abusive acts or practices (UDAAPs) to target discriminatory conduct, even where fair lending laws may not apply.
Specifically, the CFPB is…
CFPB updates debt collection examination procedures
By John L. Culhane, Jr. on
Posted in CFPB Supervision, Debt Collection
The CFPB has updated the section of its Supervision and Examination Manual on debt collection examination procedures. The update reflects the requirements of Regulation F, the Bureau’s final debt collection rule that implements the Fair Debt Collection Practices Act. Regulation F became effective on November 30, 2021.
CFPB to begin examining post-secondary schools that loan directly to students
By John L. Culhane, Jr. & Heather S. Klein on
Posted in CFPB Supervision, Student Loans
The CFPB has announced that it will begin examining post-secondary schools, such as for-profit colleges, that extend private loans directly to students and/or parents to fund undergraduate, graduate, and other forms of postsecondary education. The announcement was accompanied by the CFPB’s issuance of an update to its Education Loan Examination Procedures manual. The update…
CFPB Fall 2021 Supervisory Highlights looks at credit cards, debt collection, deposits, fair lending, mortgage servicing, payday lending, prepaid accounts, and remittance transfers
By John L. Culhane, Jr., Reid F. Herlihy & Ballard CFS Group on
Posted in CFPB Supervision
The CFPB has released the Fall 2021 edition of its Supervisory Highlights. The report discusses the Bureau’s examinations in the areas of credit card account management, debt collection, deposits, fair lending, mortgage servicing, payday lending, prepaid accounts, and remittances that were completed between January 2021 and June 2021. Accordingly, the majority of examinations discussed…