As previously reported, the bill signed into law by President Biden on June 17, 2021 to create the Juneteenth National Independence Day actually results in an important change under the Truth in Lending Act (TILA) and Regulation Z. There is a specific definition of “business day” under Regulation Z for certain purposes, including the
CFPB
CFPB to resume examinations for Military Lending Act compliance
By John L. Culhane, Jr. & Anthony C. Kaye on
In another action demonstrating that a “new CFPB” is in place under the Biden Administration, the CFPB has issued an interpretive rule setting forth the basis for its determination that it has authority to examine institutions that it supervises for Military Loan Act (MLA) compliance.
In 2018, under the leadership of former Acting Director Mulvaney,…
GAO Issues Report Finding that CFPB Needs to Assess the Impact of Recent Changes to its Fair Lending Activities
During May 2021, the federal Government Accountability Office (“GAO”) issued a report (GAO-21-393) containing findings from its review of issues related to the CFPB’s oversight and enforcement of the Equal Credit Opportunity Act (“ECOA”) and the Home Mortgage Disclosure Act (“HMDA”). Specifically, the report examines how the CFPB has (i) managed the reorganization of its…
CFPB’s Spring 2021 rulemaking agenda discards Kraninger-era rulemaking plans
By Christopher J. Willis on
Posted in CFPB, Regulatory and Enforcement
The CFPB has published its Spring 2021 rulemaking agenda as part of the Spring 2021 Unified Agenda of Federal Regulatory and Deregulatory Actions. It represents the “new CFPB’s” first rulemaking agenda during the Biden Administration. The agenda’s preamble indicates that the information in the agenda is current as of April 26, 2021 and identifies the…
Neither Professor Budnitz’s Nor Professor Sovern’s Anti-Arbitration Arguments Should Prompt the CFPB to Reconsider Delving into Arbitration Again
By Mark J. Levin on
In a recent guest post, Professor Mark Budnitz voiced support for Professor Jeff Sovern’s recent proposal that the CFPB issue a rule barring the use of pre-dispute arbitration agreements unless consumers opt in to them. He claims it is the “only fair method” for contracting with consumers because “consumers cannot know, pre-dispute, which forum is…
Professor Sovern’s Opt-In Arbitration Proposal: A Wolf In Sheep’s Clothing
By Mark J. Levin on
Professor Jeff Sovern responded to our blog criticizing his proposal for a new CFPB arbitration rule by asserting that his proposed rule is not substantially the same as the prior CFPB rule that Congress vetoed and, therefore, the Congressional Review Act would not bar its promulgation. According to Professor Sovern: “I don’t see how my…
Two senior officials reported to be leaving CFPB
By Christopher J. Willis on
Posted in CFPB, Regulatory and Enforcement
According to an American Banker report, two senior CFPB officials, Bryan Schneider and Peggy Twohig, will be leaving the Bureau in the coming weeks.
Mr. Schneider has been serving as Associate Director of Supervision, Enforcement and Fair Lending. He was named to the position by former Director Kraninger.
Ms. Twohig has been serving as Assistant…
CFPB announces proposed settlement of lawsuit alleging provider of short-term loans violated CFPA’S UDAAP prohibition in connection with deposit account program
By Christopher J. Willis on
Posted in CFPB, Regulatory and Enforcement
The CFPB announced last week that it has entered into a proposed settlement with Driver Loan, LLC (“Driver Loan”) and its Chief Executive Officer to settle the November 2020 lawsuit it filed against Driver Loan and its CEO alleging the defendants engaged in deceptive acts and practices in violation of the Dodd-Frank Act’s UDAAP prohibition…
Ninth Circuit stays mandate in Seila Law
By Christopher J. Willis on
Posted in CFPB, Litigation and Court Decisions
The Ninth Circuit has granted Seila Law’s motion for a stay of the mandate pending its filing of a petition for a writ of certiorari in the U.S. Supreme Court.
After the Supreme Court ruled that the CFPB’s structure was unconstitutional and remanded the case for further consideration, a unanimous Ninth Circuit panel ruled that…
Professor Sovern’s opt-in arbitration proposal is neither new nor supportable
By Mark J. Levin on
Professor Jeff Sovern recently proposed that the CFPB issue a supposedly “new” arbitration rule “that prevents companies from blocking consumers from suing in court unless consumers specifically opted in to the arbitration clause” after being given a CFPB-mandated disclosure that if they do not sign and their rights are violated, they “may still sue us…