CFPB Director Rohit Chopra recently gave opening remarks at the joint meeting of the Community Bank and Credit Union Advisory Councils.  In them, he expressed a desire to re-direct the CFPB’s attention to the needs of financial institutions used by local businesses and to make relationship banking a key priority for the CFPB.… Continue Reading

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; what manual updates tell examiners to ask about and look at; implications for entities the CFPB does not supervise or have jurisdiction over; likely legal challenges to the Bureau’s theory; and how companies can prepare.… Continue Reading

I want to thank Professor Jeff Sovern, a prominent consumer advocate and my frequent sparring partner, for his recent praise of our podcast.  Professor Sovern wrote:

Probably my favorite podcast is Ballard Spahr’s Consumer Finance Monitor Podcast. I learn a tremendous amount from it.  Yes, it favors the industry view, as it is certainly entitled to do, but many episodes are devoted to interviewing consumer advocates as well. … Continue Reading

The CFPB has issued its Fall 2021 Semi-Annual Report to Congress covering the period April 1, 2021 through September 30, 2021.

Since Rohit Chopra was sworn in as CFPB Director in October 2021, the report only reflects CFPB activity under the leadership of former Acting Director Uejio.  Although the report does not contain any noteworthy information about which we have not previously blogged, the format of the report is noteworthy in that it is different in two important respects from previous semi-annual reports.… Continue Reading

In opposing efforts by federal and state lawmakers to impose rate caps on small-dollar loans, industry representatives have pointed out the harm that a rate cap can create for consumers, particularly those with less than perfect credit, by reducing access to credit.  These concerns are often dismissed by consumer advocates with the argument that banks and credit unions will increase their small-dollar lending if other providers leave the market due to interest rate caps.… Continue Reading

A Connecticut federal district court has refused to dismiss claims filed by the CFPB against a mortgage company and three of its principals for alleged Truth in Lending Act (TILA), Mortgage Act and Practice (MAP) Rule, and Consumer Financial Protection Act (CFPA) violations.

The CFPB’s lawsuit names as defendants 1st Alliance Lending LLC and three individuals consisting of the company’s CEO, President of Production, and President of Capital Marketing. … Continue Reading

The FTC has announced the settlement of a lawsuit filed jointly with the Illinois Attorney General against a group of auto dealerships that alleged the dealerships violated federal and state law by engaging in deceptive practices in connection with add-on charges and by discriminating against Black consumers in connection with the financing of vehicle purchases. … Continue Reading

The FDIC has issued the March 2022 edition of Consumer Compliance Supervisory Highlights which includes a description of some of the most significant consumer compliance issues identified by FDIC examiners during consumer compliance examinations conducted in 2021.

The issues described in the report consist of the following:

  • Regulation E liability protections. 
… Continue Reading

As previously reported, the Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac will require servicers to suspend foreclosure activities for up to 60 days if the servicer has been notified that a borrower has applied for assistance from the Treasury Department’s Homeowner Assistance Fund (HAF).

Fannie Mae and Freddie Mac have issued guidance documents implementing this requirement in Updated Lender Letter 2021-01 and Bulletin 2022-8, respectively. … Continue Reading

A new CFPB report, “Market snapshot: Consumer use of State payday loan extended payment plans,”  describes the requirements of state payday loan extended payment plan laws in the 16 states that have such laws.

The report also compares extended payment plan usage to payday loan rollover and default rates. … Continue Reading