The CFPB recently issued an outline entitled Small Business Advisory Review Panel for Automated Valuation Model (AVM) Rulemaking.  While the outline addresses an upcoming joint rulemaking to implement quality control requirements for AVMs, the CFPB specifically focuses on the potential for AVMs to pose fair lending risks to homebuyers and homeowners. … Continue Reading

On February 22, 2022, the CFPB filed its eighth status report with the California federal district court hearing the lawsuit brought by the California Reinvestment Coalition, National Association for Latino Community Asset Builders, and two individual plaintiffs in 2019.  The purpose of the suit was to force the Bureau to issue a proposal implementing the small business data requirements of Section 1071 of the Dodd-Frank Act of 2010 after years of delay.… Continue Reading

Professor Glover is the author of the first major academic study of mass arbitration, which is soon to be published as a law review article.  In Part II of this two-part podcast, we discuss the economics of mass arbitration, including the minimum claim amount necessary to make mass arbitration viable and how consumers’ recovery in arbitration compares with their recovery in class actions, the use of targeted advertising and other methods by plaintiffs’ attorneys to reach potential claimants, and changes companies might consider to their arbitration agreements to address the growing use of mass arbitration, such as changes addressing cost sharing and carve outs for claims eligible for adjudication in small claims court.… Continue Reading

The New Mexico House and Senate have both passed House Bill 132 which would create a 36% annual percentage rate (APR) cap on loans up to $10,000 made under the New Mexico Bank Installment Loan Act of 1959 (BILA) and the New Mexico Small Loan Act (SLA).  In an apparent effort to reach non-bank participants in bank-model programs, the bill would also expand the SLA’s anti-evasion provision. … Continue Reading

Yesterday, eight federal agencies joined together to issue an “Interagency Statement on Special Purpose Credit Programs Under the Equal Credit Opportunity Act and Regulation B” (Interagency Statement).  The agencies consist of the CFPB, FDIC, OCC, Federal Reserve Board, NCUA, HUD, DOJ, and FHFA.  The Interagency Statement indicates that it is intended “to remind creditors of the ability under the Equal Credit Opportunity Act (ECOA) and Regulation B to establish special purpose credit programs to meet the credit needs of specified classes of persons” and to “call[] attention to the special purpose credit options under ECOA and Regulation B.”… Continue Reading

The CFPB has issued a procedural rule that updates its Rules of Practice for Adjudication Proceedings (Rules of Practice) and a request for comment.  The procedural rule is effective February 22, 2022.  However, the Bureau indicates that it “may make further amendments if it receives comments warranting changes.”  Comments must be submitted by April 8, 2022.… Continue Reading

In CFPB v. National Collegiate Master Student Loan Trust et al., the district court rejected the Trusts’ arguments that they were not “covered persons” under the CFPA and that because the enforcement action was filed by an unconstitutionally structured CFPB, it was void when filed and could not stop the statute of limitations from running. … Continue Reading

The CFPB has announced that it has established a new process intended to make “it easier for the public to meaningfully engage with the agency and request regulatory changes.”

The new process allows members of the public to submit petitions for rulemaking (including amendments to or repeals of existing rules) directly to the CFPB either electronically or by mail. … Continue Reading

The CFPB has issued a compliance bulletin “to reiterate that the compulsory use prohibition in the [Electronic Fund Transfer Act (EFTA)] applies to government benefit accounts, as defined in Regulation E.”

In the bulletin, the CFPB reviews what constitutes a “government benefit account” subject to the EFTA’s compulsory use prohibition.  As implemented by Regulation E, the EFTA provides that no person may require a consumer to establish an account for receipt of an electronic fund transfer (EFT) with a particular financial institution as a condition of receipt of a government benefit. … Continue Reading

Prof. Glover is the author of the first major academic study of mass arbitration, which is soon to be published as a law review article.  In Part I of this two-part podcast, after reviewing the historical background of the Federal Arbitration Act, key SCOTUS arbitration decisions, and the evolution of mass arbitration, Prof.… Continue Reading