Despite the filing of a lawsuit last Friday by a number of industry trade groups seeking to block implementation of the CFPB’s arbitration rule, we remain hopeful that the Senate will pass a resolution of disapproval under the Congressional Review Act to override the rule. There has been considerable confusion about the Senate deadline for passing a CRA resolution so we took a closer look.… Continue Reading
CFPB “Can Improve” Recordkeeping and Notifications of Purpose in Civil Investigative Demands, OIG Finds
On September 20, 2017, the Federal Reserve’s Office of Inspector General (“OIG”) issued a report on the CFPB’s process for issuing Civil Investigative Demands (“CID”). The OIG found that the CFPB “generally complied” with requirements for issuing CIDs, with two exceptions. First, the CFPB failed to use notifications of purpose that adequately informed recipients about the nature of the investigation.… Continue Reading
Finance Industry Files Lawsuit to Overturn CFPB Arbitration Rule
The U.S. Chamber of Commerce, American Bankers Association, the Consumer Bankers Association, Financial Services Roundtable, American Financial Services Association, Texas Association of Business, Texas Bankers Association, and nine chambers of commerce located throughout Texas today filed a lawsuit in Texas federal court challenging the Consumer Financial Protection Bureau’s final arbitration rule.… Continue Reading
CFPB updates HMDA rule guidance materials
The Consumer Financial Protection Bureau (CFPB) recently posted on its website updated versions of guidance in connection with the revisions to the Home Mortgage Disclosure Act (HMDA) rules that become effective on January 1, 2018.
The CFPB updated the key dates timeline, 2018 HMDA institutional coverage chart and 2018 HMDA transactional coverage chart to reflect the temporary increase in the threshold to report home equity lines of credit (HELOCs).… Continue Reading
CFPB enters into RESPA settlement with title agent
The Consumer Financial Protection Bureau (CFPB) recently entered into a consent order with Meridian Title Corporation (Meridian) under the Real Estate Settlement Procedures Act (RESPA).
The CFPB found that Meridian is a title insurance agency that issues title insurance policies and provides loan settlement services in connection with residential mortgage transactions that are subject to RESPA.… Continue Reading
MLA compliance deadline for credit card accounts is Tuesday, October 3
The Military Lending Act (MLA) will apply to credit card accounts starting Tuesday, October 3. The final rule took effect last October but provided a one-year exemption for “credit extended in a credit card account under an open-end (not home-secured) consumer credit plan.” Although the final rule permits the Secretary of Defense to extend the exemption for up to one year (October 3, 2018), the DoD declined to do so and is allowing the exemption to expire next week.… Continue Reading
In a Stunning Rebuke to CFPB, OCC Finds Arbitration Rule Will Significantly Increase Cost of Consumer Credit
In a September 20 report, the Office of the Comptroller of the Currency (OCC) seriously undermined the integrity and completeness of the CFPB’s empirical study of consumer arbitration that purports to be the foundation for its final arbitration rule. In its study, the CFPB concluded that it did not find any statistically significant evidence of increases in the cost of consumer credit associated with banning arbitration clauses in credit card contracts. … Continue Reading
What is Ohio’s filing deadline for candidates for governor?
With many observers expressing surprise that Director Cordray has not yet announced that he plans to run for Ohio Governor as the Democratic candidate, there has been curiosity as to Ohio’s filing deadline for candidates.
According to the 2018 Ohio Candidate Requirement Guide issued by the Ohio Secretary of State party candidates for Governor are subject to a filing deadline of 4 p.m.… Continue Reading
DOJ issues annual report to Congress on 2016 ECOA/FHA/SCRA enforcement activities
The Department of Justice’s Civil Rights Division has issued its annual report to Congress regarding its activities to enforce the ECOA, FHA and SCRA. The report covers 2016 activities that would have taken place under the Obama Administration. As a result, although it concludes by noting the role of the DOJ’s “vigorous enforcement of fair lending laws” in expanding credit access, it is unclear how the DOJ will carry out that role under the leadership of Attorney General Jeff Sessions.… Continue Reading
CFPB issues arbitration rule small entity compliance guide
The CFPB has issued a small entity compliance guide for its arbitration rule. The rule became effective on September 18, and compliance with the rule is required with regard to pre-dispute arbitration agreements entered into on or after March 19, 2018.
The Senate has before it a joint resolution under the Congressional Review Act to override the arbitration rule. … Continue Reading