Chris’ post about the CFPB’s press release and bulletin encouraging “whistleblowers” to report to the CFPB potential violations of federal consumer financial laws is a reminder to banks and other companies to ensure that they have in place appropriate internal reporting procedures sufficient to encourage employees to use them rather than to report directly to the CFPB.… Continue Reading

On December 15, 2011, the CFPB published a press release and a bulletin encouraging “whistleblowers” to either e-mail or call the Bureau with information about “potential violations of federal consumer financial laws.” The announcement itself is not much of a surprise, since section 1057 of Dodd-Frank creates protections for persons who report, or refuse to participate in, violations of the federal consumer financial protection laws administered by the CFPB. … Continue Reading

According to an article appearing last week in The Hill, consumer groups are urging President Obama to end-run the Senate’s failure to confirm his nominee for Director of the CFPB, Richard Cordray, by using the presidential recess appointment power. The exercise of such a power has been made problematic by the use of “pro forma” sessions in the House to keep Congress in session and avoid any period in which there is a recess.… Continue Reading

The CFPB doesn’t want its fair lending authority to be in doubt. A recent blog post by Patrice Ficklin, the CFPB’s Assistant Director for the Office of Fair Lending & Equal Opportunity, describes the CFPB’s authority under the ECOA and HMDA and the “many tools” Ms. Ficklin’s office can use “to protect consumers from credit discrimination and promote fair access to credit.”… Continue Reading

Last month, as part of its “Know Before You Owe project,” the CFPB began taking comments on two prototypes (named Hornbeam and Ironwood) of a settlement disclosure that combines the final TILA disclosure and the RESPA HUD-1 Settlement Statement. The CFPB received over 3,000 comments on the prototypes. This week, based on those comments, the CFPB posted two new prototypes (named Mimosa and Sassafras) on its website which it will be testing in Birmingham, Alabama and on which it is requesting public input.… Continue Reading

The CFPB has announced the opening of its Ombudsman Office to assist in the resolution of individual and systemic issues that a depository entity, non-depository entity or consumer has with the CFPB. The Office was established by the Dodd-Frank Act. It’s intended to be an independent, impartial and confidential resource which, according to the description on the CFPB’s website,  people can use “when they have not had success with the existing CFPB processes for dealing with their complaints.”… Continue Reading

The CFPB is getting ready to test model forms and disclosures as part of its rulemaking under Dodd-Frank Title XIV.  According to a Paperwork Reduction Act notice published in the Federal Register, the CFPB has determined that model forms and disclosures are required for the mortgage servicing rules it must issue in final form by January 31, 2013 to implement Title XIV provisions on the reset of hybrid ARMs, mortgage loan periodic statements and force-placed insurance disclosures.… Continue Reading

I will be a panelist on January 20, 2012, for an intensive one-day course on the CFPB offered by ALI-ABA. The course is titled “The Consumer Financial Protection Bureau: A New Regulatory World for Banks, Thrifts, Mortgage Lenders, Credit Card Companies, and Consumer Financial Service Companies,” and will be offered in New York and as a webcast.… Continue Reading

 It’s not often that Barney Frank agrees with the American Bankers Association but, when it comes to Regulation Z’s ability to pay rule for credit cards, it seems that Representative Frank now thinks the ABA got it right and the Fed got it wrong. The Reg. Z rule, adopted by the Fed in final form in March 2011 to implement the Credit CARD Act and effective October 1, requires issuers to consider an applicant’s independent ability to pay, regardless of the applicant’s age.… Continue Reading

I share much of Chris’ reaction to the Bureau’s prototype cardholder agreement. The Bureau staff has labored mightily and has managed to produce an agreement that is six-(not two) pages of material. In considering the Bureau’s success or lack of success in producing a short cardholder agreement, it is important to note that the Bureau’s draft utterly fails to comply with the increasingly elaborate and complex regulatory requirements that have contributed greatly over the years to the length and complexity of cardholder agreements.… Continue Reading