As we previously reported, the Consumer Financial Protection Bureau released the nearly 1,900-page final RESPA-TILA Integrated Disclosures Rule on November 20. The rule will be effective for applications received on or after August 1, 2015. The industry had urged the CFPB to provide a reasonable implementation period in view of the significant changes to systems and procedures necessary to implement the rule, on top of the implementation challenges presented by the other CFPB mortgage rules.… Continue Reading
CFPB issues final consolidated mortgage disclosure rule
Today, the CFPB issued its long-awaited final rule consolidating the application and closing disclosures required by the Real Estate Settlement Procedures Act and Truth in Lending Act for mortgage loan transactions. The new disclosure forms, which the CFPB have made the centerpiece of its “Know Before You Owe” efforts, consist of a three-page “Loan Estimate” and a five-page “Closing Disclosure.” … Continue Reading
CFPB plans for sharing information with state AGs unchanged in final disclosure rule
In its final rule on Disclosure of Records and Information published last week, the CFPB gave no ground on its position that it has discretionary authority to share confidential information with state attorneys general. This has been a significant concern to industry since the rule was published as an interim final rule in July 2011. … Continue Reading
Initial analyses of CFPB complaint data show misleading nature of data
Recall that when the CFPB launched the Consumer Complaint Database, its expressed hope that “the marketplace of ideas” – i.e., the public – would study and analyze the information disclosed in the database in order to “determine what the data show[s].” 77 FR 37559. The CFPB also stated that the purpose of the database is to “provide consumers with timely and understandable information to make responsible decisions about financial transactions and to enhance the credit card market’s ability to operate transparently and efficiently.” … Continue Reading
Checking accounts to be discussed at CFPB town hall
The CFPB has announced that it will be holding a town hall in New York City on February 22 “to talk about checking accounts.” While the notice contains no information about the issues to be discussed, we expect the focus will be on fees and disclosures. As we previously reported, the CFPB has been urged by Senate Democrats to require standardized disclosures for checking accounts.… Continue Reading
American Bankers Association weighs in on proposed policy for credit card complaint data
On January 30, 2012, the American Bankers Association delivered a comment letter to the CFPB in which it expressed strong disagreement with the CFPB’s proposed policy statement on “Disclosure of Certain Credit Card Complaint Data“. The ABA expressed concern that the complaint data will not help and may actually mislead consumers because it is “incomplete, unrepresentative, and unverified.”… Continue Reading
“Know Before You Owe” getting closer to the finish line
The CFPB has launched a third round of testing in its “Know Before You Owe” project. Last month, as we reported, the CFPB began testing and requested public input on two revised prototypes (named Mimosa and Sassafras) of a mortgage loan settlement disclosure combining the final TILA disclosure and the RESPA HUD-1 Settlement Statement.… Continue Reading
Draft closing disclosures go live
We reported that they were coming and now they’re here. This week, on its website, the CFPB began taking comments on two draft designs of a disclosure that combines the final TILA disclosure and the RESPA HUD-1 Settlement Statement. A “consumer tool” asks consumers which form they would prefer to be given at closing to describe final loan terms and closing costs while an “industry tool” asks industry members “which format” they would prefer for their customer “to use at closing” to describe those items.… Continue Reading
Rhetoric for change
The web has been abuzz about the letter that Majority Whip Richard Durbin (D. Il) and Jack Reed (D. RI) of the Banking Committee rather publicly sent to Raj Date last Thursday. Purportedly out of concern that banks will try to “sneak fees past” consumers after having mostly abandoned the monthly debit card fee program, Senators Durbin and Reed “urge[d]” the CFPB to “swiftly require financial institutions to post on their websites a standardized, concise and consumer-friendly disclosure form that lists the fees and key terms associated with checking accounts.”… Continue Reading
Recent CFPB requests for comments – an opportunity for banks?
Two notices with requests for comments recently published by the CFPB present prime opportunities for banks and other regulated institutions to engage with the CFPB not only to positively impact the CFPB’s processes and procedures, but also to demonstrate that banks seek to develop a relationship of cooperation and collaboration with the CFPB.… Continue Reading