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Effective this past November 1, the CFPB ended its controversial practice of having enforcement attorneys regularly participate in examinations of supervised entities.  Since first learning of the CFPB’s practice, we had expressed our deep concern about the practice’s inhibiting effect on free and open communications between the CFPB and supervised entities and urged the CFPB to reconsider the practice. … Continue Reading

In conjunction with issuing its final “larger participant” rule for student loan servicers last week, the CFPB also revised its education loan examination procedures.  The revisions are intended to provide more extensive guidance for examiners to follow when examining student loan servicing by entities subject to the CFPB’s supervisory authority, whether banks or private student loan lenders who are already subject to CFPB supervision or servicers who will be subject to CFPB supervision as “larger participants” effective March 1, 2014.  … Continue Reading

On November 27, the CFPB released further updates to its Truth in Lending Act and Real Estate Settlement Procedures Act examination procedures.  The updates reflect October 2013 amendments to the CFPB’s mortgage rules that take effect next month.  The amendments were published in the Federal Register on October 23, 2013.

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The George Mason University School of Law, Law & Economics Center recently hosted a conference titled “Understanding the Consumer Financial Protection Bureau,” through GMU’s Attorneys General Education Program.  Founded in 2009, the program was created to provide economic and public policy educational programming to state attorneys general and their staff attorneys from across the country. … Continue Reading

Last week, I had the opportunity to hear several high-ranking lawyers with the CFPB speak at PLI’s 18th Annual Consumer Financial Services Institute in Chicago.  As an initial matter, the attendees owe a debt of thanks to each of CFPB lawyers for taking the time to attend the seminar, which Alan Kaplinsky co-chaired. … Continue Reading

The CFPB’s practice of bringing enforcement attorneys to examinations has been a continuing concern for industry.  In particular, supervised entities worry that the participation of enforcement attorneys in examinations inhibits free and open communication, and signals the CFPB’s intention to use the examination process as a development ground for enforcement actions.  … Continue Reading

I regularly work with technology innovators to help them get their ideas cleaned up for financial institutions and to give them a headstart in understanding the types of risk concerns and controls that financial institutions are going to have and want.  To technology innovators who may be intrigued by the CFPB’s request for dialogue, I wanted to provide my thoughts on some steps to take before charging through the Project Catalyst doors and throwing your ideas in front of the CFPB.… Continue Reading

Today, the CFPB proposed a rule setting up procedures for supervising non-banks that the CFPB believes are engaging in, or may have engaged in, activities that pose risks to consumers. Under the Dodd-Frank Act, the CFPB has authority to supervise any nonbank that it has reasonable cause to determine is engaging in, or has engaged, in conduct that poses risks to consumers with regard to the offering or provision of consumer financial products or services based on complaints and any other information it receives.… Continue Reading

On April 13, 2012, the Consumer Financial Protection Bureau (CFPB) released Bulletin 2012-03, which stated that the CFPB will expand its examination scope beyond supervised institutions themselves and examine their service providers as well.  If the CFPB believes that service providers are not complying with a consumer financial services law, or are committing a UDAAP violation when interacting with the supervised institution’s customers, the CFPB plans to hold both companies accountable.… Continue Reading

The payday loan industry is abuzz with the news that the CFPB has commenced its initial payday lender exam, operating in tandem with state examiners and providing virtually no advance warning. This news comes on top of a report that the CFPB has begun to examine non-bank mortgage companies. It should serve as yet another warning to payday lenders, student lenders, mortgage lenders and companies that might soon become “larger participants” in a market for consumer financial services that they urgently need to get their act in gear and ensure that their federal-law compliance is up-to-speed.… Continue Reading