larger participant

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As we previously reported, last Friday House Financial Services Committee Chairman Jeb Hensarling (R-TX) sent a letter to CFPB Director Richard Cordray asking for a response by March 13 to specific questions about the methodology and analyses employed by the CFPB in determining whether dealer finance charge participations violate the Equal Credit Opportunity Act and Regulation B.… Continue Reading

Since last March, when the CFPB issued Bulletin No. 2013-02, its highly controversial release warning banks and finance companies that purchase motor vehicle installment sales contracts that, under existing law, any dealer finance charge participation may violate the Equal Credit Opportunity Act and Regulation B, numerous members of Congress have been unsuccessful in seeking clear and precise information from the CFPB as to how it determines that practices that are neutral on their face are nonetheless discriminatory. … Continue Reading

Later this week, on March 1, the CFPB’s final rule defining larger participants of the student loan servicer market becomes effective.  

We expect the CFPB to immediately begin examining entities that qualify as larger participants.  Under the rule, the CFPB can supervise servicing of private and federal student loans by any nonbank entity that qualifies as a larger participant, regardless of whether it also offers or provides private student loans. … Continue Reading

Yesterday, the CFPB issued its final rule defining larger participants of the student loan servicer market.  The final rule becomes effective on March 1, 2014.  Consistent with the proposed rule, the final rule defines larger participants to mean servicers with an “account volume” exceeding 1 million. 

The final rule, which is based on the CFPB’s Dodd-Frank authority to supervise nonbank entities considered to be “a larger participant of a market for other consumer financial products or services,” significantly expands the Bureau’s supervisory authority over nonbank student loan servicers. … Continue Reading

In remarks to the National Council of Higher Education Loan Resource’s “2013 Knowledge Symposium” held this week in St. Pete Beach, Florida, Rohit Chopra, the CFPB’s Student Loan Ombudsman, indicated that the CFPB’s final “larger participant” student loan servicer rule will be issued at the end of 2013.  The proposal, issued by the CFPB in March 2013, would give the CFPB supervisory authority over nonbank servicers of private and federal student loans who qualify as “larger participants” in the student loan servicing market.… Continue Reading

My colleague, Chris Willis, posted his reaction to CFPB Bulletin 2013-02, which provides guidance as to how the CFPB will apply ECOA and Reg B to dealer rate participation in the auto finance business. Except for Chris’ concern that the CFPB might be saying that disparate impact alone is sufficient to violate ECOA and Reg B without applying the three-part test set forth in Reg B which enables the auto finance company to argue a business justification for the practice, the guidance does not really change the CFPB’s already well-articulated position on this issue.… Continue Reading

The CFPB has issued a proposal to supervise nonbank student loan servicers who qualify as “larger participants” in the student loan servicing market.  The CFPB already supervises student loan servicing by larger banks.  It also already supervises, without regard to their size, nonbanks that offer or provide private student loans and student loan servicing by such nonbanks. … Continue Reading

On Wednesday, the CFPB released its debt collection larger participant final rule and the examination procedures its examiners will use to examine members of the debt collection industry that qualify as larger participants and other industry members over whom the CFPB has supervisory authority. Those exams are expected to begin on or soon after the final rule’s January 2, 2013 effective date.    … Continue Reading

Today, the CFPB issued its final rule defining larger participants of the consumer debt collection market.  The final rule becomes effective on
January 2, 2013.  The CFPB acted pursuant to Section 1024 of Dodd-Frank which grants the CFPB the authority to supervise non-bank covered persons for compliance with Federal consumer financial laws.… Continue Reading

The CFPB has announced that it will be holding a field hearing on debt collection in Seattle on October 24.  Since Director Cordray is slated to make remarks, there is considerable speculation that release of the CFPB’s final larger participant rule for the debt collection market is imminent and could be announced by Director Cordray at the hearing.  … Continue Reading