The use of enforcement by the Consumer Financial Protection Bureau and other federal agencies rather than administrative rulemaking to advance novel legal theories has been widely criticized. After discussing the meaning of “regulation by enforcement,” we look at examples of the use of regulation by enforcement by the CFPB and other agencies, U.S.… Continue Reading
regulation
This week’s podcast episode: The role of government regulation and the CFPB’s approach, with special guest Cary Coglianese, Professor of Law, University of Pennsylvania Law School, and Director of the Penn Program on Regulation
By Barbara S. Mishkin on
We first discuss the practicalities and potential impact of implementing Director Chopra’s call in a recent blog post for simplification of consumer finance regulations and simple bright-line rules. We then examine the role and objectives of regulation such as predictability and responsiveness to stakeholder input and consider whether the CFPB’s current approach to regulation, including its abandonment of official staff commentary updates, furthers those objectives. … Continue Reading
California publishes final student loan servicer regulations; California bill introduced to require additional information in annual borrower benefits notices
By Brian Slagle on
The California Department of Business Oversight has sent an email to servicers notifying them of the publication of its final student loan servicer regulations, which became effective March 28, 2019. The DBO published its initial rules on September 8, 2017 and modified the proposed rules three times. Servicers have been operating without final rules since the Student Loan Servicing Act became effective on July 1, 2018.… Continue Reading
Regulation CC Amendments Proposed and Comment Period Reopened for Amendments Proposed in 2011
By Ballard CFS Group on
On November 20, the Federal Reserve Board (FRB) and CFPB jointly proposed amendments to Reg. CC, which implements the Expedited Funds Availability Act (EFA Act), and also reopened for public comment various amendments that the FRB had proposed in March of 2011. This new proposal is in addition to the amendments to Reg.… Continue Reading
Federal Reserve Board approves final amendments to the liability provisions of Regulation CC
By Scott A. Coleman & Ballard CFS Group on
Last Wednesday the Federal Reserve published approved final amendments to Regulation CC (Availability of Funds and Collections of Checks) which update the liability provisions of Reg. CC to address the nearly-complete conversion of the nation’s check collection system from a paper to an electronic environment.
Historically, when banks disputed which party should be responsible for the liability arising from an unauthorized check, the risks were split in two. … Continue Reading
Simplified mortgage disclosures to come with new rules
By Barbara S. Mishkin on
The CFPB is close to wrapping up its “Know Before You Owe” project to design a simplified mortgage loan disclosure combining the disclosures required by TILA and RESPA. In addition to completing its proposed design, the CFPB will be writing rules to accompany the new disclosure forms. That message was delivered by Pat McCoy, the CFPB’s assistant director for mortgage and home equity markets, when she spoke to the Mortgage Bankers Association on September 26.… Continue Reading