As expected in light of Director Cordray’s comments last week, on Friday, the CFPB finalized several amendments and clarifications to the mortgage rules, proposed on June 24, 2013 (see our previous Legal Alert outlining the amendments as proposed). The amendments include revisions to the CFPB’s mortgage servicing rules, loan originator compensation rules, and ability-to-repay rules. … Continue Reading
CFPB To Initiate Rulemaking to Improve Access to Credit for Stay-at-Home Spouses
News sources report CFPB Director Richard Cordray as promising, on September 20, to issue a proposed rule to improve access to credit for stay-at-home spouses by the time Congress reconvenes after the November 6 election. The rulemaking would be conducted under the authority of the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (the “CARD Act”). … Continue Reading
Consumer groups advocate banning overdraft fees and short-term, small-dollar loan features for prepaid cards
Last week, a coalition of 26 consumer groups, civil rights advocates, and community organizations submitted comments to the CFPB urging it to issue regulations banning overdraft fees and short-term, small-dollar loan features on prepaid cards. Among those groups submitting comments were the National Consumer Law Center, the Consumer Federation of America, and the Center for Responsible Lending.… Continue Reading
Debt collectors and debt buyers obtain temporary reprieve from CFPB supervision
On Monday, the CFPB issued its final rule defining larger participants of a market for consumer reporting. It 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. Dodd-Frank automatically gave the CFPB the authority to supervise non-bank covered persons in the residential mortgage, private education lending and payday lending industries.… Continue Reading
CFPB describes rulemaking in regulatory agenda
The semiannual regulatory agenda released by the CFPB earlier this week provides an overview of the CFPB’s extensive rulemaking activities, including not only proposed and finalized rules but also rules on the drawing board (or, as described by the agenda, in the “prerule stage.”) The agenda states that the information is current as of April 13, 2012 and “the CFPB reasonably anticipates having the regulatory matters identified [in the agenda] under consideration during the period from June 1, 2012, to May 31, 2013.” … Continue Reading
Cordray outlines initial supervision priorities for credit reporting agencies
During the CFPB’s field hearing today in Detroit, Michigan, Director Cordray was clear in his opening remarks about what the Bureau sees as its supervisory priorities once it begins examining credit reporting agencies (CRAs) starting in September. Cordray outlined three priorities:
1) Ensuring the accuracy of information received by CRAs. … Continue Reading
Congress showing increasing interest in Ability to Repay/QM Rule
On Wednesday July 11, 2012 the House Subcommittee on Financial Institutions and Consumer Credit held a hearing addressing consumer and market perspectives of mortgage reforms made by The Dodd-Frank Wall Street Reform and Consumer Protection Act. Both consumer and industry members provided testimony, including the Mortgage Bankers Association [PDF] and American Bankers Association [PDF].… Continue Reading
Are credit bureaus in the crosshairs?
The CFPB will hold a public field hearing and panel discussion on credit reporting on July 16 at the Detroit Institute of Arts. The hearing appears to coincide with the CFPB’s anticipated release of the final “larger participant” rule, which must be issued no later than July 21.
Earlier this year, the CFPB issued a proposed rule defining the minimum size of credit bureaus, debt buyers, and debt collectors that it will supervise and examine.… Continue Reading
Some further thoughts on the CFPB’s proposed rulemaking with regard to reloadable prepaid cards
On May 23, 2012, the CFPB published an advanced notice of proposed rulemaking (ANPR) that proposes to extend Regulation E protections to GPR cards. The CFPB’s release of this ANPR coincided with the CFPB’s scheduled hearing in Durham, North Carolina on the same subject. We previously issued an e-alert summarizing the ANPR and wanted to provide some further thoughts and commentary on the ANPR.… Continue Reading
CFPB proposes procedures for supervising non-banks engaged in conduct deemed risky to consumers
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