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Two members of the House Committee on Financial Services, each of whom chairs a subcommittee, have sent a letter to Director Cordray asking a series of questions about the CFPB’s intended approach to rulemaking. Authored by Randy Neugebauer, Chairman of the Subcommittee on Oversight and Investigations, and Shelley Moore Capito, Chairman of the Subcommittee on Financial Institutions and Consumer Credit, the letter was sent on March 29 as a follow-up to Director Cordray’s testimony on the same date to the full Committee.… Continue Reading

By Jeremy T. Rosenblum and Stefanie H. Jackman

Recently, the Consumers Union, Center for Public Policy Priorities, Center for Responsible Lending, Coalition of Religious Communities, National Consumer Law Center, SC Appleseed Legal Justice Center and U.S. PIRG called on the CFPB to extend various protections afforded to debit cards under the Electronic Fund Transfer Act and Regulation E to reloadable prepaid cards.… Continue Reading

The CFPB’s announcement that it will institute an “Early Warning Notice” process has generally been welcomed in the financial community as an opportunity for pre-litigation communications with the Office of Enforcement. The process, described in CFPB Bulletin 2011-08 [Enforcement] which includes a sample advance notice letter, appears to virtually mirror the SEC’s well-established Wells notice.… Continue Reading

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

The Bureau’s Mortgage Servicing Examination Procedures, released on October 13, 2011, offer a fascinating insight into the CFPB’s supervision and enforcement priorities. There’s a great deal worthy of comment in the Procedures, but here I want to highlight one aspect of them: the heavy focus on the Equal Credit Opportunity Act.… Continue Reading

The American Bankers Association (“ABA”) recently submitted its comments on the CFPB’s interim final rule regarding the treatment of confidential information obtained by the CFPB.

Among other things, the ABA recommended the CFPB’s proposed information sharing rule be amended to:

• Ensure supervisory information remains confidential and is not disclosed to third parties except in very limited circumstances so as to promote ongoing dialogue and transparency between the CFPB and its supervised institutions;

• Take into account established limitations on the investigative powers of state Attorneys General and other state law enforcement officials so as to limit the disclosure of confidential supervisory information to such state officials to only those circumstances in which those officials exercise authority to enforce applicable law within a judicial process;

• Limit any regular sharing of confidential information (as defined under Section 1070.2 of Dodd Frank and including but not limited to confidential supervisory information) to federal and state agencies that have financial institution supervisory authority over CFPB supervised institutions; and

• State that the CFPB will not normally share confidential information (as defined under Section 1070.2) with third parties.… Continue Reading

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

On August 19, 2011, the CFPB announced its “Policy on Ex Parte Presentations in Rulemaking Proceedings,” and posted that policy on its web site.  The rule essentially requires anyone who communicates with the CFPB about a pending rulemaking to submit a written copy of the presentation (or a summary of an oral presentation) on the public rulemaking record within three days after the communication to the CFPB. … Continue Reading