Archives: CFPB

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First CFPB Symposium Focuses on “Abusive” Acts or Practices Standard

On Tuesday, June 25, the Consumer Financial Protection Bureau (the “CFPB”) convened the first in a new series of symposia on consumer protection topics. The symposium series was announced in Director Kathleen Kraninger’s first major speech as the Bureau’s Director on April 17, 2019. The intent of the series is to initiate dialogue with stakeholders … Continue Reading

Democratic Senators Criticize CFPB’s Proposed Debt Collection Rule

On June 7, 2019, 26 Democratic senators sent a letter to Consumer Financial Protection Bureau (the “Bureau”) Director Kathleen Kraninger criticizing the Bureau’s proposed rule to modify Regulation F under the Fair Debt Collection Practices Act.  As we have previously discussed, the Bureau released its long-anticipated proposed rule on May 7, 2019.  Director Kraninger described … Continue Reading

CFPB Proposes Debt Collection Rule under FDCPA

On May 7, 2019, the Consumer Financial Protection Bureau (“CFPB” or the “Bureau”) released its long-anticipated proposed rule on debt collection. The proposed rule would amend Regulation F, which implements the Fair Debt Collection Practices Act (“FDCPA”), and would govern the activities of debt collectors, as defined in the FDCPA. Certain provisions also rely on … Continue Reading

CFPB Proposes Revisions to HMDA to Provide Relief for Smaller Lenders

On May 2, 2019, the Consumer Financial Protection Bureau (“CFPB”) released a notice of proposed rulemaking (the “NPRM”) proposing to raise coverage thresholds for collecting and reporting data under the Home Mortgage Disclosure Act (“HMDA”).  In addition, the Bureau released an advanced notice of proposed rulemaking (the “ANPR”) requesting comment on the costs and benefits … Continue Reading

CFPB Mulling Changes to Remittance Rule

On April 25, 2019, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) published a Request for Information (the “RFI”) related to the Remittance Rule, the Bureau’s existing regulation that implements the Electronic Funds Transfer Act (“EFTA”) as amended by the Dodd-Frank Act.  The Remittance Rule requires certain disclosures in the case of remittance payments (electronic … Continue Reading

CFPB to Provide More Information in Civil Investigative Demands

The Consumer Financial Protection Bureau (“CFPB”) announced Tuesday that going forward the agency will provide more information in its Civil Investigative Demands (“CIDs”).  The American Bankers Association and others had voiced concerns about the often vague and expansive scope of such demands in response to the Bureau’s 2018 Request for Information (“RFI”) seeking feedback on … Continue Reading

CFPB Director Kraninger Outlines Approach in First Major Speech

On April 17, 2019, CFPB Director Kathleen Kraninger outlined her approach in executing the Bureau’s statutory mission in a speech to the Bipartisan Policy Center. This was Director Kraninger’s first major speech since taking the helm at the Bureau. Kraninger’s remarks were organized around the tools that the Bureau will utilize to advance its core mission … Continue Reading

CFPB Enhances Advisory Committee Charters

On March 21, 2019, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) announced that it was enhancing its advisory committee charters. The announcement follows former Acting Director Mick Mulvaney’s decision in June 2018 to reduce the number of members on the committees and decrease membership terms. Director Kathy Kraninger described these changes as a product … Continue Reading

CFPB Issues 18th Edition of Supervisory Highlights

On March 12, 2019, the CFPB released the 18th edition of its Supervisory Highlights report. The report covers supervision activities completed between June 2018 and November 2018 and discusses supervisory observations related to automobile loan servicing, mortgage servicing, remittances, and deposits. The report also summarizes the CFPB’s previously announced public enforcement actions and guidance during … Continue Reading

CFPB Releases Report on Elder Financial Abuse

On February 27, 2019, the CFPB announced the release of a report identifying key facts, trends, and patterns in elder financial exploitation and abuse.  The Bureau’s report is based on an analysis of 180,000 Suspicious Activity Reports (“SARs”) filed with the Financial Crimes Enforcement Network (“FinCEN”) by banks, credit unions, and other financial services providers … Continue Reading

Consumer Groups and Some States Oppose CFPB Policies Aimed at Promoting Fintech Innovation

The Bureau of Consumer Financial Protection (the “CFPB” or “Bureau”) announced a trio of policies in September and December of 2018 intended to provide regulatory relief to banks and fintech companies developing new financial products and innovative disclosure methods, as part of its ongoing effort to promote innovation in financial technology. In public comments on … Continue Reading

CFPB Releases Proposed Revisions to Payday Lending Rule

On February 6, 2019, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) released its much-anticipated proposed amendments to the payday lending rule. The proposed revision is Kathy Kraninger’s first major regulatory initiative since becoming the director of the CFPB. The Bureau issued two notices of proposed rulemaking that would (i) repeal the mandatory underwriting provisions … Continue Reading

CFPB Announces Settlement with Broker of High-Interest Credit Offers to Veterans

On January 23, 2019, the CFPB announced a settlement with Mark Corbett following an investigation by the Bureau, the Arkansas Attorney General, and the South Carolina Department of Consumer Affairs into Mr. Corbett’s brokerage of contracts offering high-interest credit to veterans.  As detailed in the consent order, Mr. Corbett facilitated high-interest contracts between veterans and … Continue Reading

CFPB Announces Final Policy Guidance on Modification and Disclosure of HMDA Data

On December 21, 2018, the Consumer Financial Protection Bureau (the “Bureau”) announced its issuance of final policy guidance describing its intentions for modification and disclosure to the public of certain loan-level data that financial institutions report under the Home Mortgage Disclosure Act (“HMDA”) and Regulation C.  The guidance applies to HMDA data compiled by financial … Continue Reading

You Can Call the BCFP the CFPB Again

It took some time for banking lawyers and compliance officers to get used to the Consumer Financial Protection Bureau’s (CFPB’s) announcement, under former Acting Director Mick Mulvaney, that it would refer to itself as the Bureau of Consumer Financial Protection (BCFP).  This blog — like many others in the industry — made sure to follow … Continue Reading

BCFP to Reconsider Payday Loan Rule

Today, the Bureau of Consumer Financial Protection issued a public statement of its intent to issue proposed rules in January 2019 to reconsider its final rule regarding payday, vehicle title, and certain high-cost installment loans, commonly referred to as the “payday loan rule,” and to address the rule’s compliance date.  The Bureau is currently planning … Continue Reading

BCFP Enters Consent Order with Hydra Group

On August 10, 2018, the Bureau of Consumer Financial Protection announced that a federal district court in the Western District of Missouri approved a consent order in a case against a set of twenty corporate entities and two individual principals (collectively, “Hydra Group”). The BCFP alleged violations of the Consumer Financial Protection Act of 2010 … Continue Reading

Bureau of Consumer Financial Protection Announces Participation in the Global Financial Innovation Network

The Bureau of Consumer Financial Protection announced earlier this week that it would join ten non-US financial regulators in an alliance, called the Global Financial Innovation Network (GFIN), to encourage the growth of fintech — and, potentially, create a “global sandbox” for financial innovation. The alliance was initially proposed, in February 2018, by the UK’s … Continue Reading

Fifth Circuit to Consider Constitutionality of the BCFP’s Structure

On July 2, 2018, All American Check Cashing, Inc., Mid-State Finance, Inc., and the president and owner of both companies (collectively, “All American”) filed a brief asking the U.S. Court of Appeals for the Fifth Circuit to find the Bureau of Consumer Financial Protection (“BCFP” or the “Bureau”) (formerly known as the CFPB) unconstitutionally structured … Continue Reading

Federal District Court Judge Declares Bureau Unconstitutional

On June 21, 2018, U.S. District Judge Loretta A. Preska (S.D.N.Y.) ruled that the structure of the Bureau of Consumer Financial Protection (the “Bureau”) was unconstitutional and, therefore, the Bureau lacked authority to bring claims under the Consumer Financial Protection Act (“CFPA”). The ruling rejected the D.C. Circuit’s en banc opinion in PHH that upheld … Continue Reading

Judge Denies Request to Stay Payday Rule Compliance Date

On June 12, 2018, a federal judge in the Western District of Texas denied a joint motion by the Bureau of Consumer Financial Protection (“Bureau”), the Community Financial Services Association of America, Ltd. (“Community Financial Services Association”) and the Consumer Alliance of Texas (“Consumer Alliance”), to stay the compliance date of the substantive provisions of … Continue Reading

Release of 2017 HMDA Data

The Federal Financial Institutions Examination Council (FFIEC) released yesterday data on mortgage lending at institutions covered by the Home Mortgage Disclosure Act (HMDA) — a total of just under 6,000 banks, credit unions and non-bank mortgage lenders.  Concurrently, the Consumer Financial Protection Bureau (CFPB) released a “first look” report on mortgage market activity and trends based … Continue Reading

Bureau of Consumer Financial Protection Amends Timing Provisions of Federal “Know Before You Owe” Rule

On April 26, 2018, the Bureau of Consumer Financial Protection (the “Bureau”) finalized an amendment to the “Know Before You Owe” mortgage disclosure rule (also known as the TILA-RESPA Rule), which it proposed in July 2017 and which we previously described in this blog. The amendment eliminates uncertainty regarding a timing restriction in the TILA-RESPA … Continue Reading
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