Dykema Gossett PLLC
Dykema Gossett PLLC

Consumer Financial Protection Bureau Law Blog

CFPB Law Blog

News and analysisi of the priorities, initiatives and regulatory actions and proceedings of the Consumer Financial Protection Bureau


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Photo of Consumer Financial Protection Bureau Law Blog Haydn J. Richards, Jr.
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hrichards@dykema.com
202-906-8602
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Showing 8 posts by Haydn J. Richards, Jr..

CFPB Releases Annual Report on Fair Debt Collection Practices Act

On March 20, 2014, as mandated in the Dodd Frank Act, the CFPB released its annual report to Congress concerning the Fair Debt Collection Practices Act (FDCPA).  The CFPB reported on more than 30,000 consumer complaints concerning the debt collection market. The three most frequent complaints were collectors forcefully following up with consumers about a debt they do not owe, aggressive communication tactics used by debt collectors, and taking or threatening illegal actions.   Read More ›

House of Representatives to Take up Bill Aimed at Reforming the CFPB

This week, the House of Representatives will consider H.R. 3193, the Consumer Financial Protection and Soundness Improvement Act of 2013.  The bill, which was approved favorably on a party-line vote in the Financial Services Committee, seeks to broadly reform how the Consumer Financial Protection Bureau (CFPB) operates.  Read More ›

CFPB Enforces RESPA Referral Prohibition Against Mortgage Lender

On January 16, 2014, Director Richard Cordray and the CFPB announced the entry of a Consent Order involving a mortgage lender, Fidelity Mortgage Corporation (FMC), and its President for alleged violations of Section 8 of the Real Estate Settlement Procedures Act (RESPA).  Although FMC and its President neither admit nor deny the CFPB's allegations, the Consent Order entered against the company and its President are instructive of potential future actions by the CFPB in connection with purported RESPA violations.  Moreover, since the CFPB recently took action under RESPA against two other third parties, a law firm and a home builder, we believe this action signals that the CFPB intends to actively police for RESPA enforcement.   Read More ›

Happy New Year!

This past year brought many developments to the consumer financial services industry and we have worked to keep you updated and informed about the changes and their potential impact on your business.  The next year promises to offer many additional events that will impact the regulatory environment and we pledge to get key information and insight to our readers as quickly and thoroughly as possible.  Read More ›

Agencies Address Fair Lending Concerns of Industry and Indicate that ECOA, Ability-to-Repay Rule Compatible

In an October 22, 2013 statement released by the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration (collectively, “the Agencies”), the Agencies addressed the impact of the new Ability-to-Repay Rule, which takes effect in January 2014, on the Equal Credit Opportunity Act (ECOA). Specifically, the Agencies provided guidance regarding whether creditors would be liable under the disparate impact doctrine of ECOA (one of the methods of proving lender discrimination) if the creditors chose to only originate Qualified Mortgages (QMs) under the Ability-to-Repay Rule. As you might suspect, the Agencies indicated that the requirements of the Ability-to-Repay Rule and ECOA are compatible. Read More ›

Cordray Confirmed 66 to 34: Certainty For Financial Institutions?

Moments ago, the Senate voted 66 to 34 to confirm Richard Cordray's nomination to be the Director of the CFPB. Today's confirmation is, however, notable for what did not happen. Since the Dodd-Frank Act was passed and further complicated by Mr. Cordray's recess appointment, Senate Republicans have demanded possible structural changes to the CFPB.  Furthermore, the CFPB has been under the cloud of challenges to its authority due to pending litigation matters.  Today's confirmation, without these changes, eliminates that cloud of uncertainty and may embolden Cordray and the CFPB to expand its investigative, supervisory and enforcement activities. At minimum, the financial services industry now knows that the CFPB in its current form and leadership is here to stay and that CFPB preparedness is essential. Read More ›

CFPB Validates Uniform State Test for Mortgage Loan Originators For SAFE Act

On May 20, 2013, the CFPB validated the use of a Uniform State Test (UST) for mortgage origination licensing under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act). Under the SAFE Act, Mortgage Loan Originators (MLO) must pass a “qualified written test” that examines an applicant on ethics and federal and state laws regarding mortgage origination, fraud, consumer protection and fair lending issues. By validating the use of a UST, as opposed to requiring MLOs to pass a separate examination for each state that they wished to be licensed in, the CFPB removed any doubt that the UST is a good mechanism for leveling the playing field between licensed and registered mortgage loan originators. Read More ›

Preparing for CFPB Scrutiny

Haydn Richards, Jr., senior counsel in Dykema’s financial services regulatory and compliance practice, warns, in the April 2012 issue of The Reverse Review, that the CFPB’s is stepping up its efforts to examine the mortgage industry. Richards's article emphasizes the need for all mortgage companies, whether regulated by federal or state agencies, to be fully prepared for CFPB oversight. He advises, “[t]o begin evaluating whether your company is prepared for a CFPB examination, an initial dialogue between executive management, operations managers and the company’s legal and compliance personnel is necessary.”  Richards also provides guidance as to how these preparatory measures should be planned and implemented, suggesting that businesses examine “internal and industrywide best practices, as well as the historical compliance record of the company.” The article goes on to recommend other preparatory measures a business can take in readying itself for a CFPB examination including reviewing "existing internal and industrywide best practices, as well as the historical compliance record for the company."