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


Get updates by email

RSS Subscribe to this blog's feed
Twitter Follow us on Twitter

Contributors

Photo of Consumer Financial Protection Bureau Law Blog Haydn J. Richards, Jr.
Member
hrichards@dykema.com
202-906-8602
View Bio

Showing 11 posts by Haydn J. Richards, Jr..

Financial Services Issues Expected to be a Focus of New Republican Majority in Congress

There may be no policy area that will be impacted more by the Republican’s election day landslide than financial services.  After years of frustration with Democrats unwillingness to make any changes to the Dodd-Frank Wall Street Reform Act (Dodd-Frank), which incoming Senate Majority Leader Mitch McConnell (R-KY) has referred to as “Obamacare for banks,” the Republican majority will now have their opportunity. Although repeal is not a possibility, with only 220 of the 398 total required rulemakings having been finalized and 95 of the rulemaking requirements not even proposed yet, the new Congress will have many opportunities to put the brakes on Dodd-Frank implementation. Read More ›

Supreme Court Invalidates President Obama’s Recess Appointments

The United States Supreme Court held today that three recess appointments President Barack Obama made to the National Labor Relations Board (NLRB) were unconstitutional, upholding an earlier D.C. Circuit ruling. The case, National Labor Relations Board v. Noel Canning., could call into question the validity of the actions of any federal officer who was appointed in the same manner.  Read More ›

House Financial Services Subcommittee Holds Legislative Hearing on CFPB Proposals

On May 21, the House Financial Services’ Subcommittee on Financial Institutions and Consumer Credit (Chairwoman Shelley Moore Capito, R-WV) held a legislative hearing entitled “Legislative Proposals to Improve Transparency and Accountability at the Consumer Financial Protection Bureau (CFPB).” The hearing focused on eleven separate Republican proposals that would seek to curtail the CFPB’s powers and increase Congressional oversight over the agency  Read More ›

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 ›