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Recent Updates
- CFPB and State Regulators Announce Non-Binding Framework for Supervision and Enforcement Coordination-- Can CFPB Deliver On Promise To Reduce Regulatory Burdens?
- Reid Puts Off Cordray Nomination Vote Until Late Summer--Is He Arming The Nuclear Option?
- Senate Vote on Cordray Nomination Expected Next Week: Anyone Holding Their Breath?
- Get Out the Popcorn (and an Energy Drink): The CFPB Releases Videos On New Mortgage Rules
- CFPB Proposes Delay in Implementing Rule Against Financing of Certain Credit Insurance on Mortgage Loans
- Just-Issued Final Remittance Rule Suggests CFPB is Listening… Sort Of
- FHFA Limits Fannie and Freddie to “Qualified Loans”: Another Strike Against Non-Qualified Loans and the Consumers Who Rely on Them
- CFPB Publishes Small Entity Compliance Guides for New HOEPA, ECOA, and TILA Rules- Institutions of All Sizes Should Take Notice
- CFPB Probes Auto Lenders Over Extended Warranty And Other Ancillary Products
- CFPB Hosting Student Loan Hearing: New Rules On The Way???
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Showing 18 posts in Dodd-Frank.
CFPB Proposes Delay in Implementing Rule Against Financing of Certain Credit Insurance on Mortgage Loans
As our readers will recall, the CFPB proposed back in January 2013 to limit the ability of mortgage lenders to finance credit insurance premiums. These prohibitions were to go into effect on June 1, 2013, several months before the required implementation date of most regulations issued at that time. On May 8, 2013, however, the CFPB switched course, proposing to delay implementation of the rule while the CFPB decides whether to make the rule applicable to transactions other than those in which a lump-sum premium is added to the loan amount at closing. Back in January, the CFPB issued a number of final rules concerning mortgage lending, in accordance with requirements of the Dodd-Frank Act, including Loan Originator Compensation Requirements under the Truth in Lending Act (Regulation Z) (the "LO Compensation Rule"). The LO Compensation Rule deals not only with compensation, but also with loan originator qualifications and registration, as well as compliance procedures for banks, prohibitions on mandatory arbitration, and (relevant here), prohibitions on the financing of single-premium credit insurance. Read More ›
Eight More States Seek to Join Legal Challenge to Dodd-Frank
The plaintiffs in State National Bank of Big Spring v. Wolin have asked the U.S. District Court for the District of Columbia for permission to file a second amended complaint adding eight new states to the suit challenging the constitutionality of certain provisions of Dodd-Frank Act and Director Cordray’s recess appointment. If approved, these states—Alabama, Georgia, Kansas, Montana, Nebraska, Ohio, Texas and West Virginia—will join Oklahoma, South Carolina and Michigan in contesting the constitutionality of the provisions in Section 204(a) of Dodd-Frank Act granting the Treasury Secretary with "orderly liquidation authority" over financial services companies. The states are not joining the challenge to Cordray’s recess appointment or to the constitutionality of the CFPB and the Financial Stability Oversight Council. Texas Attorney General Greg Abbott explained that his state was joining the suit because, “Under this law, unelected federal bureaucrats can unilaterally liquidate financial institutions in which the state invests taxpayer dollars. The State of Texas could be denied basic due process rights and taxpayers’ dollars could recklessly be put at risk.” Read More ›
CFPB Announces Broad Investigation of Mortgage Advertising Practices
In a joint action, the CFPB and Federal Trade Commission (FTC) announced November 19, 2012 new warnings to mortgage lenders about allegedly deceptive mortgage advertisements. Under Dodd Frank, the agencies have concurrent enforcement authority under so-called Regulation N, the Mortgage Acts and Practices Advertising Rule. This rule prohibits misleading claims concerning government affiliation, interest rates, fees, costs, payments associated with the loan, and the amount of cash or credit available to the consumer. Read More ›
One Consequence of National Elections: CFPB Power Likely to Expand
With President Obama’s re-election and the Democrats’ gains in retaining the United States Senate—including the election of Elizabeth Warren in Massachusetts—the future of the Dodd-Frank Act and the Consumer Financial Protection Bureau (CFPB) is more secure and, as a result, we will likely see an expansion of the CFPB’s virtually unregulated power. Stay tuned to the CFPB-Lawblog for updates and analysis, as we’ll continue to monitor the impact of the 2012 election on the CFPB and the financial services industry.
The Office of the Inspector General Warns of New CFPB Initiatives and Collaboration With State Regulators
The Office of the Inspector General (OIG) recently released its evaluation report of the CFPB’s Consumer Response Unit. While the report was generally favorable and found that the “CFPB has a reasonable process to receive, respond to, and track consumer complaints, “the OIG also disclosed that the CFPB: (1) “plans to accept complaints about additional financial products and services,” and (2) “anticipates that referrals from state agencies will increase as the CFPB begins accepting complaints regarding nonbank products.” Read More ›
CFPB To Explain New Remittance Rule In Webinar
Mark Your Calendars! On October 16, 2012, The CFPB will be hosting a webinar to offer information and guidance on its new remittance rule, which is scheduled to take effect on February 7, 2013. The deadline to register for the webinar is October 9, 2012. To reserve a spot for the webinar, send an e-mail to CFPB_RemittanceRule@cfpb.gov. Participants may also submit questions about the rule for discussion during the webinar by sending an e-mail to CFPB_RemittanceRule@cfpb.gov by October 5, 2012. Read More ›
CFPB Releases Draft Five-Year Strategic Plan: More Supervision, Examinations and Enforcement
Last week, the CFPB laid out a draft five-year strategic plan (Plan) to accomplish its “mission” to “make markets for consumer financial products and services work for Americans.” For those of you hoping that the Plan would set forth the specifics on the Bureau’s regulatory ambitions, you will be disappointed. Instead, the 21-page Plan is full of bright colors, large fonts and broad generalized statements borrowed from previous declarations by the CFPB. If you read between the lines, however, the Plan contains some disturbing clues regarding what the CFPB specifically hopes to accomplish.. Read More ›
CFPB Refuses To Modify Civil Investigative Demand—Issues Warning To Other Financial Institutions
In an action that will come as a surprise to no one, CFPB Director Cordray has refused to modify or set aside a Civil Investigative Demand (CID) issued by the CFPB to PHH Corporation (PHH), a leading non-depository mortgage services provider. The CFPB served the CID in May 2012 in connection with its investigation to “determine whether mortgage lenders and private mortgage insurance providers or other unnamed persons have engaged in, or are engaging in, unlawful acts or practices in connection with residential mortgage loans in violation of the [Consumer Protection Act] and [the Real Estate Settlement Procedures Act].” PHH objected to the CID as overly broad, unreasonable and irrelevant. Read More ›
Nation’s Governors Resist CFPB’s Call, Prepare Lawsuit Challenging CFPB’s Authority
Last March, CFPB Director, Richard Cordray, called on all 50 states to sign a memorandum of understanding (MOU) to assuage industry concerns regarding the protection of confidential information shared among states and the bureau. To date, only 12 states have answered the call. Oklahoma Attorney General Scott Pruitt explains that some attorney generals are declining to sign the MOU over legal objections to Dodd-Frank and the recess appointment of Cordray. “There are misgivings I have about the authority and scope and power of the CFPB and the power granted to the director. Frankly, until some of those issues are fleshed out, it is very premature for a state to enter into an MoU.” Indeed, it has been reported that some states, including Oklahoma, South Carolina, Kansas and Michigan, are preparing a lawsuit to challenge the constitutionality of Dodd-Frank and the powers it grants to the bureau and its director. South Carolina Attorney General Alan Wilson warned that the lawsuit would be filled later this month. Read More ›
224 Rules and Counting: Dodd-Frank Rule Writing Only Half Done and Behind Schedule
It’s been two years since Dodd-Frank Act became law, and regulators (including the CFPB), have only written 224 out of the 398 required rules under the Act. These rules, according to the Dodd-Frank Burden Tracker, which is maintained by the Financial Services Committee of the U.S. House of Representatives, “consume 7,365 pages.” That’s a big number, but not entirely surprising considering the initial legislative text of the Act itself comprised 848 pages. The Dodd-Frank Burden Tracker also claims that it will take the private sector over 24 million hours annually, just to comply with these 224 rules. Rep. Neugebauer (R- Texas) noted that is more than the “20 million [it took] to build the Panama Canal.” Despite their prolific pace, regulators are actually not keeping up with many of the deadlines set forth under the Act. Dodd-Frank contains specified deadlines for 280 of the rules. 221 of these deadlines that have passed, but only 85 of these rules have been finalized. It has been estimated that at the current pace, the remaining 174 rules will not be completed for another two years.