Consumer Financial Protection Bureau Law Blog

Construction Lender Wins Coverage Dispute With Title Insurer—New 7th Circuit Decision

A recent ruling by the 7th Circuit found that a title insurer had a duty to defend the construction lender in a mechanic’s lien suit when the lender did not have an obligation to continue funding the developer after default. 

Home Federal Savings Bank v. Ticor Title Insurance Company, —F.3d—, 2012 WL 3871521 (7th Cir., Sept 6, 2012)

In Home Federal Savings Bank v. Ticor Title Insurance Company (Home Federal v. Ticor), a general contractor asserted that its mechanic’s lien had priority over Home Federal’s mortgage. Because Home Federal had refused to disburse the final payout to the defaulting developer, Ticor refused to defend Home Federal on the ground of an exclusion for claims “created, assumed or agreed to” by the insured. Read More ›

Shameless Plug- CFPB-Lawblog Editor Don Lampe Featured Panelist at 2nd Annual Mortgage Regulatory Forum

Donald C. Lampe, editor of the CFPB-Lawblog and member and leader of Dykema's Financial Services Regulatory and Compliance team, will participate this week in a panel discussion on "New Mortgage Servicing Practices" at the National Mortgage News 2nd Annual Mortgage Regulatory Forum in Arlington, Virginia.  Read More ›

Federal Agencies to Fight HAMP Modification Scams with Joint Task Force

On December 1, 2011, the Consumer Financial Protection Bureau (CFPB) announced that it has joined forces with the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and the U.S. Department of the Treasury to combat scams aimed at borrowers seeking loan modifications under the Home Affordable Modification Program (HAMP). The joint task force plans to investigate and shut down operations that defraud consumers under the guise of facilitating HAMP modifications. Read More ›

Court Grants Preliminary Injunction That Prevents CFPB From Enforcing TILA Rules on Credit Card Fees

A federal district court in First Premier Bank v. U.S. Consumer Financial Protection Bureau (D.S.D.) granted a preliminary injunction to First Premier Bank (“Premier”) to block the CFPB’s enforcement of an amendment to Regulation Z, which would narrow the scope of fees credit card companies can impose on the type of cards typically offered to subprime borrowers. The injunction, based in part on the finding that the Federal Reserve Board (“FRB”) had exceeded its authority, prevents the CFPB from enforcing the amendment until a final decision is made in the case. Read More ›

Senate Committee Approves Cordray to Head Consumer Financial Protection Bureau

The Senate Banking Committee voted 12-10 to approve Richard Cordray’s nomination to be the first director of the CFPB. Cordray is a former Ohio attorney general who currently leads the Bureau’s enforcement division. The committee voted along party lines, with no Republican committee member voting to approve the nomination. Cordray’s nomination now proceeds to the full Senate for a vote. Read More ›

Date Calls for Greater Transparency in Checking Account Fees

On the heels of Bank of America’s announcement that it will impose a monthly fee on debit card users, the Consumer Financial Protection Bureau (“CFPB”) has signaled that it will work toward increasing transparency regarding checking account fees and might require more simplified checking account disclosures. Raj Date, special advisor to the Secretary of the Treasury on the CFPB, recently issued a statement noting that “checking accounts often come with a wide variety of unexpected costs that can quickly add up for consumers.” Read More ›

CFPB Drafting Qualified Mortgage Regulations in Hopes of Expanding Mortgage Loan Originations

The CFPB is currently drafting regulations that define the requirements of a Qualified Mortgage (“QM”) and the benefits to lenders whose loans fall within the QM parameters. Recognizing that “[t]here can be little or no access to credit unless suppliers of capital are willing to finance home mortgages,” Patricia McCoy, the CFPB’s assistant director for mortgage markets, is appreciative of the hundreds of extremely thoughtful comment letters received that will inform this “critical and difficult rulemaking.” Read More ›

CFPB Releases Mortgage Servicing Examination Procedures and Manual

The Consumer Financial Protection Bureau (“CFPB” or the “Bureau”) announced its initial approach to supervising mortgage servicers. Specifically, the Bureau released its Mortgage Servicing Examination Procedures (the “Procedures”), along with its CFPB Supervision and Examination Manual (the “Manual”). The devotion of CFPB resources to servicer regulation was foreshadowed by a speech from Raj Date, special advisor to the Secretary of the Treasury, on September 20, 2011. The CFPB, of course, was the brainchild of Professor Elizabeth Warren, who argued in a November 2008 law review article for the creation of a “single, highly motivated federal regulator” to police mortgage servicing activity. The Manual and the Procedures constitute the CFPB’s first broad attempt to implement that vision. Read More ›