Category Archives: Consumer Financial Protection Bureau

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The CFPB's RESPA Consent Orders: Eight Key Takeaways

Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau (CFBP) on January 31, 2017 issued consent orders settling enforcement claims that a major mortgage lender violated the Real Estate Settlement Procedures Act (RESPA) in connection with its marketing, desk rental, lead purchase and other agreements with hundreds of real estate brokers and other settlement service providers (the “Consent Orders”). … Continue reading this entry

CFPB Seeks Rehearing of D.C. Circuit Panel Ruling in PHH: What Now?

Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau (Bureau) Friday filed a petition in the closely-watched PHH case, seeking to undo a ruling by a panel of judges for the D.C. Circuit Court that was highly critical of the Bureau’s interpretation of the Real Estate Settlement Procedures Act (RESPA).  The Bureau also seeks to challenge a ruling in … Continue reading this entry

Five Key Takeaways From the D.C. Circuit’s PHH Decision

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The legal challenge by PHH Corp. (PHH) to a June 4, 2015, decision by the director of the Consumer Financial Protection Bureau (Bureau) in connection with the Bureau’s enforcement proceeding against PHH has captivated the real estate settlement services industry. The attention is justified. Director Cordray’s ruling against PHH, which was the first appeal from a … Continue reading this entry

PHH v. CFPB: "What is a Kickback?"

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On April 12, 2016, a panel of the U.S. Court of Appeals for the D.C. Circuit heard oral argument in PHH Corporation’s (PHH) milestone legal battle with the Consumer Financial Protection Bureau (Bureau). During the argument, the Bureau had a lot to worry about: whether the agency’s unusual structure, headed by a single director who has … Continue reading this entry

CFPB Director’s Divisive View of RESPA Limitations Period Central to Ongoing UDAAP Action

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In the ongoing Integrity Advance enforcement action by the Consumer Financial Protection Bureau (“CFPB” or “Bureau”), the Office of Enforcement this January filed a brief arguing that its claims for alleged unfair, deceptive, or abusive acts or practices (“UDAAP”) in a payday lending case are not subject to the three-year statute of limitations (“SoL”) set forth … Continue reading this entry

A Response to the CFPB’S Recent Compliance Bulletin on MSAs

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On October 8, 2015, the Consumer Financial Protection Bureau (CFPB or Bureau) issued a Compliance Bulletin on RESPA Compliance and Marketing Services Agreements (“MSAs”)(“Compliance Bulletin”).  The Compliance Bulletin’s message that MSA participants face “substantial risks” under RESPA has reverberated and caused buzz since it was issued. This response discusses some of the more puzzling and … Continue reading this entry

CFPB Extends TRID Effective Date to October 1

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The Consumer Financial Protection Bureau (“CFPB”) announced that it would provide mortgage lenders with additional time to prepare for the highly anticipated TILA-RESPA Integrated Disclosures (“TRID”). Since the issuance of TRID’s final regulations in November 2013, mortgage lenders have been frantically preparing for its effective date of August 1, 2015. Generally speaking, TRID will consolidate … Continue reading this entry

CFPB Director Cordray Issues First-Ever Agency Appellate Decision in RESPA Case

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The Director of the federal Consumer Financial Protection Bureau (CFPB), Richard Cordray, issued a decision yesterday in the first appeal of a Bureau administrative enforcement action. Cordray’s decision upholds in part, and reverses in part, a 2014 Administrative Law Judge (ALJ) decision which held that PHH Corp. (“PHH”) violated the Real Estate Settlement Procedures Act … Continue reading this entry

A Bit of Grace

The Consumer Financial Protection Bureau (CFPB) has finally agreed to bend under the strain of numerous requests from financial industry participants and 255 bi-partisan House members and 41 senators, who requested that the CFPB delay the implementation of the new Truth in Lending Act and Real Estate Settlement Procedures Act Integrated Disclosures (TRID) requirements.  Although … Continue reading this entry

Recent Settlements of Joint UDAAP Enforcement Between State and Federal Regulators

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The Dodd-Frank Act (“Dodd-Frank”) granted to state attorneys general and state regulators much of the Consumer Financial Protection Bureau’s (“CFPB”) UDAAP authority. In particular, Dodd-Frank gives state attorneys authority to enforce the UDAAP prohibition in the Consumer Financial Protection Act (“CFPA”) against non-banks and state-chartered financial institutions under their jurisdiction, as well as CFPB regulations … Continue reading this entry

UDAAP Council Weekly UDAAP Standards Report - 12/10/2014

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Every week, courts around the United States issue decisions addressing aspects of civil UDAAP claims. In an effort to illuminate the UDAAP standards, below is a sampling of some of this week’s UDAAP decisions on the meaning of unfair, deceptive, and abusive. Unfair A mortgagee was not liable under Consumer Financial Protection Bureau (“CFPB”) regulations … Continue reading this entry

31 State Attorneys General Elected to Office

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Of the 50-state Attorneys General (AGs), 43 are elected. In 2014, 31 AGs were on the ballot of which 11 were open seats. Unofficial results are in, so meet the new Attorneys General. Arizona: AG-elect Mark Brvovich (R), former Department of Gaming Director Arkansas: AG-elect Leslie Rutledge (R), former Republican National Committee counsel Colorado: AG-elect … Continue reading this entry

Only 28 Days Left to Submit Comments Regarding the CFPB’s Proposed Modifications to Home Mortgage Disclosure (Regulation C)

The Consumer Financial Protection Bureau (“CFPB”) has published for public comment, a proposed rule amending Regulation C to implement amendments to the Home Mortgage Disclosure Act (HMDA). The HMDA requires certain financial institutions to collect and report information in connection with housing-related loans and loan applications. The amendments made by the Dodd- Frank Act expanded the … Continue reading this entry

CFPB and FTC Stop Two Payday Lending Scams

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In separate suits brought by the Consumer Financial Practices Bureau (“CFPB”) and the Federal Trade Commission (“FTC”) federal courts have frozen the assets of two separate groups who allegedly defrauded consumers by creating unauthorized payday loans. Payday loans are short term loans generally made in small amounts that are intended to be repaid out of the … Continue reading this entry

Truth in Lending Act and Consumer Leasing Act Dollar Thresholds Raised: Fewer Transactions Exempt

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More consumer credit and leasing transactions will be subject to the Truth in Lending Act (TILA) and Consumer Leasing Act (CLA) in 2015. Effective January 1, 2015, the dollar threshold for exemption of most consumer credit transactions and consumer leases from TILA, the CLA, and their implementing regulations (Regulations Z and M) was increased from $53,500 (the … Continue reading this entry

The CFPB Alerts Credit Card Issuers That Marketing of Credit Card Promotional APR Offers May Violate Federal Law

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The Consumer Financial Protection Bureau (“CFPB”) recently issued a bulletin alerting credit card companies that they may be at risk of breaking the law as a result of the way they market promotional rates. Specifically, credit card issuers may be at risk of engaging in deceptive and/or abusive acts and practices  in connection with solicitations … Continue reading this entry

Credit Card Issuers Beware: CFPB Fires Warning Shot on Promotional APRs

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Who could possibly object to zero or low promotional interest rates offered for convenience checks, balance transfers or new purchases? The Consumer Financial Protection Board (CFPB), that’s who. In a new Bulletin based on its findings from examinations of large banks and card issuers, the CFPB warns that some credit card issuers may be engaging in deceptive … Continue reading this entry

Time is Running Out to Complain About the Complaint Portal

Consumer Financial Protection Bureau
You have 4 days! August 22, 2014 is the deadline to submit your comments in response to the Consumer Financial Protection Bureau’s (CFPB) proposed disclosure of consumer complaint narrative data. (https://federalregister.gov/a/2014-17274). The CFPB maintains a public Consumer Complaint Database through which consumers may file complaints regarding financial services and products (commonly referred to as the “Complaint … Continue reading this entry

CFPB to Shine Spotlight on Mini-Correspondent Mortgage Lending?

On July 9, 2014, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) issued Policy Guidance on the issue of Mortgage Brokers Transitioning to Mini-Correspondent Lenders (“Policy Guidance”), which highlights risks and considerations that should be taken into account by brokers who may be considering or venturing into the mini-correspondent channel. The Mini-Correspondent Model Mini-correspondents are … Continue reading this entry

CFPB Expands Its Enforcement Efforts Against Payday Lending

In November, 2013, the Consumer Financial Protection Bureau announced its first enforcement action against a payday lender. Cash America International was fined $5 million and was ordered to refund $14 million to its borrowers due to violations of the Military Lending Act. Recently, the CFPB took action against one of the nation’s largest payday lenders, … Continue reading this entry

CFPB Proposes Public Disclosure of Consumer Complaint Narratives

Will the CFPB start disclosing consumers’ gripes and rants? Would it provide endless hours of salacious reading, like complaints posted on popular online review sites like Yelp and Angie’s List? Could it become a platform for publicizing unverified or, in worst cases, false and defamatory allegations which could harm compliant and conscientious businesses? We may find … Continue reading this entry

CFPB Issues Electronic-Closing Pilot Guidelines and Seeks to Use Technology to Improve Mortgage Closing Experience

The Consumer Financial Protection Bureau (CFPB) recently announced that it is launching an electronic-closing (e-Closing) Pilot program designed to address some of the most common concerns relating to the mortgage closing process. CFPB states that electronic closing has the potential to address current challenges by shifting the closing experience toward a more paperless process and … Continue reading this entry

CFPB Finalizes Rule on Awards of Expenses, Attorney Fees to Prevailing Parties in Adversary Proceedings

As previously noted on this blog, the Consumer Financial Protection Bureau (CFPB) issued an interim final rule in June 2012 to implement the Equal Access to Justice Act. At the time, the CFPB requested public comment on the interim final rule. Nearly two years later, the CFPB has now finalized the rule with no changes. … Continue reading this entry

CFPB Prepares to Overhaul Home Mortgage Disclosure Act Rules

The Consumer Financial Protection Bureau (CFPB) is preparing to make significant revisions to the regulations promulgated under the Home Mortgage Disclosure Act of 1975 (HMDA)  (Regulation C) by requiring home mortgage lenders to disclose far more information to regulators.  In its first step toward these revisions, the CFPB is convening a Small Business Review Panel … Continue reading this entry