Tag Archives: Consumer Financial Protection Act

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

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

CFPB Gives Heads Up to Mortgage Servicers

During the Great Recession courts expressed frustration with sloppy paperwork and borrowers’ inability to get anyone to help them work out problem loans. Many courts refused to allow mortgage foreclosures to proceed because of the perceived mess. The Consumer Financial Protection Bureau just made it clear it was not going to tolerate these problems when it comes … Continue reading this entry

CFPB Proposes Amendments to New Final Ability-to-Repay Rule, Solicits Comment on Calculating Loan Originator Compensation

On January 10, 2013, the CFPB issued its final ability-to-repay rule (Rule), which implements Dodd-Frank mortgage reforms requiring creditors to make a reasonable and good faith determination that a consumer will have a reasonable ability to repay the loan according to its terms. Failure to comply with these requirements may give rise to various damages … Continue reading this entry

National Mortgage Database Formed

The Consumer Financial Protection Bureau (“CFPB”) and the Federal Housing Finance Agency (FHFA”) have agreed to jointly produce a National Mortgage Database containing detailed mortgage loan information. In a press release dated November 1, 2012, the CFPB said: “The database will primarily be used to support the agencies’ policymaking and research efforts and to help … Continue reading this entry

An Uplifting Look into Non-Bank Supervision

Legislation was introduced in Congress August 2, 2012 that would prevent the Federal Reserve from designating nonbanks as systemically significant. This bill is significant, because it in effect prevents the Federal Reserve from supervising insurance companies and other nonbanks. Under Dodd Frank, nonbank entities that are designated as systemically important are subject to the Federal Reserve’s … Continue reading this entry

Hot Off of the Regulatory Printer -- CFPB Releases Its Proposed “Know Before You Owe” Disclosures

For weeks the Consumer Financial Protection Bureau has been advertising the pending release of its proposed mortgage loan disclosures that “are easier for both consumers and lenders to understand and use.”  Alas, await no more.  The CFPB released its proposed mortgage loan disclosures today.   The purpose of the new, supposedly friendlier disclosures, is for the … Continue reading this entry

Bureau and Prudential Banking Regulators to Coordinate Certain Supervisory Activities

The Consumer Financial Protection Bureau (the Bureau) recently entered into a Memorandum of Understanding on Supervisory Coordination (the MOU) with the Board of Governors of the Federal Reserve System (the Federal Reserve Board), the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency (collectively, the Prudential … Continue reading this entry

Who's Your Regulator? Federal Regulatory Agencies Jointly Clarify CFPB Jurisdiction

A new Supervisory Statement clarifies when insured depository institutions and insured credit unions will be subject to supervision and enforcement by the Bureau of Consumer Financial Protection (CFPB). The CFPB issued the Supervisory Statement jointly with the federal prudential regulators–the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), and the … Continue reading this entry

Bureau Issues Report on Remittance Transfers, Makes Recommendations

The Consumer Financial Protection Bureau issued a report to the President and congressional committees regarding remittance transfers and remittance exchange rates. The report covers transparency and disclosure to consumers of exchange rates used in remittance standards, and examines the potential for using remittance histories to enhance consumers’ credit scores. The report was required by Section 1073(e) of the … Continue reading this entry

Bureau Reports to Congress on Differences Between Creditor-Purchased and Consumer-Purchased Credit Scores

The Bureau has issued a report to Congress which examines different credit scoring models and products, their availability and use, and how differing availability of types of credit scores may disadvantage consumers.  Section 1078 of the Dodd-Frank Wall Street Reform and Consumer Protection Act required the Bureau to “conduct a study on the nature, range, and size of … Continue reading this entry

Higher Dollar Threshold Amounts for Exempt Consumer Credit and Leasing Transactions

Effective July 21, 2011, the Dodd-Frank Wall Street Reform and Consumer Protection Act increased the threshold amount for transactions exempt from the Truth in Lending Act and the Consumer Leasing Act from $25,000 to $50,000. Dodd-Frank also requires annual adjustment of the threshold amount based on annual percentage increases in the consumer price index. In recently published … Continue reading this entry

Federal Reserve Board and FTC Amend Adverse Action and Risk-Based Pricing Notice Requirements

As mandated by Section 1100F of the Dodd-Frank Wall Street Reform and Consumer Protection Act, new final rules issued by the Federal Reserve Board and the Federal Trade Commission (FTC) require creditors to disclose credit scores and information about credit scores to applicants for credit in adverse action and risk-based pricing notices.  Creditors who use credit scores … Continue reading this entry

The Consumer Financial Protection Act - Understanding Subtitles F through H

Due to the creation of the new Consumer Financial Protection Bureau (the “CFPB” or the “Bureau”), the existing federal agencies that are currently tasked with oversight of various consumer protection laws now have the unenviable task of transferring their consumer protection functions to the CFPB. The Consumer Financial Protection Act (“CPA” or the “Act”) lays out … Continue reading this entry

CFPA Q&A: Which Laws Are Within The Bureau's Purview?

Virtually every well- and lesser-known federal consumer financial protection statute. Under the CFPA, the Bureau will regulate the offering and provision of any consumer financial product or service under the “Federal Consumer Financial Laws,” which includes, among other things, the CFPA, any rules promulgated by the Bureau, and the “Enumerated Consumer Laws.” The CFPA expressly excludes the Federal Trade Commission Act from the definition of … Continue reading this entry

TCF Challenges Constitutionality of Durbin Amendment

TCF National Bank filed a complaint in the United States District Court for the District of South Dakota to challenge the constitutionality of the Durbin Amendment. The Durbin Amendment was included as Section 1075 of the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act of 2010, Public Law 111-203. The amendment directs the Board of Governors … Continue reading this entry

How the Wall Street Reform Act Impacts Affiliated Businesses

Foley & Lardner partner Jay Varon will serve as a speaker in an audio seminar sponsored by the Real Estate Services Providers Counsel, Inc. (RESPRO®). The program will feature discussions on: The Consumer Financial Protection Bureau The “Ability to Repay” Standard and Its Impact on Affiliated Businesses The Lower HOEPA Threshold and Its Impact on … Continue reading this entry

Enforcement of the new Consumer Financial Protection Act

The new Consumer Financial Protection Act (the "Act") creates a Consumer Financial Protection Bureau (the "Bureau") which will become the primary enforcer of the provisions of the Act. When fully operational, the Bureau is expected to have a bigger budget than the Equal Employment Opportunity Commission (EEOC). Anyone involved in the consumer lending business should … Continue reading this entry

CFPA Q&A: Describe the Bureau's Rulemaking Authority.

Expansive. The Consumer Financial Protection Act’s (“CFPA”) Bureau of Consumer Financial Protection (“Bureau”) will not only be big, but it will have broad and sweeping rulemaking authority. Specifically, the Bureau’s Director, once selected and confirmed, will have the power to “prescribe rules . . . as may be necessary or appropriate to enable the Bureau to administer and carry out the purposes and … Continue reading this entry

CFPA Q&A: How Big Will The Bureau Be?

Big. The Dodd Frank Act created the Consumer Financial Protection Bureau (“Bureau”), which will have the responsibility for protecting consumers in the financial services area. The Bureau is an independent federal agency funded by the Federal Reserve Board.  While “big” could mean a lot of things, the best measure of the Bureau’s size at this early stage … Continue reading this entry

Consumer Financial Protection Act: Preemption Questions Web Conference

Please join Foley attorneys on August 26 for the second installment of our Web series on the new Consumer Financial Protection Act. Topics include: Preemption standards under the new law, including the National Bank Act and the Home Owners’ Loan Act The Barnett Bank standard New powers of state attorneys general to enforce both state … Continue reading this entry

The Consumer Financial Protection Act's Provisions on Preemption

The Dodd-Frank Wall Street Reform and Consumer Protection Act (CFPA) directly addresses its own preemptive effect on State law and amends the National Bank Act to clarify the standards that apply to national banks. The CFPA greatly increases the powers of states to make and enforce laws designed to protect consumers in financial transactions. The default preemption … Continue reading this entry

Meet the New Boss: The Bureau of Consumer Financial Protection

With the passage and signing of the omnibus Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), a new era of financial regulation has been born. The 2,300 plus pages of new legislation will forever change the way financial services companies do business in the United States (and elsewhere). With that in mind, the CFSL Bulletin will publish … Continue reading this entry