Bank Law Monitor

Bank Law Monitor

A Legal Blog for the Financial Services Industry

Tag Archives: CFPB

Compliance with Fair Lending Laws: It’s All About the Data

Posted in CFPB
When the Consumer Financial Protection Bureau (CFPB) decided that it would enforce fair lending laws by using proxy-based methodologies to determine fair lending compliance, it spawned a whole new area of compliance that focuses almost entirely on data analysis. Fair Lending Laws Fair lending laws govern a wide range of a financial institution’s loan transaction… Continue Reading

Citing Operational Challenges, CFPB May Rewrite TRID

Posted in CFPB, Compliance Resources, Mortgage Servicing, Regulatory Developments, TILA/RESPA, Trending News
Today, the CFPB issued a letter to various industry trade groups, including the Mortgage Bankers Association, the American Bankers Association, and the Independent Community Bankers of America,  acknowledging that the implementation of the “Know Before You Owe” rule  (otherwise known as “TRID”) poses many “operational challenges.”   Many financial institutions and industry participants do not have… Continue Reading

CFPB Issues Final Home Mortgage Disclosure Act Rule

Posted in CFPB, HMDA, Mortgage Servicing, Regulatory Developments, Trending News
The CFPB issued a final rule changing Regulation C, which implements the Home Mortgage Disclosure Act (HMDA) today. This is significant because HMDA requires certain institutions to collect, report, and disclose information about their mortgage lending activity. The CFPB and other banking regulators will use the reported data to determine whether financial institutions are serving… Continue Reading

CFPB Expands the Definition of Qualified Mortgages for Small Creditors

Posted in CFPB, Mortgage Servicing
On September 21, 2015, the Consumer Financial Protection Bureau (“the CFPB”) finalized several changes to the mortgage rules that impact community banks and credit unions. The CFPB proposed these rules in January to help smaller banks and credit unions lend in rural and underserved areas. The effective date for this proposed rule (with additional clarifications… Continue Reading

Beware: Data Breaches May Expose You to UDAP Liability

Posted in CFPB, Cybersecurity, Regulatory Developments, Trending News, UDAAP
Recently, the U.S. Court of Appeals for the Third Circuit ruled that the Federal Trade Commission (FTC) may pursue a lawsuit against Wyndham Worldwide Corporation, a hotel and time share operator for “unfair and deceptive” cybersecurity practices. In its complaint, the FTC alleged that Wyndham “unreasonably and unnecessarily” exposed consumers’ personal data in more than… Continue Reading

Mortgage Loan Rate Locks: A New Risk Environment Under TRID

Posted in CFPB, Mortgage Servicing, Regulatory Developments, TILA/RESPA
The Consumer Finance Protection Bureau’s (the “CFPB”) amendments to the 2013 TILA-RESPA Integrated Disclosure Rule (“TRID”) will become effective on October 3, 2015.  The amendment extends the timing requirement for revised disclosures when consumers of mortgage loans lock a rate or extend a rate lock after the Loan Estimate is provided.  Lenders can now provide… Continue Reading

Updated Compliance Resources for the TILA-RESPA Integrated Disclosure Rule

Posted in CFPB, Compliance Resources, Mortgage Servicing, Regulatory Developments, TILA/RESPA, Trending News
As many of you know, the effective date of the TILA-RESPA Final Rule and the related TILA-RESPA Amendments has been delayed to October 3, 2015. Please take note of the following updates from the CFPB: Freddie Mac and Fannie Mae Data Standards Freddie Mac and Fannie Mae have released a common industry dataset, called the… Continue Reading

CFPB Fines PayPal $25 Million for Violations of UDAAP

Posted in CFPB, Regulatory Developments, UDAAP
On May 19, 2015, the CFPB announced that it was filing a complaint and proposed consent order in federal court against PayPal, Inc., based on allegations that PayPal Credit (fka “Bill Me Later”), had violated the prohibition against unfair, deceptive, abusive acts and practices (UDAAP).  This filing is noteworthy for two reasons. First, it was… Continue Reading

CFPB Allows Consumers to Publish Complaint Narratives in CFPB’s Public Database

Posted in CFPB, Compliance Resources, Regulatory Developments
Dodd-Frank empowered CFPB to treat consumer complaints as an integral part of CFPB’s mission. As of March 1, 2015, CFPB has handled 558,800 complaints on many consumer financial products, including credit cards, mortgages, bank accounts, private student loans, vehicle and other consumer loans, credit reporting, money transfers, debt collection and payday loans. Despite objections from… Continue Reading

Spotlight on TILA’s Duty to Provide Timely Mortgage Payoff Statements

Posted in CFPB, Mortgage Servicing, Regulatory Developments, TILA/RESPA
Given the growing complexity of the mortgage servicing rules faced by both bank and non-bank mortgage servicers, it is worthwhile to shine a spotlight on some rules which at first glance seem fairly straight forward, but upon scrutiny, require more analysis. As previously discussed on this blog, the CFPB amended the Truth in Lending Act (TILA)… Continue Reading

Mortgage Industry Continues to Face New Regulatory Proposals in 2015

Posted in Basel III, CFPB, Mortgage Servicing, Regulatory Developments, TILA/RESPA
CFPB Proposes to Give Relief to Small Lenders On January 29, 2015, in response to comments from industry groups and stakeholders, the CFPB proposed amendments to certain mortgage rules that were issued in 2013.  The CFPB will take comments until March 30, 2015 on these proposed rules.  The proposed rule expands the CFPB’s definition of… Continue Reading

CFPB Issues Regulations Governing the Use and Disclosure of Confidential Supervisory Information

Posted in CFPB, Regulatory Developments
Yesterday, the CFPB issued CFPB Compliance Bulletin 2015-01 (“Bulletin 2015-01”).  The purpose of the bulletin was two-fold.  First, the CFPB reminded “supervised” financial and nonbank institutions that are in possession of confidential information, including Confidential Supervisory Information (“CSI”) that they may not disclose such information to third parties.  Second, the CFPB warned these entities that… Continue Reading

Proposed Expansion of Military Lending Act Protections Would Increase Burden on Banks and Credit Unions

Posted in CFPB, Regulatory Developments
In a previous blog post, we noted that the Department of Defense (DOD) has proposed expanding the scope of Military Lending Act (MLA) protections to service members and their dependents on all payday loans, vehicle title loans, refund anticipation loans, deposit advance loans, installment loans, unsecured open-ended lines of credit, and credit cards. In 2007,… Continue Reading

CFPB Proposes Additional Restrictions for Mortgage Servicers

Posted in CFPB, Mortgage Servicing, Regulatory Developments
On November 20, 2014, the CFPB proposed several amendments to the mortgage servicing rules under Regulation X and Regulation Z, after previously implementing amendments to these regulations in January, 2014.  As previously described in this blog, the prior amendments addressed 9 key areas and included rules governing the transfer of servicing between servicers.  The new… Continue Reading

CFPB Pursuing Mortgage Servicers with UDAAP

Posted in CFPB, Mortgage Servicing, Regulatory Developments, UDAAP
On September 29, 2014, the CFPB took action against Flagstar Bank for violating the CFPB’s new mortgage servicing rules by “illegally blocking borrowers’ attempts to save their homes.” The CFPB focused on the Flagstar’s actions from 2011 to present and found that Flagstar failed to devote sufficient resources to administering loss mitigation programs for distressed… Continue Reading

CFPB: Big Changes to the Mortgage Servicing Rules

Posted in CFPB, Mortgage Servicing, Regulatory Developments, TILA/RESPA
On October 22, 2014, the CFPB finalized amendments granting nonprofit small servicers an exemption from new mortgage servicing rules. These mortgage servicing rules are part of several rules regulating mortgages, including the Ability-to-Repay rules, that went into effect on January 10, 2014.   The servicing related changes impacts nine key areas: Periodic billing statements Interest rate… Continue Reading

CFPB Jurisdiction: Continued Expansion via Its Consumer Protection Mandate

Posted in Auto Finance, CFPB, Credit Cards, Debt Collection, Mortgage Servicing
The CFPB has exclusive supervisory authority over depository institutions that have assets totaling more than $10 billion dollars. For these depository institutions, the CFPB is the primary rule maker and enforcer of consumer protection laws applicable to these institutions. For depository institutions that have $10 billion or less in total assets, the Federal Reserve Board… Continue Reading

FTC Shares Concerns about Fraudulent or Unfair Practices Related to Mobile Banking with CFPB

Posted in CFPB, Trending News
The CFPB announced in June 2014 that it is studying how mobile technologies affect under-served consumers who have little access to traditional banking systems. The Federal Trade Commission (FTC) provided comments to the CFPB, detailing concerns that mobile banking is ripe for fraudulent transactions. In particular, consumers could be potentially liable for unauthorized charges using… Continue Reading

Department of Defense Coordinates with CFPB to Expand Military Lending Act Protections

Posted in CFPB, Regulatory Developments
On September 29, 2014, the Department of Defense (DOD) published a proposed rule amending the Military Lending Act, which expands the scope of the Military Lending Act Protections. The CFPB appeared to be taking a strong role in developing the DOD’s proposal by issuing a press release of its own supporting the DOD’s actions. The proposal would… Continue Reading

CFPB Found Unfair and Deceptive Practices Related to Add-On Identity Theft Protection Products

Posted in CFPB, Trending News
On September 24, 2014, the CFPB announced a consent order with a large bank relating to allegations that customers were unfairly billed by a third-party service provider to the bank’s customers for identity theft protection products. According to the CFPB, the third party service provider either never obtained customer authorization or allowed significant time to… Continue Reading