In a speech made on May 12 to the National Association of Realtors, Consumer Financial Protection Bureau Director Richard Cordray addressed questions surrounding the three-day requirement of the TILA-RESPA Integrated Disclosure Rule (“TRID”) and said it “should not interfere with a successful closing, as some have claimed. In fact, there has been some serious misunderstanding
Consumer Financial Protection Bureau (CFPB)
CFPB Extends CARD Act Comment Period Regarding Four Areas of Interest
As we discussed in March, the Consumer Financial Protection Bureau is soliciting public comment on how the credit card market is functioning and the impact of credit card protections on consumers and issuers.
To allow interested persons additional time to consider and submit their responses, the CFPB announced it is extending the comment period on…
Consumer Lawsuits and Complaint Activity Increase During Early 2015
Lawsuits filed by consumers under the Fair Debt Collection Practices Act, Telephone Consumer Protection Act, and Fair Credit Reporting Act all increased from February to March 2015, according to the latest report from WebRecon.
FDCPA lawsuits increased by 3.9 percent (892 to 927), from February to March, and FCRA lawsuits increased 3.3 percent (245 to…
CFPB Updates Examination Procedures For TILA-RESPA Integrated Disclosures
On May 4, the Consumer Financial Protection Bureau revised its mortgage origination examination procedures to provide guidance on how it will conduct compliance exams for the TILA-RESPA integrated disclosures that become effective on August 1, 2015.
The CFPB has revised version 2.0 of its Supervision and Examination Manual numerous times since it was released on…
CFPB Refuses to Delay Enforcement of TILA-RESPA Integrated Disclosure Rule; Pending Legislation Would Provide Safe Harbor Through End of 2015
In an April letter to Congressman Blaine Luetkemeyer (R-Mo.), the Consumer Financial Protection Bureau refused to provide a grace period for enforcement of the TILA-RESPA Integrated Disclosure Rule (“the Integrated Disclosure Rule”), which has an effective date of August 1, 2015.
Director Richard Cordray’s letter provides information about the CFPB’s work to support implementation of…
CFPB Report: 26 Million Americans are “Credit Invisible”
According to a study released by the Consumer Financial Protection Bureau on May 5, 26 million Americans have no credit rating at all, making them “credit invisible.” The report found that one in 10 adults have no credit history – many of them black, Hispanic, or living in low-income neighborhoods.
In broad terms, consumers with…
CFPB Consumer Complaint Database May Become A One-Sided Gripe Fest
The Consumer Financial Protection Bureau (CFPB) is modifying its complaint database so that consumers can post narratives about their experiences with financial service providers. According to the CFPB’s release, available at http://www.consumerfinance.gov/newsroom/cfpb-finalizes-policy-to-give-consumers-the-opportunity-to-voice-publicly-complaints-about-financial-companies/, the purpose of the database enhancement is to help consumers make informed choices and identify market trends. But the implementation could result…
The Seventh Circuit Refuses to Reconsider Its Ruling that Mortgage Servicers Must Credit Electronic Payments before Funds Are Received
The Seventh Circuit has refused to reconsider its troublesome ruling that mortgage servicers violate the Federal Truth in Lending Act (TILA) if they do not credit electronic payments the day they are made even though the funds are not received until several days later.
The TILA requires that payments be posted as of the “date…
CFPB and Maryland AG’s Office Target Mortgage Kickback Scheme
On April 29, the Consumer Financial Protection Bureau and the Maryland Attorney General’s Office jointly filed a Complaint in the U.S. District Court for the District of Maryland accusing a title service company and several mortgage loan officers of participating in an illegal kickback scheme whereby the company would funnel money and marketing services to…
CFPB and Navajo Nation Sue Tax Franchise for Alleged Illegal Tax Refund Scheme
On April 14, the Consumer Financial Protection Bureau (“CFPB”) and the Navajo Nation filed a Complaint in the U.S. District Court for the District of New Mexico seeking monetary penalties against a tax-preparation franchise and its ownership for allegedly running an illegal tax refund scheme. The plaintiffs specifically claim that this franchise violated the Consumer…