On November 25, the Consumer Financial Protection Bureau announced that it plans to push back three key rulemakings until next year. These rulemakings center on overdraft protection, payday lending, and debt collection. The agenda released by the CFPB stated that it would issue proposals on these issues in the first seven months of 2015. This
CFPB Urges Industry to Develop Faster System for Electronic Transfers
On November 20, Consumer Financial Protection Bureau Director Richard Cordray urged financial institutions to develop faster systems for processing electronic funds transfers (EFTs). In his prepared remarks, however, he insisted that these faster systems must offer robust consumer protections.
According to Cordray, the U. S. banking system needs improvement in the ability to process
Challenges to Disparate Impact May be Gaining Steam
One of the most controversial and significant federal regulatory initiatives in consumer finance is the view of the Consumer Financial Protection Bureau that credit discrimination can be proven by statistical disparities.
We previously reported here on the U.S. Supreme Court’s decision to hear a disparate impact case in Texas Department of Housing & Community Affairs
Electronic Funds Transfers on CFPB’s Enforcement Radar
On November 13, Consumer Financial Protection Bureau Director Richard Cordray delivered prepared remarks regarding electronic funds transfers (EFTs). Although Cordray noted the benefits of EFTs to consumers, he cautioned that the potential for abuse necessitates aggressive policing of the industry.
According to the CFPB, the nationwide system for EFTs allows consumers to receive their paychecks,
CFPB Proposes Expanded Foreclosure Protections
On November 20, the Consumer Financial Protection Bureau proposed measures aimed at mortgage servicers. These proposed measures provide surviving family members and other homeowners with the same protections as the original borrowers. Additionally, the proposal seeks to add protections to homeowners and borrowers struggling to make payments under their mortgages. The new mortgage rules can
HUD Breaks from CFPB, Refuses to Adopt Cure Provisions in Definition of Qualified Mortgage
Earlier this month, the Department of Housing and Urban Development announced a revision to its definition for FHA-insured Qualified Mortgages (QMs) that applies to Section 501(c)(3) nonprofits that originate and service mortgages. However, HUD decided it would not adopt the CFPB’s post-consummation QM limited cure mechanism, which we discussed here, for purposes of HUD’s
CFPB Finalizes Qualified Mortgage Cure and Other Amendments to 2013 Mortgage Rules
In October, the CFPB issued a final rule amending the 2013 mortgage rules that took effect in January 2014, including a post-consummation points and fees cure mechanism for qualified mortgage loans, which became effective on November 3, when it was published in the Federal Register.
These new amendments to the mortgage rules include:
- Qualified
Recent Settlement Shows That Consumer-Reporting and Debt-Collection Procedures are Top Priorities for CFPB
An $8 million settlement announced November 19, 2014, between the Consumer Financial Protection Bureau (CFPB) and the nation’s largest “buy here pay here” auto dealer represents yet another warning coming out of Washington, D.C. that:
1. Compliance with the requirements of the Fair Credit Reporting Act (FCRA) when businesses furnish credit information to consumer reporting
CFPB Issues New Proposed Rules for Prepaid Debit Cards
On November 13, the Consumer Financial Protection Bureau unveiled a comprehensive slate of consumer protections for prepaid debit cards that could increase the customer base for the financial product. The proposed rules (found here) are the most comprehensive set of federal standards for the fast-growing prepaid industry. Consumers are expected to load nearly $100
NBPCA Issues Statement Regarding CFPB’s Proposed Rules for Prepaid Cards
On November 13, Doug Bower, President and Director of the Network Branded Prepaid Card Association (NBPCA), issued the following statement regarding the CFPB’s comprehensive slate of consumer-protection rules for prepaid debit cards:
We appreciate the CFPB’s earnest efforts to gather information, analyze data, and draft a proposed rule that acknowledges that prepaid cards are a