By Kris D. Kully The Consumer Financial Protection Bureau (CFPB) is considering putting strict limits on a creditor’s ability to price its mortgage loans, and on a consumer’s ability to choose among pricing options. By way of implementing the far-reaching provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB is proposing… Continue Reading
Category Archives: Bureau of Consumer Financial Protection (CFPB)
Subscribe to Bureau of Consumer Financial Protection (CFPB) RSS FeedForce-Placed Insurance Standards in the Global Foreclosure Settlement
Posted in Bureau of Consumer Financial Protection (CFPB), Mortgage ServicingBy: Steven M. Kaplan, Rebecca Lobenherz
Force-placing insurance could be a hazardous practice if not done appropriately. The Consumer Financial Protection Bureau (“CFPB”) has made force-placed insurance a main focus of its desired mortgage servicing reforms and new rules on the issue are expected to be released by the CFPB as soon as this week.
CFPB Issues First “Bulletin” Regarding TILA’s Loan Originator Compensation Rule
Posted in Bureau of Consumer Financial Protection (CFPB), Mortgage LendingThe CFPB issued its first pronouncement—which it refers to as a Bulletin—regarding the Truth in Lending Act’s (“TILA”) loan originator compensation rule (the “LO Comp Rule”).
Protecting the Protectors – the Global Settlement Agreements’ SCRA Provisions
Posted in Bureau of Consumer Financial Protection (CFPB), Litigation & Enforcement Actions, Mortgage Servicing, Other Federal Agencies & GSEs, Servicemember ProtectionsGiven the reported violations of the provisions of the Servicemembers Civil Relief Act (“SCRA”) by some servicers, and the attendant enforcement and civil actions against those servicers, state and federal regulators clearly felt compelled to impose significant SCRA-related requirements on the nation’s five largest residential mortgage loan servicers (the “Servicers”) in the recent global settlement agreements (the “Agreements”) entered into between those regulators and Servicers, described here.
BIGGER! BOLDER! BETTER? The NMLS Expands to License More Consumer Financial Services – Mortgage Finance Licensees Will Need to Amend Their Account Records
Posted in Bureau of Consumer Financial Protection (CFPB)The idea was first floated, then floundered, moved forward with few fans and fleeting fanfare, secured a firm foothold, found a favorable following, was force-fed by federal law, and now four years since its formation, it is poised to forever change the way that consumer financial services will be licensed and regulated by the states.
Joining the Conversation: The Perils and Possibilities of Social Media for Financial Services Companies
Posted in Bureau of Consumer Financial Protection (CFPB)By: David A. Tallman, Lori L. Schneider
As consumers integrate the Internet and social media into their daily lives, they not only expect financial institutions to maintain an active online presence, but increasingly demand to receive financial products and services over the Internet and on mobile devices.
Global Servicing Settlement Requires Single Points of Contact (“SPOCs”)
Posted in Bureau of Consumer Financial Protection (CFPB), Litigation & Enforcement Actions, Mortgage Servicing, Other Federal Agencies & GSEsBy: Kristie D. Kully
The servicing standards imposed on the five largest mortgage loan servicers by the recent global settlement agreement with state and federal regulators, described here, continue to pile on the “SPOC” requirements.
Global Foreclosure Settlement: The Success of Herding Cats
Posted in Bureau of Consumer Financial Protection (CFPB)By: Laurence E. Platt, Michael J. Missal
Whether one thinks the terms of the historic federal-state civil loan servicing settlement are too much, too little or about right, two conclusions are indisputable.
K&L Gates Files Federal Pro Bono Action to Challenge Foreclosure Rescue Scheme
Posted in Bureau of Consumer Financial Protection (CFPB)By: Paul F. Hancock, Carol Elder Bruce, John L. Longstreth, Melissa S. Malpass
On March 6, 2012, K&L Gates LLP filed a federal lawsuit challenging an allegedly discriminatory and otherwise unlawful foreclosure rescue scam targeted to Hispanic homeowners in Northern Virginia.
CFPB Plans Small Business Review Panel for Combined RESPA and TILA Disclosures and Hints at Possible Regulatory Changes
Posted in Bureau of Consumer Financial Protection (CFPB), Mortgage LendingIf you are on the edge of your seat waiting for the combined RESPA/TILA proposed regulations and disclosure forms, we have our first glimpse into the changes being contemplated by the Consumer Financial Protection Bureau (“CFPB” or “Bureau”).
Freeman v. Quicken Loans to Decide Whether Undivided Unearned Fees Violate RESPA
Posted in Bureau of Consumer Financial Protection (CFPB), Litigation & Enforcement Actions, Mortgage LendingTo split an unearned fee or not to split an unearned fee in order to violate the Real Estate Settlement Procedures Act (RESPA) – that is the question.
RESPA Webinar Series: Be Ready Should the New CFPB Knock on Your Door
Posted in Bureau of Consumer Financial Protection (CFPB)By: Phillip L. Schulman, Holly Spencer Bunting
It has been seven months since the Consumer Financial Protection Bureau (“Bureau”) took over the regulatory and oversight responsibility for the Real Estate Settlement Procedures Act (“RESPA”).
Recently Introduced Bills to Protect Privileged Documents: Are They Sufficient to Protect Credit Unions and Nonbanks?
Posted in Bureau of Consumer Financial Protection (CFPB)Several bills floating around Congress this month aim to address the privilege waiver issue that is causing anxiety for CFPB-regulated entities.
CFPB Launches Online Portal for Regulation Streamlining Comments
Posted in Bureau of Consumer Financial Protection (CFPB)On Friday, the CFPB launched a new online portal through which the public can submit comments on ongoing efforts to streamline inherited regulations.
K&L Gates Launches Financial Fraud Enforcement Task Force
Posted in Bureau of Consumer Financial Protection (CFPB)Washington, D.C. – Following the recent introduction of the Residential Mortgage-Backed Securities (RMBS) Working Group as the latest strike in the Obama Administration’s enforcement response to the financial crisis, global law firm K&L Gates LLP has created a new cross-practice task force to assist clients in addressing questions and allegations relating to this joint federal and state initiative.
CFPB to Payday Lenders: We’re Coming for You – Cordray Tells Payday Lenders to Expect “Much More Attention” and Releases New Examination Guidelines for the Industry; Many Questions Left Unanswered
Posted in Bureau of Consumer Financial Protection (CFPB), Fair Lending/Anti-Discrimination, UDAAPPayday lenders recently received their first peek at what life will be like under the CFPB’s watch, and it’s not a pretty picture.
Cordray’s Recess Appointment Continues to Cause Controversy
Posted in Bureau of Consumer Financial Protection (CFPB)On January 4, President Obama made several recess appointments, including the appointment of Richard Cordray as the first director of the CFPB. After facing harsh criticism, an Office of Legal Council (OLC) memorandum opinion was released on January 12, justifying the constitutionality of the appointments in question.
CFPB and FTC Memorandum of Understanding Aims to Coordinate Non-Bank Enforcement and Allow Information-Sharing
Posted in Bureau of Consumer Financial Protection (CFPB), Other Federal Agencies & GSEsOver the weekend, the CFPB and the FTC executed a Memorandum of Understanding (“MOU”) between the two agencies that clarifies how they will share information and coordinate efforts with respect to companies and issues that fall under both agencies’ jurisdiction.
CFPB Releases “Mortgage Origination Examination Procedures” Governing Banks and Nonbanks – Not a Prelude to a Kiss
Posted in Bureau of Consumer Financial Protection (CFPB), Fair Lending/Anti-Discrimination, Mortgage Lending, Other Federal Agencies & GSEs, Privacy & Information Security, UDAAPThe CFPB wants to get to know you – well. But it’s not a prelude to a kiss.
On January 12, 2012, the CFPB released its new Mortgage Origination Examination Procedures Governing Banks and Nonbanks (the “Procedures”).
CFPB Officially Launches Nonbank Supervision Program
Posted in Bureau of Consumer Financial Protection (CFPB)Now that the CFPB has a director, it can officially begin to exercise the full authorities granted to it under the Dodd-Frank Act. The agency issued a press release on Thursday announcing the formal launch of its nonbank supervision program.
CFPB’s Guidance to Supervised Banks Says Privilege Waiver Concerns Are No Reason for Withholding Information
Posted in Bureau of Consumer Financial Protection (CFPB)As supervisor of large depository institutions, credit unions, and their affiliates, the CFPB expects such supervised institutions to share with it all documents that CFPB requests, even if the document is protected by the attorney-client privilege.
CFPB Puts Inherited Consumer Financial Protection Regulations on the Table
Posted in Bureau of Consumer Financial Protection (CFPB), Credit Cards, Fair Lending/Anti-Discrimination, Mortgage Lending, Mortgage Servicing, Payment Systems, Privacy & Information SecurityBy: David A. Tallman
Adding to its already full plate, the Bureau of Consumer Financial Protection (the “CFPB” or the “Bureau”) recently requested public comment on its review of the various consumer financial protection regulations it has inherited from other agencies.
CFPB Republishes RESPA Regulations
Posted in Bureau of Consumer Financial Protection (CFPB)While the CFPB took over rulemaking and enforcement authority for RESPA on July 21, 2011, that transfer of authority will soon be reflected in RESPA regulations. On December 20, 2011, the CFPB published an interim final rule in the Federal Register to republish, effective December 30, 2011, HUD’s Regulation X, which implements RESPA.
RESPA Investigations Initiated at HUD May Have Been Reassigned to the CFPB
Posted in Bureau of Consumer Financial Protection (CFPB), Litigation & Enforcement Actions, Other Federal Agencies & GSEsWhen HUD transferred RESPA enforcement authority to the CFPB, some RESPA investigations that had been initiated at HUD may have been assigned to the new agency. As a result, some companies may not be out of the woods just yet.