Consumer Financial Services Law Blog
Dykema Gossett PLLC
Dykema Gossett PLLC

Consumer Financial Services Law Blog

Consumer Financial Services Law Blog

News and analysis regarding Consumer Financial Services litigation and regulation, and activities of the Consumer Financial Protection Bureau

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Photo of Consumer Financial Services Law Blog Ashley R. Fickel
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Showing 8 posts by Ashley R. Fickel.

CFPB Card Act Report Identifies Five Credit Card Practices That “Warrant Further Scrutiny”

On December 3, the CFPB released its Report required by the Credit Card Accountability Responsibility and Disclosure Act (CARD Act), with its perspective on the current state of the credit card market. The Report asserts that, since the enactment of the CARD ACT, consumers have avoided a combined $16 billion in over-limit and late fees. The report also posits that credit has generally become more available to consumers, and the number of new accounts has grown faster than in almost every other major consumer credit market. Read More ›

CFPB Proposes Effective Ban on Class Waivers in Arbitration Agreements

Just this week, the CFPB announced that it is considering proposing rules that would “ban consumer companies from using ‘free pass’ arbitration clauses to block consumers from suing in groups to obtain relief.” The proposals being considered would not ban arbitration clauses in their entirety. Among the proposals, arbitration clauses would have to explicitly state that they do not apply to cases filed as class
actions unless and until the class certification is denied by the court or the class claims are dismissed in court. The proposals also seek more oversight of the arbitration process by requiring companies that use arbitration clauses for individual disputes to submit information to the CFPB regarding the arbitration claims filed and awards issued. Read More ›

CFPB Releases Results of Its eClosing Pilot Program

The CFPB recently released the report of its study on the benefits of electronic mortgage loan closings also known as “eClosings” that it commenced in April 2014. eClosings are mortgage closings that rely on technology for borrowers to view and sign closing documents electronically. Read More ›

CFPB Focus Group Raises Questions Regarding Reverse Mortgage Ads

Last week, the CFPB announced its findings from a focus group study it conducted regarding reverse mortgage advertising. Although the reverse mortgage market is about 1 percent of the size of the traditional mortgage market, with 628,000 outstanding loans, reverse mortgage lenders can expect increased scrutiny because the CFPB expects the number of reverse mortgage originations to rise now that “baby boomers” are retiring with little other than the equity in their homes to fund their retirements.  Read More ›

New FHA Guidelines Could Lead to Postponement of Reverse Mortgage Foreclosures

Late January, the Federal Housing Administration (FHA) issued new policy guidelines under its Home Equity Conversion Mortgage (HECM) program that allows FHA-approved lenders to postpone foreclosure proceedings against non-borrowing spouses in the event of the death of the last surviving borrower. This latest guidance is similar to policy changes announced by the FHA last year, but those changes only impacted HECM loans that were created on or after August 4, 2014. Read More ›

United States Supreme Court Resolves Circuit Split on TILA Rescission

On January 13, 2015, the Supreme Court of the United States clarified the scope of a mortgagor’s right of rescission pursuant to the Truth in Lending Act (TILA), 15 U.S.C. § 1601 et seq.  In Jesinoski v. Countrywide Home Loans, Inc., the Court resolved the issue of whether a borrower must exercise the right of rescission by merely “notifying the creditor” within the three-year time period, or whether the borrower must file a lawsuit within that time in order to rescind.  In a unanimous decision, the Court held that borrowers need only notify the creditor within three years of their intention to rescind rather than file a lawsuit for rescission. Read More ›

FHFA Director Mel Watt Previews Upcoming Changes to GSEs' Lending Standards

Federal Housing Finance Agency (FHFA) Director Mel Watt recently gave a speech at the Mortgage Bankers Association’s Annual Convention.  In his remarks, Director Watt previewed forthcoming revisions to GSEs’ lending standards.  These revisions have been long advocated by the mortgage banking industry which has complained that the threat of repurchases by Fannie Mae and Freddie Mac caused lenders to impose restrictive credit standards, which in turn has caused tight credit conditions.  Director Watt highlighted the following upcoming revisions to the GSE lending standards: Read More ›

FCC Ruling : Seller May Be Liable For Third-Party TCPA Violations

The Federal Communications Commission’s (FCC) long awaited ruling regarding agency liability under the Telephone Consumer Protection Act (TCPA) is a mixed bag for those companies that rely on third-party telemarketers. In its ruling issued on May 9, 2013, the FCC declared that sellers “may be held vicariously liable under federal common law principles of agency including not only formal agency, but also principles of apparent authority and ratification.” The FCC did not hide the fact that this intended to provide “appropriate incentives” for companies “to monitor and police TCPA compliance by third-party telemarketers.” The FCC, however, declined to extend vicarious liability to calls made simply “to aid or benefit the seller,” if an agency relationship does not exist between the seller and the third-party telemarketer. Because this is such a hotly litigated issue, the FCC’s ruling far from settles the matter as Courts will be forced to determine, on a case-by-case basis, whether an agency relationship exists. Read More ›