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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Showing 147 posts in CFPB Rulemaking.

The CFPB’s Small-Dollar Lending Proposal: First UDAAP Rulemaking Proposal Hits the Streets

After much anticipation, the Consumer Financial Protection Bureau (“CFPB”) has released its proposed small-dollar lending rule. Spanning 1,334 pages in length, the proposal marks the first time the CFPB has exercised its authority to issue regulations prohibiting unfair, deceptive, or abusive acts or practices (“UDAAP”). Until now, the CFPB has elected to define UDAAP through its enforcement actions. And despite the proposal’s length, it does not appear that it fully covers the waters of consumer credit in the CFPB’s sights. Accompanying the proposed rule is a Request for Information (“RFI”) asking additional questions about certain other high-cost, longer-term installment loans and open-end lines of credit, raising the possibility of additional rulemakings in the future.   Read More ›

CFPB Releases Arbitration Proposal

Today, the Consumer Financial Protection Bureau (the “CFPB”) released much-anticipated proposed rules for mandatory arbitration clauses, which the CFPB colloquially refers to as “contract gotchas.” The proposed rules follow on the heels of the CFPB’s March 2015 Arbitration Report, which the CFPB concluded demonstrates that mandatory arbitration clauses are detrimental to consumers. As expected, the proposed rules evidence the CFPB’s concerns around mandatory arbitration clauses. Read More ›

CFPB to Issue Proposal in July Amending Rules on TILA-RESPA Integrated Disclosures

Real estate lenders and agents struggling with the new TILA-RESPA Integrated Disclosure rules will have the opportunity to suggest improvements to the rules this summer. On April 28, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray sent a letter to eight financial industry trade groups stating that the agency intends to propose new amendments in late July 2016 to the rules synthesizing mortgage lending disclosures under the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA). Issued pursuant to the Dodd-Frank Act, the rules are known as the TILA-RESPA Integrated Disclosures (TRID) rule, also referred to by the CFPB as the Know Before You Owe rules. Read More ›

Surge in Subprime Auto Lending Prompts Government Concerns

Auto finance companies have witnessed a surge in lending activity, a sign that the economy is gradually improving. However, government agencies are identifying and taking action to address increased lending at high interest rates to borrowers with poor credit, similar to lending practices that were the basis for subprime mortgage lending less than a decade earlier. Read More ›

CFPB Examinations for 2015 Q1 Reveal Particular Scrutiny on Mortgage Servicers

On June 23, 2015, the Bureau issued its eighth edition of Supervisory Highlights (the “Report”) in which the CFPB shared its “recent supervisory observations in the areas of consumer reporting, debt collection, student loan servicing, mortgage origination, mortgage servicing, and fair lending.” The CFPB reported that, for the first four months of 2015, “supervisory resolutions have resulted in remediation of approximately $11.6 million to more than 80,000 consumers.” Read More ›

No Formal Grace Period for TILA-RESPA Integrated Disclosure Rule (TRID) – August 1 Implementation Effective Date Still Stands

UPDATE: On Wednesday, June 17, CFPB Director Richard Cordray issued a statement on a proposed amendment to the Truth in Lending and Real Estate Settlement Procedures Act Integrated Disclosure Rule (TRID). Citing an administrative error that violated federal law and would delay the operative date of the rule by two weeks, the amendment proposes to delay the enforcement of the rule until October 1, 2015. Read More ›

The CFPB Publishes a Final Rule Defining “Larger Participants” in the Consumer Automotive Financing Market

The Dodd-Frank Act grants the Consumer Financial Protection Bureau the authority to supervise any “larger participant of a market” for non-mortgage financial products or services. 12 U.S.C. § 5514(a)(1)(B). On June 10, 2015, the Consumer Financial Protection Bureau published a new rule granting the CFPB supervisory authority over any nonbank auto finance company that makes 10,000 or more annual originations. According to the Bureau, the purpose of the rule is to “ensure that larger auto finance companies treat consumers fairly.” Read More ›

CFPB Proposes Changes to Expand Credit in Rural and Underserved Communities

On January 29, 2015 the Consumer Finance Protection Bureau (CFPB) proposed several changes to its mortgage lending rules which would apply to small creditors who lend money to those in rural and underserved communities. The amendments are an attempt to address the collateral consequences of strict regulations enacted in January 2013 pursuant to the Dodd-Frank Act. Read More ›

Lesson Learned from CFPB’s Actions against Banks Engaging in Illegal Marketing Services Kickback Scheme

Under Section 8 of the Real Estate Settlement procedures Act (RESPA), it is illegal for anyone to give or receive a fee, kickback or anything of value in exchange for referrals of settlement service business to a particular person or organization relating to a federal mortgage loan. Violations of this section of RESPA are subject to civil and criminal penalties which could be assessed in the form of a fine, imprisonment or both. Read More ›

In Support of Revisions to Military Lending Act Rules, CFPB Issues Report on Current Practices and Outcomes

On December 29, 2014, the Consumer Financial Protection Bureau (CFPB) issued a report on the implications of certain loopholes in the current Military Lending Act rules.  The CFPB is “urging the Department of Defense to finalize” its proposed revisions to these rule.  The revisions promise to expand the scope of the rules and to close many of the most significant loopholes, subjecting lenders to additional regulatory and litigation risk. Read More ›