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 24 posts in Truth In Lending Act.

CFPB Consent Order Holds Import for Supervised Entities Using Third-Party Vendors

The Consumer Protection Financial Bureau (“CFPB”) announced on October 29, 2015, that it took action against two of the largest employment background screening report providers, General Information Services (“GIS”) and its affiliate e-Background-checks.com, Inc. (“e-Background-checks.com”) for alleged violations of the Fair Credit Reporting Act. The press release also linked a Consent Order, by which GIS and e-Background-checks.com agreed to pay a $2.5 million penalty and provide $10.5 million to affected consumers, among other sanctions. Read More ›

Some Banking Products Become Subject to the Military Lending Act

On July 21, 2015, which also happened to be the fifth anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Department of Defense issued a final rule amending changes to the rule that implements the federal Military Lending Act (“MLA”). The MLA, which was passed in 2006 to provide certain protections for active duty service members and their dependents in consumer credit transactions, caps the interest rate on covered loans at 36 percent. The amended rule expands existing coverage of various credit products and imposes new requirements for those products that are covered. A proposed version of the rule had previously been published in the Federal Register in September 2014.  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 ›

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 ›

Supreme Court to Resolve Circuit Split on TILA Rescission

Both creditors and borrowers anticipate clarification on a persistently divisive issue

Yesterday, the Supreme Court of the United States granted a petition for writ of certiorari in a case, Jesinoski v. Countrywide Home Loans, Inc., which promises to clarify the scope of a mortgagor’s right of rescission pursuant to the Truth in Lending Act (“TILA”), 15 U.S.C. § 1601 et seq.    Read More ›

CFPB Publishes Guide to the TILA-RESPA Loan Estimate and Closing Disclosure Forms

The Consumer Financial Protection Bureau (CFPB) on April 17, 2014 announced the release of a Guide to Completing TILA-RESPA Integrated Disclosure Forms (the Forms Guide). The CFPB states that the purpose of the Forms Guide is to provide instructions for completing the two new integrated TILA-RESPA disclosure forms, the Loan Estimate and Closing Disclosure, and to highlight common situations that may arise when completing the forms. Additionally, as the changes related to the TILA-RESPA Integrated Disclosure Rule may take time, resources, and planning to execute, the CFPB hopes the Forms Guide will help identify some of the necessary changes that may need to be implemented by organizations involved in the origination of closed-end residential mortgage loans. Settlement service providers, software providers, and other companies that serve as business partners to creditors may also find the Forms Guide helpful  Read More ›

CFPB Releases Small Entity Compliance Guide for TILA-RESPA Integrated Disclosure Rule

In late March, the Consumer Financial Protection Bureau (CFPB) issued a  Small Entity Compliance Guide (Guide) for the TILA-RESPA Integrated Disclosure Rule (TILA-RESPA Rule). In compliance with Section 212 of the Small Business Regulatory Enforcement Fairness Act of 1996, the CFPB has issued the guide to help small businesses comply with the TILA-RESPA Rule, which is effective August 1, 2015. Read More ›

Sixth Circuit Holds Servicer That Is Not Also Creditor Is Not Liable For Failing to Identify Owner/Master Servicer Under TILA

The U.S. Court of Appeals for the Sixth Circuit recently confirmed1 that the 2009 amendments to the Truth in Lending Act (TILA) via the Helping Families Save Their Homes Act did not create a private cause of action against a loan servicer that was not also a creditor; thus, the servicer could not be liable for a violation of 15 U.S.C. § 1641(f)(2).  Read More ›

New CFPB Guidance on Higher-Priced Mortgage Loan Appraisal Rules under the Truth in Lending Act

On December 12, 2013, six federal financial regulatory agencies (the Federal Reserve, CFPB, FDIC, FHFA, NCUA, and OCC) issued a final rule amending the Dodd-Frank Act appraisal requirements for “higher-risk” mortgages to create exemptions from appraisal requirements for manufactured homes; loans of $25,000 or less (indexed each year for inflation); and certain “streamlined” refinancing transactions.  These exemptions are just in time, as the Higher-Priced Mortgage Loan (or HPML) Appraisal Rules under the Truth in Lending Act take effect on January 18, 2014.    Read More ›

CFPB Publishes New Mortgage Disclosure Forms

On November 20, 2013, the Consumer Financial Protection Bureau (CFPB) issued a 1,887 page rule requiring mortgage lenders to use two new disclosures when making mortgage loans to consumers.  The new forms are a "Loan Estimate," which replaces the preliminary Truth-in-Lending Disclosure Statement and Good Faith Estimate, and a "Closing Disclosure," which replaces the final Truth-in-Lending Disclosure Statement and HUD-1 Settlement Statement.  Mortgage lenders must use the new forms by August 1, 2015. Read More ›