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 7 posts in Fair Lending.

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 ›

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 ›

CFPB Presents Annual Fair Lending Report to Congress

On April 30, the Consumer Financial Protection Bureau (the CFPB) presented its annual Fair Lending Report to Congress.  The Fair Lending Report details the CFPB’s actions and initiatives during 2013. In particular, the Report reveals how the CFPB makes enforcement decisions and includes examples of several of the CFPB’s enforcement actions from past year.  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 Report Warns of Compliance and Mortgage Servicing Problems

The CFPB released its summer 2013 “Supervisory Highlights” Report highlighting numerous mortgage servicing and compliance issues affecting both banks and non-banks. The 25-page Report, which is based on the CFPB’s supervisory activity from November 2012 to June 2013, not only reviews the Bureau’s enforcement and supervisory actions, but it also provides some important insight for financial institutions into the CFPB’s examination processes. The Report’s key findings identify three important areas of concern for the CFPB: compliance management systems, mortgage servicing and fair lending.   Read More ›

Disparate Impact On The Chopping Block? Supreme Court to Hear Mt. Holly Disparate Impact Fair Housing Act Case

On June 17, 2013, the Supreme Court agreed to hear Township of Mount Holly v. Mount Holly Gardens Citizens in Action, a case that could drastically change the legal landscape regarding “disparate impact” liability under the Fair Housing Act (FHA) and, by analogy, the federal Equal Credit Opportunity Act (ECOA). The threshold issue on appeal is whether plaintiffs may use disparate impact to allege a violation under the FHA rather than proving liability by demonstrating an actual intent to discriminate, also known as “disparate treatment.” The “disparate impact” theory allows liability to be imposed even where there was no intent to discriminate, but where practices had a discriminatory effect. In the underlying appeal, the Third Circuit agreed with plaintiffs that disparate impact claims are cognizable under the FHA, but now the Supreme Court will review that ruling in what will likely be one of the more anticipated decisions of the Court’s 2013-2014 term.  Read More ›

ECOA Redux: CFPB Targeting Indirect Auto Lenders For Alleged Discriminatory Practices By Dealers

Today (March 21, 2013), the CFPB released a bulletin warning indirect auto lenders that the Bureau intends to “pursue” -- under the federal Equal Credit Opportunity Act (ECOA) -- those that fail to impose proper “controls” on dealer markups and allow dealer pricing discretion that the CFPB deems discriminatory to protected classes. Read More ›