Links in “CFPB”

While what the CFPB had previously proposed would've been worse, the "new HMDA," with 25 new data points and 14 modified data points in addition to the existing 9 data fields already required under HMDA, "adds to the excessive burden for many community banks, which will further restrict access to credit in local communities." [10/16/15]

While concerns remain about privacy of bank customer data and increased regulatory burden, the ABA's statement expresses relief that the CFPB's final rule on HMDA at least excludes the collection of data on most commercial transactions. [10/16/15]

The CFPB finalized its HMDA rule aimed at improving information reported about the residential mortgage market. The rule has a five year full implementation phase that begins in earnest in year two (2017) with a reduction in reporting institutions (expanded exemption for small lenders) before 2018 requires a heavy expansion (doubling of data fields) of reported data fields. The new data is aimed at giving phenomenal insights into mortgage lending aspects and will inevitably lead to greater fair lending monitoring. [10/16/15]

U.S. Senator Richard Shelby aka Chairman of the United States Senate Committee on Banking, Housing, and Urban Affairs, spoke actively against the benefits of Dodd-Frank at Harvard Law School. He commented on various flaws with the now 5 year old law including vesting "more authority in unelected, unaccountable bureaucrats," producing "thousands of pages of new, complex regulations and layers of new bureaucracy," and the need to "recognize its flaws and make the necessary changes.” [10/16/15]

Yesterday, the CFPB released its annual report on student loan complaints and the picture it paints is anything but pretty, particularly for private student loan borrowers. The report notes that borrowers with federal loans issued by private lenders claim they run into roadblocks when they try to access income-driven repayment plans. In addition, more than 20% of these borrowers are not making payments or are past due (but not in default) and 95% are not enrolled in any kind of repayment plan. [10/15/15]

A professor cautions the CFPB to consider carefully any proposed changes to debt collection rules for unintended consequences. For example, limits on communications using newer technologies will likely result in more intensive collection actions earlier in the debt collection cycle. More lawsuits, increased interest rates and a reduction in lending volume for higher-risk customers are also among the potential side effects. [10/15/15]

Mortgage Bankers Association warns its members to take the CFPB's bulletin on marketing services agreements seriously. See also Risk Watch 74. [10/15/15]

The CFPB has assured leniency with lenders who make a “good faith” effort to comply with TRID, lenders may still face liability from private lawsuits, and are encouraged to implement policies and procedures which ensure compliance. [10/14/15]

43 lawmakers tell the CFPB not to impose overly burdensome restrictions on prepaid card providers that could lead to their elimination from the market. [10/13/15]

The CFPB recently held a preliminary hearing regarding proposed rules that would limit the use of arbitration agreements in contracts for financial products and services.  According to the CFPB's director, the rules being considered would benefit consumers by preserving their rights to litigate their claims and by adding clarity to the arbitration process.  [10/13/15]