Links in “CFPB”

The CFPB posted in the Federal Register its final rule that revises the Bureau's regulatory definitions of small creditor, and rural and underserved areas, for purposes of certain special provisions and exemptions from various requirements provided to certain small creditors under the Bureau's mortgage rules. These include raising the loan origination limit for determining eligibility from 500 origination to 2,000, a grace period for those that exceed numbers, revising the definition of rural and underserved and safe harbor provisions. [10/2/15]

The CFPB announced a $48.4 million enforcement action that includes a $4.25 million civil penalty against Westlake Services, LLC and Wilshire Consumer Credit an indirect auto finance company and its auto title lending subsidiary for pressuring borrowers using illegal debt collection tactics. [10/2/15]

The CFPB released a report stating that consumers of student loans have complained of “sloppy practices” that contribute to default. The CFPB plans to take action against such practices. [10/1/15]

H.R. 957 would create an independent inspector general for the CFPB who is nominated by the President and confirmed by the Senate. H.R. 1266 would make the CFPB a stand-alone agency governed by a five-member, bipartisan commission. [10/1/15]

The CFPB's request for approval to conduct a national survey of 8,000 individuals about overdraft protection was missing one important piece: a draft of the survey instrument. The trade associations point out that the Office of Management and Budget guidance requires publication of the survey at the time of request. [10/1/15]

When the CFPB's director testified before the House Financial Services Committee this week, he cited the growth of mortgage originations, credit cards, and auto loans as counters to the concerns that the bureau's creation would adversely impact lending. But committee members didn't let him off that easy, challenging the bureau on such issues as the "downright insulting" use of borrowers' last names to determine who are minority auto buyers and the failure to take into account FICO scores when determining whether minority borrowers are paying more ("a lot of banks have moved away from" the practice, countered Cordray). [10/1/15]

CFPB Director Richard Cordray told the members of the House Financial Services Committee yesterday that the CFPB may consider providing a hold harmless period after the implementation of the TILA/RESPA integrated mortgage disclosure rule takes effect this weekend. Cordray indicated that hold harmless period could be about six months, more or less, and suggested that more details could be forthcoming later this week. [9/30/15]

The CFPB has made available a review of public comments and recommendations regarding student loan servicing in an effort to strengthen industry practices. The report is located here. [9/30/15]

Three federal agencies (CFPB, Education, and Treasury) are speeding toward the establishment of uniform standards for student loan servicers. [9/30/15]

Speaking before the House Financial Services Committee, the CFPB director also said that the agencies will soon be releasing guidance on the enforcement of the TILA/RESPA Integrated Disclosures rule, set to take effect 10/3/15. "There will be time for them to work to get it right. They don't have to be perfect the first day." [9/30/15]