Links in “CFPB”

Beyond the increased costs of compliance, Dodd-Frank rules have resulted in fewer loans, according to this survey. About 80% expect the CFPB's mortgage lending rules to result in a reduction of credit availability. [6/9/15]

That’s the question that many are asking in light of the CFPB’s statement that it will consider a financial institution’s good faith effort to comply with the requirements for the new TILA/RESPA combined disclosure in its examinations. Other regulators have been urged to follow suit. A new Fact Sheet issued by the CFPB clarifies some of the delivery issues being raised by financial institutions. [6/8/15]

A recent article in Bloomberg Business reports that financial institutions may be able to continue to protect the significant income they receive from overdraft fees. After three years of studying overdraft protection programs, an insider at the CFPB told Bloomberg that it is unlikely that the proposed rule will cap the fees that financial institutions can charge, but may bar the reordering on overdrafts to maximize fee income and may require better disclosure of polices that allow consumers to avoid fees. [6/8/15]

The CFPB has fined PHH Corporation, a New Jersey lender, $109 million for illegally accepting kickbacks in the form of mortgage reinsurance premiums paid by mortgage insurance companies to a PHH subsidiary. RESPA prohibits the payment of kickbacks for the referral of mortgage services. [6/8/15]

With headlines such as "Elderly Could Lose Homes from Reverse Mortgages" (CNN Money) and "Reverse Mortgage Ads Confuse Consumers" (USA Today), it is safe to say that the CFPB's recently released study on reverse mortgage ads attracted attention. [6/8/15]

The CFPB has ordered three core processors to provide anonymized data on overdraft charges. One so far has said it may pass along the costs of complying to its client banks. The ABA responds by telling the CFPB that it should use part of its own $600 million budget to bear the cost. [6/8/15]

In a letter to members of the House Financial Services Committee, the CFPB has clarified the three circumstances under which credit unions and other mortgage lenders must restart the clock to allow consumers three business days to review their mortgage package before closing. Those three circumstances are: (1) if the lender increases the APR by more than 12.5 basis points for a fixed rate mortgage or by more than 25 basis points for an ARM; (2) if the lender adds a prepayment penalty; or (3) if the lender changes the loan from a fixed rate product to an ARM. [6/5/15/]

Unnamed sources say the CFPB is leaning against subjecting banks to new rules capping the size and frequency of overdraft charges, but may instead focus on better disclosures and barring lenders from reordering transactions in a way that triggers overdraft. [6/5/15]

The CFPB released its results of a focus group study on reverse mortgage advertisements finding that many participants were left with false impressions or confusion about the product. Because of these findings, the CFPB is launching an advisory effort to warn consumers on this product. Expect more to follow with warning to reverse mortgage lenders. [6/5/15]

CFPB Director Richard Cordray issued a decision in the first appeal of a Bureau administrative enforcement proceeding against mortgage lender PHH upholding the January 2014 action. This action charged PHH with illegally referred consumers to mortgage insurers in exchange for kickbacks. PHH is required to avoid further violations and to pay $109 million to the Bureau. 6/5/15]