Links in “CFPB”

The Consumer Financial Protection Bureau (CFPB) took enforcement action Thursday against ACE Cash Express, one of the United State's largest payday lenders. ACE Cash Express was charged with pushing payday borrowers into a cycle of debt through illegal debt collection tactics including harassment and false threats of lawsuits or criminal prosecution. ACE will pay $5 million in refunds and another $5 million as penalty for these violations. [7/11/14]

The CFPB is reportedly taking a hard look at regulations to govern the use of Bitcoin and other crypto-currencies.  Despite increasing concerns for the risk to consumers, industry experts, however, say that the agency’s authority to regulate digital currency is not clear. [7/9/14]

Today, the Consumer Financial Protection Bureau (CFPB) is issuing an interpretive rule to clarify that when a borrower dies, the name of the borrower’s heir generally may be added to the mortgage without triggering the Bureau’s Ability-to-Repay rule. [7/9/14]

With any new currency, the question arises, "Should the CFPB regulate it?" However, the jury is out on the benefits of government regulation of Bitcoin because, as one writer explained, its great success might have come from the very fact that it was and is unregulated. Will regulation halt its progress or give it a wider appeal to consumers? [7/8/14]

The CFPB has been very clear about the requirements for qualified mortgages. So what about non-QM loans? Well, they happen to be one of the most profitable ventures for lenders, and therefore lenders are trying to figure out how to do this kind of lending safely. [7/7/14]

Inspector general is estimating the cost of the CFPB's renovations, which calls for a waterfall and a tree-shaded reflecting pool as a "place of rest and contemplation," to come in at around $216 million, which is generating some attention in Congress. [7/3/14]

A GAO report released on June 26 discussed the potential risks and benefits for consumers. According to the GAO, the risks facing consumers include lack of bank involvement (and thus the protections from the FDIC and other insurers), limits on financial recourse in the event that the virtual currency account is hacked, and volatile prices. The report found that addressing the risks associated with virtual currencies such as Bitcoin and other crypto currencies will require interagency collaboration, including a stronger presence from the CFPB. [7/3/14]

CFPB's Office of Minority and Women Inclusion director tells conference attendees that though the timeframe for the release of final standards is unknown, financial institutions should "start now" to take compliance steps. [6/30/14]

NCUA announced yesterday that it has developed a new webpage to assist credit unions with compliance to the new mortgage rules and other consumer lending regulations. The site provides consolidated information from NCUA, CFPB, FFIEC and other regulatory agencies and can be accessed here. [6/27/14]

While the U.S. Supreme Court invalidated President Obama's 2012 recess appointments to the National Labor Relations Board, on the grounds that such appointments can only be made to fill vacancies that arose during the recess, the ruling won't impact CFPB's Director Cordray, even though he was appointed on the same day and in the same way as the NLRB appointments. Here's why. [6/27/14]