August 2011

The National Consumer Law Center seems to be urging the CFPB to adopt a “Hotel California” approach to its supervision of larger participants. Referred to as the “Hotel California” provision, the Dodd-Frank Act provides that large bank holding companies that accepted TARP money remain subject to Fed supervision even if they give up their BHC status.… Continue Reading

On August 19, 2011, the CFPB announced its “Policy on Ex Parte Presentations in Rulemaking Proceedings,” and posted that policy on its web site.  The rule essentially requires anyone who communicates with the CFPB about a pending rulemaking to submit a written copy of the presentation (or a summary of an oral presentation) on the public rulemaking record within three days after the communication to the CFPB. … Continue Reading

Banks that offer mortgage products are being buried in new regulations that are straining their compliance capabilities, increasing their costs and, for community banks, threatening the viability of their entire business model. That’s the message the American Bankers Association tried to send in its recent letter to Raj Date, President Obama’s replacement for Elizabeth Warren as Special Advisor to the Treasury Secretary on the CFPB.… Continue Reading

According to an announcement on its website, the CFPB has signed an agreement with the FTC that not only allows the CFPB to access complaints on the FTC’s Consumer Sentinel database but under which the CFPB will also share with the database complaints it receives from consumers. In addition to the FTC, the database can be accessed online by more than 50 other federal agencies and offices as well as approximately 120 state agencies, 330 local agencies and 19 foreign agencies.… Continue Reading

As a brand-new federal agency, and one whose mission unquestionably involves interaction with the public, the CFPB has fully embraced communication tools like Facebook, Twitter and YouTube.  The Bureau has been making “friends” with people at a rate that would make even the most industrious teenagers jealous:  it has been “liked” over 8,800 times on Facebook and is being followed by almost 7,000 people on Twitter. … Continue Reading

In my post dated August 8, 2011, I took the CFPB to task for saying in its recent Progress report that it had entered into a MOU with the FTC when it had not done so according to Joel Winston, Associate Director of the Division of Financial Practices. I recently learned that the CFPB has entered into a MOU with the FTC, HUD, and DOJ regarding fair lending issues, but that it has not entered into a MOU with the FTC covering broader enforcement issues. … Continue Reading

One of the Interim Final Rules released by the CFPB, Disclosure of Records and Information Rules, sets forth the CFPB’s position with regard to sharing information that it gathers and obtains though its activities. 

The Rule begins by defining much of the information received or generated by the CFPB as “confidential” – including consumer complaint-related information, “investigative” information obtained through the Bureau’s investigative processes, and “supervisory” information generated by the CFPB’s (or any other entity’s) supervision of financial institutions.… Continue Reading