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Category Archives: CFPB Enforcement

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CFPB settles RESPA enforcement action involving affiliated business arrangements

By Richard J. Andreano, Jr., on Posted in CFPB Enforcement, Mortgages

The CFPB has announced the settlement of an enforcement action in which it was alleged that two affiliated business arrangements (ABAs) violated Section 8 of the Real Estate Settlement Procedures Act.   The arrangements involved two mortgage origination companies created by a Texas homebuilder who owned one company  together with a bank and the other company together with… More >

Notes from CFPB Education Conference for State Attorneys General

By Reid F. Herlihy on Posted in CFPB Enforcement, CFPB Exams, CFPB Rulemaking

The George Mason University School of Law, Law & Economics Center recently hosted a conference titled “Understanding the Consumer Financial Protection Bureau,” through GMU’s Attorneys General Education Program.  Founded in 2009, the program was created to provide economic and public policy educational programming to state attorneys general and their staff attorneys from across the country. … More >

What is the CFPB thinking? An update from PLI’s 18th Annual Consumer Financial Services Institute

By Stefanie Jackman on Posted in CFPB Enforcement, CFPB Exams

Last week, I had the opportunity to hear several high-ranking lawyers with the CFPB speak at PLI’s 18th Annual Consumer Financial Services Institute in Chicago.  As an initial matter, the attendees owe a debt of thanks to each of CFPB lawyers for taking the time to attend the seminar, which Alan Kaplinsky co-chaired.  I know… More >

The S.G.’s Cert. Petition in Noel Canning; No Opposition Will Be Filed

By Keith R. Fisher on Posted in CFPB Enforcement, CFPB People, Recess Appointment, Richard Cordray

As reported in last week’s news flash, the Solicitor General (S.G.), as expected, has, on behalf of the NLRB, filed in the Supreme Court a petition for a writ of certiorari to the D.C. Circuit in the Noel Canning case. As we have noted previously, the Noel Canning decision, which invalidated the recess appointments of… More >

The role of CFPB enforcement attorneys at exams: the picture is getting clearer

By Alan S. Kaplinsky on Posted in CFPB Enforcement, CFPB Exams

Remarks made by Ori Lev, the CFPB’s Deputy Enforcement Director for Litigation, at the ABA Consumer Financial Services Committee’s spring meeting last week further clarified the role of CFPB enforcement attorneys in CFPB exams. His remarks, coupled with comments made by another CFPB official at the Committee’s winter meeting, leave no doubt that the enforcement… More >

CFPB announces settlement of four enforcement actions against mortgage insurers

By Richard J. Andreano, Jr., on Posted in CFPB Enforcement, Mortgages

The CFPB announced the settlement of enforcement actions brought in federal district court in Florida against four national  mortgage insurers involving allegations that the insurers paid kickbacks to mortgage lenders in violation of Section 8 of the Real Estate Settlement Procedures Act. The alleged kickbacks were paid through captive reinsurance arrangements in which the mortgage… More >

Auto finance: can we really call disparate impact “discrimination”?

By Christopher J. Willis on Posted in CFPB Enforcement, Fair Lending, Vehicle Loans

I want to thank Jeff Sovern over at the Public Citizen Consumer Law & Policy Blog for having an interesting back-and-forth with me over the last week about the application of the disparate impact theory of liability to dealer finance charge participation in the auto sales finance context.  We’ve been debating whether the CFPB’s announced… More >

How the CFPB’s stance on ECOA in auto finance will raise consumer prices

By Christopher J. Willis on Posted in CFPB Enforcement, Fair Lending, Hot Issues, Vehicle Loans

Ever since the CFPB’s release of its bulletin relating to disparate impact analysis of dealer rate participation last week, the press and consumer advocacy groups have been buzzing about the Bureau’s stance and its potential impact on the industry and consumers.  Alan Kaplinsky and I previously blogged about the bulletin and its associated issues here, here… More >

Auto dealer trade groups question CFPB guidance

By Alan S. Kaplinsky on Posted in CFPB Enforcement, Fair Lending, Vehicle Loans

It seems two major auto dealer trade groups share my doubts about whether the CFPB’s position on dealer rate participation will really help car buyers.  In a statement responding to CFPB Bulletin 2013-02,  the National Automobile Dealers Association and the National Association of Minority Automobile Dealers assert that the CFPB guidance “attempts to force auto… More >

The CFPB previews its coming auto finance fair lending enforcement actions

By Christopher J. Willis on Posted in CFPB Enforcement, Fair Lending, Hot Issues, Vehicle Loans

Earlier today, the CFPB released its guidance bulletin with respect to automobile indirect finance fair lending issues.  The bulletin’s intent is unmistakably clear from the accompanying press release’s tag line: “CONSUMER FINANCIAL PROTECTION BUREAU TO HOLD AUTO LENDERS ACCOUNTABLE FOR ILLEGAL DISCRIMINATORY MARKUP.”  The bulletin is, in my view, a prelude to the fair lending… More >

OIG to look at presence of CFPB enforcement attorneys in exams

By Alan S. Kaplinsky on Posted in CFPB Enforcement, CFPB Exams

The CFPB’s practice of bringing enforcement attorneys to examinations has been a continuing concern for industry.  In particular, supervised entities worry that the participation of enforcement attorneys in examinations inhibits free and open communication, and signals the CFPB’s intention to use the examination process as a development ground for enforcement actions.   We were pleased to… More >

The CFPB Stretches ECOA Past the Breaking Point with Auto Finance

By Christopher J. Willis on Posted in CFPB Enforcement, Fair Lending, Vehicle Loans

 In a story released last night, Carter Dougherty at Bloomberg reports that the CFPB has warned “at least four banks” that it may take enforcement action against them under ECOA, alleging that a “policy” of “allowing” dealers to negotiate contract APRs with retail buyers had a disparate impact in the pricing of retail installment sale… More >

CFPB plans for sharing information with state AGs unchanged in final disclosure rule

By Barbara S. Mishkin on Posted in CFPB Enforcement

In its final rule on Disclosure of Records and Information published last week, the CFPB gave no ground on its position that it has discretionary authority to share confidential information with state attorneys general.   This has been a significant concern to industry since the rule was published as an interim final rule in July 2011. … More >

Chamber of Commerce suggests improvements for CFPB exams and investigations

By Alan S. Kaplinsky on Posted in CFPB Enforcement, CFPB Exams

In a letter sent last week to Director Cordray, the Chamber of Commerce’s Center for Capital Markets Competitiveness suggested several steps “based upon the actual experiences of numerous individual businesses” for the CFPB to take “to eliminate inefficiency and unjustified burdens in connection with its supervision and investigatory processes.” In the area of investigations, the… More >

CFPB announces partnership with Navajo Nation

By Barbara S. Mishkin on Posted in CFPB Enforcement, Payday Lending

Having previously announced partnerships with the Cities of Chicago and Newark, the CFPB  has now announced its first partnership with a tribal government—the Navajo Nation.   A Memorandum of Understanding between the CFPB and the Navajo Nation Department of Justice addresses the mechanics of the information sharing, such as how the CFPB will respond to third… More >

Remarks of Kent Markus at DBA Annual Conference

By Alan S. Kaplinsky on Posted in CFPB Enforcement, Debt Collection

While attending this year’s DBA International Annual Conference, I had the opportunity to hear remarks from Kent Markus, the CFPB’s Director of Enforcement, regarding the CFPB’s approach to enforcement actions generally, as well as with regard to the debt buying industry.    Mr. Markus began his remarks by stating that the CFPB “believes that people should… More >

The CFPB and privilege: the fight isn’t over

By Steven D. Burt and Daniel JT McKenna on Posted in CFPB Enforcement, CFPB Exams

We blogged recently about H.R. 4014, which President Obama signed into law near the end of 2012.  The law identifies the CFPB as a regulator to whom a regulated entity may submit privileged information without waiving any state or federal law privilege and provides that the CFPB may share privileged information of a regulated entity with other… More >

CFPB reports new investigation

By Alan S. Kaplinsky on Posted in CFPB Enforcement

Yet another panel discussion at the ABA Consumer Financial Services Committee just held in Naples, Florida, entitled “Preparing for CFPB Exams and Enforcement” involved two speakers from the CFPB: Kristen Donaghue, a lawyer in the Office of Enforcement, and Calvin Hagins, Assistant Regional Director, Southwest Region. Ms. Donaghue described the CFPB enforcement actions and investigations… More >

More on enforcement attorneys and supervisory exams

By Trevor Salter on Posted in CFPB Enforcement, CFPB Exams

The discussions at the ABA Consumer Financial Services Winter Meeting have reached biblical proportions (literally).  The participants on yesterday’s CFPB Exams and Enforcement panel read from the New Testament on “ravening wolves in sheep’s clothing” (later clarified as NOT a reference to CFPB enforcement attorneys) and how the “wise man built his house upon a… More >

CFPB has launched investigations arising out of warning letters issued to mortgage lenders and brokers

By Alan S. Kaplinsky on Posted in CFPB Enforcement

We previously reported that the Bureau had sent warning letters to many mortgage originators and brokers chastising them about certain advertising practices.  Yesterday, at the ABA Consumer Financial Services Committee meeting, Chris Peterson (a policy analyst in the Bureau’s enforcement division) mentioned during his presentation that the Bureau has launched investigations of some recipients of these letters…. More >