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Category Archives: CFPB Exams

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Senators introduce bill to increase “large bank” asset threshold for CFPB supervision

Posted in CFPB Exams

A bipartisan bill (S. 2732) has been introduced by Republican Senator Pat Toomey and Democratic Senator Joe Donnelly to increase the asset threshold for “large banks” that are subject to CFPB supervision. The current threshold is total assets of more than $10 billion.  Entitled the “Consumer Financial Protection Bureau Examination and Reporting Threshold Act of… More >

CFPB highlights unlawful practices by consumer reporting agencies, debt collectors and payday lenders

Posted in CFPB Exams, Credit Reports, Debt Collection, Fair Lending, Payday Lending

In its Spring 2014 Supervisory Highlights report issued yesterday, the CFPB highlighted deficiencies and violations it found during examinations of consumer reporting agencies (CRAs), debt collectors and payday lenders.  The CFPB has authority to examine entities that qualify as “larger participants” under the final rules it adopted to supervise participants in the debt collection and… More >

OIG finds CFPB’s supervision program needs improvement

Posted in CFPB Exams

Earlier this week, the results of an evaluation of the CFPB’s supervision program conducted by the Office of Inspector General (OIG) that the CFPB shares with the Fed were released in a report entitled “The CFPB Can Improve the Efficiency and Effectiveness of Its Supervisory Activities.”  The report is based on data in the CFPB’s Supervisory… More >

CFPB official confirms larger participant rule for auto finance coming soon

Posted in Arbitration, Auto Finance, CFPB Exams

Today is the final day of CBA Live 2014, which is being held at the Gaylord Hotel in National Harbor, MD.  I spoke at a program yesterday about the CFPB’s ongoing arbitration study under Section 1028 of Dodd-Frank.  Based on the CFPB’s December 12, 2013 partial release of data, I have predicted that the CFPB will, at a minimum,… More >

CFPB supervisory report highlights exam report changes, non-public supervisory actions and mortgage servicing deficiencies

Posted in CFPB Enforcement, CFPB Exams, Mortgages

Last month, the CFPB began using new templates for its examination reports and supervisory letters (collectively, “reports’).  The template changes were announced in the CFPB’s Winter 2013 Supervisory Report, which highlights supervision work completed between July and October 2013.  CFPB examiners (who numbered approximately 320 as of January 2, 2014) began using the new templates for… More >

CFPB issues proposal to supervise “larger participant” international money transfer providers

Posted in CFPB Exams, Remittance Transfers

We had been expecting the CFPB’s next “larger participant” proposal to be a rule for the auto finance market.  Instead, the CFPB issued a proposed rule yesterday that would allow it to supervise nonbank international money transfer providers that qualify as “larger participants” in the international money transfer market.  The proposal is based on the… More >

OIG issues report criticizing CFPB’s practice of bringing enforcement attorneys to exams

Posted in CFPB Enforcement, CFPB Exams

Effective this past November 1, the CFPB ended its controversial practice of having enforcement attorneys regularly participate in examinations of supervised entities.  Since first learning of the CFPB’s practice, we had expressed our deep concern about the practice’s inhibiting effect on free and open communications between the CFPB and supervised entities and urged the CFPB… More >

CFPB revises student loan examination procedures

Posted in CFPB Exams, Student Loans

In conjunction with issuing its final “larger participant” rule for student loan servicers last week, the CFPB also revised its education loan examination procedures.  The revisions are intended to provide more extensive guidance for examiners to follow when examining student loan servicing by entities subject to the CFPB’s supervisory authority, whether banks or private student… More >

CFPB updates TILA and RESPA exam procedures

Posted in CFPB Exams, Mortgages

On November 27, the CFPB released further updates to its Truth in Lending Act and Real Estate Settlement Procedures Act examination procedures.  The updates reflect October 2013 amendments to the CFPB’s mortgage rules that take effect next month.  The amendments were published in the Federal Register on October 23, 2013.  

CFPB will stop bringing enforcement attorneys to exams

Posted in CFPB Enforcement, CFPB Exams

Politico has reported that, effective November 1, the CFPB will end its practice of having enforcement attorneys regularly participate in examinations of supervised entities. According to the report, Director Cordray announced the change on a conference call with CFPB examiners. The report indicated that a CFPB spokeswoman attributed the change to an internal review that… More >

OIG provides update on CFPB projects

Posted in CFPB Enforcement, CFPB Exams

The updated work plan as of August 30, 2013 of the Office of Inspector General (OIG) for the Fed and CFPB describes various CFPB projects that are “in progress” or “planned.”  The projects listed as “work in progress” items include: Evaluation of the CFPB’s integration of enforcement attorneys into examinations.  The CFPB’s practice of bringing… More >

CFPB supervisory report highlights deficiencies in mortgage servicing, compliance management systems and fair lending compliance

Posted in CFPB Exams, Mortgages

Although its new mortgage servicing rules are not effective until January 10, 2014, the CFPB seems to already be using those rules as guideposts in its examinations of servicers.  In its Summer 2013 Supervisory Highlights, which highlights supervision work completed between November 2012 and June 2013, the CFPB focuses on deficiencies in mortgage servicing at… More >

CFPB issues ECOA baseline review procedures for examiners

Posted in CFPB Exams, Fair Lending

The CFPB has issued “ECOA Baseline Review Procedures” to be used by its examiners.  (The CFPB has labeled the procedures “guidance” and did not add them to its Supervision and Examination Manual.)  The procedures consist of six “baseline review modules” for examiners to use “during ECOA baseline reviews to identify and analyze risks of ECOA violations,… More >

Breaking News! Insurers sue HUD regarding disparate impact

Posted in CFPB Enforcement, CFPB Exams, CFPB General, Fair Lending, Hot Issues, Mortgages

We just heard that a lawsuit was filed today in Federal District Court in DC challenging HUD’s final rule stating that the disparate impact theory will apply in assessing whether a company has complied with the Fair Housing Act. Here is the complaint. The outcome of this case could result in a court holding that… More >

CFPB releases exam procedures for new mortgage rules

Posted in CFPB Exams, CFPB Rulemaking, Mortgages

This week, the CFPB published an update to its examination procedures to account for the new mortgage regulations going into effect in January 2014.  The update includes Interim TILA Examination Procedures and Interim ECOA Examination Procedures, which address the subject matter areas listed below.  According to the CFPB’s press release, the updated exam procedures were… More >

CFPB and Conference of State Bank Supervisors sign framework for coordinating supervision and enforcement

Posted in CFPB Enforcement, CFPB Exams

The CFPB announced earlier this week that it has established a “framework” with the Conference of State Bank Supervisors (CSBS)  for coordination among the CFPB and state regulators on supervision and enforcement matters.  The framework states that it is “intended to establish a process for coordinated federal/state consumer protection supervision and enforcement of entities providing consumer… More >

Notes from CFPB Education Conference for State Attorneys General

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

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

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 recruiting more examiners

Posted in CFPB Exams

The sequester does not appear to be putting a crimp in the CFPB’s recruiting efforts.   A new post on the CFPB’s blog announces that the Bureau is recruiting examiners for its supervision team to conduct examinations of banks and nonbanks.  Interested candidates must apply by March 22.  The CFPB’s recruiting campaign could be an indication that… More >