July 2011

Less than two weeks after Obama nominated Richard Cordray for CFPB Director, Elizabeth Warren has swept out of town and returned to Harvard.  Meanwhile, Cordray has not made any public announcements, posted comments about his nomination on the CFPB’s website, or otherwise been heard from in any significant way.  He seems determined to stay quiet until at least his August 4th Senate confirmation hearing.… Continue Reading

The Senate Committee on Banking, Housing and Urban Affairs has scheduled a confirmation hearing at 2 pm on August 4 to consider President Obama’s appointment of Richard Cordray as the Director of the CFPB. Since 44 Republican Senators have already vowed to oppose the nomination, one wonders why the Committee would even go through this exercise in apparent futility, particularly when Congress still has not resolved the debt ceiling crisis.… Continue Reading

TransparencyIn Barbara Mishkin’s post on July 25, she questioned why the CFPB’s online questionnaire to be used by cardholders submitting complaints about their card issuers asks the leading question, “Do you believe the issue involved discrimination?”

I have recently learned that, while the CFPB intends to share with card issuers the cardholders’ answers to all other questions contained in the questionnaire, it has refused to let card issuers know the answer to the discrimination question. … Continue Reading

The Treasury Department issued a press release announcing that Raj Date will replace Elizabeth Warren as Special Advisor to the Secretary of the Treasury on the CFPB, effective August 1. A blog I read understands that Mr. Date will replace Professor Warren as Special Advisor to the President.

Critics of the current structure of the Bureau—including this author—believe that Dodd-Frank concentrates far too much power in a single unelected official.… Continue Reading

That’s the question state-licensed and state-chartered mortgage lenders (state housing creditors) should be asking in light of the CFPB’s interim final rule which became effective July 22, 2011. Because the rule significantly narrows the preemption available under the Alternative Mortgage Transaction Parity Act (AMTPA), the answer to this question could be “no” for many mortgage products now offered by state housing creditors.… Continue Reading

I am often asked whether I think that the CFPB will issue a reg banning the use of arbitration in consumer financial services contracts.  Elizabeth Warren made clear her negative views of arbitration.  And, the hiring of Deepak Gupta (the plaintiff’s attorney in AT&T Mobility LLC v. Concepcion) by the CFPB’s Office of General Counsel certainly raises additional concerns. … Continue Reading

Credit ScoresTwo days before its July 21 debut, the CFPB released a report on credit scores  that describes the industry and credit scoring process, examines the ways credit scores are obtained and used, and discusses the differences between scores obtained by consumers and creditors..  Dodd-Frank required the CFPB to study those differences and whether they disadvantage consumers. … Continue Reading

Credit CardsWhen the CFPB officially opened its doors for business on July 21, it also began taking credit card complaints from consumers on its redesigned Web site.  Much of the information requested by the on-line complaint form is straight-forward: name, credit card number, name of bank, a description of “the issue,” and whether the consumer has contacted the bank, hired an attorney, or taken certain other actions to try to resolve the issue. … Continue Reading