August 2012

UniversityRecent remarks by Rohit Chopra, the CFPB’s Student Loan Ombudsman, to the Congressional Forum on Student Loans and in an interview with Bloomberg Radio could presage new CFPB student loan recommendations to Congress or even CFPB examinations, investigations, and/or rulemaking proceedings. 

In his remarks to the Congressional Forum, Mr. Chopra analogized student loan borrowers who did not receive the value they expected for their loans to “underwater” homeowners.… Continue Reading

Last week, we reported that Leonard Chanin was leaving his position as Assistant Director for Regulations at the CFPB to return to private practice. His departure has now been officially announced by Director Cordray, together with a series of staffing changes.  Among those changes is that Kelly Thompson Cochran, who has been serving as the CFPB’s Deputy Assistant Director for Regulations, will assume Leonard’s responsibilities and serve as the Acting Assistant Director for Regulations. … Continue Reading

Leonard Chanin, Assistant Director of the CFPB’s Office of Regulations, is leaving the CFPB to return to private practice.  

Leonard’s departure comes at a critical time because of the myriad of regulations the CFPB must finalize by January 21 of next year. Before joining the CFPB, Mr. Chanin worked in the Fed’s Division of Consumer and Community Affairs, where he served as the Division’s Deputy Director, and he was among the more senior of the Division’s attorneys who moved to the CFPB.  … Continue Reading

It appears a flat loan origination fee requirement wasn’t such a good idea after all.  That’s the conclusion the CFPB came to in its proposal issued on August 17 to integrate the Dodd-Frank mortgage loan originator compensation provisions with the existing Regulation Z provisions, and implement Dodd-Frank loan originator requirements. 

We have prepared a legal alert that discusses the proposal and how it differs from the CFPB’s description in May of the issues it was then considering.… Continue Reading

The CFPB has indicated on its website that it is reanalyzing sample loan level data that was the basis for various results contained in the CFPB’s report to Congress on private student loans issued in July

According to the “research note” that now accompanies the report, the CFPB was informed by the lenders who provided the sample lender loan level data that the manner in which the CFPB analyzed certain data could produce incomplete results unless supplemented by other fields in the dataset. … Continue Reading

The CFPB’s decision to provide an exemption for institutions that conduct 100 or fewer remittance transfers per year in its recently-issued final supplementary remittance transfer rule has not abated concerns about the compliance costs facing institutions that provide remittance services. 

In an August 16 letter to CFPB Director Cordray, 32 House members urge the CFPB to delay the effective date of the remittance rule (now set for February 7, 2013) by two years until February 2015.… Continue Reading

The CFPB intends to determine whether certain provisions of Maine and Tennessee laws relating to unclaimed gift cards are preempted by federal law on gift card expiration dates.  The CFPB’s rulings will represent the agency’s first preemption determinations.  According to the CFPB’s “notice of intent to make preemption determination” submitted for publication in the Federal Register, the Tennessee determination was requested by payment card industry representatives and the Maine determination was requested by Maine’s Office of the State Treasurer.  … Continue Reading

ScaleThe CFPB, jointly with the FTC and Justice Department, has filed an amicus brief in the U.S. Supreme Court supporting the consumer’s position in Marx v. General Revenue Corp.  In May, the Supreme Court agreed to hear the case and decide whether the Fair Debt Collection Practices Act allows an award of costs to the prevailing defendant even without a finding that the suit was filed by the plaintiff in bad faith and for the purpose of harassment.… Continue Reading

The CFPB has issued two new proposals dealing with mortgage appraisals that implement provisions of the Dodd-Frank Act.  One of the proposals would amend Regulation B (Equal Credit Opportunity Act) to require lenders to provide to a first lien mortgage applicant a copy of all written appraisals and valuations developed in connection the application. … Continue Reading