July 2013

The American Bankers Association  and the Mortgage Bankers Association have sent a letter to the CFPB asking it to reconsider the applicability of the final Equal Credit Opportunity Act (ECOA) appraisal rule to business credit.  The rule applies to loan applications received on or after January 18, 2014.  It implements a Dodd-Frank amendment to the ECOA that requires creditors to provide to an applicant for a loan secured by a first lien on a residential structure containing one to four units a copy of all written appraisals and valuations developed in connection with the application. … Continue Reading

It looks like the court is finally set to rule on the CFPB’s motion to dismiss in State National Bank of Big Spring, Texas, et al. v. Lew, et al., the case still pending in federal district court in Washington, D.C. that included a challenge to President Obama’s recess appointment of Richard Cordray. … Continue Reading

On July 25, the Senate Appropriations Committee approved report language for the FY 2014 financial services appropriations bill that “directs the Bureau to provide an informal, non-public full briefing, at least annually, before the relevant Appropriations subcommittee on the Bureau’s finances and expenditures.”  The language was authored by Republican Senator Susan Collins and all Democratic Committee members other than Senators Tim Johnson and Tom Harkin voted for the language.  … Continue Reading

Earlier this month, the CFPB issued a proposal to clarify the application of the Regulation Z prohibition on financing credit insurance premiums (Section 1026.36(i)) to transactions in which credit insurance premiums are charged periodically rather than added as a lump sum at closing.

The proposal, which fell short of industry expectations that the CFPB would clarify that level and levelized premiums are outside the prohibition’s scope, has generated several comment letters urging the CFPB to revise its proposal.… Continue Reading

As we previously reported, settlement discussions are underway in Township of Mount Holly v. Mt. Holly Gardens Citizens in Action, Inc.  On June 17, the U.S. Supreme Court granted certiorari in the case and agreed to decide whether disparate impact claims are permissible under the Fair Housing Act. 

According to a Politico report, the Township of Mount Holly has hired Washington, D.C.… Continue Reading

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, to facilitate the identification of certain types of ECOA and Regulation B violations, and to inform fair lending prioritization decisions for future CFPB reviews.” … Continue Reading

As we reported earlier this year, the CFPB was actively investigating a company called 3D Resorts-Bluegrass, LLC for possible violations of the Interstate Land Sales Full Disclosure Act (ILSA). While the CFPB did not publicly announce this investigation, which is the first involving potential ILSA violations, the investigation was disclosed in a proof of claim filed in the U.S.… Continue Reading

David Silberman, the CFPB’s Associate Director of Research, Markets and Regulations, made the CFPB’s April 2013 white paper on payday and deposit advance loans the focus of his testimony at the hearing held on July 24 by the Senate’s Special Committee on Aging entitled “Payday Loans: Short-term Solution or Long-term Problem?”  … Continue Reading

The Eighth Circuit has now joined the Tenth Circuit in ruling that notice alone
within the three-year period is insufficient to validly exercise a right to rescind. 

In its decision issued on July 12, 2013 in Keiran v. Home Capital, Inc., the Eighth Circuit rejected the borrowers’ argument that they had validly rescinded their mortgage loan by sending a notice of rescission to the bank within the three-year period. … Continue Reading