August 2013

The CFPB published a “Notice of Ratification” in today’s Federal Register in which Director Cordray ratifies the actions he took prior to his confirmation by the Senate as CFPB Director.  In the notice, he states “I believe that the actions I took during the period I was serving as a recess appointee were legally authorized and entirely proper. … Continue Reading

On September 30, 2013, the CFPB will hold a forum in Washington, D.C. on financial products marketed to college students.  In January 2013, the CFPB issued a notice asking for input on a variety of issues with regard to these products, including the information shared between schools and financial institution providers, the way these products are marketed, the fee structures for these products, how these marketing arrangements are established, and student experiences with these products. … Continue Reading

The CFPB announced yesterday that it has launched a new initiative to help teachers and other public servants handle their student loan debts.

The initiative has two components: a toolkit for school districts, non-profits and other public service employers and a “public service pledge” for such employers to make. 

The toolkit is designed to help employers provide information about loan forgiveness programs to their employees. … Continue Reading

Federal regulators have issued their long-awaited revised qualified residential mortgage (QRM) proposal.  The proposal, which implements Section 941 of the Dodd-Frank Act, was issued jointly by the FDIC, Fed, OCC, SEC and, with respect to portions addressing residential mortgages, the FHFA and HUD (Agencies).  

Section 941 generally requires the retention by the sponsor of not less than 5% of the credit risk of assets that collateralize asset-backed securities (ABS). … Continue Reading

The CFPB has announced that its Consumer Advisory Board (CAB) will hold a meeting in Jackson, Mississippi on September 18, 2013.  The CFPB’s flyer for the event states that “CAB members will engage with invited community and industry panelists and facilitate a conversation about innovative strategies to improve consumer access to credit, information and financial resources.” … Continue Reading

Despite the pending settlement discussions, the Township of Mount Holly has filed
its opening brief in the U.S. Supreme Court.  The question presented in Township of Mount Holly v. Mt. Holly Gardens Citizens in Action, Inc. is whether disparate impact claims are cognizable under the Fair Housing Act (FHA).  In the case, the Township’s plan to redevelop a residential area was challenged as having a disparate adverse impact on minorities. … Continue Reading

Earlier this month, we reported that the CFPB had proposed a new generic information collection clearance titled “Generic Clearance for Consumer Complaint and Information Collection System (Testing and Feedback).”  In a comment letter responding to the proposal, the American Bankers Association urges the CFPB to withdraw, or the Office of Management and Budget (OMB) to deny, the generic clearance request. … Continue Reading

Visitors to Morgan Drexen’s website can now click through to a page that allows them to see information about Morgan Drexen’s lawsuit filed in Washington, D.C. against the CFPB, as well as other information intended to support Morgan Drexen’s position.  As we reported last week, the CFPB responded to the lawsuit by filing its own action against Morgan Drexen in a California federal district court. … Continue Reading

The CFPB announced today that the following individuals are joining its leadership team: 

  • Cheryl Parker Rose to serve as Assistant Director for the Office of Intergovernmental Affairs.  Most recently, Ms. Rose was Deputy Director of U.S. Government Relations for the Bill and Melinda Gates Foundation, and from 2007 to 2010 she was Senior Advisor and Director of Intergovernmental Affairs for Speaker Nancy Pelosi.
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The CFPB has released its financial update for the third quarter of FY 2013 (April 1-June 30, 2013).  Although the CFPB’s FY 2013 budget was based on funding 1,214 employees, the update indicates that the CFPB had 1,226  employees as of June 30.  

In the update, the CFPB reports that the obligations it incurred during the third quarter included:

  • $6.7 million for maintaining operations of the CFPB’s consumer contact center and enhancements to the case management database
  • $3.6 million to continue implementing a tool for reviewing loan and deposit portfolios for compliance with federal consumer financial laws
  • $1.2 million for management and consulting services for the CFPB’s Office of Consumer Response 

Under Dodd-Frank, the CFPB is entitled to approximately $598 million in funding from the Fed in FY 2013. … Continue Reading