December 2013

In notices published in yesterday’s Federal Register, the CFPB adjusted the thresholds of the asset-size exemptions for collecting HMDA data and establishing an escrow account for certain mortgage loans under TILA.

Pursuant to Regulation C, which implements HMDA, depository institutions with assets below an annually adjusted threshold are exempt from HMDA data collection requirements.… Continue Reading

In a Form 8-K filed with the SEC on December 27, 2013, ITT Educational Services, Inc. disclosed that it has received a CFPB “early warning” letter stating that the CFPB’s Enforcement Office is considering recommending that the CFPB take legal action against ITT.  Such letters, which are sent pursuant to the CFPB’s discretionary Notice and Opportunity to Respond and Advise (NORA) process, are intended to allow the target of a CFPB investigation to respond to potential legal violations that the CFPB’s enforcement staff believes have been committed before the CFPB ultimately decides whether to bring an enforcement action. … Continue Reading

The CFPB has republished in today’s Federal Register a proposed new information collection titled “Development of Metrics to Measure Financial Well-being of Working-age and Older American Consumers.”  The proposed collection is intended to support the CFPB’s financial literacy initiatives.

Initially published in the Federal Register on August 8, 2013, the proposal contemplates the CFPB’s collection of quantitative data through surveys of working-age (age 18–61) and older American (age 62 and older) consumers. … Continue Reading

In the past two weeks, there has been considerable press coverage of settlements announced by the CFPB in several enforcement cases.  Since we strive to provide our blog readers with timely reports on important CFPB developments, we wanted to explain to our readers why, from time to time, our blog may not cover certain CFPB developments, such as the recent settlements. … Continue Reading

Last week, the CFPB announced that it has launched “a campaign to educate the public about the new protections provided by the Bureau’s mortgage rules.”   Consumers could, however, misinterpret the CFPB’s message as an encouragement to sue. 

The CFPB’s campaign consists of various educational materials. Among these materials is a factsheet on the new rules. … Continue Reading

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 to reconsider the practice. … Continue Reading

The CFPB has extended the period for filing comments on its proposed policy statement establishing standards for assessing the diversity policies and practices of regulated entities relating to employment and contracting with third parties.  The new deadline for filing comments is February 7, 2014. 

The proposal, which the CFPB issued jointly with the OCC, Fed, FDIC, NCUA and SEC, was developed by the CFPB’s and other agencies’ Offices of Minority and Women Inclusion (OMWI). … Continue Reading

The Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, the National Credit Union Administration, and the Office of the Comptroller of the Currency (the “Prudential Regulators”) have issued an Interagency Statement on Supervisory Approach for Qualified and Non-Qualified Mortgage Loans (the “Interagency Statement”). In anticipation of the January 10, 2014 effective date of the CFPB’s Ability to Repay and Qualified Mortgage (“QM”) Standards Rule (the “Rule”), the Interagency Statement seeks to clarify the Prudential Regulators’ safety and soundness and CRA expectations.… Continue Reading

Four Senate Democrats (Senators Boxer, Warren, Durbin and Reed) recently introduced a bill entitled the “Student Loan Borrower Bill of Rights.”  On March 1, 2014, the CFPB will begin overseeing servicers of federal and private student loans that qualify as “larger participants” and there is speculation that the bill was drafted with CFPB input.… Continue Reading

Earlier this week, the CFPB released its Financial Report for fiscal year 2013.  Like previous reports, the 2013 report is divided into two parts: one part contains management’s discussion and analysis and the other part contains the CFPB’s financial statements and note disclosures. 

Perhaps the most eye-catching numbers in the report are the CFPB employee numbers. … Continue Reading