examination procedures

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On October 17, the FDIC released revised interagency Military Lending Act (MLA) examination procedures for use in connection with consumer credit transactions occurring on or after October 3, 2016. The revised procedures reflect the Department of Defense’s July 2015 final rule and August 2016 interpretive rule and appear consistent with those released by the CFPB and FFIEC last month.… Continue Reading

The Office of the Comptroller of the Currency has released revised TILA and RESPA chapters of its examination manual for consumer compliance exams.  The revised chapters incorporate the detailed procedural and substantive requirements of the CFPB’s TILA/RESPA integrated disclosures (TRID) rule, which is set to go into effect on August 1, 2015. … Continue Reading

In conjunction with issuing its final “larger participant” rule for student loan servicers last week, the CFPB also revised its education loan examination procedures.  The revisions are intended to provide more extensive guidance for examiners to follow when examining student loan servicing by entities subject to the CFPB’s supervisory authority, whether banks or private student loan lenders who are already subject to CFPB supervision or servicers who will be subject to CFPB supervision as “larger participants” effective March 1, 2014.  … Continue Reading

The CFPB has issued its examination procedures for student lenders.  The procedures will be used by the CFPB’s examiners in examinations of large banks that make private student loans (meaning banks with total assets of more than $10 billion), nonbank private student lenders and service providers to such entities. The procedures consist of a series of modules that address topics such as advertising and marketing, qualification and origination, servicing, consumer complaints and collections.  … Continue Reading

Today, the CFPB proposed a rule setting up procedures for supervising non-banks that the CFPB believes are engaging in, or may have engaged in, activities that pose risks to consumers. Under the Dodd-Frank Act, the CFPB has authority to supervise any nonbank that it has reasonable cause to determine is engaging in, or has engaged, in conduct that poses risks to consumers with regard to the offering or provision of consumer financial products or services based on complaints and any other information it receives.… Continue Reading

On April 13, 2012, the Consumer Financial Protection Bureau (CFPB) released Bulletin 2012-03, which stated that the CFPB will expand its examination scope beyond supervised institutions themselves and examine their service providers as well.  If the CFPB believes that service providers are not complying with a consumer financial services law, or are committing a UDAAP violation when interacting with the supervised institution’s customers, the CFPB plans to hold both companies accountable.… Continue Reading

We’ve taken a look at the CFPB’s just-issued Short-Term, Small-Dollar Lending Examination Procedures, the latest update to the CFPB’s larger Supervision and Examination Manual, and think there are several noteworthy highlights.

The procedures apply broadly to both closed-end and open-end loans that involve small dollar amounts, short-term repayment periods and lender access to the borrower’s deposit account for repayment.… Continue Reading

Prepared remarks delivered by Richard Cordray at the CFPB’s field hearing on payday lending today in Birmingham, Alabama identify some of the initial issues on which the CFPB will likely be focusing. Mr. Cordray indicated that the CFPB plans to “dig deep” on the topic of “repeated long-term use of payday loans” and described a situation reported by a consumer where “not enough is left to pay other bills” because “the payday lender takes the money directly from the consumer’s checking account.”… Continue Reading

Since this is my first post to the CFPB Monitor, I would like to begin with a few words of introduction. My name is John Socknat and I am one of the practice leaders of Ballard Spahr’s new Mortgage Banking Group. The Group’s attorneys have decades of experience in the mortgage industry—advising clients, handling transactions and due diligence, defending enforcement actions and providing a full range of legal services.… Continue Reading