Congressional lawmakers are seeking ways to ease restrictions on payday loans and rescue the industry from what some lenders feel are onerous CFPB rules promulgated under past agency leadership. Sen. Lindsey Graham, R-SC, introduced a Congressional Review Act resolution to repeal the agency’s payday rule, and the House Financial Services Committee gave a green light to bank payday lending. The CFPB finalized its payday rule in October under former Director Richard Cordray with ...
After losing ground in a Real Estate Settlement Procedures Act interpretation in the PHH case, the CFPB lost the motion for reconsideration in another RESPA case, which carries further implications for the industry, attorneys said. The U.S. District Court for the Western District of Kentucky denied the CFPB’s motion to reconsider a decision in favor of Kentucky law firm Borders & Borders over allegations it illegally paid kickbacks under the RESPA statute. The significance of the case lies in the fact ...
House Financial Services Committee Chairman Jeb Hensarling, R-TX, has renewed his call for the Senate to negotiate with the House regarding several bills Republicans want to add to the regulatory relief package. The Senate earlier cleared S. 2155, which would roll back various parts of the Dodd-Frank Act and give relief to community banks, sending it to the House. But the GOP faithful in the House have their own bucket list of relief bills and want the Senate to negotiate with the goal of creating a final ...
The CFPB released its seventh annual debt collection report, signaling further coordination with the Federal Trade Commission to take an active approach in combating illegal practices by industry players. The CFPB shares enforcement responsibilities with the FTC under the Fair Debt Collection Practices Act. Acting Director Mick Mulvaney has said that roughly one-third of the consumer complaints received last year were tied to debt collection, which suggests where priorities should be set ...
Equifax, which is under investigation by the CFPB – and other government agencies – for a massive data breach that came to light last year, this week named investment banker Mark Begor to be its new CEO effective April 16. He will replace interim CEO Paulino do Rego Barros, who will step down but assist Begor as part of the transition. Back in the fall of last year, Barros was named interim CEO following the departure of several top executives at the credit rating agency after it was revealed a major ...
The U.S. Chamber of Commerce is siding with Republicans when it comes to changing the structure of the CFPB, favoring a shift to a bipartisan commission and Congressional control over the agency’s funding. The Chamber, a business-oriented lobbying group with strong ties to the GOP, outlined 23 recommendations in six categories, such as enforcement, supervision and education. The organization has long argued that the financial industry and consumers would benefit from substantial ...
Fannie Mae and Freddie Mac in the second half of last year saw a rapid growth of loans with high debt-to-income ratios, thanks in part to the so-called GSE patch. The government-sponsored enterprises enjoy a special exemption under the qualified mortgage rule of the Consumer Financial Protection Bureau. To achieve QM status, a loan must have a DTI ratio of 43 percent or less, but if a mortgage is sold to Fannie or Freddie, DTI ratios can be higher. In the second half of 2017, loans with DTI ratios ...
If the CFPB wants to make the civil investigative demand process less painful for companies, it might consider installing a high-level approval process before a CID even gets off the ground, according to another government agency – the Federal Trade Commission. The FTC late last week filed a comment letter on the CFPB’s request for information on CIDs, suggesting ways the agency can relieve the burden on investigative demand recipients. Mortgage lenders that have received one or more CIDs have ...
The CFPB late this month issued two more requests for information – one on the its inherited regulations, and another on bureau guidance and implementation support. Under the Dodd-Frank Act, the agency has the rulemaking authority for federal consumer financial laws previously vested in certain other federal agencies. The bureau is considering whether it should amend the regulations or exercise the rulemaking authorities it inherited. This RFI solicits public input on all aspects of ...
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