A legal argument by the CFPB in a Fair Debt Collection Practices Act case, Marx v. General Revenue Corp., was recently rejected by the Supreme Court of the United States. The SCOTUS ruled that a prevailing defendant can recoup costs even if there is not a court finding that the plaintiff filed suit in bad faith and for the purpose of harassment. In this case, petitioner Marx filed suit, alleging that General Revenue Corp. (GRC) violated the FDCPA by harassing and falsely threatening her in order to collect on...

The National Association of Federal Credit Unions urged the CFPB to make sure the bureau’s integrated disclosures on mortgage loans under the Truth in Lending Act and Real Estate Settlement Procedures Act are useful to consumers and impose as little burden as possible on credit unions. NAFCU Senior Regulatory Affairs Counsel Tessema Tefferi wrote to the CFPB about its proposal to conduct quantitative testing in fiscal years 2013 and 2014 of the performance of the current vs. proposed disclosures. NAFCU lodged serious concerns...

The Mortgage Bankers Association has asked the CFPB to clarify whether mortgages subject to repurchase demands will lose their “qualified mortgage” status under the bureau’s new ability-to-repay rule. “The rule does not address whether loans that are subject to repurchase demands will lose their QM status based on deficiencies,” the industry trade group said in a comment letter filed with the CFPB recently. “MBA strongly believes they should not, absent fraud. However, clarification is needed.” The Consumer Mortgage Coalition...

The Conference of State Bank Supervisors, the American Association of Residential Mortgage Regulators and the American Council of State Savings Supervisors submitted a joint comment letter to the bureau expressing strong support for the CFPB’s proposed small-creditor amendment, which was issued along with the ability-to-repay final rule back in January. “CSBS, AARMR and ACSSS have a long-standing policy that regulations should not hinder an insured depository institution’s willingness to engage in portfolio lending, and...

The mortgage lending industry is confronting an unprecedented number of substantive compliance challenges from the half-dozen rules promulgated in January by the CFPB, leading industry representatives are making increasingly clear. For instance, the loan originator compensation rule itself presents a variety of challenges, Amy Thoreson Long, senior counsel in the consumer lending division of Wells Fargo’s law department, told participants in a recent webinar hosted by Inside Mortgage Finance, an affiliated newsletter...

The CFPB and state mortgage regulators appear to be hitting their stride in establishing a good working relationship when it comes to coordinating their examinations, including the development of an information-sharing protocol state officials hope will further improve efficiencies. Throughout 2012, representatives of the Multi-State Mortgage Committee of the Conference of State Bank Supervisors met regularly with various officials at the bureau to make sure examination scheduling and information sharing...

The Federal Reserve Board Office of Inspector General has added to its agenda eight new planned projects related to the CFPB, according to the OIG’s current work plan, which was updated late last week. One of the new projects is an audit of the CFPB's civil penalty fund. “We plan to audit the CFPB’s use of the civil penalty funds associated with specific enforcement actions to assess the CFPB’s controls surrounding the use of funds to ensure that the agency complies with applicable Dodd-Frank Act requirements,” the OIG said in its...

Ally Financial Under the CFPB’s Microscope. The CFPB is investigating certain, unspecified retail financing practices of Ally Financial, the lender revealed in its 10-K filing with the Securities and Exchange Commission last week. “It is possible that this could result in actions against us,” the company said. A company spokesperson declined to elaborate. An official at the CFPB said, “We do not comment on or confirm investigations.” The probe could stem from the lender’s retail call centers, as Ally did away with its...

Financial services companies: Do you want to get an information edge on your competitors? Inside the CFPB Editor Thomas Ressler now provides bureau-related news updates and insider nuggets throughout the day on Twitter and on Facebook. “This is more than a novelty,” Ressler explained. “There’s so much going on with the bureau, and in reaction to the bureau, that we just can’t fit everything into a biweekly newsletter.” Additionally, the latest electronic technological innovations provide editorial staff with...

Tuesday, March 12: Senate Banking, Housing and Urban Affairs Committee Chairman Tim Johnson, D-SD, plans to hold a hearing on the renomination of Richard Cordray to head up the CFPB. Inside the CFPB will send out a news alert later that day featuring our first quick take on the hearing, to be followed throughout the rest of the week with postings on our social media feeds. Complete coverage will follow in our next issue. Wednesday, March 13: The House Financial Services Housing and Insurance Subcommittee has scheduled a...