The CFPB and other federal defendants have filed to dismiss a legal challenge to the bureau’s authority to identify “unfair, deceptive, or abusive” acts or practices, and the related assertion that President Obama’s appointment of Richard Cordray as director of the bureau was invalid because the Senate allegedly was not in recess at the time of the appointment. The case is State National Bank of Big Spring, et al., v. Neal S. Wolin, in his official capacity as Acting United States Secretary of the Treasury and ex officio Chairperson...
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...
H.R. 450: The Bureau of Consumer Financial Protection Accountability Act, introduced by Rep. Bill Posey, R-FL, would amend the Consumer Financial Protection Act of 2010 to bring the CFPB into the regular appropriations process. The bill is a re-introduction of H.R. 1640 from the 112th Congress. Current status: referred to House Financial Services Committee. S. 190: The Restoring the Constitutional Balance of Power Act of 2013, introduced by Sen. Mike Johanns, R-NE, would prohibit the transfer of funds from the Federal Reserve that would be used by the CFPB “to carry out activities that are authorized...
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