Sen. Elizabeth Warren, D-MA, recently questioned whether CFPB Acting Director Mick Mulvaney is intentionally trying to undermine the bureau, utilizing some Inspector General concerns about the agency’s data security as a pretext. In a letter to Mulvaney and Leandra English, the deputy director of the federal regulator, Warren said the CFPB cannot fulfill its core functions without collecting personally identifiable information. “When a consumer submits a complaint, the CFPB asks for information such as their name and account number to enable the agency to help resolve the dispute,” Warren said. “CFPB bank examiners and enforcement lawyers regularly use account-level data provided by regulated institutions to detect improper and unlawful activity.” Similarly, the bureau’s Office of Fair Lending collects and analyzes ...
In another historic move, CFPB Acting Director Mick Mulvaney late last week shocked defenders of the bureau under Richard Cordray by announcing he had submitted to the Federal Reserve the bureau’s quarterly appropriations request for the second quarter of fiscal year 2018, requesting zero funds. In a letter to departing Fed chief Janet Yellen, Mulvaney spelled out his rationale. “The reason for this is straightforward: I am informed that the projected second quarter expenses for the bureau are approximately $145 million. “During my review of the financial condition of the bureau, I learned that, as of the beginning of the fiscal year 2018, the bureau had a balance [in its fund] at the Federal Reserve Bank of New York in ...
Last week, the CFPB put out a call for evidence to make sure it is “fulfilling its proper and appropriate functions to best protect consumers.” The agency said it will soon publish in the Federal Register a series of Requests for Information (RFIs) seeking comment on enforcement, supervision, rulemaking, market monitoring, and education activities. The bureau’s expectation is that the RFIs will provide an opportunity for the public to submit feedback and suggest ways to improve outcomes for both consumers and covered entities. “In this New Year, and under new leadership, it is natural for the bureau to critically examine its policies and practices to ensure they align with the bureau’s statutory mandate,” said Acting Director Mick Mulvaney. “Moving forward, ...
The CFPB has decided to abandon its pursuit of a group of payday lenders it had accused of misleading consumers about the true extent of the costs associated with its loans, which purportedly carried interest rates as high as 950 percent a year. The agency gave no explanation about its decision to reverse course. An interesting twist is that payday lenders are generally regulated at the state level, and since the lenders in this case happen to be associated with a Native American tribe, they can argue that state laws do not apply to them. Payday Lending Rule Kaput? Also last week, the CFPB indicated it might just deep-six its controversial payday lending rule. “Jan. 16, 2018, is the effective ...
Some top compliance attorneys are optimistic that the CFPB under Acting Director Mick Mulvaney, or another President Trump appointee, will provide greater regulatory relief and clarity for lenders, and an easing of enforcement activity. Included in that mix could well be a return to the more traditional interpretation the Department of Housing and Urban Development had for the Real Estate Settlement Procedures Act. Gerald Sachs, formerly senior counsel for policy and strategy at the bureau and now a partner with the Venable law firm in Washington, DC, told Inside the CFPB recently he anticipates that “mortgage rules would be amended or revised to lessen the regulatory burden, clarify industry concerns or issues, and allow more access to credit.” In addition, ...
It’s likely that mortgage lenders and servicers will get some degree of consideration and accommodation from the CFPB during the Trump administration, thanks to some reviews the bureau is required to make of its major rulemaking as per the Dodd-Frank Act. “The Dodd-Frank Act requires the CFPB to look back and conduct an assessment of each significant rule not later than five years after its effective date,” said former CFPB official Benjamin Olson, now a partner in the Washington, DC, office of the Buckley Sandler law firm, during a webinar last week sponsored by Inside Mortgage Finance. The purpose of this assessment is to look at the effectiveness of the rule in meeting its purposes and objectives under the statute ...
The CFPB is Still Open, Government Shutdown and Mick Mulvaney Notwithstanding. Much of the federal government in Washington, DC, is back in shutdown mode, after last-minute budgetary brinkmanship on Capitol Hill failed to keep the requisite funds flowing. ... Cordray to Face Kucinich in Contest for Democrat Nomination for Ohio Governor. Former Rep. Dennis Kucinich, D-OH, recently filed paperwork with the Ohio Secretary of State’s office officially declaring his candidacy for the Democrat nomination for governor, an indication that former CFPB Director Richard Cordray will face plenty of opposition for the position....
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