Former CFPB Director Loses in the Ohio Governor’s Race. Former CFPB Director Richard Cordray lost in the Ohio governor’s race last week. Republican Attorney General Mike DeWine led a GOP sweep of statewide nonjudicial offices. In his campaign, Cordray boasted of his record reining in Wall Street during his tenure at the CFPB. He worked as the CFPB director from its inception until 2017, when he quit to run for governor of the Buckeye State [Includes four briefs] ...
An Illinois-based mortgage company will pay $1.2 million in restitution to consumers after a state investigation found a company’s branch manager defrauded consumers. Diamond Residential Mortgage Corp., Lake Forest, IL, recently settled with Illinois Attorney General Lisa Madigan and the Illinois Department of Financial and Professional Regulation, resolving a mortgage fraud allegation. Diamond’s Springfield branch manager, Chris Schaller ...
The CFPB’s recent complaint snapshot report hinted at a possible focus of the upcoming debt collection rules, said attorneys. Credit reporting, debt collection, and mortgage continued to be the three categories that drew the most consumer complaints, according to the report. Among public gripes regarding debt collection practices, some 40 percent said companies “attempt to collect debt not owed.” It is a significant trend, said attorneys, because Acting CFPB Director Mick Mulvaney ...
The CFPB’s information security program has improved in the past year with more effective incident responses to detected cybersecurity events, according to a recent report from the bureau’s Office of Inspector General. On a scale of one to five, the CFPB’s overall information security program is operating at a level three or “consistently implemented.” Several activities are being performed at a higher level, according to the OIG. The major improvement ...
A union representing CFPB employees recently asked the agency to halt the reorganization of the fair lending office, alleging the bureau did not bargain with the union in good faith. The reorganization was announced in January, but the CFPB is still negotiating the matter with the National Treasury Employees Union. The NTEU in late October filed a mass grievance against the CFPB over its handling of racially tinged blogs posted by Eric Blankenstein
Lenders no longer need to start complying with the CFPB’s payday-lending rule on Aug. 19, 2019, a judge ruled. In an unexpected development, Judge Lee Yeakel of the U.S. District Court for the Western District of Texas Austin Division last week reversed his prior orders that denied the request to delay the compliance date of the payday rule. The case was filed by two industry groups – Community Financial Services Association of America and Consumer Service Alliance of Texas ...
Industry groups last week petitioned the CFPB to issue formal rules on the role of supervisory guidance. The Bank Policy Institute and the American Bankers Association urged the bureau to codify its recent statement clarifying the role of supervisory guidance as a formal rulemaking under the Administrative Procedure Act. The CFPB joined other federal regulators in issuing a statement clarifying that supervisory guidance does not have the force and effect of law ...
S&P Global Ratings last week urged mortgage servicers to continue to follow the best practices established after the financial crisis, even as some federal regulators are adopting less assertive regulatory approaches. “While we believe the regulatory landscape has changed and that these actions offer some promising developments for servicers, this overture could still prelude some hurdles,” an S&P report said. “Since servicers have invested considerable capital ...
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