Despite the fear expressed by consumer advocates that CFPB Acting Director Mick Mulvaney might give financial service industry participants a “get out of jail free” card upon request, the bureau recently filed a motion in opposition to the request of Nationwide Biweekly Administration, a biweekly mortgage payment company, to alter, amend or vacate the prior judgment against the firm. This past September, the CFPB won one and lost one in a ruling from the U.S. District Court for the Northern District of California in the case. The agency won a $7.9 million civil penalty from the defendants. However, it lost out on $74 million in sought-after restitution. The bureau also originally insisted the defendants post a bond, even though that ...
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 ...
The House Financial Services Committee last week advanced a number of bills for a vote by the full House, including legislation that would expand the qualified mortgage box for smaller entities and exempt many institutions from the rules and regulations issued by the CFPB. One of the bills passed was H.R. 2226, the Portfolio Lending and Mortgage Access Act, introduced by Rep. Andy Barr, R-KY. The measure would amend the Truth in Lending Act to allow certain mortgage loans that are originated and retained in portfolio by an insured depository institution or an insured credit union with less than $10 billion in total consolidated assets to be considered as qualified mortgages. Then there was H.R. 1264, the Community Financial Institution ...
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....
Consumer complaints to the CFPB about mortgage-related issues are on the verge of a free-fall, with volumes dropping by double digits, quarterly and annually, in every category tracked, according to a new analysis and ranking by Inside the CFPB. For starters, total gripes fell 15.9 percent from the third quarter of 2017 to the fourth quarter, and by 27.8 percent year over year. Digging into specific kinds of complaints, criticisms about loan modifications mirrored those trend lines, dropping 15.3 percent from 3Q17 to 4Q17, and by 29.2 percent on an annual basis. When it came to mortgage servicing, consumer kvetching was on a parallel track, down 13.0 percent and 26.4 percent, quarter over quarter and year over year, respectively. In ...
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