A coalition of mortgage industry trade groups expressed concerns about the proposal. And trade groups representing servicers sounded more alarms in their individual comments to the CFPB.
The bureau is relying on the Dodd-Frank Act and RESPA to support its proposed changes to mortgage servicing requirements. However, industry attorneys suggest the arguments might not hold in court.
Home equity investment activity is growing thanks to ongoing home price appreciation and strong demand from both homeowners and investors in the secondary market. Regulation of the products is currently limited to a handful of states.
A Texas district court affirmed the CFPB has authority to issue the upcoming small-business lending data collection rule. The court, however, didn’t express an opinion on the wisdom of the rule.
Groups representing the farm credit industry claim the CFPB’s small-business lending data collection rule is invalid as it was developed by the bureau when it was receiving funds unconstitutionally.
The NCLC is asking the bureau to pursue rulemaking to apply the Equal Credit Opportunity Act’s adverse action requirement to renters and ban the use of medical debt in tenant screening decisions.
The American Bankers Association said a proposed interpretative rule will discourage banks from EWA products, limiting access to a convenient and potentially free source of small dollar, short-term liquidity.
The CFPB does not intend to seek penalties for violations of the interpretive rule while BNPL lenders are transitioning into compliance in a good faith and expeditious manner.
Some banks continue to press the CFPB for a reporting exemption for small banks as the rule will create additional burdens on these banks who may get frustrated and end up selling or closing their businesses.
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