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Inside the CFPB

October 1, 2018

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Lenders Prepared for TRID 2.0, Seeking Further Clarification

The revised integrated mortgage disclosure rule takes effect this month, and compliance experts said the industry is ready despite some remaining uncertainty. The CFPB last year finalized amendments to its Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure rule. The revised rule, dubbed TRID 2.0 by the industry, became effective in October 2017, but the agency set Oct. 1, 2018, as the mandatory compliance date ... Read More

Secondary Market Unsettled About Liability Under TRID 2.0

The uncertainty about liability and cure mechanisms under the TRID 2.0 disclosure regime could have a negative impact on the secondary market, said compliance experts. Industry groups had sought clarification of liabilities for specific TRID violations, as well as additional cure provisions and bona fide error defenses, during the comment period for proposed amendments to the Truth in Lending Act/Real Estate Settlement Procedures Act Integrated ... Read More

Mulvaney Defends Fair Lending Efforts as New Controversy Erupts

Acting CFPB Director Mick Mulvaney recently said the agency is still providing fair lending oversight, contrary to reports in the media. Meanwhile, a new controversy has erupted over the political appointee named to lead the agency’s fair lending operations. “We are still very much in the fair lending business and we are going to remain active in that space,” said Mulvaney in a fair lending symposium held by the CFPB. Consumer advocates have been concerned ... Read More

CFPB Solicits Information on Data Collection Practices; Rulemaking

The CFPB is asking for public input on its data collection practices, including the sources of data and how they are used. In practice, the agency collects data from multiple sources in order to carry out its functions, including supervision, enforcement and consumer education. So far, it has undertaken more than 188 collections from public sources, government agencies, commercial vendors, financial institutions, and consumers. … Read More

Mortgage Groups Seek Changes to LO Compensation Rule

Mortgage trade groups are asking the CFPB to reopen the loan originator compensation rule to reduce lenders’ regulatory burden and better serve consumers. A dozen industry trade groups – including the American Bankers Association, the Mortgage Bankers Association and the Real Estate Service Providers Council – recently wrote to Acting CFPB Director Mick Mulvaney with suggested changes to the agency’s LO compensation rule under the ... Read More

Industry Group Concerned About HMDA Compliance; Privacy Issue

The American Bankers Association said many questions about new Home Mortgage Disclosure Act reporting remain unanswered and proposed guidance from the CFPB won’t give lenders sufficient legal protection. The CFPB amended the HMDA rule in 2015, implementing expanded data collection fields specifically mandated by the Dodd-Frank Act along with some based on the bureau’s discretionary authority. The net result expanded the required ... Read More

Warren Suggests Mulvaney’s Campaign Donor Meeting Illegal

Sen. Elizabeth Warren, D-MA, has raised ethical questions about Acting CFPB Director Mick Mulvaney’s recent appearance at a “closed-door event” where he reportedly discussed midterm elections with Republican officials and donors. Warren, a harsh Mulvaney critic, said his attendance at the event in New York City on Sept. 8 may have violated the Hatch Act, which prohibits certain employees in the executive branch of the federal government from engaging ... Read More

Disclosure Sandbox Benefits Mortgages; OCC Fintech Charter

The CFPB’s recent efforts to create a regulatory sandbox for financial technology (fintech) companies would benefit the mortgage industry, said a former CFPB attorney. Ever since the agency hired Paul Watkins, a lawyer who helped establish the nation’s first regulatory sandbox for fintech companies, to lead its Office of Innovation in July, fintech regulation has become an area of focus at the bureau. The CFPB in August joined a global fintech regulatory initiative ... Read More

CFPB’s Discussion on Credit Invisibility Has Policy Implications

The CFPB recently began putting more emphasis on protecting “credit-invisible” consumers and how financial innovation might expand access to credit. Credit-invisible consumers are those without an established credit history with the three national credit reporting agencies who therefore cannot be scored by most traditional credit scoring models. The first CFPB advisory committees meeting this year – held after all the chaos of disbanding and reconstitution ... Read More

CFPB Charged by Employees for Discrimination, Again

While the CFPB is responsible for ensuring fairness to American consumers in their financial affairs, the agency is now facing workplace discrimination and retaliation charges from former and current agency employees. A class action complaint was filed against the CFPB and Acting Director Mick Mulvaney in September, alleging discrimination and retaliation against minority and female workers. The complaint was filed to the U.S. District Court for the ... Read More

Other News in Brief: Atlanta Office; Budget for First Quarter of 2019

CFPB to Open Office in Atlanta, Likely to Relocate Over 100 Employees. The CFPB recently announced plans to open a new office in Atlanta as its southeast regional headquarters. The relocation is expected to take place in late 2019. The southeast regional team is currently housed in the bureau’s DC headquarters. The CFPB said the relocation will align the bureau with its regulatory partners that already have a regional presence in Atlanta [Includes two briefs] ... Read More

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