Anthony Sharett

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The Consumer Financial Protection Bureau (CFPB) released its much anticipated proposed rule aimed at ending what it calls “payday lending debt cycles.” The 1,334-page rule will require small-dollar lenders to undertake comprehensive steps to ensure that the consumer has the ability to repay the short-term or high-cost installment loan. This proposed rule would be the first set of federally promulgated rules aimed at short-term lenders. According to CFPB Director Richard Cordray, “the Consumer Bureau is…
On May 18, 2016, the Consumer Financial Protection Bureau (CFPB) announced that it will hold a field hearing in Kansas City, Missouri, on June 2 regarding small-dollar lending, commonly referred to as payday lending. It is widely speculated that the CFPB will announce the long-awaited payday lending rules, which would be the first federal regulation for this industry, which is currently primarily regulated by the states. …
The CFPB announced that it is holding a field hearing on May 5, 2016, in Albuquerque, New Mexico, on arbitration. Previously, CFPB field hearings have resulted in the announcement of proposed rules. We anticipate that this field hearing could result in the release of the CFPB’s proposed rule on arbitration provisions in some consumer financial services agreements. In October 2015, the CFPB convened a Small Business Regulatory Enforcement Fairness Act (SBREFA) panel to review the…
The CFPB’s Office of Minority and Women Inclusion (OMWI) published its third annual report to Congress highlighting its 2015 activities. Dodd-Frank requires the CFPB and other federal regulators to establish an office of minority and women inclusion, requires each office to gather certain data, and then requires each office to provide Congress with an annual report. Under Section 342 of Dodd-Frank, each OMWI is mandated to develop standards to assess the diversity and inclusion policies…
On March 8, 2016, the Consumer Financial Protection Bureau (CFPB) announced that, through its supervisory authority, it recovered $14.3 million for approximately 228,000 consumers. This recovery spans CFPB work completed in the last three months of 2015. Using its supervisory and examination authority, the CFPB discovered violations in the money transmitter, student lending, and debt collection markets. The CFPB disclosed these findings in its latest supervisory highlights report. Specifically, the CFPB examiners found that…
On November 3, the Consumer Financial Protection Bureau (CFPB) released its fall 2015 supervisory report concerning enforcement actions from May 2015 through August 2015. The Bureau highlights violations in the mortgage lending and servicing, student loan servicing, consumer reporting, and debt collection segments. The 45-page report indicates that the CFPB collected $107 million in relief to more than 238,000 consumers. “Borrowers should not be mistreated when trying to repay their loans. We will continue to…
The Consumer Financial Protection Bureau (CFPB) finalized a rule yesterday aimed at providing the public and regulators with meaningful information concerning the lending practices of financial institutions. The rule updates the reporting requirements under the Home Mortgage Disclosure Act (HMDA), typically known as Regulation C, which requires lenders to report information about home loan applications, loans originated, and loans purchased. HMDA, which has been in effect for 40 years, solicits data to be used as a resource…
On October 7, the CFPB announced at a field hearing in Denver, Colorado, that it plans to propose rules via its rule-making authority that would prohibit financial services companies from including class action waivers in arbitration clauses with consumers. The CFPB previously published an outline of proposals regarding this effort and sought feedback from stakeholders. Specifically, this class action waiver ban would apply to most consumer financial products, such as credit cards, checking and other…
The Consumer Financial Protection Bureau (CFPB) reports that most borrowers benefit from electronic closings relating to the mortgage loan process.  On August 5, 2015, the CFPB published its study on the benefits of electronic closings.  The study began in August 2014.   As a data driven agency, the CFPB worked with a select group of lenders that already provided eClosing solutions.   This program coincides with the new Truth In Lending Integrated Disclosure Rule (TRID) and guidelines,…
On August 4, 2015, the Consumer Financial Protection Bureau (CFPB) issued a bulletin providing guidance to mortgage servicers regarding cancellation and termination of private mortgage insurance. The bulletin, discusses certain Homeowners Protection Act requirements and should assist servicers with compliance. The guidance summarizes existing requirements under the law and does not create any new standards. “Consumers should not be billed for unnecessary private mortgage insurance,” said CFPB director Richard Cordray. “We will continue to…