Latest Articles

On July 19, 2017, the Consumer Financial Protection Bureau (CFPB) published the final Arbitration Agreements Rule (the rule) that would impact the way claims involving consumer financial products and services are handled in the future. The rule prohibits providers of consumer financial products and services from relying on a predispute arbitration agreement that includes an arbitration clause that bars a consumer from filing or participating in a class action. The rule would apply to “providers”…
This blog post is the second in a series of posts that Baker & Hostetler LLP is devoting to the significant decision Robins v. Spokeo, No. 13-1339, 537 U.S. ___ (2016) (Spokeo). Monday’s post focused on Spokeo’s effect on privacy class actions and big data. Today’s post focuses on the decision’s impact on class actions. On May 16, 2016, the Supreme Court issued its long-awaited decision in Spokeo. In the 6-2 decision, the Supreme Court…
On April 28, 2016, the Consumer Financial Protection Bureau (CFPB) issued a letter to industry trade members announcing its plan to issue a Notice of Proposed Rulemaking (NPRM) to provide further clarification of the Truth in Lending Disclosure Rule (TRID). Since TRID went into effect on October 3, 2015, various industry groups have asked the CFPB for clarification regarding various implementation issues such as the scope and applicability of TRID’s cure mechanisms, liability under TRID,…
On April 20, 2016, the Consumer Financial Protection Bureau (CFPB) issued a report regarding online payday lenders’ efforts to debit payments from a borrower’s checking account. Based on an 18-month observation period, the report focused on the hidden costs of online payday and installment loans provided by over 330 lenders. The report is the latest effort by the CFPB to increase its regulatory foothold in the payday loan industry since it began supervising payday loan…
On February 10, 2016, the Consumer Financial Protection Bureau (CFPB) issued a correction in the Federal Register to the Integrated Mortgage Disclosures Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z) final rule (TRID Rule). The final TRID Rule, which went into effect on October 3, 2015, combines mortgage disclosures that consumers receive when applying for and obtaining a mortgage loan. Supplementary information to the rule contained…
In the first appeal of an administrative enforcement proceeding before the Consumer Financial Protection Bureau (“Bureau”), the administrative law judge (ALJ) concluded that PHH Corporation, a mortgage lender, referred consumers to mortgage insurance companies in exchange for mortgage reinsurance premiums. The ALJ held that these mortgage reinsurance premiums were considered kickbacks—which are a violation of RESPA. All parties appealed the decision from the ALJ, but the decision that PHH violated RESPA was upheld. However, the…
In a 5-4 decision, the Supreme Court ruled that disparate impact claims can be brought under the Fair Housing Act (“FHA”). Disparate impact claims attack policies or practices that are facially neutral but have a disproportionate impact on a particular minority group. In the case at hand, the Court decided that the language of the FHA prohibits such policies or practices. In 2008, the Inclusive Communities Project (“ICP”), a Texas nonprofit organization, sued the Texas…
The Supreme Court ruled Thursday that disparate impact claims are available under the Fair Housing Act (FHA). In a 5-4 decision, a deeply divided Court held that violations of the Fair Housing Act can be established by showing that a neutral policy or practice has a disproportionate effect on minority groups. Justice Anthony Kennedy delivered the opinion of the Court. Joined by Justices Stephen Breyer, Ruth Bader Ginsburg, Elena Kagan, and Sonia Sotomayor, the majority…
On June 17, the director of the Consumer Financial Protection Bureau (CFPB), Richard Cordray, announced plans to delay the effective date of the TILA-RESPA Integrated Disclosure Rules (TRID) or the Know Before You Owe Rules from August 1, 2015, to October 1, 2015. The decision to delay the effective date is shocking to the mortgage industry because the CFPB previously denied many requests to implement a later start date or hold-harmless enforcement period.…
On June 9, 2015, six federal agencies (Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve, Federal Deposit Insurance Corporation, National Credit Union Administration, Consumer Financial Protection Bureau, and Securities and Exchange Commission) (collectively, “Agencies”) issued a final interagency policy statement (“Final Policy”) that established joint standards for assessing the diversity policies and practices for the entities they regulate, as required by the Dodd-Frank Wall Street Reform and Consumer Protection…