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Richard Cordray, director of the CFPB, issued a  letter dated August 30, 2016 (“Cordray Letter”), expressing the CFPB’s views on whether credit discrimination on the basis of gender identity and sexual orientation violates the Equal Credit Opportunity Act (ECOA) and Regulation B. The Cordray Letter was issued in response to an inquiry from Services & Advocacy for GLBT Elders (“SAGE”). Specifically, the Cordray Letter addresses whether discrimination on the basis of an applicant’s sex under…
On September 15, 2016, the U.S. Department of Housing and Urban Development issued guidance on how the nondiscrimination provisions in the Fair Housing Act apply to persons who consider an individual’s “Limited English Proficiency,” or limited ability to speak, read, write, or understand English, in housing transactions. The “Office of General Counsel Guidance on Fair Housing Act Protections for Persons with Limited English Proficiency” (the Guidance) addresses liability for both intentional discrimination and practices that have…
On August 26, 2016, the DOD issued an interpretive rule (the “Interpretive Rule”) providing guidance on the DOD’s regulations implementing the Military Lending Act. That same day, we published a high-level summary of the Interpretive Rule, noting that the Interpretive Rule aims to clarify certain ambiguities in the DOD’s July 2015 final rule. In this alert, we take a closer look at the interpretive rule, which is presented in a series of 19 questions and…
On August 26, 2016, the Department of Defense (DOD) issued an interpretive rule providing guidance on the DOD’s regulations implementing the Military Lending Act (MLA). Specifically, the interpretive rule aims to clarify certain ambiguities in the DOD’s July 2015 final rule, which significantly expanded the scope of the MLA to cover new types of creditors and new credit products. Presented in a series of questions and answers—19 in total—the interpretive rule by no means resolves…
As we previously reported in our June 3, 2016 client alert, the CFPB has issued a Notice of Proposed Rulemaking for short-term loans. In this follow-up alert, we take a closer look at the Proposed Rule and its implications for consumer lending generally. Although the Proposed Rule is often characterized as a “payday loan rule,” the rule is sweeping in terms of the products covered and the limitations it would impose. Read our client alert
Tucked away in a seeming innocuous paragraph in a complaint, the CFPB has asserted an extraordinary and potentially far-reaching expansion of its authority. On June 6, 2016, the CFPB filed an action in a U.S. district court asserting that Intercept Corporation (Intercept) (and each of its owners) engaged in unfair acts and practices in violation of the CFPA. Intercept initiates ACH transactions to consumer accounts on behalf of its merchant-customers. In doing so, Intercept acts…
On May 18, 2016, five federal banking agencies—the Board of Governors of the Federal Reserve System (“Board”), the CFPB, the FDIC, the NCUA, and the OCC (collectively, the “Agencies”)—issued a supervisory bulletin titled “Interagency Guidance Regarding Deposit Reconciliation Practices” (the “Guidance”). The Guidance outlines supervisory expectations for financial institutions’ investigation and resolution of “credit discrepancies” when customers make deposits in their checking and other deposit accounts. Read our client alert.…
On March 22, 2016, the Supreme Court of the United States issued an order in Hawkins v. Community Bank of Raymore. An evenly divided Court affirmed without issuing an opinion, thereby resolving the Hawkins case but leaving open the proper interpretation of the Equal Credit Opportunity Act (ECOA), failing to resolve a circuit split between the Sixth and Eighth Circuits, and raising questions as to how the Court will approach future cases involving statutory interpretation.…
On February 18, the CFPB and the Federal Financial Institutions Examination Council (FFIEC) published new “File Specifications” for data to be collected pursuant to the Home Mortgage Disclosure Act (HMDA) and its implementing regulation, Regulation C, in 2017 and 2018. These File Specifications follow the CFPB’s October 15, 2015, final rule (the “Rule”) amending Regulation C, published in the Federal Register on November 10. As contemplated by the Rule, the new File Specifications make changes…
In response to a written request from the Mortgage Bankers Association (MBA), Richard Cordray, Director of the Consumer Financial Protection Bureau, penned a response dated December 29, 2015, addressing implementation of the Truth-in-Lending Act- Real Estate Settlement Procedures Act Integrated Disclosure Rule (known as TRID) (the “Rule”). The Director responded to MBA’s concerns that the “Know Before You Owe” implementation is causing disruption in the origination and subsequent sale to investors of residential mortgage loans.…