Consumer Finance Monitor

CFPB, Federal Agencies, State Agencies, and Attorneys General

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Hilary Adams

Jennifer E. Aguilar

Richard J. Andreano, Jr.

Justin Angelo

Wendy Angus-Anderson

Latest from Consumer Finance Monitor

Consumer Finance Monitor

CFPB Likely to Delay Mandatory Compliance Date of New General QM Rule and May Reconsider Seasoned QM Rule

By Richard J. Andreano, Jr.

February 25, 2021

The CFPB recently issued a policy statement addressing the rules finalized near the end of former Director Kraninger’s tenure that amend the Regulation Z ability to repay rule/qualified mortgage (QM) requirements to replace the strict 43% debt-to-income (DTI) ratio basis for the current general QM with an annual percentage rate (APR) limit, and to create a new seasoned loan QM. As previously reported, Acting Director Uejio generated speculation regarding the fate of the rules,…

Consumer Finance Monitor

CFPB files first enforcement action under Biden Administration

By Christopher J. Willis

February 25, 2021

Earlier this week, the CFPB announced that it has filed its first enforcement action under the leadership of Acting Director Uejio. The lawsuit was filed in a Virginia federal district court jointly with the Attorneys General of Virginia, Massachusetts, and New York. The complaint names as defendants Libre by Nexus, Inc. (Libre), Libre’s parent company, and three individual owners of the parent company. The lawsuit involves Libre’s activities directed at immigrants seeking to obtain bonds…

Consumer Finance Monitor

CFPB files another status report in Section 1071 lawsuit

By John L. Culhane, Jr. & Lori J. Sommerfield

February 25, 2021

The CFPB has filed its fourth status report with the California federal district court as required by the Stipulated Settlement Agreement in the lawsuit filed against the Bureau in May 2019 alleging wrongful delay in adopting regulations to implement Section 1071 of the Dodd-Frank Act. Section 1071 amended the ECOA to require financial institutions to collect and report certain data in connection with credit applications made by women- or minority-owned businesses and small businesses. Such…

Consumer Finance Monitor

This week’s podcast: The times at the CFPB are a-changing: perspectives on the CFPB under Acting Director David Uejio and Director Rohit Chopra: Part II

By Barbara S. Mishkin

February 25, 2021

In Part II of our two-part podcast, we discuss how we expect Rohit Chopra, if confirmed by the Senate, to approach his new role as CFPB Director. We look at the possible implications of positions taken by Mr. Chopra as FTC Commissioner for how he will use the CFPB’s statutory authorities, his likely approach to student lending based on his tenure as CFPB Student Loan Ombudsman, and how his approach to enforcement is likely to…

Consumer Finance Monitor

New York Dept. of Financial Services announces fair lending agreement with nonbank mortgage lender and releases redlining report

By Christopher J. Willis & Richard J. Andreano, Jr.

February 23, 2021

The New York Department of Financial Services (DFS) recently announced that it has entered into an agreement with Hunt Mortgage, a licensed mortgage banker, to address the DFS’s findings that there was a “demonstrable lack of lending to minorities and in majority-minority neighborhoods in Western and Central New York by Hunt Mortgage.” DFS also released a report on redlining in the Buffalo metropolitan area. Hunt Agreement. The Agreement relates to Hunt’s residential mortgage lending…

Consumer Finance Monitor

Chopra confirmation hearing reported to be scheduled for March 2

By Alan S. Kaplinsky

February 22, 2021

According to the Consumer Bankers Association, the Senate Banking Committee will hold a hearing on March 2, 2021 to consider President Biden’s nomination of Rohit Chopra to serve as CFPB Director. The nomination was officially received by the Senate on February 13. …

Consumer Finance Monitor

PA Supreme Court rules proof of defendant’s state of mind not required for deception claim under UTPCPL

By Martin C. Bryce, Jr.

February 22, 2021

The Pennsylvania Supreme Court issued its highly anticipated decision in Gregg v. Ameriprise Financial, Inc. at the end of last week. In 1996, the General Assembly amended the catchall provision of the Unfair Trade Practices and Consumer Protection Law, 73 P.S. 201-2(4)(xi), to prohibit anyone who advertises, sells, or distributes goods or services from “engaging in any deceptive conduct . . . which creates a likelihood of confusion or misunderstanding” during a transaction. Prior to…

Consumer Finance Monitor

State AGs file opposition to OCC’s summary judgment motion

By Jeremy T. Rosenblum

February 19, 2021

The Attorneys General of California, Illinois, and New York have filed their opposition to the OCC’s cross-motion for summary judgment in their lawsuit to enjoin the OCC’s final rule (Rule) purporting to override the Second Circuit’s Madden decision as to national banks and federal savings associations. In their filing, the AGs also reply to the OCC’s opposition to their summary judgment motion. The OCC must file its reply to the AG’s opposition to its…

Consumer Finance Monitor

OCC provides self-assessment tool for banks to evaluate their preparedness for LIBOR cessation

By John L. Culhane, Jr. & Scott A. Coleman

February 19, 2021

The OCC has issued a bulletin that includes a self-assessment tool for OCC-supervised banks to evaluate how prepared they are to address the risks arising from the expected cessation of the publication of the London Inter-Bank Offered Rate (LIBOR) next year. In November 2020, the OCC, together with the FDIC and the Federal Reserve Board, issued a “Statement on LIBOR Transition” that encouraged banks to transition away from LIBOR as soon as possible, and…

Consumer Finance Monitor

Fed moves up FedNow launch date

By Amy L. Schwartz & Judy Mok

February 18, 2021

On February 2, 2021, the Federal Reserve (“Fed”) announced that the launch date for its instant payments platform—FedNow—would be sooner than originally expected. The announcement narrows the delivery timeframe by a full year. FedNow provides interbank clearing and settlement, which enables funds to be transferred between banks and credited to accounts in near real-time. The Fed’s move-up of the anticipated launch date appears to be prompted by criticism that the U.S. is lagging…

Consumer Finance Monitor

CFPB, Federal Agencies, State Agencies, and Attorneys General

Blog Authors

CFPB Likely to Delay Mandatory Compliance Date of New General QM Rule and May Reconsider Seasoned QM Rule

CFPB files first enforcement action under Biden Administration

CFPB files another status report in Section 1071 lawsuit

This week’s podcast: The times at the CFPB are a-changing: perspectives on the CFPB under Acting Director David Uejio and Director Rohit Chopra: Part II

New York Dept. of Financial Services announces fair lending agreement with nonbank mortgage lender and releases redlining report

Chopra confirmation hearing reported to be scheduled for March 2

PA Supreme Court rules proof of defendant’s state of mind not required for deception claim under UTPCPL

State AGs file opposition to OCC’s summary judgment motion

OCC provides self-assessment tool for banks to evaluate their preparedness for LIBOR cessation

Fed moves up FedNow launch date

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