In Part I of our two-part podcast, after discussing the Taskforce’s goals and background, we look at the recommendations in the Taskforce’s report concerning artificial intelligence, limited English proficiency consumers, and fair lending, share our reactions to the recommendations, and consider the recommendations’ practical implications for the consumer finance industry. Ballard Spahr attorney Alan Kaplinsky hosts the conversation with Professor Zywicki and Chris Willis, Co-Chair of Ballard Spahr’s Consumer Financial Services Practice Group. Click here…

Following Director Kraninger’s resignation yesterday, the White House announced that President Biden has appointed David Uejio to serve as Acting CFPB Director. Mr. Uejio currently serves as the Bureau’s Chief Strategy Officer.  He has worked at the Bureau since 2012, previously having served as Acting Deputy Chief of Staff and Lead for Talent Acquisition.  Since these positions primarily involve providing internal counseling to Bureau leadership, it appears Mr. Uejio has not previously had an outward-facing…

The U.S. Department of Housing and Urban Development announced on January 20, 2021 that effective January 19, 2021 individuals who are classified under the “Deferred Action for Childhood Arrivals” program (DACA) with the U.S. Citizenship & Immigration Service (USCIS) and are legally permitted to work in the U.S. are eligible to apply for FHA mortgages. The FHA mortgage loan eligibility for such individuals is based on HUD waiving the following provision in HUD Handbook 4000.1:…

As previously reported, the Economic Growth, Regulatory Relief, and Consumer Protection Act (Growth Act), passed in June 2018, created an exemption from the requirement to maintain an escrow account in connection with a higher-priced mortgage loan (HPML) for insured depository institutions and insured credit unions (insured creditors) that meet certain conditions. The CFPB recently adopted a final rule to implement the exemption. The CFPB also issued an executive summary of the rule, and…

The CFPB recently filed a complaint in the United States District Court for the District of Connecticut alleging violations of various federal consumer protection laws by 1st Alliance Lending, LLC (1st Alliance), a former mortgage lender. The complaint also names several principals of 1st Alliance as defendants. According to the complaint, certain alleged conduct occurred from 2015 until at least August 2019, with other alleged conduct occurring in a narrower period within such timeframe. The…

According to media reports, Director Kraninger has submitted her resignation to President Biden.  President Biden has nominated Rohit Chopra to serve as the CFPB’s next Director and is expected to appoint an individual to serve as Acting Director pending Mr. Chopra’s confirmation by the Senate.  Several media reports have indicated that Mr. Chopra could serve as Acting CFPB Director while his nomination is pending Senate confirmation.  In our view, however, the Federal Vacancies Reform Act (FVRA),…

On January 13, 2021, the Illinois legislature overwhelmingly passed SB 1792 (the “Act”), intended to, among other things, overhaul the state’s consumer finance laws. Described prior to enactment as a bill related to “Energy Storage Systems,” SB 1792 passed, together with other major bills, with remarkably little debate. The drafters’ inclusion of the “Predatory Loan Prevention Act” in SB 1792 would extend the 36% “all-in” Military Annual Percentage Rate (MAPR) finance…