On December 20, 2023, the CFPB announced that, along with the DOJ, it had filed suit against a Texas-based developer and lender for operating an allegedly illegal land sales scheme that targeted Hispanic borrowers.
The complaint, filed in the
LenderLaw Watch
LenderLaw Watch, published by Goodwin Procter, focuses on legal developments and regulatory issues affecting the mortgage lending and consumer finance industries. The blog covers topics such as compliance with the Real Estate Settlement Procedures Act (RESPA), enforcement actions by the Consumer Financial Protection Bureau (CFPB), litigation involving mortgage servicers and lenders, and regulatory challenges related to student loans and debt relief services. It also addresses significant court decisions impacting financial regulatory frameworks and state-level enforcement actions against financing companies. The content is aimed at professionals navigating the intersection of mortgage lending, consumer protection laws, and financial regulatory compliance.
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National Bank Enters into Consent Orders with CFPB and OCC, Fined $36 Million
On December 19, 2023, the CFPB announced it had entered into a consent order with a national bank regarding its handling of consumers’ unemployment benefits accounts.
The bank had contracted with at least 19 states to deliver unemployment benefits to…
CFPB Issues Consent Order Against Third-Party Debt Collector
On December 15, 2023, the CFPB announced that it entered into a consent order with a medical debt collector resolving allegations that the debt collector tried to collect unverified medical debts after consumers disputed the validity of those debts.
The CFPB alleges that…
The Justice Department and Consumer Financial Protection Bureau Issue Joint Statement Focused on Antidiscrimination in Lending Practices
By Allison Funk
Last month, the Justice Department (DOJ) and the Consumer Financial Protection Bureau (CFPB) issued a joint statement that reminded financial institutions that all credit applicants are protected from discrimination on the basis of their national origin, race and other characteristics…
CFPB Enters Into $60M Consent Order with Vehicle Lending Credit Corporation
On November 20, 2023, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with the auto-financing arm of a major automaker in the amount of $60 million, resolving allegations that the corporation violated the Fair Credit Reporting…
Minnesota AG Reaches Settlement with Student-Loan Debt Relief Company
By Collin Grier
On November 8, 2023, the Minnesota Attorney General (Minnesota AG) announced that the state had reached a settlement with a California-based student-loan debt-relief provider over miscellaneous state law allegations. Specifically, the Minnesota AG alleged that the company did not register as a debt settlement…
“Open Banking” Promoted in New CFPB Rule
In October 2023, the Consumer Financial Protection Bureau (CFPB) proposed a new rule intended to encourage “open banking”. “Open banking” is a practice of sharing, with consent, consumers’ banking and financial data (account balances, transaction history, payment due…
Pursuant to Consent Order with CFPB, National Bank to Pay $25.9 Million for Alleged Discrimination Against Armenian Americans
On November 8, 2023, the CFPB and a national bank entered into a consent order to resolve allegations that the bank engaged in intentional discrimination against Armenian Americans who had applied for credit cards with said bank. Specifically, the CFPB…
FTC Reaches $18 Million Settlement with Personal Finance App
By Collin Grier
On November 2, 2023, the Federal Trade Commission (FTC) announced that it had reached a settlement with a New York based personal finance application over claims that the app violated the Federal Trade Commission Act (FTCA), 15 U.S.C.…
CFPB Updates Exam Manual in Light of the United States District Court for the Eastern District of Texas’s Ruling in the U.S. Chamber of Commerce Litigation
By CC Jiao
As previously reported, on September 8, 2023, the United States District Court of the Eastern District of Texas granted plaintiff U.S. Chamber of Commerce’s (the “Chamber”) motion for summary judgment, which invalidated the Consumer Finance Protection Bureau’s (“CFPB”) Exam…