On October 30, 2023, the Federal Trade Commission (FTC) announced that the United States District Court for the Southern District of New York (SDNY) granted a permanent injunction containing a lifetime ban for the owner of a small-business lending company for unfair business practices and aggressive
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.
Latest from LenderLaw Watch - Page 5
Supreme Court Hears Oral Argument on the Constitutionality of the Funding of the CFPB
By Allison Funk
The Supreme Court heard oral arguments on October 3, 2023 in Consumer Financial Protection Bureau v. Community Financial Services Association of America, Ltd. The issue before the Court is whether the CFPB’s funding mechanism violaties the U.S. Constitution’s Appropriations Clause…
CFPB Files Complaint Against Mortgage Originator For Allegedly Inaccurate HMDA Reporting
By Andrew Hill
On October 10, 2023, the Consumer Financial Protection Bureau (CFPB) announced that it filed a complaint against a residential mortgage loan originator and servicer alleging that the company violated the Home Mortgage Disclosure Act (HMDA), its implementing Regulation C, the Consumer…
FTC and CFPB Announce $15 Million Settlement Against Credit Reporting Agency For Alleged Inaccuracies In Tenant Screening Reports
By Andrew Hill
On October 12, 2023, the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) announced that they filed a joint complaint and obtained a $15 million settlement against a parent credit reporting agency and one of its subsidiaries…
FTC Reaches Consent Order with For-Profit College Resolving Allegations of Deceptive Advertising and Loan Agreements
By Andrew Hill
On October 18, 2023, the Federal Trade Commission (“FTC”) announced that that they had filed a complaint and entered into a stipulated order with a for-profit college and its parent company. Under the consent order, the college will cancel $3.4 million in…
The CFPB Proposal to Remove Medical Debt from Credit Report
The Consumer Financial Protection Bureau (CFPB) is moving forward with a rulemaking proposal to change the process of reporting medical debt on consumer credit reports. Specifically, the rulemaking proposal the Bureau is considering had two main parts. First, it prohibits credit…
U.S. Chamber of Commerce Wins Summary Judgment in Challenge to CFPB’s Update to Its Examination Manual
By CC Jiao
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 invalidating the Consumer Finance Protection Bureau’s (“CFPB”) Exam Manual changes from March 2022…
CFPB Analyzes Mobile Device Tap-To-Pay Market as Possible Precursor to New Regulation
On September 7, 2023, the Consumer Financial Protection Bureau (CFPB) published its analysis of how smartphone companies are affecting consumers’ use of so-called “tap-to-pay” technology – the wireless transfer of data over very short distances, used in financial transactions conducted…
The CFPB Faces Challenges to the Small Business Lending Rule in Texas and Kentucky
By Allison Funk
On March 30, 2023, the Consumer Financial Protection Bureau (CFPB) issued the small business lending rule (Final Rule) which implements the small business lending data collection requirements set for in Section 1071 of the Dodd-Frank Act (Section 1071). Section 1071…
CFPB Enters into Consent Orders with Mortgage Loan Originator and Real Estate Brokerage Firm for Illegal Kickbacks
On August 17, 2023, the Consumer Financial Protection Bureau (CFPB) announced that it had taken action against a residential mortgage loan originator that provided illegal incentives to real estate brokers and agents in exchange for mortgage loan referrals. The CFPB…