CFPB Amends Regulation Z Commentary

On November 27, 2015, the CFPB issued a final rule amending the official interpretations and commentary for the Truth in Lending Act (“TILA”). TILA’s regulations require the dollar threshold for exempt consumer credit transactions to be adjusted annually based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers. Because there was no increase in this index as of June 1, 2015, the exemption threshold remains at $54,600 through December 31, 2016.

The final rule became effective January 1, 2016. To learn more,  visit: www.federalregister.gov/articles/2015/11/27/2015-30091/truth-in-lending- regulation-z

CFPB Amends CLA Commentary

On November 27, 2015, the CFPB issued a final rule amending the official interpretations and commentary for  the  regulations  implementing the Consumer Leasing Act (“CLA”). The CLA’s regulations require the dollar threshold for exempt consumer leases to be adjusted annually based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers. Because there was no increase in this index as of June 1, 2015, the exemption threshold remains at $54,600 through December 31, 2016.

The final rule became effective January 1, 2016.

To learn more, visit: www.federalregister.gov/ articles/2015/11/27/2015-30071/consumer-leasing- regulation-m

Agencies Issue Final Rule on Appraisals for Higher-Priced Mortgage Loans

On November 27, 2015, the CFPB, OCC, and the Fed issued final rules amending the official interpretations for various regulations implementing section 129H of TILA, governing appraisal requirements for “higher- priced mortgage loans” and “higher-risk mortgages.” The agencies’ 2014 rules exempted transactions of $25,000 or less, and required that this amount be adjusted annually based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers. Because there was no increase in this index as of June 1, 2015, the exemption threshold remains at $25,500 through December 31, 2016.

The final rule became effective January 1, 2016.

To learn more, visit: www.federalregister.gov/articles/2015/11/27/2015-30097/appraisals-for-higher-priced-mortgage-loans-exemption- threshold

CFPB Amends Commentary on Reg Z Asset- Size Exemption Threshold

On December 23, 2015, the CFPB issued a final rule amending the commentary to the asset-size exemption thresholds of Regulation Z, which implements TILA.

Specifically, the final rule preserves the asset-size threshold for certain creditors at $2 billion for certain escrow account requirements for higher-priced mortgage loans.

The final rule became effective January 1, 2016.

To learn more, visit: www.federalregister.gov/articles/2015/12/23/2015-32293/truth-in-lending-act-regulation-z-adjustment-to-asset-size- exemption-threshold

CFPB Amends Commentary on Reg C Asset- Size Exemption Threshold

On December 23, 2015, the CFPB issued a final rule amending the commentary to the asset-size exemption thresholds of Regulation C, which implements the Home Mortgage Disclosure Act.

Specifically, the final rule preserves the asset-size exemption for banks, savings associations and credit unions at $44 million.

The final rule became effective January 1, 2016.

To learn more, visit: www.federalregister.gov/articles/2015/12/23/2015-32285/home-mortgage-disclosure-regulation-c-adjustment-to-asset-size- exemption-threshold

CFPB Issues Corrections to Regulation Z and Interpretations

On December 24, 2015, the CFPB issued a final rule making certain technical corrections to Regulation Z and its official interpretations.

Specifically, the final rule republishes certain provisions that were inadvertently omitted from the Code of Federal Regulations under the TILA-RESPA Final Rule.

To learn more, visit: www.federalregister.gov/ articles/2015/12/24/2015-32463/2013-integrated- mortgage-disclosures-rule-under-the-real-estate- settlement-procedures-act-regulation

CFPB Requests Feedback on HDMA Guidelines

The CFPB recently requested feedback on its guidelines regarding correction of erroneous data submitted to the agency pursuant to the Home Mortgage Disclosure Act.

HDMA regulations require lenders to resubmit data where errors exceed certain thresholds. These thresholds vary depending on the number of loans reported by an institution. The CFPB seeks feedback on issues such as whether it should continue to use these  percentage  thresholds,  how  the  thresholds should be computed, and whether thresholds should differ based on a lender’s loan volume.

To read the request for information, visit: http://files.consumerfinance.gov/f/201601_ cfpb_request-for-information-regarding-home- mortgage-disclosure-act-resubmission.pdf

CFPB Issues Warning Letters Regarding School-Sponsored Credit Cards

The CFPB recently sent warning letters to several colleges regarding inadequate disclosure of school- sponsored credit card agreements. The schools that received the letters did not comply with the CARD Act’s requirement of making marketing agreements available to the public, either online or by request.

According to a recent study by the agency, four out of five schools failed to disclose their marketing agreements on their websites, and nearly two-third failed to provide such agreements upon request.

To learn more, visit: www.consumerfinance.gov/ newsroom/cfpb-warns-colleges-about-secret- campus-credit-card-contracts/

To read the draft letter, visit: http://files. consumerfinance.gov/f/201512_cfpb_card-act_ warning-letter.pdf

CFPB Develops Financial Well-Being Scale

The CFPB recently developed a financial well- being “scale,” a questionnaire aimed at measuring a person’s financial security and freedom of choice. According to the user guide, the scale is intended to “provide practitioners and researchers with a standard, reliable, and broadly available way to measure individual financial well-being.”

The agency notes in the user guide that financial well- being includes having control over one’s finances, the capacity to absorb a financial shock, being on track to meet financial goals, and being able to make choices that allow one to enjoy life.

To view the questionnaire, visit: http://files. consumerfinance.gov/f/201512_cfpb_financial- well-being-questionnaire-standard.pdf

To view the scoring worksheet, visit: http://files. consumerfinance.gov/f/201512_cfpb_financial- well-being-worksheet-standard.pdf

To read the user guide, visit: http://files. consumerfinance.gov/f/201512_cfpb_financial- well-being-user-guide-scale.pdf

CFPB Issues Report on CARD Act

The CFPB recently released a report discussing the impact of the CARD Act on the credit market. The report discusses how the CARD Act has prevented billions of dollars in late fees and over-limit fees, reduced the overall cost of credit, and increased available credit since the Act’s inception.

To read the report, visit: http://files. consumerfinance.gov/f/201512_cfpb_report-the- consumer-credit-card-market.pdf

Federal Reserve Board Issues Final Rule on Emergency Lending

On November 30, 2015, the Federal Reserve Board issued a final rule regarding requirements for emergency lending under the Federal Reserve Act. The rule clarifies the definition of “broad-based eligibility” for programs and facilities providing emergency loans.

Specifically, the rule defines “broad-based” to mean a program or facility not designed for the purpose of aiding failing firms and in which at least five entities would be eligible to participate. The rule also broadens the definition of insolvent borrowers, to whom lenders are prohibited from issuing emergency loans under the Dodd-Frank Act.

To read the final rule, visit: www.federalreserve. gov/newsevents/press/bcreg/bcreg20151130a1. pdf