Amendments to the 2013 Loan Originator Final Rule
On October 29th, the Consumer Financial Protection Bureau (“CFPB”) published for comment proposed amendments to the Truth in Lending Act and Real Estate Settlement Procedures Act Final Rule. The amendments would adjust the timing requirement for revised disclosures when the consumer locks a rate or extends a rate lock after the initial disclosures are provided; and would permit language related to new construction loans to be included on the Loan Estimate form. The proposal would also amend the 2013 Loan Originator Final Rule to provide for placement of the Nationwide Mortgage Licensing System and Registry ID on the integrated disclosures. Comments should be submitted on or before November 10, 2014. 79 FR 64336.
CFPB Supervision Report
On October 28th, the Consumer Financial Protection Bureau issued a report highlighting illegal actions uncovered by the Bureau’s supervision of the student loan and mortgage servicing markets. Bureau examiners found that companies engaged in illegal practices like charging unfair late fees and harassing debt collection calls. Bureau examiners also found that some mortgage servicers failed to provide critical consumer protections required by the new CFPB servicing rules that took effect earlier this year. CFPB Press Release.
FinCEN Administrative Rulings Regarding Virtual Currency Platforms and Payment Systems
On October 27th, the Financial Crimes Enforcement Network (“FinCEN”) issued two administrative rulings on the application of FinCEN’s regulations to virtual currencies. In FIN-2014-R011, FinCEN addressed whether a company’s convertible virtual currency trading and booking platform would make the company a money transmitter under the Bank Secrecy Act. Based on the facts presented by the company, FinCEN concludes that the company would be a money transmitter. Similarly, in FIN-2014-R012, FinCEN concludes that a company’s proposed virtual currency payment system would make the company a money transmitter under the BSA.