A lot has happened since we last reported on the Consumer Financial Protection Bureau. Frankly, too much to summarize coherently at the hour this post is being written.
But we do feel obliged to report on the status of the Interstate Land Sales Full Disclosure Act. As we reported on July 21, there were some questions about the transfer from HUD to the CFPB of ILSFDA enforcement authority. To us, the most significant was whether hospitality developers could continue to rely upon the Guidelines for Exemptions Available Under the Interstate Land Sales Full Disclosure Act.
Based on the discussion during a July 14 CFPB teleconference, the answer seemed to be a clear “no.” This was problematic as the Guidelines (in their various iterations) have played a substantial role in the administration of ILSFDA over the past 25 years.
However, the CFPB has since issued guidance stating in part that:
"Later this year, the CFPB intends to publish . . . the rules, including HUD’s ILS rules, for which rulemaking authority transfers to the CFPB. . . . In the interim, the existing rules will continue in effect and the changes made by [Dodd-Frank] to transfer authority to the CFPB will be effective as of the designated transfer date by operation of law."
So are the Guidelines “rules” for purposes of this guidance?
Possibly, but you’ve got to follow along:
- As we previously reported, the CFPB was obligated to publish a notice in the Federal Register stating the “rules and orders” it would enforce.
- The CFPB included among those rules “24 CFR Part 1710—Land Registration”
- In footnote 8 of that notice, the CFPB stated: “Unless otherwise noted, all references to a Part include accompanying appendices and supplements.”
- The official title to the Guidelines begins “Supplemental Information to Part 1710.”