CFPB Supervision

  • Supervisory highlights: On October 27th, the CFPB published its fall 2014 “Supervisory Highlights” in order to “share recent supervisory observations, such as regulatory violations or unfair, deceptive, or abusive acts or practices in the areas of consumer reporting, debt collection, deposits, mortgage servicing, and student loan servicing.”  The report covers the period of March through June 2014.  In a preface to its section on “supervisory observations,” the CFPB stated, “compliance management system reviews remain a priority in [the] CFPB’s examination program.  Recent examinations have seen, especially in the nonbank sector, increased efforts by supervised entities to develop more robust compliance management systems.”  Finally, the CFPB reviews remedial actions from companies in response to CFPB supervisory actions as well as its updated supervisory guidance about Home Mortgage Disclosure Act reporting.

CFPB Operations

  • FCRA: Recently, the CFPB published a full version of its “Summary of Your Rights Under the Fair Credit Reporting Act” (FCRA).  The summary is required under §609(c)(1) of the FCRA, and must be provided to job applicants during the adverse action process under §605(b)(3)(A)(ii). The summary document was previously not accessible on the CFPB’s website, nor was it accessible as one, complete document.  The summary document is available in both English and Spanish, and it highlights “major rights under the FCRA” and provides contact information for job applicants in specified types of business who seek to discuss their FCRA rights with the corresponding federal regulator.  The document does not include any new, substantive language.

CFPB  Rulemaking

  • Rural and underserved communities: On October 27th, the CFPB published its finalized 2015 list of rural and underserved counties.  The lists identify communities affected by such designations according to several CFPB rules, including:
    • The Escrows Rule under the Truth in Lending Act Rule;
    • The Ability-to-Repay and Qualified Mortgage Standards Rule;
    • The High-Cost Mortgage and Homeownership Counseling Amendments to the TILA Rule; and
    • Appraisals for higher-priced mortgage loans.
  • TILA-RESPA: On October 29th, the CFPB published in the Federal Register (79 FR 64336) a proposed rule to modify and make technical amendments to the TILA-RESPA Integrated Disclosure Rule, otherwise known as “Know Before You Owe.”  The proposed rule would allow creditors to provide a consumer with a revised Loan Estimate the day after a consumer locks in a floating interest rate, rather than on the same day.  The CFPB originally published the proposed rule on its website on October 10th  (previously reported).  It will accept public comments through November 10th.

CFPB Outreach

  • CFPB mission: On October 24th, CFPB Director Richard Cordray delivered prepared remarks at the University of Michigan Law School.Cordray recounted the historical and financial context for the establishment of the CFPB.  Cordray also highlighted the “four Ds”—deceptive marketing, debt traps, dead end markets, and, “perhaps most damaging of them all,” discrimination—that the CFPB addresses as “obstacles that interfere with justice and dignity for consumers.”  For each of the “four Ds,” he provided examples of the CFPB’s efforts addressing each such obstacle.  Finally, Cordray briefly provided an overview of the CFPB’s efforts to promote “more responsible conduct” and to better educate consumers.