Dodd-Frank News Center

CFPB announces enhancements to advisory committee charters

This story appeared in Bank Digest.                                   

The Consumer Financial Protection Bureau has announced enhancements to its advisory committee charters for the Consumer Advisory Board, Academic Research Council, Community Bank Advisory Council, and Credit Union Advisory Council. The Bureau's press release said that effective fiscal year 2020, the committees will expand their focus to broad policy matters and increase the frequency of in-person meetings.

The ARC is also being elevated to a director-level advisory committee, the membership terms for the committees will be extended from a one-year term to two-year terms, and the terms will be staggered. Finally, in addition to a chair, each committee will be assigned a vice-chair.

In addition, the release noted that the Bureau will begin accepting applications for members to serve on its advisory committees, and a Bureau blog post provides information on qualifications and how to apply.

CFPB updates payday lending examination procedures, 'Supervision and Examination Manual'

This story appeared in Bank Digest.                                   

The Consumer Financial Protection Bureau has updated its short-term, small-dollar lending examination procedures, which apply to the short-term, small-dollar credit market, commonly known as payday lending. The procedures are comprised of modules covering a payday loan's lifecycle, and each module identifies relevant matters for review.

The Bureau has also updated its "CFPB Supervision and Examination Manual," which is a guide for examiners to use in overseeing companies that provide consumer financial products or services.

CFPB and FTC issue reports on implementation, enforcement of debt collection laws

This story appeared in Bank Digest.                                   

The Consumer Financial Protection Bureau has released its annual report to Congress on the administration of the Fair Debt Collection Practices Act. According to the Bureau's release, the report highlights the continued efforts by the CFPB and the Federal Trade Commission to stop unlawful debt collection practices, including through law enforcement, education and public outreach, and policy initiatives.

The release noted that on Feb. 25, 2019, the CFPB and FTC reauthorized their memorandum of understanding that provides for coordination in enforcement, sharing of supervisory information and consumer complaints, and collaboration on consumer education.

In addition, the FTC has released a report to the CFPB on its efforts in the debt collection arena over the past year, which was intended to assist the Bureau in preparing its annual report.

CFPB's latest complaint snapshot focuses on complaints by servicemembers and veterans

This story appeared in Bank Digest.                                   

The Consumer Financial Protection Bureau has issued its latest complaint snapshot, which focuses on complaints submitted by servicemembers, veterans, and military families in 2018. A Bureau blog post said the report gives a national overview of servicemember complaints and also provides complaint information by state.

According to the report, the top five products by complaint volume for 2018, respectively, were complaints relating to: (1) credit or consumer reporting; (2) debt collection; (3) mortgages; (4) credit cards; and (5) checking or savings accounts.

CFPB requests renewal of ECOA information collection

This story appeared in Bank Digest.                                     

The Consumer Financial Protection Bureau is requesting to renew, without change, the Office of Management and Budget approval for an existing information collection entitled "Equal Credit Opportunity Act (Regulation B) 12 CFR 1002." According to the Bureau's notice, the Equal Credit Opportunity Act was enacted to ensure that credit is made available to all creditworthy applicants without discrimination on the basis of sex, marital status, race, color, religion, national origin, age, or other prohibited bases.

The ECOA allows for creditors to collect information for self-testing against these criteria, while not allowing creditors to use this information in making credit decisions of applicants. For certain mortgage applications, the ECOA requires creditors to ask for some of the prohibited information for monitoring purposes. Written comments on the proposed renewal of this collection must be received by May 20, 2019.

 

CFPB chooses organizations for 2019 Your Money, Your Goals cohort

This story appeared in Bank Digest.                                   

The Consumer Financial Protection Bureau has selected 40 organizations to join the 2019 Your Money, Your Goals cohort, which will entitle them to "receive training and technical assistance on how to use the Your Money, Your Goals tools to help them discuss money topics with the people they serve in their communities," according to a Bureau blog post. The author said, "Your Money, Your Goals is a comprehensive suite of resources and training geared to help non-profit and government agencies integrate financial empowerment into their existing service models."

The members of the 2019 cohort include "federal, state, and local government agencies; faith-based and social service organizations; organizations serving people with disabilities, native communities and those transitioning from prison; and financial providers."

CFPB to hold home buying email boot camp

CFPB to hold home buying email boot camp

This story appeared in Bank Digest.                                    

The Consumer Financial Protection Bureau is inviting consumers to sign up for its two-week Get Homebuyer Ready email boot camp for those considering buying a home. According to a Bureau blog post, the course takes consumers step-by-step through the entire home buying process and equips them with helpful tools and resources. The post includes a link where consumers can sign up for the course.

Banking Committee holds hearing on CFPB's report to Congress

This story appeared in Bank Digest.                                     

The Senate Banking Committee held a hearing entitled "The Consumer Financial Protection Bureau's Semi-Annual Report to Congress" on March 12, 2019.

The committee received the testimony of Consumer Financial Protection Bureau Director Kathy Kraninger on the Bureau's most recent semiannual report, which "outlines the CFPB's significant work between April 2018 and September 2018, including rulemakings and supervisory and regulatory activities," according to a prepared opening statement by Committee Chairman Mike Crapo (R-Idaho). Crapo said the report "also provides insight into what the CFPB plans to undertake in the coming work period."

CFPB blog post highlights new financial protections for young people

This story appeared in Bank Digest.                                   

A Consumer Financial Protection Bureau blog post highlights a federal law, effective Sept. 21, 2018, that "lets parents and child welfare representatives of people under 16, as well as legal guardians, request a security freeze, also called a credit freeze, on their behalf." The authors said placing such a security freeze, which is free, can help protect young people from identity theft and fraud by restricting access to their credit reports and thus making it harder for identity thieves to open new accounts using their personal information. The post also discusses procedures to request a security freeze for young people in foster care.

 

Brown comments on regulatory decisions

This story appeared in Bank Digest.                                   

Senate Banking Committee Ranking Member Sherrod Brown (D-Ohio) has issued statements on several recent regulatory decisions involving: (1) the countercyclical capital buffer, which requires big banks to set aside extra capital to absorb potential loan losses in the event of an economic downturn; (2) a proposed rewrite of the Volcker Rule; and (3) proposed interpretive guidance from the Financial Stability Oversight Council that would change the process for designating nonbank financial companies as systemically important financial institutions.

Regarding the Federal Reserve Board's decision to keep the countercyclical capital buffer at its current level of 0 percent, Brown said he was disappointed with the decision and added, "Banks are doing well, but there are certainly growing risks in the economy. Now is exactly when the buffer should be used to make sure that the banks have enough capital for those eventual bad times."

Commenting on a potential revision of the proposed Volcker Rule rewrite, Brown said it was "no surprise that when Wall Street banks complained that the proposed rewrite of the Volcker Rule wasn't weak enough, Trump regulators went to work watering it down further."

Finally, Brown said the FSOC's new proposed guidance "ignores the damage done to our financial system during the last crisis and the risks still posed by shadow banks and other financial institutions. FSOC is no longer protecting financial stability or taxpayers."