Dodd-Frank News Center

CFPB announces changes to CID policies

This story appeared in Bank Digest.                                     

The Consumer Financial Protection Bureau has announced changes to policies regarding Civil Investigative Demands, which are investigational subpoenas the Bureau is authorized to issue when looking into potential violations of law. The changes are intended to ensure the CIDs provide more information about the potentially wrongful conduct under investigation.

The Bureau's release said CIDs will now provide more information about the potentially applicable provisions of law that may have been violated and will also typically specify the business activities subject to the Bureau's authority. If determining the extent of the Bureau's authority over the relevant activity is a significant purpose of the investigation, staff may specifically include that issue in the CID in the interests of further transparency, the CFPB said.

CFPB seeks renewal of 'Interstate Land Sales Full Disclosure Act' information collection

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau is proposing to renew, without change, the Office of Management and Budget approval for an existing information collection entitled "Interstate Land Sales Full Disclosure Act (Regulations J, K & L) 12 CFR 1010, 1011, 1012." According to the CFPB's notice, information relating to this collection is submitted to the Bureau to assure compliance with the Interstate Land Sales Full Disclosure Act and the implementing regulations.

On Dec. 17, 2018, the Bureau issued a 60-day notice at 83 Federal Register 64566 seeking comments on the proposal. Written comments on the current notice must be received by May 22, 2019, and will be reviewed by the OMB as part of its review of this request.

Agencies tell Warren, Brown that Wells Fargo has not satisfied consent order obligations

This story appeared in Bank Digest.                                   

Senators Elizabeth Warren (D-Mass) and Sherrod Brown (D-Ohio) have released new letters from the Federal Reserve Board, Office of the Comptroller of the Currency, and Consumer Financial Protection Bureau in response to inquiries they sent the regulators in March 2019 regarding Wells Fargo.

In separate letters sent to the OCC and CFPB and to the Fed, the senators had expressed concern about Wells Fargo's apparent unwillingness to compensate customers harmed by the bank's illegal auto-lending practices, despite an obligation to do so under its settlement with the OCC and CFPB, and urged the agencies to use their enforcement tools to remove then-CEO Tim Sloan. The senators' letter to the Fed also cited a recent Securities and Exchange Commission fine for overcharging retail mutual fund investors and urged the Fed to refrain from lifting Wells Fargo's growth restriction until Sloan was replaced.

According to Warren's press release, the agencies said in their response letters that Wells Fargo has not satisfied its obligations under existing consent orders, which require the bank to remediate customers harmed by its wrongdoing and impose reforms to end the bank's unlawful activity.

CFPB requests renewal of RESPA 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 "Real Estate Settlement Procedures Act (Regulation X) 12 CFR 1024." Written comments must be received by June 7, 2019.

According to the Bureau's notice, the Real Estate Settlement Procedures Act of 1974, as amended, requires lenders, mortgage brokers, or servicers of certain home loans to provide borrowers with pertinent and timely disclosures regarding the nature and costs of the real estate settlement process, as well as servicing, including escrowing.

Regulation X, which implements RESPA, contains information collections in the form of third party disclosures and recordkeeping requirements.  

CFPB blog post urges consumers to work with credit card companies on debt

This story appeared in Bank Digest.                                   

Noting that overall credit card debt increased by 13 percent from 2015 to 2017, and by 22 percent for those with very low credit scores, the authors of a Consumer Financial Protection Bureau blog post advise consumers to work with their credit card companies to help address their debt, saying that many companies "will work with you to find a repayment plan that suits your current situation."

The post also discusses the use of debt settlement companies, which "are typically for-profit companies that often state that they can negotiate with your credit card company to reduce the amount you owe." The authors describe certain drawbacks to using such companies, noting that they typically advise consumers to stop making payments, which could negatively affect their creditworthiness. Such companies also often charge large fees, according to the authors, for work that consumers can do themselves.

 In addition, the post says consumers may want to work with a credit counselor to help them manage their money and pay off their debt.

 

CFPB updates ECOA baseline review procedures, HMDA examination procedures

This story appeared in Bank Digest.                                   

The Consumer Financial Protection Bureau has updated its Equal Credit Opportunity Act baseline review procedures and its Home Mortgage Disclosure Act examination procedures. The ECOA Baseline Review Modules will be used by examiners during ECOA baseline reviews to evaluate how institutions' compliance management systems identify and manage fair lending risks under ECOA.

HMDA requires certain financial institutions to collect, report, and disclose information about their mortgage lending activity. An HMDA review includes transactional testing for HMDA data accuracy and is conducted using the HMDA Examination Procedures within the CFPB Supervision and Examination Manual. The updated HMDA procedures include updates to reflect the Bureau's interpretive and procedural rule, issued in August 2018, which was issued to implement and clarify Section 104 of the Economic Growth, Regulatory Relief, and Consumer Protection Act.

CFPB issues examination procedures relating to prepaid accounts, updates EFTA and TILA procedures

This story appeared in Bank Digest.                                   

The Consumer Financial Protection Bureau has issued examination procedures to be used to examine institutions that offer prepaid accounts, as defined by the Prepaid Rule, for compliance with required disclosures and protections afforded to prepaid account holders (including government benefit accounts and payroll card accounts). The Bureau has also updated its examination procedures under the Electronic Fund Transfer Act and the Truth in Lending Act.

CFPB seeks renewal of 'service delivery' information collection

This story appeared in Bank Digest.                                     

The Consumer Financial Protection Bureau is proposing to renew and reinstate, without change, the Office of Management and Budget approval for an existing information collection entitled "Generic Information Collection Plan for the Collection of Qualitative Feedback on the Service Delivery of the Bureau of Consumer Financial Protection." According to the Bureau's notice, this generic information collection plan provides for the collection of qualitative feedback from consumers, financial institutions, and stakeholders on a wide range of services the Bureau provides in an efficient, timely manner, in accordance with the Bureau's commitment to improving service delivery.

On Oct. 1, 2018, the Bureau issued a 60-day notice at 83 Federal Register 49368, seeking comments on the proposal. Written comments on the current notice must be received by April 25, 2019, and will be reviewed by the OMB as part of its review of this request.

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.