Bureau of Consumer Financial Protection (CFPB) – Page 10

A Cure for What Ails You – Or At Least One Thing That Does: CFPB’s Cure for “Points and Fees” Mistakes

Nov 17 2014

In a recent amendment to Regulation Z, the CFPB offers a tonic to mortgage lenders and their assignees that have struggled with the “points and fees” calculation for Qualified Mortgages (QMs). The CFPB’s cure allows lenders or assignees of covered loans to reestablish the QM status of a loan for which the amount of points and fees inadvertently exceeds the thresholds set by the CFPB’s Ability to Repay/QM Rule. The cure is available for loans consummated on and after November 3, 2014, but it expires January 10, 2021.

To read the full alert, click here.

A Hard Rain Has Started to Fall A Product-by-Product Review of the CFPB’S First 60 Enforcement Actions

Nov 12 2014

By: Jon Eisenberg

Between July 17, 2012 and October 9, 2014, the Consumer Financial Protection Bureau brought 60 enforcement actions. According to our unofficial tally, they resulted in settlements requiring the payment of $2.2 billion in restitution, $174 million in CFPB civil money penalties, and, in a few cases, other forms of consumer relief. In this alert, we discuss the products and alleged practices that led to those recoveries. Our purpose is simple—what’s past is likely prologue when it comes to CFPB enforcement actions. Understanding the conduct that produced the first 60 enforcement actions will help companies avoid becoming one of the next 60 enforcement actions.

To read the full alert, click here.

The First Circuit Clarifies That A Defendant’s Deadline to Remove is Principally Influenced by the Actions of the Plaintiff

Nov 12 2014

By: Robert W. Sparkes, III, Brian M. Forbes

The first questions any defendant served with a complaint filed in state court should consider are whether removal of the action to federal court is preferable and, assuming the action is removable, when must a notice of removal be filed. The “when” question continues to be a source of debate as federal courts across the country grapple with issues pertaining to (1) the triggering of the removal clocks under federal law and (2) the duty of a defendant to investigate the removability of an action. Joining other federal circuit courts of appeal to have addressed these issues, on October 24, 2014, the First Circuit Court of Appeals provided its answers in Romulus v. CVS Pharmacy, Inc. And, it may come as a surprise to some, the answers are largely dependent on the actions taken by the plaintiff.

To read the full alert, click here.

FCC Order Confirms that TCPA Regulations Require Opt-Out Notice on All Fax Advertisements, Even Those Sent with Prior Express Permission

Nov 10 2014

By: Joseph C. Wylie II, Molly K. McGinley, Nicole C. Mueller

On October 30, 2014, the Federal Communications Commission (“FCC”) released an Order that “confirms” that opt-out notices complying with rules and regulations adopted by the FCC in 2006, pursuant to the authority granted to the FCC under the Telephone Consumer Protection Act of 1991, as amended by the Junk Fax Prevention Act of 2005, are required on all advertisements transmitted by facsimile, including advertisements transmitted with the prior express permission of the recipient. The FCC also granted retroactive waivers to parties that were reasonably uncertain about whether the opt-out notice requirement applied to faxes sent with prior express permission from the recipient. The FCC further stated that individual retroactive waivers may be extended to similarly situated parties that seek waiver requests prior to April 30, 2015.

To read the full alert, click here.

2014 Election Guide: A Guide to Changes in Congress

Nov 05 2014

Riding a wave of voter discontent, Republicans in the mid-term election took control of the U.S. Senate and increased their majority in the House. The results offer an opportunity for collaboration between the Congress and the Obama Administration, and to restart the legislative process.

To help you assess yesterday’s election, K&L Gates has prepared a comprehensive guide that summarizes the results and their impact on the 114th Congress, which will convene in January. The Election Guide lists all new members elected to Congress, updates the congressional delegations for each state, and provides a starting point for assessing the coming changes to the House and Senate committees.

Please click here to download the most up-to-date version of the 130 page Election Guide, which will be updated on an ongoing basis as more of the close races are called and committees are finalized. Read More

The 2015 U.S. News-Best Lawyers “Best Law Firms” Survey

Nov 03 2014

For a fifth consecutive year, global law firm K&L Gates LLP is among the top two law firms with the most first-tier rankings in the annual U.S. News-Best Lawyers “Best Law Firms” survey. The firm also has been honored for a second straight year with the publication’s sole national “Law Firm of the Year” distinction in the Securities Regulation area, one of 35 practices in which K&L Gates received a first-tier ranking nationally. Of these national first-tier rankings, the Consumer Financial Services practice was acknowledged within the Banking and Finance Law and Financial Services Regulation Law categories. Read More

CFPB Finalizes Rule Permitting Financial Institutions to Post Privacy Notices Online

Oct 30 2014

By: Kristie D. Kully, David A. Tallman, Jeremy M. McLaughlin

Last week, the CFPB last week finalized its rule permitting certain financial institutions to post their annual privacy notices online, claiming it will benefit consumers and financial institutions alike. The rule became effective on October 28, 2014, and applies to banks and non-banks within the CFPB’s jurisdiction.

K&L Gates Programs: Election 2014: Policy Implications Across Industries

Oct 15 2014

On the eve of the 2014 Congressional elections, the Public Policy and Law Group of K&L Gates is hosting two complimentary programs for our clients and contacts on topical issues and implications about the upcoming election. Please see below for more information on both, including how to register. If you wish to attend both programs, you must register for both programs.

Program 1
The Mid-Term Elections: What They Mean for Major National Policies
Thursday, October 30, 2014
3:00 – 4:00 pm EDT

Panelists will discuss alternative impacts of a Republican takeover or Democratic retention of the Senate and continued Republican control of the House on key issues, including energy/environment, financial services, health care and tax.

Program 2
Election 2014: Its Impact on Federal Policy-Making in 2015
Monday, November 3, 2014
2:00 – 3:00 pm EDT

Panelists will discuss changes on key Congressional committees, the agenda for the 114th Congress and the impact on the Obama Administration’s policies and regulatory activities.

K&L Gates Legal Insight: Start Your Compliance Engines: CFPB Proposes Rule to Supervise Larger Nonbank Auto Finance Companies

Oct 09 2014

By: Melanie Brody, Anjali Garg, Christa Bieker

The Consumer Financial Protection Bureau (“CFPB” or “Bureau”) issued a proposed rule on September 17, 2014, that would empower the Bureau to supervise certain larger nonbank automobile finance companies. The CFPB proposed the rule pursuant to its authority under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) to supervise nonbank larger participants of certain financial product and service markets for compliance with federal consumer laws.

To read the full alert, click here.

If Bernanke Wants to Refinance, Maybe He Needs a Co-Signer?

Oct 06 2014

By: Kristie D. Kully, Laurence E. Platt

While former Federal Reserve Chairman Ben Bernanke may be known for his loose monetary policy, unfortunately his mortgage lender is not. According to Bloomberg News, Mr. Bernanke complained (while addressing a conference of the National Investment Center for Seniors Housing and Care in Chicago on October 2) that he was recently unable to refinance his mortgage loan.

Although Mr. Bernanke reportedly remarked that “it’s entirely possible” that lenders “may have gone a little bit too far on mortgage credit conditions,” it’s hard to blame lenders. Mr. Bernanke may seem to be a good credit risk, but a lender that follows the underwriting standards mandated by the federal Qualified Mortgage (“QM”) regulations can’t make a loan to just anyone.
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Catagory:Bureau of Consumer Financial Protection (CFPB)