Bureau of Consumer Financial Protection (CFPB) – Page 20

CFPB Plans Small Business Review Panel for Combined RESPA and TILA Disclosures and Hints at Possible Regulatory Changes

Mar 05 2012

If you are on the edge of your seat waiting for the combined RESPA/TILA proposed regulations and disclosure forms, we have our first glimpse into the changes being contemplated by the Consumer Financial Protection Bureau (“CFPB” or “Bureau”). On February 21, 2012, the CFPB announced its plan, in accordance with the Small Business Regulatory Enforcement Fairness Act, to solicit feedback from a group of small business mortgage and settlement companies that will be directly impacted by new and combined RESPA and TILA disclosure forms. In addition to describing the purpose and process for a Small Business Review Panel (“Panel”), and publishing a list of questions and issues for small business representatives to discuss at the upcoming Panel, the Bureau released an outline of the proposals currently under consideration for combined RESPA and TILA regulations. At this point, the outline is a list of issues that will allow the CFPB to measure whether the regulations under development could have a significant economic impact on a substantial number of small entities, but it gives us a first glance at the changes that could be coming for mortgage disclosures under RESPA and TILA. Read More

Freeman v. Quicken Loans to Decide Whether Undivided Unearned Fees Violate RESPA

Feb 24 2012

By: Phillip L. Schulman

To split an unearned fee or not to split an unearned fee in order to violate the Real Estate Settlement Procedures Act (RESPA) – that is the question. Rather, that was the question on February 21, 2012 when the Supreme Court heard oral argument in the case of Freeman v. Quicken Loans, Inc. The case is intended to settle a dispute among the federal circuit courts regarding the statutory interpretation of Section 8(b) of RESPA which prohibits giving or accepting “any portion, split, or percentage” of any charge for settlement services “other than for services actually performed.” Read More

RESPA Webinar Series: Be Ready Should the New CFPB Knock on Your Door

Feb 23 2012

By: Phillip L. Schulman, Holly Spencer Bunting

It has been seven months since the Consumer Financial Protection Bureau (“Bureau”) took over the regulatory and oversight responsibility for the Real Estate Settlement Procedures Act (“RESPA”). While the Bureau has made it an immediate priority to create combined RESPA and Truth in Lending disclosure forms, the Bureau also is gearing up its RESPA enforcement efforts. Given the Bureau’s primary mission of protecting consumers in carrying out federal consumer financial laws, it is incumbent on all settlement service providers – mortgage lenders and brokers, real estate brokers, title insurance and escrow providers, appraisers, and builders – to ensure their business practices comply with RESPA. Before the Bureau comes knocking on your door, it is time to brush up on RESPA.

The K&L Gates Consumer Financial Services Group will be hosting two complimentary webinars examining Section 8 of RESPA and the current RESPA issues being addressed by the Bureau.

To view details and register for the part 1, March 14 webinar, click here.

To view details and register for the part 2, March 28 webinar, click here.

If you would like to attend one or both of our webinars please register for each one separately.

Recently Introduced Bills to Protect Privileged Documents: Are They Sufficient to Protect Credit Unions and Nonbanks?

Feb 20 2012

By: Stephanie C. Robinson

Several bills floating around Congress this month aim to address the privilege waiver issue that is causing anxiety for CFPB-regulated entities. Banks and credit unions routinely have shared privileged documents with their prudential regulators (banking agencies and the National Credit Union Administration) without concern about a claim of waiver because of two statutory provisions that say submitting privileged information to these regulators in the course of supervision does not result in a waiver as to any other person or entity. Read More

CFPB Launches Online Portal for Regulation Streamlining Comments

Feb 20 2012

By: Eric Mitzenmacher

On Friday, the CFPB launched a new online portal through which the public can submit comments on ongoing efforts to streamline inherited regulations. The move continues the Bureau’s trend of using its website to promote a more interactive and responsive regulatory feel. Over the past few months, the site has hosted dialogs between the Bureau, industry representatives, and consumers as part of Know Before You Owe Campaigns that have targeted disclosures related to mortgages, credit cards, and student loans. CFPB has also positioned its site as its preferred method for receiving and resolving complaints about consumers’ mortgages or credit cards. Indeed, the complaint portals remain the most prominent feature of the CFPB homepage. Read More

K&L Gates Launches Financial Fraud Enforcement Task Force

Feb 17 2012

By: Laurence E. Platt

Washington, D.C. – Following the recent introduction of the Residential Mortgage-Backed Securities (RMBS) Working Group as the latest strike in the Obama Administration’s enforcement response to the financial crisis, global law firm K&L Gates LLP has created a new cross-practice task force to assist clients in addressing questions and allegations relating to this joint federal and state initiative.

To view the complete release online, click here.

CFPB to Payday Lenders: We’re Coming for You – Cordray Tells Payday Lenders to Expect “Much More Attention” and Releases New Examination Guidelines for the Industry; Many Questions Left Unanswered

Feb 01 2012

By: David G. McDonough, Jr.

Payday lenders recently received their first peek at what life will be like under the CFPB’s watch, and it’s not a pretty picture. In the Bureau’s recently released examination procedures for payday lenders, the CFPB makes clear that it will examine every aspect of a payday lender’s operation, likely well beyond what most payday lenders have experienced to date with the patchwork of state regulation. Read More

Cordray’s Recess Appointment Continues to Cause Controversy

Jan 25 2012

By: Tori K. Shinohara

On January 4, President Obama made several recess appointments, including the appointment of Richard Cordray as the first director of the CFPB. After facing harsh criticism, an Office of Legal Council (OLC) memorandum opinion was released on January 12, justifying the constitutionality of the appointments in question. Read More

CFPB and FTC Memorandum of Understanding Aims to Coordinate Non-Bank Enforcement and Allow Information-Sharing

Jan 24 2012

By: David I. Monteiro

Over the weekend, the CFPB and the FTC executed a Memorandum of Understanding (“MOU”) between the two agencies that clarifies how they will share information and coordinate efforts with respect to companies and issues that fall under both agencies’ jurisdiction. The document contains few surprises but offers some insight into the steps the agencies are taking to prevent unnecessary duplication and inconsistency. Read More

CFPB Releases “Mortgage Origination Examination Procedures” Governing Banks and Nonbanks – Not a Prelude to a Kiss

Jan 20 2012

By: Jonathan D. Jaffe

The CFPB wants to get to know you – well. But it’s not a prelude to a kiss.

On January 12, 2012, the CFPB released its new Mortgage Origination Examination Procedures Governing Banks and Nonbanks (the “Procedures”). The release of the Procedures follows close on the heels of the CFPB’s October 13, 2011 release of its mortgage servicing examination procedures (see The CFPB Mortgage Servicing Examination Procedures Fail to Harmonize – Isn’t It Ironic? ), and its January 5, 2012 announcement of its nonbank supervision program (see CFPB Officially Launches Nonbank Supervision Program). Read More

Catagory:Bureau of Consumer Financial Protection (CFPB)