The Consumer Financial Protection Bureau
The Consumer Finance Protection Bureau (CFPB) is responsible for consumer protection in the financial sector. CFPB’s jurisdiction includes credit unions, banks, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors and other financial companies operating in the United States.
NASCUS closely monitors CFPB developments and responds to request for comments on rules impacting the credit union system.
2021 Updates (see archives at the bottom for previous years)
The Bureau issued a report highlighting legal violations identified by the Bureau’s examinations in 2020. The report also highlights prior CFPB supervisory findings that led to public enforcement actions in 2020 resulting in more than $124 million in consumer remediation and civil money penalties.
“Today’s release of Supervisory Highlights reinforces the importance of the Bureau’s supervisory work, including during the COVID-19 pandemic, to find and correct systemic problems that hurt consumers,” said CFPB Acting Director Dave Uejio. “The actions we took in 2020 mitigated some of that harm, but consumers are still struggling, and we will stay vigilant.”
Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the CFPB has the authority to supervise large banks, thrifts, credit unions with assets over $10 billion, and certain nonbanks for compliance with Federal consumer financial law.
The Consumer Financial Protection Bureau (CFPB) today finalized amendments to the federal mortgage servicing regulations to reinforce the ongoing economic recovery as the federal foreclosure moratoria are phased out and which will help protect mortgage borrowers from unwelcome surprises as they exit forbearance. The amendments will support the housing market’s smooth and orderly transition to post-pandemic operation. The rules issued today will establish temporary special safeguards to help ensure that borrowers have time before foreclosure to explore their options, including loan modifications and selling their homes. The rules cover loans on principal residences, generally exclude small servicers, and will take effect on August 31, 2021.
The Bureau is announcing the newly released FFIEC HMDA Data Browser feature — the HMDA Maps tool. It allows those interested in exploring HMDA data to filter subsets by popular variables and display them in an illustrative format. Once users have displayed their desired data, they have the option to download the data as a CSV, copy and share the page URL, or save the summary report as a PDF. The HMDA Maps tool contains data for the years 2018, 2019, and the most recent, 2020 data.
The Consumer Financial Protection Bureau (CFPB) issued an today that explains the basis for its authority to examine supervised financial institutions for risks to active-duty service members and their dependents (i.e. military borrowers) from conduct that violates the Military Lending Act (MLA).
“The Military Lending Act is an essential law protecting the finances of our military families and we are excited to announce this rule change prior to July, which is Military Consumer Month,” said CFPB Acting Director Dave Uejio. “Through our enforcement of the MLA, companies that harmed military borrowers have been ordered to pay millions of dollars in redress and civil penalties. To fulfill its purpose and protect military borrowers we must supervise financial institutions and hold them accountable for endangering consumers.”
The CFPB has published their Spring 2021 Agenda as part of the , which is coordinated by the Office of Management and Budget under Executive Order 12866. The agenda lists the regulatory matters that, to further their consumer protection mission and mandate, they are currently pursuing under interim leadership pending the appointment and confirmation of a permanent Director. The permanent Director’s changes to their regulatory agenda will be reflected in the Fall 2021 Unified Agenda. They have also taken actions, and plan further actions, to focus our resources on addressing the adverse impacts to consumers in light of the ongoing COVID-19 pandemic and resulting economic crisis, and are taking concrete steps toward furthering our commitment to promoting racial and economic equity.
(June 4) Electronic Fund Transfers Frequently Asked Questions
The Bureau issued Electronic Fund Transfers Frequently Asked Questions (FAQs). The FAQs address the unauthorized transfer and error resolution provisions under the Electronic Fund Transfer Act and Regulation E, including situations when a consumer is fraudulently induced by a third party to provide their account information or private network rules conflict with the regulation.
These FAQs are published on the Electronic Fund Transfers compliance aid webpage. This webpage will serve as an access point to materials such as compliance aids, supervisory guidance, and any additional guidance the Bureau issues regarding electronic fund transfers.
- You can access the Electronic Fund Transfers FAQs here: https://www.consumerfinance.gov/compliance/compliance-resources/deposit-accounts-resources/electronic-fund-transfers/electronic-fund-transfers-faqs/.
- You can access the Electronic Fund Transfers compliance aid resource page here: https://www.consumerfinance.gov/compliance/compliance-resources/deposit-accounts-resources/electronic-fund-transfers/.
The Bureau released a set of FAQs that discuss certain topics relating to escrow accounts under Regulation X. The FAQs provide a general overview of the escrow account provisions in Regulation X, and they address topics such as deficiencies, shortages, and surpluses.
You can access the FAQs on escrow accounts here: www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/mortserv/mortgage-servicing-faqs/.
The Consumer Financial Protection Bureau (CFPB) published a report that provides new insights into manufactured housing financing, a vital source of lending for millions of manufactured housing homeowners. Manufactured housing is a small segment of the overall housing supply, but it is one of the most affordable types of housing available to low-income consumers and makes up 13% of the housing stock in small towns and rural America. Those low acquisition costs, however, often come coupled with higher interest rates and limited opportunity to refinance. Consumers who do not own the underlying land are more likely to see their homes depreciate and have fewer protections if they fall behind on payments. These factors combined can make this affordable housing a potentially risky avenue for homeownership. The CFPB’s report uses new information collected under the Home Mortgage Disclosure Act to shed light on the experiences of these often-overlooked families.
The questions and answers below pertain to compliance with the TILA-RESPA Integrated Disclosure Rule (TRID or TRID Rule).
This is a Compliance Aid issued by the Consumer Financial Protection Bureau. The Bureau published a Policy Statement on Compliance Aids, available here, that explains the Bureau’s approach to Compliance Aids.
Topics Include (click on title for a complete list of topics)
- Corrected closing disclosures and the three business-day waiting period before consummation
- Model forms
- Construction loans
- Providing Loan Estimates to Consumers
- Providing Closing Disclosures to Consumers
Consumer Financial Protection Bureau (CFPB) released two reports today showing that more work needs to be done to help mortgage borrowers coping with the COVID-19 pandemic and economic downturn. The first report documents that Black and Hispanic mortgage borrowers are much more likely to be delinquent or in a forbearance program than white borrowers. In a second report, the CFPB reports that overall mortgage complaints to the CFPB have risen to their highest level in three years. (Click on the title to access the reports.)
- Day one of the conference will take place on Thursday, May 6 from 10:30 am – 5:30 pm.
- Day two of the conference is Friday, May 7 from 10:45 am – 5:45 pm. All times are EDT.
The Consumer Financial Protection Bureau (CFPB) issued a bulletin today analyzing complaints submitted by consumers in counties nationwide. In 2019 and 2020, the CFPB received more complaints on a per-capita basis from consumers living in predominantly minority counties than from consumers in predominantly white, non-Hispanic counties. Consumers in counties with the highest percentage of minority population submitted complaints at over four times the rate compared to counties with the lowest percentage of the minority population.
The Bureau of Consumer Financial Protection (Bureau) is issuing this final rule to delay until October 1, 2022 the mandatory compliance date for the final rule titled Qualified Mortgage Definition under the Truth in Lending Act (Regulation Z): General QM Loan Definition (General QM Final Rule). The Bureau is taking this action to help ensure access to responsible, affordable mortgage credit and to preserve flexibility for consumers affected by the COVID-19 pandemic and its economic effects.
The Consumer Financial Protection Bureau (CFPB) today issued an interim final rule in support of the Centers for Disease Control and Prevention (CDC)’s eviction moratorium. The CFPB’s rule requires debt collectors to provide written notice to tenants of their rights under the eviction moratorium and prohibits debt collectors from misrepresenting tenants’ eligibility for protection from eviction under the moratorium.
Today, the Bureau updated the Debt Collection Small Entity Compliance Guide to include a discussion of the December 2020 Final Rule.
- On April 16, 2021, the Bureau updated the to add discussion of the December 2020 Rule requirements.
- On April 7, 2021, the Bureau issued a Notice of Proposed Rulemaking proposing to delay the effective date of the October and December 2020 Debt Collection Final Rules.
The Consumer Financial Protection Bureau today proposed extending the effective date of two recent debt collection rules to give affected parties more time to comply due to the ongoing COVID-19 pandemic.
The CFPB issued a Notice of Proposed Rulemaking (NPRM) to delay by 60 days the effective date of two final rules issued under the Fair Debt Collection Practices Act (FDCPA). The debt collection rules, issued in late 2020, are scheduled to take effect on November 30, 2021. The CFPB is proposing to extend the effective date of both rules to January 29, 2022. The proposed delay would allow stakeholders affected by the pandemic additional time to review and implement the rules.
Today the CFPB proposed a set of rule changes intended to help prevent avoidable foreclosures as the emergency federal foreclosure protections expire. Due to the COVID-19 pandemic and ensuing economic crisis, millions of families nationwide have suffered the loss of income and nearly 3 million homeowners are behind on their mortgages. The CFPB’s proposal seeks to ensure that both servicers and borrowers have the tools and time they need to work together to prevent avoidable foreclosures, recognizing that the expected surge of borrowers exiting forbearance in the fall will put mortgage servicers under strain.
The 2021 version, developed by member agencies of the Federal Financial Institutions Examination Council, reflects updates to incorporate content from the HMDA Rule issued by the Bureau in April 2020. The appendices provide additional implementation materials you may find useful.
The Consumer Financial Protection Bureau (CFPB) today warned mortgage servicers to take all necessary steps now to prevent a wave of avoidable foreclosures this fall. Millions of homeowners currently in forbearance will need help from their servicers when the pandemic-related federal emergency mortgage protections expire this summer and fall. Servicers should dedicate sufficient resources and staff now to ensure they are prepared for a surge in borrowers needing help. The CFPB will closely monitor how servicers engage with borrowers, respond to borrower requests, and process applications for loss mitigation. The CFPB will consider a servicer’s overall effectiveness in helping consumers when using its discretion to address compliance issues that arise.
The Consumer Financial Protection Bureau (CFPB) today announced it is rescinding seven policy statements issued last year that provided temporary flexibilities to financial institutions in consumer financial markets including mortgages, credit reporting, credit cards and prepaid cards. The seven rescissions, effective April 1, provide guidance to financial institutions on complying with their legal and regulatory obligations. With the rescissions, the CFPB is providing notice that it intends to exercise the full scope of the supervisory and enforcement authority provided under the Dodd-Frank Act. The CFPB is also rescinding its 2018 bulletin on supervisory communications and replacing it with a revised bulletin describing its use of matters requiring attention (MRAs) to effectively convey supervisory expectations.
The Federal Reserve Board, the Consumer Financial Protection Bureau (CFPB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA) and the Office of the Comptroller of the Currency (OCC) announced the request for information (RFI) to gain input from financial institutions, trade associations, consumer groups, and other stakeholders on the growing use of AI by financial institutions.
Consumer Financial Protection Bureau Acting Director Dave Uejio and Federal Trade Commission Acting Chairwoman Rebecca Slaughter issued a joint statement regarding their agencies’ work to help stop illegal evictions and protect American consumers facing economic hardship due to COVID-19.
The Consumer Financial Protection Bureau (CFPB) provided to Congress the Consumer Response Annual Report for 2020. The impact of the COVID-19 pandemic on the consumer financial marketplace is reflected in the increase of complaints submitted to the CFPB. The CFPB handled approximately 542,300 complaints last year—a nearly 54% increase over the approximately 352,400 complaints handled in 2019.
The Consumer Financial Protection Bureau (CFPB) released the 2020 annual report to Congress on the administration of the Fair Debt Collection Practices Act (FDCPA). The report highlights efforts by the CFPB and the Federal Trade Commission (FTC) to protect consumers, particularly those who have suffered profound financial impacts due to the COVID-19 pandemic. The CFPB and the FTC, along with state and federal partners, accomplished much toward stopping unlawful debt collection practices and continuing its vigorous law enforcement, consumer education and public outreach, and policy initiatives.
The Consumer Financial Protection Bureau is squarely focused on addressing the impact of the COVID-19 pandemic on economically vulnerable consumers and is looking carefully at the stimulus payments that millions are now receiving through the American Rescue Plan. The Bureau is concerned that some of those desperately needed funds will not reach consumers, and will instead be intercepted by financial institutions or debt collectors to cover overdraft fees, past-due debts, or other liabilities.
Today, the CFPB announced it is rescinding its January 24, 2020 policy statement, “Statement of Policy Regarding Prohibition on Abusive Acts or Practices.” Going forward, the CFPB intends to exercise its supervisory and enforcement authority consistent with the full scope of its statutory authority under the Dodd-Frank Act as established by Congress. The CFPB has made these changes to better protect consumers and the marketplace from abusive acts or practices, and to enforce the law as Congress wrote it.
The Consumer Financial Protection Bureau (CFPB) issued an interpretive rule clarifying that the prohibition against sex discrimination under the Equal Credit Opportunity Act (ECOA) and Regulation B includes sexual orientation discrimination and gender identity discrimination. This prohibition also covers discrimination based on actual or perceived nonconformity with traditional sex- or gender-based stereotypes, and discrimination based on an applicant’s social or other associations.
The bureau proposes Delay of Mandatory Compliance Date for General Qualified Mortgage RuleThe Consumer Financial Protection Bureau (CFPB) today released a notice of proposed rulemaking (NPRM) to delay the mandatory compliance date of the General Qualified Mortgage (QM) final rule from July 1, 2021 to October 1, 2022. The CFPB is proposing to extend the compliance date to ensure homeowners struggling with the financial impacts of the COVID-19 pandemic have the options they need.
The bureau is working with federal agencies and consumers to help mitigate a potential flood of home foreclosures and evictions, according to a report it issued today on housing insecurity and the COVID-19 pandemic. “The good news is that actions taken by both the public and private sector have, so far, prevented many families from losing their homes during the height of the public health crisis,” said Dave Uejio, the bureau’s acting director, in a blog post. “However, as legal protections expire in the months ahead, over 11 million families – nearly 10% of U.S. households – are at risk of eviction and foreclosure. He added that “put simply: we have very little time to prevent millions of families from losing their homes.”
Updates to the small-entity compliance guide on the ability-to-repay/qualified mortgage (QM) rule were issued today by the bureau, reflecting amendments to last year’s final rules to extend the government-sponsored enterprise (GSE) patch, or what the bureau now calls the “temporary GSE QM rule.” The rule is used for loans that are eligible for purchase or guaranteed by Fannie Mae or Freddie Mac; creating a seasoned QM definition; and revising what is now called the general QM definition.
Revoking or revising the “seasoned” qualified mortgage (QM) final rule issued in December is under consideration by the bureau, according to a statement issued Feb. 23. The bureau, in that statement (circulated along with a notice of small-entity compliance guide updates), also said it was looking at whether to delay the July 1 mandatory compliance date for the December final rule on the general QM loan definition. Both rules, which created a “seasoned” QM loan definition and revised the existing QM loan definition – now called the general QM definition – are set to take effect March 1, with mandatory compliance generally set for July 1. The new seasoned QM and general QM definitions in those rules also replaced the debt-to-income ratio ceiling as a QM factor, instead using performance requirements and a pricing component, respectively.
Credit or consumer reporting remain the most complained-about products by consumers, making up more than half (54%) of all complaints received by the agency in the fiscal year that ended Sept. 30, 2020, according to the agency’s fall 2020 semiannual report issued Jan. 21. The credit or consumer reporting complaints also led all complaints in the previous year’s report – but in 2020 represented a bigger share of the total. In 2020, the credit/consumer reporting complaints accounted for 54%, compared to 43% in 2019. Rounding out the top five were: debt collection (17% of all complaints, compared to 22% in 2019); credit cards (7% in 2020, 8% in 2019); checking or savings (6% compared to 8%); and mortgages (6% compared to 8%).
A special edition of the bureau’s Supervisory Highlights that detailing prioritized assessment (PA) work in the area of COVID-19 has been published. The bureau said the PA observations are described in the areas of mortgage, auto and student loan servicing, credit card account management, consumer reporting-furnishing, debt collection, deposits, prepaid cards, and small business lending. The bureau said the PA supervisory work was conducted last year after the sudden onset of the COVID-19 pandemic and focused on assessing risks to consumers resulting from the pandemic.
A new rule codifying that supervisory guidance does not have the force of law, and that enforcement actions are not based on the guidance, was finalized Tuesday by the bureau; both the FDIC and the OCC also finalized the regulation. The rule codifies a 2018 interagency statement on the role of supervisory guidance that was intended to clarify the differences between regulations and guidance. The final rule also states that the statement is binding on the agency.
An exemption from the requirement to establish escrow accounts for certain higher-priced mortgage loans (HPMLs) for smaller credit unions and banks and was issued as a final rule Tuesday by the bureau. It takes effect upon publication in the Federal Register. The rule exempts from the HPML escrow requirement any loan made by a bank or credit union and secured by a first lien on the principal dwelling of a consumer if: the institution has assets of $10 billion or less; the institution and its affiliates originated 1,000 or fewer loans secured by a first lien on a principal dwelling during the preceding calendar year; and certain of the existing HPML escrow exemption criteria are met.
A summary of the October 2020 debt collection rule regarding communications between collectors and debtors is provided in a small entity compliance guide released by the federal consumer financial protection agency Friday. The debt collection rule takes effect Nov. 30, 2021, the guide notes. It applies to attempts to communicate, communications, and other conduct by debt collectors occurring on or after that date, regardless of when the underlying debt was incurred.
Credit unions and other financial institutions are encouraged to better serve consumers with limited English proficiency (LEP) and are being provided principles and guidelines to assist financial institutions seeking to better serve LEP consumers in non-English languages, the CFPB said today. The bureau said its “Statement Regarding the Provision of Financial Products and Services to Consumers with Limited English Proficiency” was also aimed at complying with the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), the Equal Credit Opportunity Act (ECOA) and other applicable laws. The statement presents general principles for financial institutions to consider in serving LEP consumers in languages other than English. It also provides guidelines institutions can use to help advance those principles and develop compliance solutions, including key considerations to inform those decisions and specific information about common components of a compliance management system (CMS).
The beta release of the Home Mortgage Disclosure Act (HMDA) platform for data collected in 2021 is available now for testing, the bureau said today. The platform may be used by credit unions and other financial institutions to determine whether their sample loan/application register (LAR) data comply with the reporting requirements outlined in the filing instructions guide (FIG) for HMDA data collected in 2021, the bureau said. To access the 2021 Beta Platform, financial institutions can use their login credentials from the 2020 filing period or, if they have not previously filed data, establish log-in credentials, and upload sample 2021 HMDA files to perform validation on their data, the bureau said. The bureau will continue to add functionality to the 2021 beta platform during the testing period, it said. It emphasized the beta platform is for testing purposes only and that no data submitted on it will be considered for HMDA data reporting compliance. (The filing instructions guide (FIG) can be found here.)
Applications for appointments to membership of one of the bureau’s four advisory committees that offer input from various sections of the financial industry, and for research projects by the agency, are now being taken, according to a notice published today in the Federal Register. Applications are due by Feb. 24; new members, selected through the application process, are expected to be announced in late summer, according to the agency. The bureau said it is taking applications for membership in its Consumer Advisory Board (CAB), Community Bank Advisory Council (CBAC), Credit Union Advisory Council (CUAC), and Academic Research Council (ARC), (collectively, advisory committees). According to the bureau, membership in the committees includes representatives of consumers, diverse communities, the financial services industry, academics, and economists. Appointments to the committees are generally for two years. “However, the Director may amend the respective committee charters from time to time during the charter terms, as the Director deems necessary to accomplish the purpose of the committees,” the agency said in its announcement.
Considering the benefits and costs of preempting state law where conflicts can impede the provision of valuable products and services (such as the regulation of FinTech companies engaged in money transmission) is among the 100 total recommendations from a CFPB taskforce on federal consumer financial law released Tuesday. The report was issued by the bureau’s Taskforce on Federal Consumer Financial Law after about a year of deliberations. Formed in January 2020, the group was charged with developing recommendations for ways to improve and strengthen consumer financial laws and regulations Other recommendations touching on states included: Continue to increase dialogue with state regulators to bridge knowledge gaps and streamline regulation; authorize CFPB to issue licenses to non-depository institutions that provide lending, money transmission, and payments services.