Latest CFPB Updates 2019

Latest CFPB Updates 2019

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.

2019 Developments

(Oct. 10, 2019) Bureau extends HMDA data collection for two years for some
A two-year extension of a current, temporary threshold suspending the collection and reporting of data about open-end lines of credit for certain mortgage lenders is provided under a rule issued Oct. 10. The extension – to Jan. 1, 2022 – applies to financial institutions that originated fewer than 500 open-end lines of credit for reporting purposes under the Home Mortgage Disclosure Act (HMDA). For data collection years 2020 and 2021, those institutions originating fewer than 500 open-end credit lines in either of the two preceding calendar years will not need to collect and report data with respect to open-end lines of credit, the agency said. READ

(Oct. 3, 2019) Members of advisory councils, board announced
The appointment of 35 individuals across the four panels that advise Consumer Financial Protection Bureau (CFPB) leadership on consumer financial issues and emerging market trends were announced Thursday by bureau Director Kathleen (“Kathy”) Kraninger. The bureau issued a solicitation for applications in March to membership on the panels – the Consumer Advisory Board (CAB), Community Bank Advisory Council (CBAC), Credit Union Advisory Council (CUAC), and Academic Research Council (ARC) – with an application deadline of May 5. READ

(Oct. 1, 2019) Bureau, SC consumer affairs sue over veterans’ pension sales
A group of companies making high-interest credit offers to veterans that are marketed as purchases of the individuals’ future pension or disability payments are being sued in federal district court in the District of South Carolina by the Consumer Financial Protection Bureau and South Carolina Department of Consumer Affairs, the bureau announced Wednesday. READ

(Sept. 30, 2019) Report looks at consumer trends in bankruptcy
Spurred by the impact of new bankruptcy law provisions that limited discharge of debts, a “rush” to file occurred in 2005 as 80% of all personal bankruptcy filings that year were made under Chapter 7 of the law, a new report from the federal consumer financial protection agency states. The report, issued by the bureau Sept. 25, describes how the volume and types of bankruptcy filings have changed throughout the period 2001 – 2018, which includes implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 and the Great Recession of 2007-2010. READ

(Sept. 25, 2019) Bureau gives a ‘FIG’ with new technical resource for 2020
A technical resource — the “Filing Instructions Guide” (FIG)  — for assistance in filing HMDA data collected in 2020 and reported in 2021 by credit unions and other financial institutions is now available, the bureau said Wednesday. The FIG is a compendium of resources to help financial institutions file their data, the bureau said. Among the major changes in the new FIG: Beginning in 2020, covered institutions that reported a combined total of at least 60,000 applications and covered loans in the preceding calendar year are required to report HMDA data quarterly. In the same notice, the CFPB said it has also introduced a “Supplemental Guide for Quarterly Fliers,” a new resource to help financial institutions required to file HMDA data quarterly beginning next year. (READ)

(Sept. 25, 2019) Former IL regulator Schneider named to senior bureau post
Bryan A. Schneider, former secretary of the Illinois Department of Financial and Professional Regulation – and a former NASCUS Regulatory Board member – is the new associate director in the CFPB’s supervision, enforcement and fair lending division, the bureau said Wednesday. According to the bureau, the division ensures compliance with federal consumer financial laws by supervising market participants and bringing enforcement actions when appropriate. It includes the Office of Supervision Examinations, the Office of Supervision Policy and the Office of Enforcement. The bureau also announced four other additions to its executive team: Desmond Brown as the deputy associate director for the Consumer Education and Engagement Division; Jason Brown as assistant director for research; Karla Carnemark as deputy chief of staff, and; Ren Essene as chief data officer. READ

(Sept. 25. 2019) 4 new ‘FAQs’ on changes to SAFE Act published
Four “frequently asked questions” (FAQs) about amendments to the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) made by last year’s regulatory relief legislation (EGRRCPA, S. 2155) – and which take effect as of Nov. 24 – are outlined by the bureau in a notice published Wednesday. The FAQs cover two topics: Types of loan originations and state transitional licenses (READ)

(Sept. 19, 2019) CFPB to Enhance Consumer Complaint Database
CFPB announced that it will continue the publication of consumer complaints, data fields and narrative descriptions through the Bureau’s Consumer Complaint Database while making several enhancements to the information available to users of the database. The enhancements include: modified disclaimers to provide better context to the published data; integrating financial information and resources into the complaint process to help address questions and better inform consumers before they submit a complaint; and information to assist consumers who wish to contact the financial company to get answers to their specific questions.

(Sept. 18, 2019) CFPB to Host Symposium on Behavioral Economics
The CFPB will host a symposium on Behavioral Economics. The session will feature remarks from CFPB Director Kathleen Kraninger and Deputy Director Brian Johnson as well as testimony from academic and policy experts on the topics of: (1) the methodological foundations of behavioral economics and (2) behavioral law and economics and consumer financial protection.

This will be the second of CFPB’s symposia series and will be held on September 19, 2019 at 9:00 AM at the Bureau’s headquarters, 1700 G St. NW, Washington, D.C. The session will be also live streamed.

(Sept. 13, 2019) CFPB Releases Supervisory Highlights
Recently, the CFPB recently shared with the public key findings from its supervisory. The agency’s goal in releasing the report is to help industry limit risks to consumers and comply with Federal consumer financial law. The findings included in the report cover examinations in the areas of automobile loan origination, credit card account management, debt collection, furnishing, and mortgage origination that were generally completed between December 2018 and March 2019 (unless otherwise stated). The report does not impose any new or different legal requirements.

(Sept. 10, 2019) Network seeks coordination between state, federal regulators on financial innovation
A network designed to enhance coordination among federal and state regulators to facilitate financial innovation was announced Tuesday by the bureau, which said it had invited all state regulators to join. Called the American Consumer Financial Innovation Network (ACFIN), the initial members of the group are the attorneys general of: Alabama, Arizona, Georgia, Indiana, South Carolina, Tennessee, and Utah. READ

(Sept. 6, 2019) CFPB to Host Symposium on September 19
CFPB announced that it will hold a symposium on behavioral law and economics on September 19 at 9 a.m. entitled Behavioral Economics and Consumer Financial Services Policy. The event will be webcast on the Bureau’s website. The symposium is the second in a series announced earlier this year to explore consumer protections in today’s dynamic financial services marketplace. The series is aimed at stimulating a proactive and transparent dialogue to assist the Bureau in its policy development process, including possible future rulemakings. 

(Aug. 29, 2019) CFPB Releases Credit Card Report
CFPB released its fourth biennial report on the state of the credit card market for the period 2017-2018.  In 2009, the Credit Card Accountability Responsibility and Disclosure Act (Act) made substantial changes to the legal requirements applicable to the credit card market, with Section 502 of the Act also requiring that a report be issued every two years with respect to the market.  The Report notes consumer satisfaction with credit cards remains high and debt service burdens are near the lowest level in more than a decade. Late payment and default rates have risen modestly but remain below pre-recession levels.

(Aug. 12, 2019) Bureau proposes judgment of $60M, prohibitions, against ITT
A private loan program for students faces a judgment of $60 million and an injunction prohibiting the company that ran the program from offering or providing student loans ever again, the bureau said today. In a release, the CFPB said it proposed a stipulated judgment with ITT Educational Services, Inc. to resolve a 2014 lawsuit brought by the bureau. The lawsuit alleged ITT “engaged in unfair and abusive practices” in connection with its private loan program. READ

(July 31, 2019) Reopening HMDA Rulemaking
The Bureau announced that it is reopening the comment period for certain aspects of the May 2019 Notice of Proposed Rulemaking relating to Regulation C, which implements the Home Mortgage Disclosure Act.

(July 25, 2019) Closing of ‘GSE patch’ proposed
Whether a direct measure of a consumer’s personal finances – such as debt-to-income (DTI) ratio – should be retained as a requirement for Regulation Z’s safe harbor after a temporary rule provision treating agency-backed mortgages as “qualified mortgages” (QMs) expires in early 2021 (the “GSE patch”) is one of the key topics of an advance notice of proposed rule making (ANPR) issued by the bureau. READ

(July 22, 2019) Settlement would force Equifax to pay up to $700 million, sets up $425 million consumer fund
Up to $700 million in monetary relief and penalties would be provided in a settlement between credit reporting agency Equifax the CFPB and other federal and state agencies, the groups said in a joint release Monday. The bureau, the Federal Trade Commission (FTC), 48 states, the District of Columbia and Puerto Rico announced the agreement with Equifax. According to the agencies, the settlement (if agreed to by a federal court) would provide up to $425 million in monetary relief to consumers, a $100 million civil money penalty against the reporting company, and other relief. READ

(July 18, 2019) Kraninger to use ‘all tools’ to ‘enhance consumer finance markets’
Effectively and efficiently using all of the tools Congress gave the CFPB — supervision, rulemaking, education, and enforcement — to enhance consumer finance markets is the goal for the bureau’s director, she told a Washington group today. READ

(July 18, 2019) More than one quarter of consumers have at least one debt collection, bureau reports
More than one-in-four consumers with a credit report have at least one debt in collection by the nation’s 9,330 third-party debt collectors and buyers, according to a report issued today by the CFPB.READ

(July 18, 2019) Suspicion of financial elder abuse should lead to an SAR
Suspicion that an older adult is the target or victim of financial exploitation should be reported by credit unions and banks to local, state or federal authorities – including through use of a Suspicious Activity Report (SAR) with federal authorities, CFPB said in a report issued today.READ

(July 17, 2019) Suspicion of elder financial abuse should prompt filing of SAR, bureau advises
Suspicion that an older adult is the target or victim of financial exploitation should be reported by credit unions and banks to local, state or federal authorities – including through use of a Suspicious Activity Report (SAR) with federal authorities, the federal consumer financial protection agency said today. READ

(June 27, 2019) Bureau adds 3 months to HMDA data points comments
A three-month extension of the comment deadline on a proposed rulemaking about Home Mortgage Disclosure Act (HMDA) data points, as well as plans to reopen the comment period on HMDA coverage thresholds, were announced Thursday by CFPB. (READ)

(June 24, 2019) Agencies give final OK to Reg CC adjustments, delay effective date to 2020
The amount of funds credit unions and others must make available to their customers from checks deposited, as well as a revised threshold for determining whether an account has been repeatedly overdrawn, are set in amendments to federal rules affecting funds availability, released Monday by the CFPB and the Federal Reserve, but that don’t take effect until July 1, 2020. (READ)

(June 11, 2019) Bureau plans first ‘symposium’ with focus on clarifying meaning of ‘abusiveness’
The first in a promised series of conferences “exploring” consumer protections in financial services will be held June 25, the federal consumer financial protection agency said Tuesday, and will focus – as promised by the agency in April – on clarifying the meaning of abusive acts or practices under the law. The event – termed a “symposium” by the agency – will be streamed live via the Internet, the agency said. (READ)

(June 6, 2019) Final rule delays payday lending to November 2020
A final rule delaying the Aug. 19 compliance date, to Nov. 19, 2020, for mandatory underwriting provisions of the payday, vehicle title and “certain high-cost installment loans” – the 2017 payday lending rule – was issued late Thursday by the CFPB. The 15-month delay also makes certain corrections, the bureau said, to address “several clerical and non-substantive errors it has identified in other aspects of the Rule.” The delay takes effect 60 days after publication in the Federal Register(in early August). READ

(May 31, 2019) New group of questions, answers focus on three areas of TRID compliance
Three new groups of questions and answers on selected topics related to compliance with TRID requirements are now published by the federal consumer financial protection agency Friday. READ

(May 30, 2019) Report explores link between credit scores, credit card applications
Consumers’ credit-card application rates drop sharply as consumers reach their minimum credit scores but trend “steadily upward” after they hit bottom, according to a report Thursday from the federal consumer financial protection agency. Additionally, the report shows that consumers with large changes in their credit scores, up or down, tend to be younger and have “considerably” lower credit scores on average than those with more-stable scores. READ

(May 22, 2019) Payday lending, biz lending data, more on spring agenda
A delay in certain provisions of a rule on payday lending is slated for final action in June by the CFPB, according to details of the agency’s spring 2019 regulatory agenda. But the agenda, unveiled this week by the bureau in a blog post, provides no specific timeline for final action on proposed changes to the rule as contemplated in the bureau’s February 2019 notice of proposed rulemaking. READ

(May 7, 2019) Proposed debt collection rule allows up to seven phone contacts a week
Debt collectors would be allowed up to seven telephone-contact attempts a week with consumers about a specific debt under a proposal issued by the CFPB Tuesday. In a release, the bureau highlighted four key points in its proposal, which would implement the Fair Debt Collection Practices Act (FDCPA); the number of telephone contacts per week led the list reported by the bureau. READ

(May 6, 2019) HMDA: Even more from bureau on proposed rule
There are some additional resources available related to the bureau’s new HMDA advance notice of proposed rulemaking (ANPR) and its notice of proposed rulemaking (NPRM). The Bureau has issued an executive summary, providing an overview of the NPRM and ANPR. However, the agency advises, the summary does not contain all the information included in the NPRM and ANPR and urges readers to review the proposals in their entireties. The agency has also issued a redlined document, which the bureau said is intended to assist industry and other stakeholders in reviewing the changes that its proposal would make to Regulation C (which implements HMDA). (Click on either above to read the documents)

(May 2, 2019) Higher thresholds for HMDA data reporting proposed
Raising the coverage thresholds for collecting and reporting data about closed-end mortgage loans and open-end lines of credit under federal disclosure rules was proposed Thursday by the CFPB. In a release, the bureau indicated its notice of proposed rulemaking (NPRM) is aimed at providing relief to smaller lenders (such as smaller credit unions and community banks) from the Home Mortgage Disclosure Act’s (HMDA) data reporting requirements. The agency also said the proposal would also clarify partial exemptions from certain disclosure requirements enacted in last year’s regulatory relief legislation, the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), S. 2155. READ

(May 1, 2019) Fact sheet attempts to clear ambiguity over mortgage assumption TRID disclosures
A fact sheet addressing whether a “Loan Estimate and Closing Disclosure” is required under federal truth-in-lending and settlement procedures disclosures when a mortgage is assumed was published Wednesday by the federal consumer financial protection agency. READ

(April 30, 2019) CFPB Town Hall May 8 will focus on debt collection
A town hall meeting on debt collection is slated by the Consumer Financial Protection Bureau (CFPB) for May 8 in Philadelphia, to be aired live and featuring remarks from bureau Director Kathleen Kraninger, according to information added recently to the events page of the bureau’s website. The one-day event, held at the University of Pennsylvania’s Houston Hall (Bodek Lounge), 3417 Spruce Street, gets underway at noon. READ

(April 26, 2019) Updates for prepaid account issuers guide published
Updates to the Prepaid Small Entity Compliance Guidereflecting previously issued resources to help prepaid account issuers submit account agreements using Collect, the bureau’s online channel for submissions, have been published, the CFPB announced today. READ

(April 25, 2019) More info sought on impact of remittance disclosure change
How to mitigate the impact on providers of next year’s expiration of a remittance rule disclosure exception, and just what firms are subject to the rule itself, is the focus of a CFPB request for information (RFI) issued today for a 60-day public comment period. The RFI comes just one day after the CFPB posted a revised version of the remittance rule assessment report it sent to Congress in October; the bureau said the correction made to the report showed banks conducted more remittance transfers than reported earlier. READ

(April 23, 2019) Bureau promises more info about violations of law in future CIDs
More information about potential violations of law, and specifics about business activities subject to supervision, will be included in future “civil investigative demands” (CIDs), the bureau said today. In a release, the CFPB said it is changing its policies toward CIDs. (According to the American Bar Association, a CID is a subpoena-like tool often used by consumer protection offices that tends to be expansive, typically seeking specified documents.) The bureau said its policies are intended to assure that the CIDs “will provide more information about the potentially applicable provisions of law that may have been violated” and “also typically specify the business activities subject to the Bureau’s authority.” CFPB also said its new policy takes into account recent court decisions about “notifications of purpose.” The agency said its new policy is consistent with a 2017 report by the agency’s Office of Inspector General, which the agency said emphasized the importance of updating its Office of Enforcement policies to reflect such developments. READ

(April 8, 2019) Veterans have pathway from financial skill to financial well-being, analysis of survey finds
Veterans report higher levels of financial well-being than the average U.S. adult, and there is a pathway from financial skill to that well being, an analysis released today stated. The evaluation released by the Consumer Financial Protection Bureau (CFPB) focused on veterans that responded to a financial well-being survey in 2015. Those results also were the base for the bureau’s financial well-being scale developed in 2016. The agency said that, although the 2015 survey was not specifically targeted to veterans and was not a nationally representative sample, a sizeable number of respondents identified as veterans. The study raised additional questions however, the bureau stated. “For example, the study does not answer whether the higher financial well-being scores for veterans are related to military service or are related to the demographic, attitudinal, and situational characteristics of the veteran that would be similar in non-veterans who shared those characteristics. Further research is necessary to discern whether the associated characteristics and experiences identified herein are truly related to military service,” the report states. READ

(March 29, 2019) Bureau makes available 2018 loan application registers for 5,400 FIs
Modified loan application registers (LARs) data for about 5,400 financial institutions were released Friday the CFPB, marking the first time the registers were released with additional data required under regulations adopted in 2015. The LARs, required to be released by March 31, contain loan-level information for 2018 individual Home Mortgage Disclosure Act (HMDA) filers. The bureau said the LARs were modified to protect privacy. READ

(March 25, 2019) Latest HMDA guide incorporates changes made under EGRRCPA
The 2019 edition of the Home Mortgage Disclosure Act (HMDA) guide – reflecting amendments made to the law by last year’s regulatory relief legislation, and the interpretive and procedural rule issued by the Consumer Financial Protection Bureau – is now available. READ

(March 21, 2019) Council changes proposed, applications accepted
Changes affecting the membership and meetings frequency of the bureau’s research council and consumer, bank, and credit union advisory councils were announced today by bureau Director Kathleen (“Kathy”) Kraninger. The bureau also said will begin now to accept applications for membership on the panels; applications will be due May 5, according to Federal Register notices scheduled for publication Friday. READ

(March 20, 2019) Bureau plans proposed rulemaking related to debt collection
A notice of proposed rulemaking related to debt collection is planned for issuance in the spring of this year, the director of the Consumer Financial Protection Bureau (CFPB) stated in her message for the agency’s annual report to Congress on administration of the Fair Debt Collection Practices Act (FDCPA). In her message, Director Kathleen (“Kathy”) Kraninger said the proposed rule will address issues such as communication practices and consumer disclosures. READ

(March 19, 2019) Financial services complaints up 12% among servicemembers; credit, consumer reporting leads
Complaints related to financial services were up 12% in 2018 among members of the U.S. armed services, veterans and their families, according to the latest “complaint snapshot” published Tuesday by the bureau. READ

(March 12, 2019) Unfair, deceptive practices in auto loan, mortgage servicing noted in Supervisory Highlights
Findings of unfair and deceptive or abusive acts or practices connected to auto loan servicing, deposits, mortgage servicing, and remittances are described in the winter 2019 edition of the Consumer Financial Protection Bureau (CFPB) Supervisory Highlights. READ

(March 4, 2019) Proposal would regulate PACE under EGRRCPA
A proposal to prescribe regulations on residential “Property Assessed Clean Energy” (PACE) financing was issued Monday by the CFPB, as required under regulatory relief legislation adopted in May 2018. The bureau said it issued an advance notice of proposed rulemaking (ANPR) on the issue, which was mandated by the May 2018 Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA, S. 2155). READ

(Feb. 27, 2019) Elder abuse spawning ‘thousands’ of SARs, analysis finds
Older customers who are increasingly becoming victims of exploitation at banks and other such firms are the subjects of “hundreds of thousands” of suspicious activity reports (SARs) being filed by the financial institutions, CFPB said in a first-ever report. READ

(Feb. 27, 2019) Prepaid issuers can begin registering now under new rule
Prepaid account issuers can begin registering now on CFPB’s “streamlined” submission system as issuers prepare to submit their prepaid agreements to the agency under its rule set to take effect April 1, the bureau announced this week. Under CFPB’s rule, prepaid account issuers are required to submit their prepaid account agreements, including fee information. READ

(Feb. 21, 2019) Payment-related rules of payday lending addressed in guide
A guide highlighting the payment-related requirements of the CFPB’s “Payday Lending Rule” was released Wednesday by the agency, with a key disclaimer that the guide does not discuss the rule’s mandatory underwriting provisions – which the bureau is currently seeking to change in a proposed rule. READ

(Feb. 12, 2019) ‘Disclosure sandbox’ is for more than fintech — including credit unions
The “disclosure sandbox” the federal financial consumer protection agency proposed in September that it hopes will encourage applications for trial disclosure programs would be not just for fintech companies, but any covered entity, “regardless of its categorization as ‘FinTech,’ ‘bank,’ ‘credit union’ or otherwise,” according to a blog post update Thursday. READ

(Feb. 6, 2019) Proposal rescinds ‘ability to repay’ on payday loan rule; resets effective date to 2020
Proposed rulemakings to eliminate the ability-to-repay provisions of the consumer bureau’s payday lending rule and delay the implementation of those measures by 15 months – to Nov. 19, 2020 – were released Wednesday for 90-day and 30-day public comment periods. READ

(Jan. 31, 2019) Chart offers reference for filing Reg C data
A reference tool, in the form of a very long chart, for data points required to be collected, recorded, and reported under Regulation C (Home Mortgage Disclosure Act (HMDA)) was published Thursday by the consumer financial protection agency. The 38-page chart, the Consumer Financial Protection Bureau (CFPB) noted, reflects amendments made to HMDA Rules that were issued Oct.  15, 2015, and Aug. 24, 2017. It also reflects changes made through last year’s regulatory relief legislation (specifically, section 104(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA, S. 2155)) as implemented and clarified by the interpretive and procedural rule issued on Aug. 31, 2018 (the 2018 HMDA Rule). READ

(Jan. 29, 2019) Payment processes, struggles to pay led consumer complaints about mortgages
“Trouble during payment process” and “struggling to pay mortgage” were the leading complaints consumers had about mortgages between November 2016 and October 2018, the CFPB said in a “snapshot” today – the first such report on the year. In its “Complaint snapshot: Mortgages” the agency said complaints about trouble in payment processes made up 42% of the complaints it received, while the “struggling to pay mortgage” made up 36%. Overall, the agency said, about 11% of the complaints it received over 24-month period were about mortgages. READ

(Jan. 24, 2019) Credit, consumer reporting led complaints by servicemembers
Credit or consumer reporting, followed by debt collection issues, led the list of complaints from members of the U.S. armed services to the CFPB in 2018, the agency said Thursday in its Office of Servicemember Affairs Annual Report. READ

(Jan. 17, 2019) Kraninger seeks explicit MLA supervision for bureau
CFPB Director Kathy Kraninger Thursday sent House Speaker Nancy PelosiVice President Mike Pence and key House and Senate Committees draft legislation that she says would give her agency clear authority to supervise for compliance with the Military Lending Act (MLA). READ

(Jan. 10, 2019) Bureau issues 5-year assessments of mortgage lending rules
Mortgage lending rules designed to ensure borrowers have the income and debt levels to manage loans do not appear to have raised lending costs, and other rules giving smaller lenders (including credit unions) more leeway in making loans (as long as they are held in portfolio) do not appear to have constrained the activities of the lenders, are among the key findings of two “assessment” reports issued this week by the CFPB. READ

(Jan. 2, 2019) Bureau outlines HMDA data changes for coming year
Final policy guidance describing mortgage lending data that will be disclosed publicly in 2019 – including information that will be excluded from disclosure — was announced Dec. 28 by the CFPB (formerly known as BCFP). In a release, the agency said the final policy guidance describing Home Mortgage Disclosure Act (HMDA) data – which the agency said will also include modifications to protect consumer privacy – will exclude from public disclosure such as the property address and the applicant’s credit score.  The agency said it would also disclose certain information “with reduced precision,” such as by disclosing ranges rather than specific values for an applicant’s age, the loan amount and the number of units in a dwelling. READ