Archives: CFPB Rulemaking

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Final Payday Lending Rule Released by the CFPB

On Thursday October 5, the Consumer Financial Protection Bureau (CFPB) issued a long-awaited final rule governing certain short-term loans and longer term loans involving balloon payments, better known as the payday lending rule. The rule is expected to dramatically impact the short-term loan industry, imposing numerous new restrictions on both short-term lenders (including “payday” lenders … Continue Reading

Mortgage Lenders Receive Wake Up Call from CFPB

Last week, the CFPB issued a warning letter to 44 mortgage lenders and brokers concerning possible violations related to their collection and reporting of mortgage data under the Home Mortgage Disclosure Act (HMDA) and Regulation C. HMDA requires mortgage lenders to collect and report data related to certain housing-related loans, in part to ensure those … Continue Reading

CFPB Finally Adopts Amendments To Its Mortgage Servicing Rules

On August 4, the Bureau of Consumer Financial Protection (“CFPB”) finally adopted amendments (the “Amendments”) to its 2013 mortgage servicing rules (the “Servicing Rules”). The Servicing Rules implemented provisions in the Dodd-Frank Act to regulate in great detail the residential mortgage servicing business.  The Amendments have been under consideration by the CFPB for more than … Continue Reading

CFPB Issues Rule on Mortgage Guidelines for Special Classes of Creditors

The Consumer Financial Protection Bureau (“CFPB”) this week issued a final rule making a series of changes to its mortgage guidelines for small creditors and creditors in rural and underserved communities. In a series of rulemakings issued pursuant to the Dodd-Frank Act, the CFPB has applied special standards for mortgages extended by small creditors and … Continue Reading

Reed Smith Adds Former CFPB Enforcement Counsel to its Financial Industry Group

Last week, former Consumer Financial Protection Bureau (CFPB) Enforcement Counsel Nicholas Smyth joined Reed Smith's Financial Industry Group, bringing expertise on the CFPB's approach to mortgage lending, auto lending, student lending, debt collection, credit reporting, and military lending. Smyth brings an insider's knowledge of the federal government's fastest-growing and increasingly feared agency. He was one of the longest-serving attorneys at the CFPB prior to joining the Firm, and he helped build the agency's Office of Servicemember Affairs and Office of Enforcement.… Continue Reading

Reed Smith Financial Services Regulatory Leader Weighs in on Mortgage Regulation

Len Bernstein, chair of Reed Smith’s Financial Services Regulatory Group and Managing Partner of the firm’s Philadelphia office, was recently quoted by the Legal Intelligencer regarding the extensive preparation regulatory lawyers and the mortgage industry have done to assist mortgage lenders and servicers in dealing with the changes in the regulatory landscape largely effective in … Continue Reading

Mortgage Originator Sentenced for Fraud – Reminder of Need for Third-Party Vigilance

On August 14, 2013, the former manager of an Allentown, Pennsylvania, mortgage loan origination company was sentenced to four years in prison and ordered to pay restitution of $979,562.20 in connection with a mortgage fraud conspiracy. According to the U.S. Attorney’s Office for the Eastern District of Pennsylvania (the “USAO”), the former general manager of … Continue Reading

CFPB May Expand the Reach of the FDCPA

This post was also written by Kenneth M. Kolaski. In a recent press release, the CFPB indicated that it may consider subjecting creditors to the requirements of the Fair Debt Collection Practices Act that are statutorily exempt. On July 10, 2013, the Consumer Financial Protection Bureau (“CFPB”) issued two important bulletins on debt collection, published … Continue Reading

CFPB Issues Guidance on Mortgage Servicing Transfers (CFPB Bulletin 2013-1)

Our colleague in the Financial Industry Group, Colleen H. McDonald, recently wrote about a Guidance issued by the Consumer Financial Protection Bureau (CFPB) on mortgage servicing transfers. With the new mortgage servicing rules under the Real Estate Settlement Procedures Act (Regulation X) (RESPA) scheduled to go into effect January 10, 2014, the CFPB’s decision to … Continue Reading

Reed Smith to Present on New CFPB Residential Mortgage Regulations at Pennsylvania Bankers Association Seminar in Harrisburg

On Wednesday, April 3, 2013, Leonard A. Bernstein and Robert M. Jaworski will be speaking at the Pennsylvania Bankers Association’s (PBA) Mortgage Regulation Revolution Seminar at Harrisburg Country Club. This presentation will provide an overview of the explosion of new residential mortgage regulations from the CFPB in January 2013, similar to recent teleseminars we held … Continue Reading

CFPB Announces its Ability to Repay Rule Baltimore

Direct from Baltimore: I just walked out of Westminster Hall in Baltimore, Maryland where I attended the Consumer Financial Protection Bureau’s (“CFPB”) field hearing where the CFPB announced the issuance of its “ability to repay rule,” a rule required by the Dodd-Frank Act and designed to ensure that prospective borrowers have the ability to repay … Continue Reading
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