Archives: Consumer Financial Services

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Sixth Circuit Holds that Mortgage Foreclosure and Foreclosure Lawyers are Subject to the FDCPA

Recently, the U.S. Court of Appeals for the Sixth Circuit held that mortgage foreclosure actions are “debt collection” under the Fair Debt Collection Practices Act (FDCPA). Glazer v. Chase Home Finance LLC, No. 10-3416, 2013 WL 141699 (6th Cir. Jan. 14, 2013). In this decision, the Sixth Circuit also held that lawyers who meet the … Continue Reading

Debt Collectors Now Subject to CFPB Oversight

The CFPB has announced that, effective January 2, 2013, it will assume oversight of debt collection agencies that have more than $10 million in annual receipts from consumer debt collection activities. The CFPB examiners will be determining whether debt collectors: Provide required disclosures Provide accurate information Have a consumer complaint and resolution process Communicate civilly … Continue Reading

CFPB Publishes Credit Score Study

On September 25, 2012, the Consumer Financial Protection Bureau published a study on credit scores titled “Analysis of Differences between Consumer-and-Creditor Purchased Credit Scores.” This report is a follow-up to the July 19, 2011 CFPB report on “The Impact on Differences between Consumer-and-Creditor Purchased Credit Scores.” Section 1078 of the Dodd-Frank Wall Street Reform and … Continue Reading

CFPB Announces Supervisory Approach on Fair Lending

On April 18, 2012, the Consumer Financial Protection Bureau (the "Bureau") issued Bulletin 2012-04, announcing its approach to evaluating discrimination under the Equal Credit Opportunity Act ("ECOA") and its implementing regulation, Regulation B. There were no surprises, as the CFPB reaffirmed the position taken previously in the 1994 Policy Statement on Discrimination in Lending ("Policy Statement") by 10 federal banking agencies, the FTC, and the Justice Department, and in Regulation B and the Federal Reserve Board Staff Commentary on Regulation B.… Continue Reading

CFPB Joins the TILA Rescission Debate: Is 3 Years Really 3 Years?

On March 26, 2012, the Consumer Financial Protection Bureau ("CFPB") filed an amicus curiae brief in Rosenfield v. HSBC Bank, USA, et al. in the United States Court of Appeals for the 10th Circuit in support of the consumer-appellant, arguing that courts have not correctly interpreted the federal Truth-in-Lending Act ("TILA") regarding how long a consumer has to rescind a mortgage loan. This brief is the first of four briefs that the CFPB intends to file in the appellate courts regarding this issue, which is being litigated in 10 separate appeals in four jurisdictions.… Continue Reading

CFPB Privilege Waiver Proposal Raises Questions and Concerns

On March 12, 2012, the Consumer Financial Protection Bureau (“CFPB” or the “Bureau”) issued a proposed rule that would codify (by regulation) the doctrine of “selective waiver” as applied to information provided by supervised entities to the CFPB (the “Proposal”). Under the selective waiver doctrine, the disclosure of otherwise privileged materials to a party outside … Continue Reading

Fed Extends Comment Period on Enhanced Prudential Standards Rule

On January 5, 2012, the Federal Reserve Board (“FRB”) published in the Federal Register a notice of proposed rulemaking (77 Fed. Reg. 594 (Jan. 5, 2012)) that would implement the enhanced prudential standards required to be established under Section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), and the … Continue Reading

HUD Issues Guidance on Loan Originator Compensation Rule

On March 18, 2011, HUD published an edition of the RESPA Roundup in which it provides guidance (“Guidance”), concerning how its GFE/HUD-1 disclosure rules interact with the Federal Reserve Board’s new loan originator compensation rule which is due to take effect on April 1, 2011 (“LO Comp Rule”).  Unfortunately, the Guidance mostly reiterates what HUD has … Continue Reading