Resources

Consumer Financial Protection Bureau Alert—Vol. 2, No. 2

By the Authors of PLI's Consumer Financial Services Answer Book 2011 and Edited by Arthur B. Axelson

January 24, 2012

Regulations Guidance

Bureau Issues New Rule on International Money Transfers

On January 20, 2012, the Bureau adopted a new rule as part of Regulation E, which implements the Electronic Fund Transfer Act (EFTA), that will increase protections for consumers who transfer money internationally—so-called remittance transfers. Under the new rule, which takes effect in January, 2013, remittance transfer providers will generally be required to disclose the exchange rate and all fees associated with a transfer so that consumers know exactly how much money will be received on the other end. The rule also requires remittance transfer providers to investigate disputes and remedy errors.

In issuing the rule, Bureau Director Richard Cordray stated that “With these new protections, international money transfers will be more reliable. Consumers will know the costs ahead of time and be able to compare prices. Transfer providers will also be held accountable for errors that occur in the process.”

Prior to the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, international money transfers were generally excluded from existing federal consumer protection regulations. To remedy this, the Dodd-Frank Act expanded the scope of the EFTA to provide protections for senders of remittance transfers, and mandated that rules implementing certain provisions of the new protections be issued by January 21, 2012.

Under the Bureau’s rule, remittance transfer providers must disclose the fees, the exchange rate, and amount to be received by the recipient. Disclosures must generally be provided when the consumer first requests a transfer and again when payment is made. Consumers will generally have 30 minutes after payment is made to cancel a transaction. Companies must also provide a receipt or proof of payment that repeats the information in the first disclosure. The receipt must also tell consumers the date when the money will arrive.

Dodd-Frank transferred authority to implement the new requirements from the Federal Reserve Board to the CFPB in July 2011. The Federal Reserve Board issued a proposed rule in May 2011. The final rule provides for a one-year implementation period. In issuing the final rule, the CFPB considered the Federal Reserve Board’s proposed rule and comments that were received.

The Bureau will publish a Notice of Proposed Rulemaking along with the final rule. The Notice seeks comment on whether to make a few additional adjustments to the final rule, including setting a threshold that would minimize the impact of the rule on community banks, credit unions, and other companies that do not normally process these transactions. The Bureau will act on an expedited basis to make any further changes prior to the effective date of the final rule.

The Bureau will continue to work actively with consumers, industry, and other regulators in the coming months to follow up on the rule. In coming months, the Bureau also expects to develop a small business compliance guide and engage in dialogue with industry regarding implementation issues.

Examinations/Enforcement Here and Now

Cordray Moves Full Steam Ahead After Controversial Appointment

Newly appointed Director of the Bureau, Richard Cordray, is quickly making up for the time lost during his arduous appointment process and has taken a proactive posture and set an aggressive agenda for the Bureau. The day the White House announced his appointment, the CFPB launched its nonbank supervisory program, and within just six days after the announcement, the Bureau had already began an investigation into the mortgage lender PHH Corp. Cordray is not considering the legality of his appointment, stating “Consumers deserve to have someone who will stand on their side, who will protect against fraud and who will unsure they are treated fairly ...[t]he appointment is valid...[w]e now have the full authority to move forward.” And the Bureau is wasting no time moving forward with the additional powers granted to the Bureau under the Dodd Frank Act. 

Now that the Bureau has a director, it can prescribe new rules and issue guidance on federal consumer financial laws.  The Bureau’s focus will first be on the so-called nonbank financial companies, that have been outside the authority of regulators until now, namely, the mortgage industry, payday lenders, and for-profit colleges. Cordray said there is “lots of work in the pipeline,” and the Bureau plans to issue a final rule soon to define exactly what types of companies would be subject to its oversight. For now, Cordray’s top priorities are educating consumers, ensuring transparency in the financial industry and ensuring that megabanks, mortgage servicers, easy-credit lenders and institutions like credit unions all play by the same rules. Much of the Bureau’s action will be guided by the thousands of consumer complaints submitted to the CFPB since July 2010. Cordray added, “[t]he consumer bureau will make clear that there are real consequences to breaking the law.”

The Bureau’s sense of urgency is evident in its immediate investigation of PHH Corp., which was recently accused of taking kickbacks from mortgage insurers for steering insurance business to their companies.  The Bureau, which inherited the authority to enforce the Real Estate Settlement Procedures Act (RESPA), is apparently picking up the slack from a Department of Justice investigation that did not result in any charges being brought.  Over the last year, the Bureau has been training staff to supervise the larger lending institutions, but now the Bureau hopes to use these employees to begin similar investigations into smaller nonbank credit institutions.

Cordray is also eager to begin participating in his role as a member of the FDIC Board. Under the Dodd Frank Act, the CFPB director assumes the position on the five member board that was previously held by the head of the Office of Thrift Supervision. While the FDIC is primarily concerned with the safety and soundness of the banking industry, Cordray noted that the Bureau will bring “a consumer perspective, which is arguably different or at least something of a different angle from the other banking agencies.” He added, “[w]e need to be mindful of one another, both us helping them understand where we’re coming from, and them helping us understand where they’re coming from.” This sense of cooperation is being promoted by the Bureau, and some smaller credit institutions are welcoming the opportunity to help Cordray and the Bureau shape the rules and regulations they know are imminently approaching.

CFPB Launches Non-Bank Supervisory Program and Examination Procedures

Mere hours after being installed as Director of the Bureau, Richard Cordray announced that the Bureau’s non-bank supervisory practices would be getting underway as an extension of its existing bank supervision program that began last July.  The non-bank supervisory team has actually been gearing up for the past six months, but now that a permanent director is in place, it has the authority to carry out the examination and enforcement procedures that have been in development since last summer.

Non-banks under the Bureau’s purview include non-depository mortgage lenders, payday lenders and private education loan lenders regardless of size. The Bureau also has the authority under the Dodd-Frank Act to regulate these entities deemed to be “larger participants,” in the consumer credit market.  A proposed rule to define “larger participants” would include debt collectors, credit reporting agencies and prepaid card issuers, among others. For now, the non-bank supervision will be focused on the mortgage, private education and payday loan industries. According to Cordray, these non-bank entities historically have “largely escaped any meaningful federal oversight.” The implementation of Bureau supervision seeks to regulate an industry that has been blamed, in large measure, for the financial meltdown in 2008. Another area of focus is car dealers that offer their own financing to car purchasers. While most car dealers do not fall within the Bureau’s supervision, those that offer their own financing—so called “buy  here, pay here” car dealers—are covered.

On the heels of the Cordray appointment, the Bureau released its non-bank examination procedures, which are modeled after the Bureau’s bank examination procedures.  An important component of the examination will focus on the ability of each entity to detect, prevent and remedy violations internally. 

One portion of the procedures is devoted exclusively to short-term, small-dollar lending. The procedures walk examiners through the examination process, focusing on marketing, application/origination, payment processing/sustained use, collections/accounts in default/consumer reporting and third-party relationships. The procedures are designed to allow examiners to monitor compliance with applicable federal law while assessing consumer risk, including potentially unfair, deceptive or abusive acts or practices.

As if to demonstrate that the Bureau means business with respect to non-bank supervision, Director Cordray and Bureau staff held a field hearing on payday lending in Birmingham, Alabama on January 19, 2012. Consumers and industry representatives both presented at the hearing.  Cordray stated that the purpose of the field hearings and the Bureau’s research, analysis and outreach on these issues is to assist the Bureau in determining the right approach to protect consumers and ensure they have access to a small loan market that is fair, transparent, and competitive. While recognizing the need for emergency credit, Cordray is concerned  about the inherent risk in payday products and the harm that can be done to consumers. Specific concerns cited by Cordray include repeated long-term use of payday loans, unauthorized debits on a consumer’s checking account and aggressive debt collection tactics. Interestingly, one of the primary concerns Director Cordray noted with payday lending was the collection practices tied to payday loans.  As noted above, the regulation of debt collectors will not be within the Bureau’s authority unless and until such entities are defined as “larger participants” by a final Bureau rule.

Bureau Releases Mortgage Origination Examination Procedures

On January 11, 2012, the Bureau released its Mortgage Origination Examination Procedures (Procedures), which consist of modules covering specific elements of the origination process. The Procedures will be used as a supplement to the existing CFPB Field Manual, which is a tool that is used by all CFPB examiners, regardless of the product that they supervise. Each of the modules that comprise the Procedures identifies key matters that the CFPB anticipates its examiners will scrutinize in connection with reviewing non-depository mortgage companies. The modules set forth in the Procedures are not mandatory; instead, depending upon the scope of the examination and other factors, each examination may utilize a portion or all of the modules. The specific modules included in the released version of the procedures are: (1) Company Business Model; (2) Advertising and Marketing; (3) Loan Disclosures and Terms; (4) Underwriting, Appraisals and Originator Compensation; (5) Closing; (6) Fair Lending; and (7) Privacy. 

The Procedures include a very broad and general overview of certain aspects of the mortgage business and the key acts for which an examiner should be familiar and may need to consider as part of his or her review of a non-depository mortgage company. In conducting examinations, the Procedures suggest that examiners obtain and review a series of key documents from each entity, including, but not limited to: (1) organizational charts and process flowcharts; (2) policies and procedures; (3) rate sheets; (4) various loan documentation; (5) operating checklists; (6) wholesale and correspondent agreements; (7) due diligence and monitoring procedures; (8) lending procedures; (9) underwriting guidelines; (10) historical examination information and audit and compliance reports; (11) training programs and materials; and (12) third-party contracts. The Procedures also suggest that each examiner perform transaction testing by using approved sampling procedures and conduct interviews of management and staff.  Although it remains to be seen, it would appear that state-licensed entities should anticipate that CFPB examinations will be quite detailed and comparable to, or more detailed than, a rigorous examination performed by a state regulatory agency. 

News from the Bureau

Date Named Bureau’s Deputy Director

CFPB Director Richard Cordray wasted no time in naming Raj Date as the agency's first Deputy Director on January 6, 2012. Date first joined the CFPB as head of its Research, Markets and Regulations Division. However, shortly after the CFPB launched, Treasury Secretary Timothy Geithner named him Special Advisor of the CFPB and Date has been acting as de Facto head, leading the daily operations of the CFPB since that time.

Date has been involved in the financial services industry for more than a decade. His promotion makes him the No. 2 man at the CFPB and, under statute, he could become the leader of the CFPB after 2012 if Cordray or another permanent CFPB Director is not confirmed by the Senate before then. Cordray was recess appointed by President Obama on January 4, 2012 and his term will expire at the end of next year unless the Senate acts.

In a press release Cordray had high praise for Date, calling him "one of the most extraordinary colleagues I have ever worked with." Cordray further stated "his experience and knowledge of the financial services industry is invaluable to the CFPB. And, for the past six months, his thoughtful leadership has set a strong tone that will forever guide the CFPB's approach."

Cordray also appointed Kent Markus as head of the CFPB’s enforcement division, the job that Cordray vacated to become Director. Markus had been the assistant director of the enforcement division.

CFPB Establishes Office of Minority and Women Inclusion

On January 20, 2012, the CFPB established its Office of Minority and Women Inclusion (OMWI), which was formed under the guidance of the CFPB’s OMWI working group. The working group is co-chaired by Patrice Ficklin, the Assistant Director for the CFBP’s Office of Fair Lending & Equal Opportunity, Zixta Martinez, the Assistant Director for the CFPB’s Office of Community Affairs and Dennis Slagter, the CFPB’s Assistant Director of Human Capital.

In addition to other requirements, the OMWI is charged with developing standards for: (1) equal employment opportunity, workforce diversity, and inclusion at all levels of the agency; (2) increased participation of minority-owned and women-owned businesses in the CFPB's programs and contracts; and (3) assessing the diversity policies and practices of the CFPB's regulated entities.

The establishment of the OMWI further strengthens the diversity and inclusion initiatives of the CFPB.

Cordray Announces Continued Scrutiny of Private Student Loan Programs

Richard Cordray, the director of the CFPB, announced that the CFPB will continue its efforts to study the marketing and lending practices in the private student loan market. In a recent news briefing, Cordray noted concern with high default rates: “We’re seeing some of the schools anticipating as much as a 50 percent default rate on their students, yet they’re making those loans anyway.” He further noted that forces in the market may be incentivizing student loan lending despite high default rates. Cordray registered concern that lending practices in the private student loan market bear a resemblance to the subprime mortgage lending practices in the mortgage market just before the financial crisis.

The CFPB has already launched a number of programs intended to scrutinize student loan debt. The CFPB just finished a notice and comment period on January 17 intended to solicit general and experiential information from students, school counselors, lenders, and servicers. The comments will be used in a study on the student loan industry for Congress that was mandated under the Dodd-Frank Act. The CFPB has also released some prototypes on how to best inform students of loan terms and has launched a Student Debt Repayment Assistant on its website designed to give advice on how to pay back student loans.

In the future, Cordray stated that the CFPB will not only continue to scrutinize predatory student loan terms but also look at how the industry markets these loans to students.

CFPB Office of Servicemembers Affairs Continues Outreach as Holly Petraeus Visits Troops and Regulators in Montana

In its continued grass-roots approach to consumer outreach, Holly Petraeus, the head of the CFPB Office of Servicemember Affairs, visited Montana on January 17, 2012, to meet with business leaders and local troops. Along with U.S. Senator John Tester and Montana Attorney General Steve Bullock, Petraeus attended a series of meetings focusing on reducing financial fraud aimed at servicemembers.  Because servicemembers move frequently and may be deployed, they face unique financial challenges that make them the target of scammers. 

The group held roundtable discussions with community leaders from the banking, housing, and education communities in Helena and Great Falls to collaborate on solutions to reduce scams against servicemembers. Petraeus, Tester, and Bullock also attended meetings with servicemembers at Fort Harrison and Malmstrom Air Force Base to hear firsthand stories from the base leadership and individual servicemembers.

Petraeus and Tester informed servicemembers and their families of available state and CFPB resources, including ways to report suspected abuses. They also highlighted some of the dangers servicemembers and their families may face when dealing with their finances. Petraeus promised to bring back the information she gained from the meetings to Washington, noting “I appreciate the input and suggestions I heard, and will do my best to incorporate them into our efforts at the Consumer Financial Protection Bureau.”

Miscellany

Reactions Continue Pouring In Over Cordray Recess Appointment

President Obama’s decision to appoint Richard Cordray on January 4, 2012, as director of the Bureau continues to make headlines as members of Congress, legal professionals, and industry groups react to the appointment and plan their next steps. 

Republicans in Congress, who wished to block Cordray’s appointment until Democrats agreed to make sweeping changes to the Bureau, have expressed outrage over the appointment.  Speaker of the House John Boehner (R-OH) believes the President overstepped his authority, and that “the courts will find the appointment to be illegitimate.” Meanwhile, Senator Orrin Hatch (R-UT) insists the appointment means “the White House is saying it can appoint any person at any time to any position it chooses without the Senate.” 

Some legal scholars have questioned whether the threat of a lawsuit challenging Cordray’s appointment will paralyze the Bureau, either out of concern over the outcome of the lawsuit or by means of an injunction. Processor Lawrence Tribe of Harvard Law School, however, believes “it’s extremely unlikely that the agency will be frozen in its tracks by a court that hasn’t given the thing a complete hearing.  So I think the agency will be able to work well.”  Whether anyone will challenge the appointment remains to be seen, but a challenge seems likely.

While it is unclear whether an industry group would have standing to challenge the appointment, not all such groups are beating the litigation drum. For example, the American Financial Services Association’s Executive Vice President for Federal Affairs, Bill Himpler, stated, “I want to make it perfectly clear, we are not suing our regulator.” Himpler believes the appointment was “a great political play,” and that it fits with the President’s campaign theme of “cleaning up Wall Street.” Thomas Donohue, President of the U.S. Chamber of Commerce, stated his organization opposed the appointment, but concluded, “I’m sure the Department of Justice gave it a very fair look.” Donohue further remarked, “I think there’ll be lawsuits. I’m not sure if we’re gonna take ‘em.”

The President’s authority to make recess appointments is derived from the Recess Appointments Clause (Article II, Section 2, Clause 3 of the Constitution), which gives the President “Power to fill up all Vacancies that may happen during the Recess of the Senate, by granting Commissions which shall expire at the End of their Next Session.” Here, the Senate agreed by unanimous consent to adjourn from December 17, 2011 to January 23, 2012 “with no business [to be] conducted” and to “convene for pro forma sessions only”. The primary legal question at issue here is whether the Senate was in “recess” at the time the President appointed Cordray. 

The Department of Justice (DOJ) concluded, in a January 6, 2012 “Memorandum Opinion for the Counsel to the President”, that the President has authority to make recess appointments notwithstanding the convening of pro forma sessions by the Senate. The opinion stated that “[t]he Senate could remove the basis for the President’s exercise of his recess appointment authority by remaining continuously in session and being able to receive and act on nominations, but it cannot do so by providing for pro forma sessions at which no business is to be conducted.”

The DOJ considered a variety of sources, including the Constitution, federal case law, the legal opinions of past Attorneys General and Comptrollers General, and writings contemporary to the drafting of the Constitution. The DOJ rested its conclusion on three considerations. First, “the President may make recess appointments when he determines that, as a practical matter, the Senate is not available to give advice and consent to the executive nominations.” The DOJ determined that the convening of pro forma Senate sessions where no business could be conducted amounted to the Senate being unavailable to advise and consent regarding nominations. Second, preventing the President from making recess appointments through pro forma sessions “would be inconsistent with both the purpose of the [Recess Appointments] Clause and historical practice in analogous situations.” Finally, blocking recess appointments “would raise constitutional separation of powers concerns.”

Senator Charles Grassley (R-IA) criticized the DOJ’s opinion because it did not cite any U.S. Supreme Court case. He believes the opinion “flies in the face of more than 90 years of historical practice.”  Michael Gerhardt, a law professor at the University of North Carolina, disagrees. Gerhardt believes it “is a credible opinion” and that “the courts would probably have a burden to explain why they don’s agree with it.”  Similarly, Douglas Laycock of the University of Virginia law school believes “[t]he courts would do well to stay out of this, and let the political branches fight it out.”

Should Cordray’s appointment survive a legal challenge, he would serve until the end of 2013.  This is because the 112th session of Congress began on January 3, 2012, the day before the President appointed Cordray, and the end of the “next session” of Congress would be when the 113th Congress adjourns.

Meanwhile, the Bureau is moving full steam ahead  with its activities, as discussed in this CFPB Alert.

Regulatory Scorecard

Below is Dykema's up-to-date chart of pending and final regulatory activities and proceedings at the CFPB.

Consumer Financial Protection Bureau Pending Rulemakings, Final Rulemakings and Other Initiatives under Dodd-Frank Act (DFA) as of January 24, 2012
**NOTE: Click here to access a printable version of the Scorecard.

Description   

Date of Proposal/
Final or Interim Rule 

Summary of Contents 

Key Dates 

Proposed Federal Reserve Board Comprehensive Regulation Z Proposals  

August 26, 2009
(74 FR 43428)

August 26, 2009
(74 FR 43232)

Two proposals issued in August of 2009 contained revisions to disclosures for closed-end mortgage loans and HELOCs.

On February 1, 2011, Fed elected not to finalize proposals, recognizing CFPB’s impending authority

Proposed Federal Reserve Board Comprehensive Regulation Z Proposal

September 24, 2010
(75 FR 58539)

Proposed rule to: (1) expand the right to rescind to additional loan types, (2) amend disclosures to explain the right to rescind, (3) clarify lender’s responsibilities upon rescission, (4) mandate disclosures for loan  modifications, (5) change reserve mortgage disclosures, and (6) place restrictions on certain advertising and sales practices for reverse mortgages.

On February 1, 2011, Fed elected not to finalize proposals, recognizing CFPB’s impending authority

Department of Treasury Privacy Act System of Records

January 10, 2011
(76 FR 1507)

June 15, 2011
(76 FR 35071)

In accordance with the Privacy Act of 1974, as amended, Department of Treasury provided notice of the establishment of a Privacy Act System of Records.

Written comments due on or before February 9, 2011

Effective Date: July 15, 2011

Proposed Federal Reserve Board Regulation Z: Escrow Requirements

March 2, 2011
(76 FR 11598)

Proposed rule to: (1) extend the minimum period an escrow account must be maintained for first lien, higherpriced mortgage loans from one to five years, (2) provide an exemption from the mandatory escrow for certain loans, (3) exempt from the mandatory escrow requirement creditors that operate primarily in “rural or "undeserved” counties, and (4) require new disclosure explaining how the escrow account works or what the effects would be of not having an escrow account at all.

Written comments due on or before May 2, 2011

CFPB and JAGs Partnership

July 6, 2011

The CFPB and JAGS: partnering to protect servicemembers

CFPB and Judge Advocate Generals will work together to identify potential violations of consumer law involving service members and their families.

 

OCC, FED, FDIC, SEC, FHFA, and HUD Risk Retention/Qualified Residential Mortgage (QRM)

April 29, 2011
(76 FR 24090)

June 10, 2011
(76 FR 34010)

DFA §941 requires sponsors of assetbacked securities (ABSs) to retain at least 5% of the credit risk of assets underlying the securities; proposal includes loan-level requirements such as minimum down payment.

Written comments due on or before August 1, 2011

Federal Reserve Board Increase in Regulations Z & M Coverage Thresholds

April 4, 2011
(76 FR 11598)

Consumer credit transactions and consumer leases with transaction amounts up to $50,000 will be covered by Regulation Z and Regulation M. Beginning the end of this year (December 31, 2011), the threshold will be adjusted annually based upon the Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers.

Effective July 21, 2011

CFPB Data Collection under ECOA

April 11, 2011

Section 1701 of the Dodd-Frank Act

DFA §1071 amended ECOA to require financial institutions to collect and report credit application information for women- or minority-owned businesses and small  businesses. CFPB issued guidance to financial institutions clarifying that DFA §1071 does not take effect until the CFPB issues necessary implementing regulations.

 

Federal Reserve Board Ability to Repay/Qualified Mortgage (QM)

April 19, 2011
(76 FR 27390)

DFA §1411 requires creditors, when making loans covered by TILA, to determine the consumer’s ability to repay before making a loan and also to establish minimum mortgage underwriting standards; proposal includes alternatives for final regulation.

Written comments due on or before July 22, 2011

Federal Reserve Board Foreign Remittance Transfers under Regulation. E

May 23, 2011
(76 FR 29902)

DFA §1073 amended the EFT Act, adding a new section to require providers of “remittance transfers” to provide disclosures about such transfers, including exchange rate, applicable fees and taxes, and the amount to be received by the “designated recipient.”

Written comments due on or before July 22, 2011

Federal Reserve Board Collection Data at Motor Vehicle Dealers under Regulation. B

June 20, 2011
(76 FR 36885)

Proposed rule to clarify that motor vehicle dealers temporarily are not required to comply with certain data collection requirements in the DFA until the board issues final regulations to implement the statutory requirements.

Written comments due on or before July 29, 2011

CFPB “Single Integrated Disclosure” Proposal (in advance of proposed rule) under DFA §1032

May – June, 2011
(
www.consumerfinance.gov)

J
uly 20, 2011
(76 FR 43374)

September 12, 2011

CFPB has posted several rounds of “sample” forms on its website and sought public feedback; U.S. Treasury has solicited comments “concerning a proposed generic information collection for development and evaluation of integrated loan disclosures” (combining Regulation. Z mortgage disclosure and the RESPA Good Faith Estimate (GFE) into a single, integrated disclosure form).

 DFA requires final rule no later than July 21, 2012; CFPB has stated that it will conduct four rounds of consumer testing through February, 2012, and will issue notice and comment rulemaking in July, 2012

CFPB “Larger Participant” Definition

June 29, 2011
(76 FR 38059)

DFA §1024 provides that CFPB may supervise covered persons in the residential mortgage, private education lending and payday lending markets. For other markets for consumer financial products or services, CFPB’s supervision program will apply only to a “larger participant” of these markets, as defined by rule.

Written comments due on or before August 15, 2011

CFPB Identification of Enforceable Rules and Orders

July 21, 2011
(76 FR 43569)

CFPB published consumer financial protection authorities that would be transferred from seven federal agencies and that it would enforce after the Transfer Date.

Effective Date: July 21, 2011

CFPB Alternative Mortgage Transaction Parity (Regulation D)

July 22, 2011
(76 FR 44226)

CFPB published interim final rule establishing Regulation D pursuant to the Alternative Mortgage Transaction Parity Act and the Truth in Lending Act.

Effective for state housing creditors July 22, 2011

Written comments due on or before September 22, 2011

FTC Statement of General Policy or Interpretation; Commentary on the Fair

Credit Reporting Act

July 26, 2011
(76 FR 44462)

FTC is rescinding its Statements of General Policy or Interpretations under the FCRA.

Effective Date: July 26, 2011

Disclosure of Records and Information

July 28, 2011
(76 FR 45372)

Interim Final Rule establishes procedures for the public to obtain information from the CFPB under the Freedom of Information Act (FOIA). CFPB also established its rules regarding the confidential treatment of information it obtains in connection with the exercise of its authority.

Effective Date: July 28, 2011

Written comments due on or before September 26, 2011

Rules of Practice of Adjudication Proceedings

July 28, 2011
(76 FR 45338)

Interim Final Rule establishes procedures regarding the conduct of adjudication proceedings under §1053 of the Dodd-Frank Act, used to enforce compliance with the Dodd-Frank Act or any laws for which it has enforcement authority.

Effective Date: July 28, 2011

Written comments due on or before September 26, 2011

State Official Notification Rules

July 28, 2011
(76 FR 45174)

Interim Final Rule establishes procedures to be used by state officials to notify the CFPB of their actions or proceedings in enforcing the Dodd-Frank Act or its regulations.

Effective Date: July 28, 2011

Written comments due on or before September 26, 2011

Rules Relating to Investigations

July 28, 2011
(76 FR 45168)

Interim Final Rule describing the CFPB’s procedures for investigations regarding compliance with the federal consumer financial laws.

Effective Date: July 28, 2011

Written comments due on or before September 26, 2011

Notice of Proposed Privacy Act System of Records 

August 1, 2011
(76 FR 45767)




(76 FR 45765)









(76 FR 45761)







(76 FR 45757)





(76 FR 45759)




(76 FR 45763)

Notice of new records system to collect process, log, track and respond to all FOIA- and Privacy Act-related requests.


Notice of new records system used to enable the CFPB to carry out its responsibilities with respect to certain banks, savings associations, credit unions, and their affiliates and service providers, including coordination and conduct of examinations, supervisory evaluations and enforcement actions.

Notice of a new records system used to enable the CFPB to carry out its  responsibilities with respect to individuals related to non-depository covered persons, including the coordination of examinations, supervision evaluations and enforcement actions.

Notice of a new records system used to enable the CFPB to carry out its responsibilities with respect to the enforcement of federal consumer financial protection laws.

Notice of a new records system used to assist the CFPB by providing effective, social media-based ways to share information and interact with the public.

Notice of a new records system that will provide the CFPB with a single, agency-wide repository of identifying and registration information concerning entities offering or providing, or materially assisting in the offering or provision of, consumer financial products or services.

Effective Date: September 12, 2011

Written comments due on or before August 31, 2011

Policy on Ex Parte Presentations in Rulemaking Proceedings

 

August 16, 2011

Policy on Ex Parte Presentations in Rulemaking Proceedings

Policy requiring public disclosure of ex parte presentations made to the CFPB staff concerning a pending rulemaking.

 

August 16, 2011

 

Notice and Request for Information on Consumer Financial Products and Services for Servicemembers

 

September 6, 2011
(76 FR 54998)

 

Request for input regarding consumer financial products and services tailored to servicemembers and their families.

 

Written comments due on or before September 20, 2011

 

Proposed Information Collection; Comment Requests; Generic Clearance for Research in Development of Disclosure Forms

September 26, 2011
(76 FR 59379)
 

Generic Clearance Request regarding information collection to OMB in connection with research in the development of disclosure forms and request for comments on the collection of information and the estimated burden on respondents.

Written comments due to OMB reviewer and to Treasury Department Clearance Officer on or before October 26, 2011. 

FRB Final Rule Amending Regulation B to Postpone Auto Dealer Collection of Information on Minority and Women Owned Businesses and Small Businesses

 

September 26, 2011
(76 FR 59237)

 

Provides that motor vehicle dealers are not required to comply with Dodd-Frank’s data collection requirements on credit applications by women- and minority-owned businesses until the FRB issues final regulations to implement the statutory requirement. 

Effective September 26, 2011

 

Proposed Collection;
Comment Request
October 31, 2011
(76 FR 67128)
CFPB is soliciting comment for a proposed generic information collection that will help the CFPB satisfy responsibilities under the Dodd-Frank Act—the collection and monitoring of and response to consumer complaints about certain financial products and services.

Written comments due on or before December 30, 2011. 

Proposed Collection;
Comment Request 

November 2, 2011
(76 FR 67668) 

CFPB is soliciting comment for a proposed generic information collection for development and/or testing of model forms, tools, and similar related materials.

Written comments due on or before January 3, 2012.

CFPB Early Notice of Enforcement Actions

CFPB Bulletin 2011-04
November 7, 2011

CFPB announced it may provide lenders with notice of the nature of the subject's potential violations before proceeding with enforcement actions.

Effective November 7, 2011

Notice of Proposed Privacy Act System of Records 

November 4, 2011
(76 FR 68395)

CFPB is soliciting comments on its new system of records regarding its employees' Transit Subsidy Program. 

Written comments due on or before December 5, 2011. 

Request for Information Regarding Private Education Loans and Private Education Lenders

November 17, 2011
(76 FR 71329)

CFPB is requesting information on private education loans and related consumer financial products and services to help prepare a report on private education loans and private education lenders required under section 1077 of the Dodd-Frank Act.

Written comments due on or before January 17, 2012

Notice of Proposed Privacy Act System of Records

November 17, 2011
(76 FR 71327)

CFPB is soliciting comments on its new system of records regarding its employees' benefits, retirement, human resources and payroll programs.

Written comments due on or before December 19, 2011

Proposed Collection;
Comment Request

November 21, 2011
(76 FR 71932)

CFPB is soliciting comment on the collection of information from state officials regarding the filing of state actions to enforce the Dodd-Frank Act and regulations prescribed thereunder.

Written comments due on or before January 20, 2010

Notice; Request for Information

 December 5, 2011
(76 FR71932)

CFPB is requesting specific suggestions for streamlining regulations in inherited from other agencies.

Written comments due on or before March 5, 2012

Notice of Proposed Policy Statement

December 8, 2011
(76 FR 76628)

CFPB is requesting comment on a proposed policy statement that addresses the CFPB's proactive disclosure of credit card complaint data. The policy statement sets forth the CFPB's proposed initial disclosure of credit card complaint data and identifies additional ways that CFPB may disclose credit card complaint data.

Written comments due on or before January 30, 2012

Notice of Proposed Privacy Act System of Records

December 13, 2011
(76 FR 77470)

CFPB is soliciting comments on its new system of records regarding Interstate Land Sales Registration Files.

Written comments due on or before January 12, 2012.

Notice of Proposed Privacy Act System of Records

December 13, 2011
(76 FR 77472)

CFPB is soliciting comments on its new system of records regarding its Ombudsman Office's tracking of inquiries submitted to it while the inquiries are being adjudicated.

Written comments due on or before January 12, 2012

Notice and Request for Public Comment

December 14, 2011
(76 FR 77766)

CFPB is requesting comment on a proposed information collection in connection with certain mortgage servicing rules and related disclosures.

Written comments due on or before January 13, 2012

Bureau Invites Whistleblower Information and Law Enforcement Tips, and Highlights Anti-Retaliation Protections

December 15, 2011
http://www.consumerfinance.gov/ wp-content/uploads/2011/12/ CFPB_Enforcement_Bulletin_12- 15-11.pdf

Bureau is soliciting information form whistleblowers regarding potential violations of Federal consumer financial  laws.

December 15, 2011

Interim Final Rule With Request for Public Comment

December 16, 2011
(76 fr 78126)

Interim final rule that recodifies FDCPA rules as Regulation F under the Bureau's regulation.


Effective Date: December 30, 2011; Written comments due on or before February 14, 2012

Interim Final Rule With Request For Public Comment


December 16, 2011
(76 FR 78130)

 Interim final rule establishing a new Regulation N (Mortgage Acts and Practices—Advertising Rule) and a new Regulation O (Mortgage Assistance Relief Services Rule) under the Bureau's regulations.

Effective Date: December 30, 2011; Written comments due on or before February 14, 2012

Interim Final Rule With Request For Public Comment

December 19, 2011
(76 FR 78465)

Interim final rule that recodifies Regulation C, implementing HMDA, under the Bureau's regulations.

Effective Date: December 30, 2011; Written comments due on or before February 17, 2012

Interim Final Rule With Request For Public Comment

December 19, 2011
(76 FR 78483)

Interim final rule that codifies Regulation G and H, implementing the S.A.F.E. Act, under the Bureau's regulations.

Effective Date: December 30, 2011; Written comments due on or before February 17, 2012

Interim Final Rule With Request For Public Comment

December 19, 2011
(76 FR 78500)

Interim final rule that recodifies Regulation M, implementing the Consumer Leasing Act, under the Bureau's regulations.

Effective Date: December 30, 2011; Written comments due on or before February 17, 2012

Interim Final Rule With Request for Public Comment

December 20, 2011
(76 FR 78978)

Interim rule that recodifies RegulationX, implementing the Real Estate Settlement Procedures Act (RESPA).

Interim final rule effective December 30, 2011; Written comments due on or before February 21, 2012

Interim Final Rule With Request for Public Comment

December 21, 2011
(76 FR 79025)

Interim rule that recodifies Regulation P, implementing the provisions of Title V and the Gramm-Leach-Bliley Act (privacy).

Interim final rule effective December 30, 2011; Written comments due on or before February 21, 2012

Interim Final Rule With Request for Public Comment

December 21, 2011
(76 FR 79276)

Interim rule that recodifies Regulation DD, implementing the Truth in Savings Act (TISA).

Interim final rule effective December 30, 2011; Written comments due on or before February 21, 2012

Interim Final Rule With Request for Public Comment

December 21, 2011
(76 FR 79208)

Interim rule that recodifies Regulation V, implementing the Fair Credit Reporting Act (FCRA)

Interim final rule effective December 30, 2011; Written comments due on or before February 21, 2012

Interim Final Rule With Request for Public Comment

December 21, 2011
(76 FR 79442)

Interim rule that recodifies Regulation B,implementing the Equal Credit Opportunity Act (ECOA)

Interim final rule effective December 30, 2011; Written comments due on or before February 21, 2012

Interim Final Rule With Request for Public Comment

December 21, 2011
(76 FR 79486)

Interim rule that recodifies Regulations J, K and L, implementing the Interstate Sales Full Disclosure Act (ISLA)

Interim final rules effective December 30, 2011; Written comments due on or before February 21, 2012

Interim Final Rule With Request for Public Comment

December 22, 2011
(76 FR 79768)

Interim rule that recodifies Regulation Z, implementing the Truth in Lending Act (TILA)

Interim final rule effective December 30, 2011; Written comments due on or before February 21, 2012

Interim Final Rule With Request for Public Comment

December 27, 2011
(76 FR 81020)

Interim rule that recodifies Regulation E, implementing the Electronic Fund Transfers Act (EFTA)

Interim final rule effective December 30, 2011; Written comments due on or before February 27, 201

Bureau Issues and CFPB Bulletin 12-01 regarding its supervision authority and treatment of confidential supervisory information

January 4, 2012
http://www.consumerfinance.gov/wp-content/uploads/2012/01/GC_bulletin_12-01.pdf

Bureau is providing guidance regarding the collection of information through the supervisory process and the confidentiality protections that this process provides to supervised institutions.

January 4, 2012

Notice of Proposed Privacy Act System of Records

January 9, 2012
(77 FR 1049)

CFPB is soliciting comments on its new system of records regarding the questions submitted to the CFPB Ethics Office and requests for advice or clarification.

Written comments due on or before February 8, 2012

Proposed Collection; Comment Request

January 19, 2012
(77 FR 2684)

CFPB is soliciting comment for a proposed generic information collection to identify financial education strategies that are effective in educating consumers to make better informed financial decisions.

Written comments due on or before March 19, 2012

Proposed Collection; Comment Request

January 19, 2012
(77 FR 2685)

CFPB is soliciting comment on an proposed revision to an information collection regarding Report of Terms or Credit Card Plans.

Written comments due on or before March 19, 2012

Agency Information Collection Activities; Renewal of Currently Approved Collections; Comment Request

January 19, 2012
(77 FR 2685)

The Dodd-Frank Act transferred rulemaking authority for a number of consumer financial protection laws from seven Federal agencies to the CFPB as of July 21, 2011. In December 2011, the CFPB republished the regulations implementing those laws with technical and conforming changes to reflect the transfer of authority and certain other changes made by the Dodd-Frank Act. Prior to the republication, the CFPB obtained emergency approvals from the Office of Management and Budget (OMB) for the information collections for which the CFPB had administrative enforcement authority under these regulations. The CFPB primarily relied on the estimates previously developed by the transferor agencies concerning the number of entities subject to the regulations and the hours of paperwork burden under the statutes. The CFPB is republishing this request with updated hours of paperwork burden under the statutes.

Written comments due on or before March 19, 2012

Notice of Proposed Privacy Act System of Records

January 19, 2012
(77 FR 2689)

CFPB is soliciting comments on its new system of records regarding the activities and operations of the CFPB's external affairs activities.

Written comments due on or before February 21, 2012

Final Rule and Notice of Proposed Rulemaking

January 20, 2012
http://www.consumerfinance.gov/pressrelease/consumer-financial-protection-bureau-adopts-rule-to-protect-consumers-sending-money-internationally/

CFPB adopts a rule under Regulation # to increase protection for consumers who transfer money internationally. The new rule requires the disclosure of exchange rates and all fees associated with the transfer and requires remittance transfer providers to investigate disputes and remedy errors. The Notice of Proposed Rulemaking seeks comment on some adjustments to the final rule.

January 20, 2013

Contacts and Caveats

For more information about Dykema's Financial Services Regulatory and Compliance team, please contact any of the listed attorneys.


As part of our service to you, we regularly compile short reports on new and interesting developments regarding the Consumer Financial Protection Bureau. Please recognize that these reports do not constitute legal advice and that we do not attempt to cover all such developments. Readers should seek specific legal advice before acting with regard to the subjects mentioned here. Rules of certain state supreme courts may consider this advertising and require us to advise you of such designation. Your comments on this Alert, or any Dykema publication, are always welcome. ©2012 Dykema Gossett PLLC.

As part of our service to you, we regularly compile short reports on new and interesting developments and the issues the developments raise. Please recognize that these reports do not constitute legal advice and that we do not attempt to cover all such developments. Rules of certain state supreme courts may consider this advertising and require us to advise you of such designation. Your comments are always welcome. © 2017 Dykema Gossett PLLC.