As you probably know by now, Richard Cordray resigned as the inaugural Director of the Consumer Financial Protection Bureau (CFPB). With that, President Trump wasted little time in appointing his White House Budget Director, Mick Mulvaney, to replace Mr. Cordray. “Not so fast,” says Leandra English. Who? She was Director Cordray’s Chief of Staff. When Cordray decided to resign, he…
As you should know by now, the Senate voted to roll back the CFPB’s rule banning arbitration clauses in loan documents. It was very close and needing a simple majority required the vote of the Vice President to break a tie. That is quite telling in itself. The Senate vote means that lenders can require a consumer to submit to binding…
As independent non-bank lenders take the lead away from traditional banks in originating new mortgage business, they also want to be excluded from direct CFPB supervision. They are not the only ones. Small to mid-size non-bank mortgage lenders, like some community banks and credit unions with assets under $10 billion, are seeking exclusion from CFPB audits and enforcement actions. A…
You remember TRID’s “Black Hole?” The circumstance created by the new rule whereby a lender is unable to reset fee tolerances once an initial Closing Disclosure is issued and fees increase but closing gets delayed for more than 3 days. The question remains, how can a lender recover a fee increase once a CD is issued but closing gets delayed…
The CFPB recently issued what it calls their new ‘no-action letter’ to Upstart Network, a San Carlos, CA company that makes personal loans to consumers. The reason; Upstart will use and evaluate certain alternative credit and other consumer data when making credit decisions on their applicants. The CFPB’s apparent intent, through these no-action letters, is to encourage lenders to develop…
Hey, did I tell you that the CFPB is in process of their required review of the effects of the QM/ATR rules implemented under Dodd-Frank? Well, they are! CFPB is looking into several lending areas to determine to successes or failures of the new rules. They’ll be reviewing quantitative data for loan originations, default rates, and loan performance. The data…
