Citing the pandemic, the Consumer Financial Protection Bureau is proposing to delay by 60 days the effective dates of debt collection rules that were issued by the Trump Administration last year. The agency is seeking public comment on the proposal, but the proposal first must be published in the Federal Register.
The Consumer Financial Protection Bureau is proposing a rule that would stop mortgage servicers from foreclosing on most home loans before December 31, 2021. This follows the agency’s withdrawal of its earlier position that financial services companies would have flexibility in following agency rules during the pandemic. The comment period on the proposed mortgage rule will be open until May 10.
The Consumer Financial Protection Bureau expects mortgage servicers to follow the regulations that help homeowners keep their homes as pandemic protections end. The CFPB released the criteria on which they plan to evaluate mortgage servicers.
The Biden Administration’s Consumer Financial Protection Bureau is back to a regulatory regime, rescinding a series of pandemic-related policy rollbacks. The pandemic will no longer be an acceptable excuse for failing to follow the CFPB’s consumer protection rules. Agency officials were quite clear about what will be expected of financial institutions going forward.
The Consumer Financial Protection Bureau may reinstitute the agency’s rule that would require payday loan borrowers to demonstrate their ability to repay a loan before it is approved.
The Consumer Financial Protection Bureau’s Consumer Response staff has been reorganized and cut during the past three years—moves that could affect the agency’s handling of consumer complaints that have skyrocketed during the pandemic, the CFPB’s Inspector General said in a report issued last week. The Consumer Response office was moved structurally twice and ended up in the newly created Division of Consumer Education and External Affairs, the IG said, in a report on the management challenges the CFPB faces. “These moves may affect the management of consumer complaints, particularly as the Bureau has redistributed some of Consumer Response’s resources to
The Consumer Financial Protection Bureau announced it plans to change a Trump Administration policy and that it will now take enforcement and supervisory actions as a result of abusive acts or practices. It will no longer follow the policy instituted by former Director Kathy Kraninger that significantly narrowed the definition of “abusive acts or practices” and thus avoided enforcement actions under those terms. The new policy will take effect the day it is published in the Federal Register.
The vote of the Senate Banking Committee on whether to confirm Rohit Chopra to head the Consumer Financial Protection Bureau was tied at 12-12. The tie vote, under current Senate rules, means that the confirmation can move to the Senate floor. Republicans believe that the CFPB will be “anti-business” under Chopra.
CFPB: Equal Credit Opportunity Act Prohibits Lenders From Sexual Orientation, Gender Identity Discrimination
The Consumer Financial Protection Bureau is issuing an “interpretative rule” that the Equal Credit Opportunity Act prohibits discrimination based on sexual orientation and/or gender identity. As an “interpretative rule” it will not be open for public comment and will become effective when published in the Federal Register. The CFPB then intends to take enforcement actions if the rule is violated.
Senate Banking Committee ranking Republican Sen. Pat Toomey of Pennsylvania used the confirmation hearing of Rohit Chopra to raise his concern that the Consumer Financial Protection Bureau is returning to regulation through enforcement.