The CFPB late last week issued a rule to clarify partial HMDA exemptions for small financial institutions ushered in under the Dodd-Frank reform act. The Economic Growth, Regulatory Relief, and Consumer Protection Act, signed into law in May, exempts depositories – including credit unions – that originated fewer than 500 closed-end mortgages or 500 open-end lines of credit in each of the two preceding calendar years from certain expanded reporting ...

It’s just a matter of time, but it appears that Republican Kathy Kraninger, a career government worker, will become the next permanent director of the Consumer Financial Protection Bureau. In late August, the Senate Committee on Banking, Housing, and Urban Affairs approved Kraninger’s nomination by a party-line vote of 13 to 12. The approval, though close, was not a surprise. “There is nothing significantly controversial about her candidacy that will change ...

The CFPB announced that it will hold a day-long symposium, “Building a Bridge to Credit Visibility,” to explore challenges many consumers face in getting credit. This event will take place on Sept. 17 in the CFPB’s Washington, DC, headquarters, and will be streamed live. The CFPB said the symposium “will convene a diverse set of stakeholders to explore challenges in overcoming barriers to expand fair, equitable, and non-discriminatory access to credit [Includes three briefs] ...

Experts disagree on whether the CFPB would pull back in the enforcement of mortgage servicing. Jaret Seiberg, a financial services and housing policy analyst for Cowen Washington Research Group, said there is a huge shift in regulating financial services since Republicans gained control of the White House. Loan servicers, particularly, could see “material differences” in the way federal agencies treat their businesses. “We have seen far less enforcement ...

The CFPB recently signaled it will seek to appeal the constitutionality ruling by a New York federal judge. The CFPB has filed a letter with Judge Loretta Preska of the U.S. District Court for the Southern District of New York, requesting the court to “enter a final judgement” in the RD Legal Funding case. If this request is granted, the CFPB will be able to appeal Preska’s ruling that the CFPB’s structure is unconstitutional to the U.S. Court of Appeals for the Second Circuit ...

The Mortgage Bankers Association called upon Congress to pass legislation to restore Ginnie Mae eligibility for so-called orphaned VA loans, which have caused a temporary disruption in the government-backed secondary market. In written testimony to the Senate Committee on Veterans’ Affairs last week, the MBA urged lawmakers to make technical corrections to restore the eligibility of certain Interest Rate Reduction Refinance Loans for pooling. The MBA estimated the VA orphan loan mess at roughly $500 million. Due to new loan seasoning requirements in the recently enacted Economic Growth, Regulatory Relief, and Consumer Protection Act, sime IRRRLs were rendered ineligible for Ginnie MBS pools. The loans were in transit when legislation addressing the problem of VA loan churning and serial refinancing became law in May. The new law’s seasoning provisions turned out to be ...

A federal judge in Ohio recently sided with a law firm in a debt collection enforcement action taken by the CFPB. Industry attorneys said the ruling calls into question whether the bureau should bring future actions against such firms. The CFPB filed a lawsuit in April 2017 against the debt collection law firm Weltman, Weinberg & Reis for falsely representing in collection letters sent to consumers that attorneys were involved in collecting the debt. In most cases ...

During a heated hearing last week on Capitol Hill, the nominee to become the next CFPB director, Kathy Kraninger, identified some of her broad priorities for the consumer agency if she gets the job. Kraninger appeared to embrace the industry-friendly approach for the bureau that has been set by her boss at the Office of Management and Budget, Mick Mulvaney, who is also the acting director at the CFPB. Sen. Sherrod Brown, D-OH, said Kraninger showed a philosophy ...

Kathy Kraninger, President Trump’s pick to run the CFPB, faced tough questioning from Democrats in the Senate Committee on Banking, Housing, and Urban Affairs during a confirmation hearing last week. Democrats said Kraninger is not qualified for the top position in the powerful consumer agency. They hammered on her involvement with the Trump administration’s immigration policy that separates children from their parents and the response to ...

The controversial structure of the CFPB and its enforcement tactics will likely draw skeptical attention from the U.S. Supreme Court if President Trump’s pick, Brett Kavanaugh, is confirmed by the Senate, industry attorneys said. President Trump recently nominated Kavanaugh to replace Justice Anthony Kennedy, a moderate justice who has announced his retirement. Kavanaugh is a judge of the U.S. Court of Appeals for the District of Columbia Circuit with a pro-business ...