Last week, the CFPB issued a proposed rule to expand HMDA data reporting requirements. In addition to new data points specifically required by the Dodd-Frank Act, the proposal would require collection and reporting of several new data points and the inclusion of some loans not presently covered. Generally the proposal would increase the number of closed-end loans or reverse mortgages made in a year to trigger HMDA reporting from one to 25 in a year.
On January 6, 2014, the CFPB updated the TILA Higher-Priced Mortgage Loans (HPML) Escrow Rule - Small Entity Compliance Guide. This is what the CFPB had to say on the recent update:
"The Bureau updated this guide on January 6, 2014 to reflect finalized changes to the rule. The revisions amend the final rule issued January 10, 2013, which took effect on June 1, 2013. Notable changes in the October 2013 Final Rule, which take effect January 1, 2014, impacting guide content include:
On its website last week, the CFPB called the Ability-to-Repay and Qualified Mortgage rule (ATR/QM rule) "a 'back-to-basics' approach to mortgage lending that will protect consumers from the debt trap of a mortgage they can't afford" and added that it is "a common-sense approach policy that responsible lenders have already been following for decades." This comment seems to presume that the ATR/QM rule provides the exclusive method for responsible mortgage lending.
The CFPB published CFPB Bulletin 2013-10 reminding employers that they cannot require their employees to receive wages on payroll cards. The bulletin also explains some of the federal consumer protections that apply to payroll cards, such as fee disclosure, access to account history, limited liability for unauthorized use, and error resolution rights. Under Reg. E, an employer can require employees to receive their wages electronically, but the employer can't dictate the financial institution used by the employee.
The CFPB released an update of its small business guide for the international electronic money transfers rule (the remittance rule). The update reflects the most recent changes to the rule, which takes effect on October 28, 2013. The CFPB also released a video (voice and Power Point) overview of the rule, recent changes, and the CFPB's response to questions it has received.
A lawsuit challenging the constitutionality of key provisions of the Dodd-Frank law, including the authority given to the Consumer Financial Protection Bureau (CFPB), was dismissed last week by a U.S. District Judge.
Last week, the United States Senate confirmed the nomination of CFPB Director Richard Cordray as part of a larger compromise to maintain Senate filibuster rules in exchange for the approval of a number of administration nominees.