The CFPB Issues Continue


Despite the fact that there is no data supporting the need to modify the rules in Regulation E relating to payroll cards, which are working quite well, the CFPB amended Regulations E and Z to create consumer protections for prepaid financial products, including payroll cards. The rules also apply to government benefit cards but not to gift cards or health savings account cards.

The rules are effective October 1, 2017, although the requirement to submit account agreements to the CFPB is effective October 1, 2018. Below are the key changes with respect to payroll cards:

CFPB Issues Final Rule


The CFPB updated its mortgage-servicing rules and expanded foreclosure protections. The final rule provides protections when a mortgage is transferred between servicers. Mortgage servicers must now offer mitigation services more than once if a borrower brings their mortgage current, then again becomes delinquent. The rule provides additional protections to mortgagors who acquired the mortgage, often through death or divorce.

Majority Vote


A bipartisan group of 70 senators, representing two-thirds of the Senate, last week sent a letter to Director Cordray urging the CFPB to tailor its regulations to match the unique nature of community banks. The letter, led by Senators Joe Donnelly and Ben Sasse, calls on the CFPB to consider the impact of its rules on community banks and use its authority to tailor regulations based on size and complexity so there are no unintended consequences for regional financial institutions.

IBAT Discusses Hard-Hitting Issues


During last week's Congressional Visit, several Texas community bankers and IBAT staff members had an hour-long meeting with Consumer Financial Protection Bureau (CFPB) Director Richard Cordray. The meeting, arranged by Texas Department of Banking Commissioner Charles Cooper, was an opportunity for Texas community bankers to express their thanks for the recent interim final rule that greatly expanded the number of small bank creditors able to serve rural and underserved markets.


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