Bank Notes

  • January 24, 2017
    On Tuesday, January 24, 2017, following an op-ed in The Hill, 38 members of the Congressional Black Caucus (CBC) sent a letter to President Trump, urging him not remove CFPB Director Richard Cordray before his term expires in July of 2018. The CBC members heralded the achievements of the agency and Director Cordray in protecting consumers and “vindicating the rights of minority consumers.” CBC...
  • January 24, 2017
    On Tuesday, January 24, 2017, the OCC, Federal Reserve, and FDIC entered into consent order with Servicelink to resolve certain outstanding requirements placed on Lending Processing Services (LPS) under a pre-existing consent order. In April of 2011, LPS entered into a consent order with the prudential regulators following allegations of unsafe or unsound practices in providing default management...
  • January 23, 2017
    On Monday, January 23, 2017, the OCC published its final rule on the Economic Growth and Regulatory Paperwork Reduction Act of 1996 removing outdated and otherwise unnecessary provisions found in the rules in an effort to reduce the regulatory burden on national banks. This final rule also integrates the OCC’s national bank and Federal Savings Association (FSA) rules relating to fidelity bonds,...
  • January 23, 2017
    On Monday, January 23, 2017, the Bureau took separate actions against Citi Financial Servicing and Citi Mortgage for allegedly not informing borrowers about their options to avoid foreclosure and asking consumers to complete excessive paperwork for foreclosure relief. Specifically the CFPB claims Citi Financial: Kept consumers “in the dark” about foreclosure relief options; Misled consumers about...
  • January 23, 2017
    On Monday, January 23, 2017, State Attorneys General (AG) from 17 states filed a motion to intervene in the CFPB’s case with PHH. Citing President Trump’s “strong opposition” to Dodd-Frank financial reforms, the AG’s requested permission to defend the CFPB before the U.S. Court of Appeals. The motion stated: “Given the position of the president-elect and the new administration, it is urgent that...
  • January 20, 2017
    On Friday, January 20, 2017, White House Chief of Staff Reince Priebus issued a memo freezing new or pending regulations in efforts to give President Trump’s appointees a chance to review them. According to the memo, no new regulations should be sent to the Office of the Federal Register (OFR) until reviewed by a department or agency head appointed by President Trump. Further, any regulations...
  • January 19, 2017
    On Thursday, January 19, 2017, the CFPB sued TCF National Bank for allegedly “tricking” consumers into costly overdraft services in violation of Dodd-Frank as well as the Electronic Fund Transfer Act. The Bureau specifically alleges TCF designed its overdraft application process to obscure fees and make overdraft seem mandatory for new customers to open an account. The agency also believes the...
  • January 18, 2017
    Wednesday, January 18, 2017, Sens Chuck Schumer (D-NY), Sherrod Brown (D-OH), and Elizabeth Warren (D-MA) held a press conference urging President-elect Donald Trump not to fire CFPB Director Richard Cordray before his term expires in July of 2018. Democrats said there was no “for cause” reason to terminate Director Cordray and cautioned, if President-elect Trump did so, Democrats would do...
  • January 18, 2017
    On Wednesday, January 18, 2017, the CFPB announced it has taken action against Navient for allegedly failing borrowers in repayment by providing bad information, processing payments incorrectly, and neglecting to act when borrowers complained. The Bureau also alleges the company misled borrowers on their rights to lower repayments.
  • January 18, 2017
    On Wednesday, January 18, 2017, the House Financial Services Committee (HFSC) released its third installment in its series challenging the CFPB’s use of disparate impact in indirect auto lending. Throughout the report, the HFSC set forth arguments why it thinks the CFPB would not be able to prove a disparate impact claim in court, especially given last year’s Inclusive Communities Supreme Court...

Pages