CFPB Resource Center
On July 21, 2011, the Consumer Financial Protection Bureau (CFPB), an agency with unprecedented power and authority to regulate the market for consumer financial products, opened its doors for business.
Because of our focus and expertise on retail banking products and services, CBA is well positioned to be your industry resource on the CFPB and will regularly update this page as the rulemaking process unfolds. In addition, our insights and analysis on CFPB-related issues, along with the latest news and information, will provide you with the necessary tools to navigate this new regulatory environment, so please visit often.
October 24, 2014
CFPB Proposes a Language Access Plan
On Thursday, October 23, 2014, the CFPB announced a proposed Language Access Plan,
which seeks to expand the availability of financial information to
those members of the public who have difficulty with the English
language. According to the U.S. Census Bureau, about 24 million people
in the United States say they don't speak English "very well." The
Language Access Plan is part of the Bureau's commitment to provide
services and information in languages other than English. The CFPB
believes providing more information to the public in their native
language will help avoid "confusion, mistakes, and even fraud."
The Bureau seeks public comment
on the plan, including how it can better explain consumer protections,
provide access to its complaint system, communicate during supervision
and enforcement actions, distribute consumer guides and tools, use
online communities and social media, and engage through community
organizations. The comment period will remain open through January 6,
Sen. Crapo Requests CFPB Review its Existing Regulations
Ranking Member of the Senate Banking Committee Mike Crapo (R-ID), sent a letter
to CFPB Director Richard Cordray on Wednesday, October 22, 2014,
requesting the Bureau conduct a meaningful review of its existing
regulations. Sen. Crapo notes federal banking regulators are subject to
the Financial Services Regulatory Relief Act of 2006, the Economic
Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA), and
Executive Orders calling for a reduction in unnecessary regulatory
"It is imperative for federal financial regulators to
review existing regulations to ensure they are still appropriate and as
minimally burdensome as possible while maintaining statutory and
regulatory objectives," the letter read.
Sen. Crapo requested a
response on three questions to ensure: 1) regulations transferred under
the Wall Street Reform and Consumer Act of 2010, are no longer
"outdated, unnecessary or unduly burdensome," as defined by EGRPRA; 2) a
retrospective review of regulations as set forth in EO 13579; and, 3)
commitment to retrospective review of regulations in the same fashion as
prudential banking regulators as required by EGRPRA. The letternotes
that, "This also aids Congress in preparation for any legislative
reforms that are necessary."
CFPB Announces Adjustments to Mortgage Rules
On Wednesday, October 22, 2014, the CFPB announced final adjustments to certain aspects of mortgage rules which took effect January 1, 2014. The final rule, which was effective on publication, makes the following amendments:
Points and Fees:
A loan will still meet the Qualified Mortgage ("QM") requirements even
though a lender discovers after the loan has closed it has exceeded the
three percent cap if the lender refunds the excess to the consumer with
interest. Further instructive details include:
Smaller Servicers: An
alternative definition of a small servicer applicable to certain
501(c)(3) nonprofit organizations was added so servicing activities can
be consolidated while maintaining an exemption from some of the
- The creditor must maintain and follow specified procedures for reviewing points and fees and refunding customers.
- Secondary market participants may take advantage of this amendment.
- The provision expires on January 10, 2021.
contrast from the proposed rule, the refund period is longer (210 days,
as opposed to 120 days) and certain limitations are imposed on the
ability to refund.
Nonprofit Ability-to-Repay Exemption:
Under the QM rule, certain 501(c)(3) nonprofit organizations are exempt
if they make less than 200 mortgage loans and lend to low and moderate
income consumers. The amendments broadened the exemption to include
"soft seconds," such as Habitat for Humanity, even though they exceed
the 200 mortgage loan limit.
CFPB Finalizes Privacy Notice Rule
On Monday, October 20, 2014, the CFPB finalized its rule concerning annual privacy notices.
The new rule, proposed in May, allows companies that limit their
consumer data-sharing and meet other requirements to post annual privacy
notices online rather than delivering them individually.
need clear and accessible information about how their personal
information is being used in the marketplace, but some of these
requirements were redundant," said Director Cordray in a media statement.
"Posting privacy notices online will make it easier for consumers to
access these important policies, while also making it cheaper for
financial institutions to provide disclosures."
Under the CFPB's
new rule, which is nearly unchanged from the proposal, financial
institutions will be able to post privacy notices online instead of
distributing an annual paper copy, if they satisfy certain conditions
such as not sharing data in ways which would trigger consumers' opt-out
rights. The new rule applies to both banks and those nonbanks within the
CFPB's jurisdiction under the Gramm-Leach-Bliley Act.
new rule, if an institution qualifies for and wants to rely on the
online disclosure method, it will have to inform consumers annually
about the availability of the disclosures. The new rule allows
institutions to include a notice on a regular consumer communication,
such as a monthly billing statement for a credit card, letting consumers
know the annual privacy notice is available online and in paper by
request at a provided telephone number. If an institution chooses not to
use the new disclosure method, it will need to continue to deliver
annual privacy notices to its customers using other delivery methods.
QRM Rule Approved
have approved the Final Risk Retention Rule, also known as the
Qualified Residential Mortgage (QRM) Rule. The rule, implementing
Section 941 of the Dodd Frank Act, was introduced at an FDIC meeting
on Tuesday, October 21, 2014. The rule requires securitizers of
asset-backed securities to retain a minimum of five percent of the
credit risk of assets, with an exception for loans meeting the QRM
As anticipated, the definition of QRM mirrors the
definition of Qualified Mortgage (QM) as defined by the CFPB under the
Truth in Lending Act (TILA). The statute expressly requires the
definition of QRM "be no broader than the definition of 'qualified
mortgage.'" When the FDIC considered the rule, FDIC Board of Directors
member Jeremiah Norton expressed concern the FDIC was "subdelegating"
its rulemaking authority; Norton was the only FDIC Director to vote
against the rule. The rule also requires regulators to review the
definition of QRM five years after the rule takes effect and every four
years after. The rule may also be reviewed as necessary; this
flexibility will permit changes to keep the QRM definition consistent
"Finalization of the Rule should go a long way towards
providing clarity to the market and facilitating access to credit on
sustainable terms," said FDIC Chairman Martin Gruenberg in his remarks during the meeting.
being considered by the FDIC, the rule was subsequently approved by the
OCC, Federal Reserve, Federal Housing Finance Agency, Securities and
Exchange Commission, and the U.S. Department of Housing and Urban
Regulators Propose Rule for Implementing Flood Insurance Escrow Requirements
On Tuesday, October 21, 2014, the FDIC released a joint notice of proposed rulemaking
to amend its regulations regarding loans in areas having special flood
hazards to implement certain provisions of the Homeowner Flood Insurance
Affordability Act of 2014 (HFIAA). Specifically, the proposal would
establish requirements with respect to the escrow of flood insurance
payments, consistent with the changes set forth in HFIAA, and also would
incorporate an exemption in HFIAA for certain detached structures from
the mandatory flood insurance purchase requirement. The OCC, Federal
Reserve, FDIC, Farm Credit Administration, and National Credit Union
Administration plan to address other provisions of Biggert-Waters over
which the Agencies have jurisdiction which have not been affected by
HFIAA in a separate rulemaking. Comments must be received on or before
60 days after publication in the federal register.
Chairmen Send Letters to Fed, OCC on 'Operation Choke Point'
Thursday October 16, 2014, Chairman of the House Committee on Oversight
and Government Reform Darrell Issa (R-CA) and Chairman of the
Subcommittee on Economic Growth, Job Creation & Regulatory Reform
Jim Jordan (R-OH) sent letters to the Fed and OCC requesting additional information about their involvement in Operation Choke Point.
the course of its investigation of Operation Choke Point, the Committee
has learned that federal regulators are pressuring banks to terminate
relationships with legal yet disfavored industries, without regard to
the legitimacy or risk profile of individual companies. For example, one
letter from a Regional Director of the Federal Deposit Insurance
Corporation effectively ordered a target bank to terminate all
relationships with payday lenders," the letters read.
discussing the utility of payday loans for consumers and the various
risks posed to financial institutions the excerpt from the FDIC letter
ends with, "Consequently, we have generally found that activities
related to payday lending are unacceptable for an insured depository
institution." The Oversight Committee requested identical documentation
from the Fed and OCC including correspondence with the Civil Division of
the Department, and documents relating to any financial institution's
relationship with firearms or ammunition businesses, short-term lenders,
money services businesses, tobacco-related businesses, and pawn shops.
October 24, 2014
October 17, 2014
October 10, 2014
October 3, 2014
September 26, 2014
September 19, 2014
September 12, 2014
September 5, 2014
August 29, 2014
August 22, 2014
August 15, 2014
August 8, 2014
August 1, 2014
July 18, 2014
July 11, 2014
June 27, 2014
June 20, 2014
June 13, 2014
June 6, 2014
May 30, 2014
May 23, 2014
May 16, 2014
May 9, 2014
May 2, 2014
April 25, 2014
April 18, 2014
April 11, 2014
March 28, 2014
March 21, 2014
March 14, 2014
March 7, 2014
February 28, 2014
February 21, 2014
February 14, 2014
February 7, 2014
January 31, 2014
January 24, 2014
January 17, 2014
January 10, 2014