On July 10, the Consumer Financial Protection Bureau (CFPB) issued its Arbitration Agreements Rule (Rule), which prohibits the use of mandatory pre-dispute arbitration clauses in certain contracts for consumer financial products and services. The Rule is a product of the CFPB’s rulemaking process,...Articles
Special Alert: CFPB Finalizes Amendments to Know Before You Owe/TRID Rule and Proposes Additional Changes to Address “Black Hole”
On Friday, the CFPB issued amendments to the KBYO/TRID rule . The Bureau billed the changes as clarifying and technical in nature but stated that the final rule “also makes a limited number of additional substantive changes where the Bureau has identified discrete solutions to specific...Articles
Jeffrey P. Naimon and Moorari K. Shah Authored a Mortgage Compliance Magazine Article, "Divide & Conquer"
The Consumer Financial Protection Bureau (CFPB or Bureau) continues to expand its gaze, announcing this past April that it has begun implementation of a program to directly supervise service providers of financial institutions, particularly those that cater to the mortgage industry. As regulatory...Articles
Special Alert: Treasury Issues Report Encouraging Sweeping Reforms to Regulation of Consumer Financial Products and Services
On June 12, the Treasury Department issued the first of four reports to the president detailing its review of financial regulation in the United States and making recommendations to reform federal regulatory oversight of depository institutions. For depository (and nondepository) institutions...Articles
Special Alert: Supreme Court Holds that a Person May Collect Defaulted Debts Purchased for Its Own Account Without Triggering the FDCPA
On June 12, the United States Supreme Court issued a ruling in Henson v. Santander Consumer USA Inc., affirming the Fourth Circuit’s holding that the Fair Debt Collection Practices Act’s (“FDCPA” or the “Act”) definition of the term “debt collector” does not necessarily apply to a company...Articles
Special Alert: OCC Issues Supplement to Third-Party Oversight Guidance, Emphasizes Bank Responsibilities in Managing Risks in Fintech Relationships
On June 7, 2017, the Office of the Comptroller of the Currency (OCC) issued Bulletin 2017-21 as a supplement to Bulletin 2013-29 , the OCC’s 2013 risk management guidance related to third-party relationships. The OCC’s latest release answers 14 frequently asked questions (FAQs) and marks the second...Articles
Daniel P. Stipano, Ellen M. Warwick, and Brendan Clegg Authored, "Don’t Get Burned by Coming CDD Rule"
FinCEN’s issuance of the final customer due diligence (CDD) rule in May 2016 significantly altered the Bank Secrecy Act / Anti-Money Laundering (BSA/AML) compliance landscape.1 Insured depository institutions, among other covered financial entities, must comply with the rule by May 11, 2018. The...Articles
Preston Burton, Bree Murphy, and Leslie L. Meredith Authored a Business Crimes Bulletin Article, "The Arrival of Justice Gorsuch May Bring Opportunity to Reform the Collective Entity Doctrine"
A little over 100 years ago, the Supreme Court declined to extend the Fifth Amendment privilege against self-incrimination to corporations responding to grand jury subpoenas for documents, establishing what has been termed the “collective entity doctrine.” Hale v. Henkel, 201 U.S. 43, 74-76 (1906...Articles
Elizabeth E. McGinn, Antonio J. Reynolds, and Jessica M. Shannon Authored a Bloomberg BNA Article, "Consumer Privacy Should Be Top-of-Mind for FinTech Firms to Avoid Scrutiny"
With many people underserved by traditional lending institutions, including the close to 45 million adults in the U.S. who the Consumer Financial Protection Bureau estimates are “credit invisible” or have had past credit challenges, emerging FinTech lenders and online lending platforms (FinTech...Articles