CFPB SEMI-ANNUAL AGENDA

The CFPB recently released its spring 2016 semi-annual agenda.  There are many repeat items listed in this agenda that were also present in the fall 2015 agenda (see Jack’s December 10, 2015 blog article).  Those items repeated from the fall 2015 agenda appear to be either getting closer to final regulatory release or are being pushed further down the priority list.  Some of the items mentioned in the agenda that we may see action on in the near future include:

Arbitration – The Bureau published in the Federal Register today, May 24th, it’s proposed Arbitration Rule that will prohibit covered providers of certain consumer financial products and services from using an agreement with a consumer that provides for arbitration of any future dispute to bar the consumer from filing or participating in a class action with respect to the covered consumer financial product or service. In addition, the proposal would require a covered provider that is involved in an arbitration pursuant to a pre-dispute arbitration agreement to submit specified arbitral records to the Bureau.

Payday, Auto Title, and Similar Lending Products – The Bureau is expecting to release a Notice of Proposed Rulemaking “in the next several weeks” to address potential consumer harm caused by loan products such as payday loans, auto title loans, and similar products.

Prepaid Accounts – A final rule is expected from the Bureau this summer related to prepaid financial products.  It is anticipated that changes will be made to the Electronic Funds Transfer Act (Regulation E) as well as the Truth-in-Lending Act (Regulation Z), to consider those prepaid accounts with overdraft services or credit features.

Mortgage Servicing – The Bureau expects to issue a final rule this summer to amend the proposal published in December 2014 to amend certain aspects of mortgage servicing rules that took effect in 2013.

HMDA – The CFPB released a Small Entity Compliance Guide and is conducting outreach with the industry to prepare for both regulatory and operational changes.

 

If these items are not enough to keep you busy over the summer months, a few additional new items hit the agenda with this update:

Know Before You Owe – The Bureau expects to release a Notice of Proposed Rulemaking this summer (anticipated in late July) to “make small clarifications and provide further regulatory guidance” concerning the Truth in Lending-RESPA Integrated Disclosures (TRID).

Larger Participants and Non-Depository Lender Registration – The CFPB continues rulemaking activities by defining larger participants of certain markets, subject to the Bureau’s supervisory authority, for consumer financial products and services. The next larger participant rulemaking is expected to focus on the markets for consumer installment loans and vehicle title loans. The Bureau is also considering whether rules to require registration of these or other non-depository lenders would facilitate supervision, as has been suggested by consumer advocates and industry groups.

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