Monthly Archives: July 2013

CFPB Initiates Lawsuit Over Mortgage Loan Originator Bonuses

Earlier this week, the Consumer Financial Protection Bureau (“CFPB”) filed a lawsuit in federal district court in Utah against a mortgage company that allegedly paid bonuses to mortgage officers based on borrowers’ interest rates. In light of the recent issuance of significant updates to mortgage originator compensation rules, financial institutions engaged in mortgage lending should […]

CFPB Commences Era of Risk-Based Supervisory Authority

In addition to its supervisory authority over financial institutions, the Dodd-Frank Act also gave the Consumer Financial Protection Bureau (“CFPB”) the power to supervise any nonbank (regardless of its size) that it has reasonable cause to believe “is engaging, or has engaged, in conduct that poses risks to consumers with regard to the offering or […]

Cordray Confirmed as First Director of CFPB

On July 16, 2013, the United States Senate formally confirmed Richard Cordray as director of the Consumer Financial Protection Bureau (“CFPB”) by a vote of 66-34. Mr. Cordray has been serving as the CFPB director since January 2012 as the result of a “recess appointment,” but his formal confirmation had been blocked by Republicans concerned […]

Watch Out: Debt Collectors Under Fire From CFPB!

Last week, the Consumer Financial Protection Bureau (“CFPB”) unambiguously stated that the debt collection industry is a major target of its enforcement activities. On July 10, 2013, the CFPB issued two bulletins on debt collection; five action letters that consumers may consider using when corresponding with debt collectors; and a call for complaints related to […]

Are You Responsible? CFPB Issues Bulletin on Responsible Business Conduct

On June 25, 2013, the Consumer Financial Protection Bureau (“CFPB”) issued a bulletin in which it made public the types of “responsible conduct” that it would consider in exercising its enforcement discretion. While none of these factors is particularly shocking, it is reassuring for financial institutions to have some public statement from the CFPB about […]