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CFPB Announces Spring 2015 Rulemaking Agenda
Thursday, May 28, 2015 6:40 AM

The Consumer Financial Protection Bureau has announced its new Rulemaking Agenda for Spring 2015. The CFPB has posted a semi-annual update of their rulemaking agenda as part of the federal government's Unified Agenda of Regulatory and Deregulatory Actions.

Cornerstone SVP Regulatory Compliance Suzanne Yashewski encourages credit unions to be prepared to comment on the courtesy pay and payday loan issues. Also, attending the regulatory sessions at the June 22-24 Hike the Hill event in Washington, DC, will be a great opportunity to voice your opinions in person.

Following is an overview of the CFPB's major initiatives.

Updates to the Home Mortgage Disclosure Act (HMDA)

CFPB is working to finalize a proposed rule to implement Dodd-Frank Act amendments to the Home Mortgage Disclosure Act (HMDA). The proposal would help align the law with existing industry standards for collecting data on mortgage loans and applications. It would also improve HMDA's effectiveness through changes to institutional and transactional coverage, modifications of reporting requirements, and clarifications of existing regulatory provisions. CFPB expects to release a final rule in late summer.

Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) Integrated Disclosures

CFPB is also supporting efforts to implement a rule required by Dodd-Frank that consolidates and streamlines federal mortgage disclosures under TILA and RESPA. The rule will take effect on August 1, 2015.

Follow-Up on Other Mortgage Rules

CFPB is following up on rules it released in January 2013 to implement various Dodd-Frank Act mortgage reforms. Among other efforts, they are issuing clarifications and amendments as warranted. The Bureau expects to issue a final rule in fall 2015.

CFPB also published a larger proposal in December 2014 to amend certain aspects of the 2013 mortgage servicing rules. The proposed rule would affect disclosures, early intervention, and loss mitigation. The proposal also addresses compliance with the rules when a consumer is a potential or confirmed successor in interest, is in bankruptcy, or sends a cease communication request under the Fair Debt Collection Practices Act. The Bureau expects to issue a final rule in spring 2016.

Prepaid Financial Products

CFPB is finalizing a proposal published in December 2014 to create comprehensive consumer protections for a range of prepaid financial products, including general-purpose reloadable prepaid cards and certain digital and mobile wallets. Under the proposal, prepaid accounts would receive certain protections that are similar to those that exist now for debit and payroll cards.

CFPB also proposed general credit card protections to prepaid products that access overdraft services or offer credit features for a fee. Under the proposal, these products would be treated generally as credit cards under TILA and Regulation Z. CFPB is expected to issue a final rule in early 2016.

Payday, Auto Title, and Certain Other Loans

CFPB recently released an outline of proposals in connection with regulating payday loans, auto-title loans, and certain other longer-term credit products. The Bureau plans to issue a Notice of Proposed Rulemaking later this year after completing additional outreach and analysis.

Overdrafts

CFPB continues to analyze issues relating to overdraft services on checking accounts. The Bureau is conducting additional research to assess whether rulemaking is warranted.

Larger Participants

CFPB continues to issue rules implementing their supervisory program for certain nonbank entities by defining "larger participants" in various markets for consumer financial products and services. The Bureau expects to finalize a proposal early this summer to define "larger participants" in the market for auto lending.

Debt Collection

CFPB is developing proposed rules concerning debt collection. Last year, the Bureau received more than 23,000 comments in response to an Advanced Notice of Proposed Rulemaking.

Arbitration

CFPB is following up on research conducted under the Dodd-Frank Act concerning the use of arbitration agreements involving consumer financial products or services. The Bureau issued a preliminary report in December 2013 and a report to Congress in March 2015; and they are now evaluating feedback and considering whether rules governing arbitration clauses may be warranted.

Under the Regulatory Flexibility Act, federal agencies must publish regulatory agendas twice a year. CFPB has voluntarily participated in the Unified Agenda. The Office of Management and Budget leads this effort. The Unified Agenda is available in full online, and portions will also be published in the Federal Register. The agenda includes rulemaking actions in pre-rule, proposed rule, final rule, long-term, and completed stages.