The CFPB is continuing its crusade against so called “junk fees,” and now is looking at credit reporting fees. In a May 20 speech to the Mortgage Bankers Association, Director Rohit Chopra highlighted the rising costs of...more
On May 21, the Massachusetts Attorney General entered into an Assurance of Discontinuance (“AOD”) with a California-based fintech alleging that it was the “true lender” of its consumer installment loans. Under the terms of...more
On March 25, a coalition of trade groups filed suit in the United States District Court for the District of Colorado, challenging a Colorado law which would have opted the state Section 521 of the Depository Institutions...more
On March 1, the Louisiana Senate introduced SB 335, a bill that would place certain disclosure requirements on providers of commercial financing transactions. Specifically, “providers” (defined as persons who consummate more...more
On February 21, the Minnesota Attorney General settled an action against executives of a Montana-based tribal lender for alleged predatory lending practices. In its complaint, filed in October 2023, the AG alleged the company...more
On March 5, the New York Attorney General filed a lawsuit against a network of over 30 lending companies and their officers alleging their involvement in a predatory “merchant cash advance” lending scheme that exploited New...more
On February 23, the Consumer Financial Protection Bureau announced its first public decision designating a nonbank lender for supervision based on the institution’s potential risk to consumers....more
In a move to bridge significant data gaps identified through its February 2023 Auto Finance Data Pilot where it sent information requests to nine large auto lenders about their lending portfolios, the Consumer Financial...more
On January 11, 2024, an administrative law judge for the NLRB issued an opinion holding that the employment agreement used by a major mortgage lender for all of its approximately 6,000 employees violates the National Labor...more
2/19/2024
/ Administrative Law Judge (ALJ) ,
Confidentiality Agreements ,
Disclosure Requirements ,
Employees ,
Employment Contract ,
Lenders ,
Mortgage Lenders ,
New Guidance ,
NLRA ,
NLRB ,
Rulemaking Process
On December 4, Judge R. Gary Klausner of the U.S. District Court for the Central District of California granted summary judgment to California’s DFPI upholding the recently adopted commercial financing disclosure regulations...more
12/29/2023
/ California ,
Commercial Loans ,
Department of Financial Protection and Innovation (DFPI) ,
Disclosure ,
Financial Institutions ,
Lenders ,
Lending ,
Regulatory Reform ,
Regulatory Requirements ,
Small Business ,
Truth in Lending Act (TILA)
On October 9, Florida introduced SB 146, which amends the Florida Consumer Finance Act (CFA), and joins other states that have passed laws characterizing certain nonbanks as the “true lender” of loans made through a bank...more
On November 15, the CFPB issued an order requiring an Illinois-based fintech lender to pay $15 million in fines. The order additionally prohibits the company from operating in certain lines of business and requires revision...more
11/17/2023
/ Borrowers ,
Civil Monetary Penalty ,
Consumer Financial Protection Bureau (CFPB) ,
Enforcement Actions ,
Executive Compensation ,
Financial Regulatory Reform ,
Financial Services Industry ,
FinTech ,
Informed Consent ,
Lenders ,
Redress Payments ,
Short-Term Loans
On October 18, the Senate voted 53-44 to approve S.J. Res. 32, a resolution sponsored by Sen. Kennedy (R-LA) to overturn the implementation of the CFPB’s final rule under Section 1071 of the Dodd-Frank Act requiring lenders...more
On October 12, the CFPB and DOJ issued a joint statement that reminds financial institutions that all credit applicants are protected from discrimination on the basis of their national origin, race, and other characteristics...more
10/20/2023
/ Consumer Financial Protection Bureau (CFPB) ,
Credit Applicants ,
Credit History ,
Creditors ,
Department of Justice (DOJ) ,
Discriminatory Lending Practices ,
ECOA ,
Financial Services Industry ,
Immigration ,
Immigration Status Discrimination ,
Joint Statements ,
Lenders ,
Loans ,
Regulation B
On August 22, the CFPB filed a lawsuit against an installment lending company and several of its subsidiaries in South Carolina federal court, alleging that the company engaged in illegal “loan-churning” practices that...more
On April 26, an association of Texas state banking organizations and a Texas minority depository institution filed a joint complaint against the CFPB in Texas federal court seeking to invalidate a recently finalized agency...more
5/5/2023
/ Banking Sector ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Lenders ,
Data Collection ,
Depository Institutions ,
Enforcement ,
Fair Lending ,
Lenders ,
LGBTQ ,
Minorities ,
Reporting Requirements ,
Small Business Loans ,
Women-Owned Businesses
On April 14, the CFPB filed a statement of interest in a case currently pending before the United States District Court for the Southern District of Florida in an attempt “to help protect consumers from discriminatory...more
On September 29, the CFPB released its annual report on residential mortgage lending activity and trends for 2021. Notably, the report shows a shift from refinance loans in 2020 to home purchase loans in 2021—with a greater...more
On September 29, the CFPB released a special edition of Supervisory Highlights on student loan servicing practices of loan servicers and schools lending to students directly. The report highlights three notable findings...more
On September 22, the CFPB released its annual report providing an overview of the residential mortgage trends and activity in 2021 based on data collected from thousands of U.S. lending institutions under the Home Mortgage...more
State legislatures in Georgia and Rhode Island recently amended their lending and licensing laws. The following are the noteworthy updates:
Georgia -
- HB 891 creates an exception from licensure under the Georgia...more
8/29/2022
/ Brokers ,
Financial Services Industry ,
Georgia ,
Lenders ,
Lending ,
Licensing Rules ,
Loans ,
Mortgage Lenders ,
Mortgages ,
Rhode Island ,
State Legislatures
On June 9, the California Office of Administrative Law (OAL) approved the Department of Financial Protection and Innovation’s (DFPI) proposed commercial financing disclosure regulations issued pursuant to SB 1235...more
On February 23, eight federal agencies including the CFPB, FDIC, OCC, Federal Reserve Board, NCUA, HUD, DOJ, and FHFA issued an interagency statement to remind creditors of the ability under the ECOA and Regulation B to...more
On January 7, the FTC announced that a California-based lead generator agreed to settle with the FTC for $1.5 million to resolve allegations that through a number of its subsidiaries, the company induced consumers into...more
Hawaii recently enacted HB 1192, which amends the state’s small dollar lending law by setting forth a new licensing requirement for “installment lenders” and specifies various consumer protection requirements. The...more