CFPB Bites of the Month – November Top 10 | Hudson Cook, LLP

CFPB Bites of the Month – November Top 10 | Hudson Cook, LLP

November 18, 2021 Off By administrator

Each month, we host a 30-minute webinar outlining the month’s key announcements and takeaways from the Consumer Financial Protection Bureau (CFPB) for financial services providers to consider. In this month’s article, we share some of our top “bites” covered during the November 17 webinar.

So, what happened at the CFPB in the past month?

Bite #10 – The CFPB joined other financial regulatory agencies in issuing a statement on the discontinuation of LIBOR.

The CFPB and various other regulatory agencies issued a statement highlighting risks posed by discontinuing LIBOR. The interagency statement identified specific actions financial institutions can consider in order to prepare for the elimination of LIBOR-based loans. The CFPB urged banks and nonbanks to continue their efforts to transition to alternative reference rates to mitigate against risks.

On June 4, 2020, the CFPB issued a Notice of Proposed Rulemaking and FAQs relating to the LIBOR transition. The CFPB is continuing work on a final rule to address the anticipated expiration of LIBOR and expects to issue it in January 2022. The FAQs pertain to compliance with existing CFPB regulations for consumer financial products and services impacted by the anticipated LIBOR discontinuation and the resulting need to transition to other indices.

The CFPB indicated that banks and nonbanks should maintain risk management processes to identify and mitigate risks to consumers. The CFPB also indicated that it is committed to helping creditors transition consumers from LIBOR in a transparent and orderly manner. In June 2020, the CFPB released an updated consumer handbook on adjustable-rate mortgages to help consumers better understand these products and how their payments can change over time.

Bite #9 – The CFPB ordered tech giants to turn over information.

Pursuant to Section 1022(c)(4) of the Consumer Financial Protection Act, the CFPB issued a series of orders to collect information from large technology companies operating payments systems. The orders demand information on data harvesting and monetization, access restrictions and user choice, and other consumer protections.

Bite #8 – The CFPB, DOJ, and OCC took action against a national bank for alleged discrimination.

The CFPB, DOJ, and OCC took action against a national bank for alleged discrimination. The agencies alleged that the bank discriminated by deliberately not marketing, offering, or originating home loans to consumers in majority-Black and Hispanic neighborhoods in the Memphis metropolitan area. They also alleged that the bank discouraged consumers residing in or seeking credit for properties located in these neighborhoods from applying for credit.

The joint complaint alleged that the bank violated the Fair Housing Act (FHA), the Equal Credit Opportunity Act (ECOA), and the Consumer Financial Protection Act of 2010 (CFPA). Specifically, the joint complaint alleges that the bank:

  • Avoided locating branches in majority-Black…

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