Consumer Finance Protection Bureau (CFPB)

CFPB Issues Final Rule Temporarily Raising Reporting Threshold for Home Equity Loans Under Home Mortgage Act Rules

 

On August 24, 2017, the Consumer Financial Protection Bureau (the “CFPB“) issued a new rule that amends the 2015 updates to the Home Mortgage Act (“HMDA“) rules. Under the HMDA rules that are scheduled to take effect in January 2018, financial institutions would have been required to report home‑equity lines of credit if they made 100 such loans in each of the last two years. The new final rule issued by the CFPB increases the threshold from 100 loans to 500 loans through 2018 and 2019 while the CFPB considers whether to make a permanent adjustment. Read more here.

CFPB Finalizes Effective Date Extension for Prepaid Accounts Rule

 

On April 20, 2017, the Bureau of Consumer Financial Protection (CFPB) issued a final rule to delay the October 1, 2017 effective date of the rule governing Prepaid Accounts Under the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z) by six months, to April 1, 2018. Report. Rule.

Senators Introduce SAFE Lending Act

On April 7, 2016, several Democratic Senators introduced the Stopping Abuse and Fraud in Electronic (SAFE) Lending Act, SAFE 2016, which is designed to change the manner in which certain short-term unsecured consumer lending is conducted. The legislation would amend the Truth in Lending Act to establish additional requirements on lenders making certain “small-dollar consumer credit transactions,” where small-dollar transactions are defined as loans of $5,000 or less.

Introduced in advance of forthcoming Consumer Finance Protection Bureau (CFPB) payday lending regulations, SAFE 2016 sets up an interesting legislative and regulatory dynamic.  There is the obvious issue of the extent to which the legislation will be inconsistent with the new CFPB’s regulations. But there is also a fierce legislative fight brewing, as many members of Congress – including other Democrats – have already expressed support for the manner in which many payday lenders conduct business.