consumer protections

The CFPB Publishes Final Rule for Prepaid Accounts


On October 5, 2016, the Consumer Financial Protection Bureau (the “CFPB”) finalized comprehensive consumer protections for prepaid account users that require, among other things, financial institutions to limit consumer losses when funds are stolen or cards are lost. The new rule also requires financial institutions to allow consumers free, easy access to account information and finalizes new “Know Before You Owe” disclosures to give consumers clear information about fees and other key details regarding prepaid accounts. Press Release. Final Rule.

CFPB Finalizes New Foreclosure Protections


On August 4, 2016, the Consumer Financial Protection Bureau (CFPB) issued updated servicing rules to expand foreclosure protections for homeowners and struggling borrowers. The new measures include expanding consumer protections to surviving family members, clarifying borrower protections in servicing transfers, providing periodic statements to borrowers in bankruptcy, and requiring servicers to provide certain foreclosure protections more than once over the life of the loan, among other protections. The majority of the provisions of the final rule will become effective 12 months after publication in the Federal Register. Press Release. Final Rule.

CFPB Implementation Plan for Mortgage Rules

On February 13, the CFPB announced a plan it will implement over the next year for the mortgage industry’s compliance with consumer protections that go into effect January 2014.  Among the new rules are the “ability-to-pay” rule and new mortgage servicing rules.  In implementing the rules, the CFPB will: (i) coordinate with other agencies; (ii) publish plain-language guides; (iii) publish updates to financial interpretations; (iv) publish readiness guides; and (v) educate consumers.  CFPB Release.

Fed Rules Regarding Mortgages

On August 16, the Fed issued proposed, interim and final rules relating to mortgage loans.  The proposed rule revises escrow account requirements for first-lien “jumbo” mortgages.  The interim rule revises disclosure requirements for closed-end mortgages under Regulation Z (Truth in Lending).  The final rules (i) implement a statutory amendment to the Truth in Lending Act requiring that consumers receive notice within 30 days of a sale or transfer of their mortgage and (ii) bar a loan originator from receiving compensation that is based on the interest rate or other mortgage loan terms.  The Fed also proposed enhanced consumer protections and disclosures for home mortgage transactions (including significant changes to Regulation Z) and is seeking comments on this proposal within 90 days after publication of the proposal in the Federal Register. Fed Proposed Rule on Escrow Accounts for Jumbo Mortgages. Fed Interim Rule on Closed-End Mortgages. Fed Final Rule on Notice of Sale or Transfer. Fed Final Rule on Originator Compensation. Fed Proposal and Request for Comment on Consumer Protection and Disclosure.