Metal Gears with RegulationsOn January 23, 2018, Mick Mulvaney, Acting Director of the Consumer Financial Protection Bureau (the “CFPB”), published an opinion editorial in The Wall Street Journal (the “Op-Ed”) describing his vision of the CFPB’s role in regulating the financial services industry. The Op-Ed struck a clear and contrasting tone from that of his predecessor, Richard Cordray, in declaring that the CFPB will no longer “push the envelope.” Specifically, Mr. Mulvaney provided his vision relating to three areas of current CFPB operations. Continue Reading The CFPB: No More “Pushing the Envelope”

On January 17, 2018, the Consumer Financial Protection Bureau (the “CFPB”) announced that it will issue a call for “evidence” to ensure the CFPB is “fulfilling its proper and appropriate functions to best protect consumers.”  The announcement states that in the coming weeks the CFPB will issue a Request for Information (“RFI”) seeking comment on the CFPB’s currently utilized enforcement, supervision, rulemaking, market monitoring and education activities.  In so doing, the CFPB’s current utilization of its statutory authority to prosecute Unfair, Deceptive, or Abusive Acts and Practices (“UDAAP”) claims will likely take center stage.

Continue Reading A New Era: The CFPB to Reconsider How it Fulfills Its Purpose

The Wall Street Journal recently reported that the management component of the CAMELS rating for Wells Fargo Bank, NA had been downgraded to a “3” during 2017.  A “3” rating of management means that the capabilities of management or the board of directors “may be insufficient for the type, size or condition of the institution.”  At best, a “3” rating of management equates to a C minus on a report card.
Continue Reading Wells Fargo’s CAMELS Rating Leaked

The Community Reinvestment Act (CRA) was enacted in 1977 to prevent redlining and to encourage banks and savings associations (collectively, banks) to help meet the credit needs of all segments of their communities, including low- and moderate-income neighborhoods and individuals.  Today, CRA and its implementing regulations require federal banking regulators to assess the record of each bank in fulfilling its obligation to the community and to consider that record in evaluating and approving applications for charters, bank mergers, acquisitions, and branch openings.

Continue Reading The Trump Administration to Seek Changes to the Community Reinvestment Act

On December 21, 2017, under the direction of Acting Director Mick Mulvaney, the Consumer Financial Protection Bureau (the “CFPB”) announced that it intends to reopen the rulemaking process to reconsider various aspects of the CFPB’s 2015 Home Mortgage Disclosure Act Rule (the “HMDA Rule”). In reopening the rulemaking process for the HMDA Rule, the CFPB intends to reconsider (i) the institutional and transactional coverage tests and (ii) certain other aspects of the HMDA Rule’s discretionary data points.  Continue Reading New Leadership: The CFPB Announces Its Plan to Reassess the CFPB’s 2015 HMDA Rule