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CFPB exempts some credit unions from escrow regulations

The Consumer Financial Protection Bureau announced Tuesday some insured depository institutions and insured credit unions will now be exempt from regulations to establish escrow accounts for some higher-priced mortgage loans. The final rule will take effect upon publication in the Federal Register, and will exempt the HPLM escrow requirement for any mortgage made by an insured depository institution or insured credit union and secured by a first lien on the principal dwelling of a consumer if all three of the following criteria are met:

CFPB clarifies role of supervisory guidance

The Consumer Financial Protection Bureau issued a final rule Tuesday clarifying that supervisory guidance is not backed by the same force as law or regulation. First proposed in October 2020, the CFPB’s final rule codifies the statement, with amendments, that the Bureau and other federal financial regulatory agencies issued in September 2018, which clarified the differences between regulations and supervisory guidance. In 2018, five federal agencies issued a joint statement explaining the role of supervisory guidance for regulated institutions.

Consumer Financial Protection Bureau Issues Final Rule on the Role of Supervisory Guidance

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) issued today a final rule regarding the Bureau’s use of supervisory guidance for its supervised institutions. The rule codifies the statement, with amendments, that the Bureau and other federal financial regulatory agencies issued in September 2018, which clarified the differences between regulations and supervisory guidance.

Consumer Financial Protection Bureau Settles with LendUp Loans, LLC for Military Lending Act Violations

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (Bureau) filed a proposed settlement to resolve its December 4, 2020 lawsuit against LendUp Loans, LLC (LendUp) alleging violations of the Military Lending Act (MLA). Today’s action is the first resolution in the Bureau’s broader sweep of investigations of multiple lenders that may be violating the MLA. LendUp, which has its principal place of business in Oakland, California, is an online lender that offers single-payment and installment loans to consumers.

Consumer Financial Protection Bureau Issues Rule on Higher-Priced Mortgage Loan Escrow Exemption

WASHINGTON, D.C. – The Bureau of Consumer Financial Protection (Bureau) today issued a final rule to implement a requirement of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). The final rule exempts certain insured depository institutions and insured credit unions from the requirement to establish escrow accounts for certain higher-priced mortgage loans (HPMLs).

Consumer Financial Protection Bureau Announces Partnerships with Communities Across the Country to Promote Financial Resiliency

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today announced that it will partner with seven communities across the country to help build financial resiliency among Americans. The partnerships, part of the Bureau’s Start Small, Save Up initiative, aim to increase the number of people having sufficient liquid savings by testing new approaches as well as identifying existing approaches that can assist Americans to become more financially secure.

FTC Publishes Annual Performance Report

The Federal Trade Commission published its Fiscal Year 2020 Performance Report as required under the Government Performance and Results Modernization Act of 2010. The report documents the progress made by the Commission in achieving the mission and performance goals established in the Fiscal Year 2020-2021 Performance Plan. Also, as required by the Government Performance and Results Modernization Act during a transition in administration, the Commission will submit its Fiscal 2021-2022 Performance Plan along with its Fiscal Year 2022 budget request in support of the President’s FY 2022 budget for the federal government later this year.

CFPB slaps 1st Alliance Lending for illegal mortgage-origination practices

The Consumer Financial Protection Bureau (CFPB) has taken 1st Alliance Lending and three of its top executives to court for allegedly engaging in various illegal mortgage-lending practices.

CFPB Changes Expected As Biden Administration Settles In

As reported, President-elect Joe Biden nominated Rohit Chopra, a commissioner at the Federal Trade Commission (FTC), to lead the Consumer Financial Protection Bureau (CFPB), replacing Kathy Kraninger as director (who remains in her post in a term that technically runs through 2023, but is likely to be replaced by Biden).

Digital loans: Credit lending landscape in the post COVID-19 world

The COVID-19 pandemic isn’t over yet but we have hopefully moved beyond its worst phase and with several vaccines faring well in clinical trials, the hopes of the economies bouncing back have become strong. As a consequence of the coronavirus-induced lockdowns, credit uptake all around the world had witnessed a very lean period but momentum in economic activity has been recorded in the past few months. In fact, a recent market analysis suggests that credit lending is nearing 80 percent of its pre-COVID-19 level.