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Discount points have been in the news recently. A recent article from the Federal Reserve citied possible UDAAP and Fair Lending violations resulting from unearned discount points. Revisions to Regulation Z, emanating from the Dodd-Frank Act, change the whole game with points. So why the current emphasis on the age-old practice of charging points? Discount Points Primer – Many lenders offer borrowers the option of obtaining a lower interest rate on a mortgage loan by paying

Generally, a consumer has three business days after consummation to rescind a transaction, but if the creditor fails to provide a proper notice of the right to cancel or proper material disclosures, the period is extended to three years. Recent decisions issued by the Fourth and Tenth Circuits reached different conclusions on whether a lawsuit is necessary to the timely exercise of the right of rescission. Gilbert v. Residential Funding LLC, 678 F.3d 271 (4th

Today the Consumer Financial Protection Bureau (CFPB) announced that it is proposing to amend Regulation Z, which implements the Truth in Lending Act (TILA), and the official interpretation to the regulation, which interprets the requirements of Regulation Z. Regulation Z generally prohibits a card issuer from opening a credit card account for a consumer, or increasing the credit limit applicable to a credit card account, unless the card issuer considers the consumers ability to make

On October 16th the Consumer Financial Protection Bureau (CFPB) published a small business compliance guide for the international electronic money transfers rule (also known as the remittance rule), which take effect on February 7, 2013. The guide is not a substitute for the rule, but it highlights issues that banks, in particular small banks and those that work with them, should consider while implementing the new requirements. Among other issues the guide addresses the exemption

We have seen a recent string of enforcement actions from the Consumer Financial Protection Bureau involving deceptive marketing practices. There are lessons for all banks to learn from these actions. What the Actions Had in Common The action was taken by the CFPB in coordination with another federal regulator (FDIC in one and OCC in the other). The action involved huge financial institutions. The action resulted in huge penalties. The actions involved deceptive  acts in