On July 2, 2020, the Consumer Financial Protection Bureau (CFPB) published a Notice of Proposed Rulemaking (NPRM) to amend Regulation Z, which implements the Truth in Lending Act, as mandated by section 108 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). The amendments would exempt certain insured depository institutions and insured credit unions from the requirement to establish escrow accounts for certain higher-priced mortgage loans. In the 2018 EGRRCPA, Congress required the […]
Tag: CFPB
CFPB SPRING 2020 AGENDA
On June 30, 2020, the Consumer Financial Protection Bureau (CFPB) published its Spring 2020 Agenda. The agenda lists the regulatory matters that the CFPB expects to focus on between May 1, 2020 and April 30, 2021. Those matters include: A final rule amending the CFPB’s Remittance Rule to provide tailored exceptions that permit certain insured institutions to disclose estimates instead of exact amounts to consumers in certain circumstances. The final rule also increases (from 100 remittance […]
CFPB PROPOSES REVISIONS TO QM DEFINITIONS
On June 22 the Consumer Financial Protection Bureau (CFPB) issued two separate proposals to revise the Ability to Repay/Qualified Mortgages rules contained in Section.1026.43 of Regulation Z The first proposal is 233 pages in length. For General QM loans, the ratio of the consumer’s total monthly debt to total monthly income (DTI ratio) must not exceed 43 percent. The CFPB proposes certain amendments to the General QM loan definition in Regulation Z. Among other things, […]
SCOTUS SEXUAL ORIENTATION DECISION
On June 15, 2020 the U.S. Supreme Court (SCOTUS), in Bostock v Clayton County, Georgia (Bostock) ruled that firing an employee for being homosexual or transgender constitutes discrimination based on the employee’s sex in violation of Title VII of the Civil Rights Act. Bostock is an employment case in which SCOTUS determined that disparate treatment of homosexual or transgender individuals is sex discrimination. Both the Equal Credit Opportunity Act (ECOA) and the Fair Housing Act […]
PROPOSED REGULATION Z CHANGES FOR LIBOR TRANSITION
On June 4, 2020 the Consumer Financial Protection Bureau (CFPB) published a 219 page proposal to amend Regulation Z to facilitate creditors’ transition away from using the London Interbank Offered Rate (LIBOR) as an index for variable-rate consumer credit products. The CFPB is proposing changes to: Certain open-end and closed-end provisions to provide examples of replacement indices for LIBOR indices that meet certain Regulation Z standards. Certain open-end provisions restricting index changes, requiring change-in-terms notices, […]