On March 29, 2016, U.S. District Judge Alison Nathan in the case of Abigail Strubel, Plaintiff v Capital One Bank. N.A., Defendant granted summary judgment against a putative class action alleging that the Garamond LC font used by Capital One Bank in its credit card applications was not “clear and conspicuous” as required by the Truth in Lending Act. The plaintiffs argued that the commentary provided by the Consumer Financial Protection Bureau (CFPB) indicated that no […]
Tag: Lending Compliance
WORKS IN PROCESS
“For the rest of this year and the next, our rulemaking agenda at the Consumer Bureau will remain quite active.” Director Richard Cordray recently stated. So what can we expect to see from the CFPB? The agency is working on new or revised rules for: Overdraft fees, including the opt-in process for overdraft coverage of electronic transactions; Collection and publication of data on small business lending (The Dodd-Frank Act required final rules by July 21, […]
PROVIDING REALTORS COPIES OF THE CLOSING DISCLOSURES
We have received numerous reports that realtors involved in purchase transactions are requesting (demanding) copies of the borrower’s closing statement. Some realtors have included language (see sample below) in the purchase contract to ensure they receive the closing disclosure. “All parties to this transaction, including buyers, sellers, real estate agents, lender, and closing agents acknowledge that the TRID Closing Disclosure, the Buyers Statement, the Sellers Statement, or any other summary form of the transaction does […]
TRID AND DAYLIGHT SAVINGS TIME
Daylight Saving Time (DT) begins on March 13, 2016. What does that have to do with TRID? The TRID rules under Regulation Z require creditors to disclose the time zone applicable to its location when disclosing the date and time the interest rate lock and estimate of closing costs will expire on the loan estimate. As a result, financial institutions located in areas that observe DT need to remember to change the time designation used […]
FURTHER CHANGES TO “RURAL OR UNDERSERVED”
Congress passed the FAST (Fixing America’s Surface Transportation Act) Act on December 4, 2015. Title LXXXIX of the FAST Act is the Helping Expand Lending Practices in Rural Communities Act of 2015 (HELP Rural Communities Act). Congress removed the word “predominantly” from the phrase “operates predominantly in rural or underserved areas” in sections 129C and 129D of the Truth in Lending Act. The phrase is used to define, in part, which creditors are permitted to make […]