1. Well, I guess I wasted a bunch of time analyzing the issue of whether the United States Supreme Court will eventually determine the fate of Richard Cordray. As you may have heard by now, the Senate confirmed Cordray as the Director with a 66-34 vote on July 16, 2013. Ironically, Elizabeth Warren was the acting President for the session. I would normally say something like, “expect more rulemaking, enforcement, etc.,” but that is unnecessary. The CFPB was moving at full speed even before the July 16, 2013 vote. It is not like the NLRB case or the filibuster did anything to slow the CFPB down before the confirmation. And it is not like the Senate had problems with Director Cordray himself. The Senators who were against Director Cordray had issues with (1) the CFPB’s funding and the lack of accountability to the Senate with respect to funding; (2) the fact that the CFPB is comprised of a single Director and not a Board; and (3) the recess appointment itself. This vote is significant because it confirms that the CFPB will stay in its current format for years to come with respect to funding and the fact that it has a single Director.
2. On July 17, 2013, the CFPB published the 2013 CFPB Dodd-Frank Mortgage Rules Readiness Guide (the Guide). The Guide is designed to help financial institutions comply with the new mortgage rules. The Guide is only available online and is here. The CFPB stated that the Guide will be updated periodically, and we will keep you updated on the updates. In its current form, the Guide is not that long, only 22 pages, and provides a nice checklist on issues that financial institutions should look out for when they are doing a self-assessment with respect to the following rules:
Ability-to-Repay and Qualified Mortgage Standards (Regulation Z)
Escrow Requirements under Truth in Lending Act (Regulation Z)
High-Cost Mortgage and Homeownership Counseling (Regulation Z) (Regulation X)
Mortgage Servicing Rules (RESPA) (Regulation X) (TILA) (Regulation Z)
ECOA Valuations for Loans Secured by a First Lien on a Dwelling (Regulation B)
TILA Appraisals for Higher-Priced Mortgage Loans (Regulation Z)
Loan Originator Compensation Requirements (Regulation Z)
If you would like to see the rule summaries that the CFPB had previously published concerning the foregoing rules and other important lending rules, please see the following links:
3. On July 18, 2013, the CFPB submitted its financial literacy report to Congress. The report can be found here. http://files.consumerfinance.gov/f/201307_cfpb_report_financial-literacy-annual.pdf
4. Because my prior weekly updates this month have been so long, here is a quick rundown of the issues that I did not report this month.
That is all for this week. Have a good weekend and remember that our prior updates are on www.cfpaguide.com/weeklyupdates.