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All in Regulation Z
In this Compliance Clip (video), Adam talks about the six pieces of information r needed for a TRID application under Regulation Z. Adam discusses what constitutes a completed application and when the six pieces of information triggers the loan estimate requirements. A transcript of this video is now available.
On November 13, 2023, the CFPB published three threshold changes in the Federal Register. Two of the threshold changes relate to Regulation Z while one change relates to consumer leasing under Regulation M. The changes were based on the 4.6 percent increase in CPI-W as of May 10, 2023.
In this Compliance Clip (video), Adam talks about an amicus brief that the CFPB submitted to the courts regarding how Regulation Z applies to commercial loans. In particular, the opinion clarifies whether or not you can call a loan a “commercial loan” in order to exempt the loan from the requirements of Regulation Z. A transcript of this video is now available.
On September 18, 2023, the CFPB published a final rule to implement the annual adjustment requirements of Regulation Z. Specifically, the CFPB is required to calculate annually the dollar amounts for several provisions in Regulation Z, and the final rule revises, as applicable, the dollar amounts for provisions implementing TILA and amendments to TILA that impact Home Ownership and Equity Protection Act (HOEPA) and Qualified Mortgages The CFPB is adjusting these amounts, where appropriate, based on the annual percentage change reflected in the Consumer Price Index (CPI) in effect on June 1, 2023.
In this Compliance Clip (video), Adam answers the question of whether construction-only and construction-permanent loans are covered by TRID and Regulation Z. And although the answer is obvious, Adam discusses the specific citations from the regulations and from the CFPB’s Frequently Asked Questions to further explain the answer. A transcript of this video is now available.
On July 19, 2023, the CFPB sued lease-to-own finance company Snap Finance for deceiving consumers, obscuring the terms of its financing agreements, and making false threats. According to the CFPB, Snap Finance’s practices violate the Consumer Financial Protection Act, the Truth in Lending Act, the Electronic Fund Transfer Act, and the Fair Credit Reporting Act. The CFPB is seeking monetary relief for consumers, an end to Snap Finance’s illegal practices, and a civil money penalty.
On July 12, 2023, the CFPB joined the State of Maine to help ensure that consumers receive critical consumer protections when taking out loans by filing an amicus brief in the Maine Supreme Judicial Court in a case involving a married couple’s loan. Maine law incorporates the federal Truth in Lending Act that provides crucial consumer protections, including requiring lenders to provide precise information about the amount of a loan, its interest rate and other costs, and when it must be repaid.
On July 11, 2023, the CFPB ordered Bank of America to pay more than $100 million to customers for systematically double-dipping on fees imposed on customers with insufficient funds in their account, withholding reward bonuses explicitly promised to credit card customers, and misappropriating sensitive personal information to open accounts without customer knowledge or authorization. Bank of America will pay a total of $90 million in penalties to the CFPB and $60 million in penalties to the OCC, which also found that the bank’s double-dipping on fees was illegal.
On April 28, 2023, the CFPB issued an interim final rule amending the agency’s 2021 LIBOR transition rule. The interim final rule contains updates to reflect the subsequent enactment of the Adjustable Interest Rate (LIBOR) Act and issuance of an implementing regulation by the Board of Governors of the Federal Reserve Board System. This interim final rule will further facilitate the orderly transition of those consumer loans that currently use the LIBOR index to other indices in anticipation of the planned cessation U.S. Dollar (USD) LIBOR after June 30, 2023.
On March 10, 2023, the CFPB announced that it is conducting a review of Regulation Z’s Mortgage Loan Originator Rules (Loan Originator Rules) pursuant to section 610 of the Regulatory Flexibility Act. As part of this review, the Bureau is seeking comment on the economic impact of the Loan Originator Rules on small entities.
