Your Weekly Financial e-Update: Appeals Court to Reconsider CFPB Independence
By: Carly Souther
21 February 2017. Op-Ed: "Trump Wants to Cut Red Tape? He Should Start with the CFPB." Jay Richards, PhD, asserts that "[i]f President Trump is looking for ways to make good on his pledge to slash counterproductive regulations, he should support the" recently introduced bill to abolish the Consumer Financial Protection Bureau (CFPB). The bill, introduced by Senator Ted Cruz and Rep. John Ratcliffe (both Texas Republicans) on the 14th of February, would repeal Title X of the Dodd-Frank Act, which would have the effect of eliminating the CFPB.
21 February 2017. CFPB has 700K Consumer Complaint Database. The CFPB has been collecting a giant public database of consumer complaints for nearly two years. More than 700,000 grievances have been filed against financial institutions. Approximately one-quarter of all complaints are related to the debt collection industry. The other major complaint-areas are related to mortgage issues, credit reporting, and credit card companies.
16 February 2017. U.S. Appeals Court to Reconsider CFPB Independence. Last October, a three-judge panel quashed $109M in penalties imposed on a New Jersey mortgage company by the CFPB. Two judges then said Director Richard Cordray's solitary leadership and insulated job security (he cannot be fired) empowered him to act without accountability. Last week's court decision means that an extended panel of judges will re-hear arguments on the 24th of May. Jonathan Pompan, a consumer finance lawyer, explains that "[t]his stretches out the timeline for the next chapter of the CFPB and its director... The CFPB has so far been acting like 'business as usual,' and we'd expect to continue to see that."
14 February 2017. The Federal Deposit Insurance Corporation (FDIC) issued guidance to help financial institutions in areas of Louisiana affected by severe storms, tornadoes, and straight-line winds. The letter outlines a series of steps intended to provide regulatory relief and to facilitate recovery for Louisiana institutions affected by severe weather.