As former director Cordray left the CFPB last week he named an acting director to minimize operational disruption in his words; the White House on the other hand thinks he meant to provoke a response from the administration; the agency now is broiled in confusion over who is the true interim leader as the White House appointed their own interim leader; Mr. Cordray is working off of language in the Dodd-Frank Act to appoint a successor, while the White House is acting on the Federal Vacancies Reform Act that gives the President authority to appoint interim leaders; each leader will have a different mandate and the confusion will need to be cleared up soon. Source.
Some Americans are already receiving stimulus funds via direct deposit; however the reality is that many consumers still lack bank...
Writing an opinion piece in American Banker Jonah Crane, a fintech advisor, points out that the CFPB and other regulators need to keep a watchful eye on the data sharing guidance; the rules are currently non binding but offer the regulators a chance to use current oversight power to enforce egregious violations; ensuring a level playing field and working with industry players can help not only consumers but regulators better understand how data sharing can be done is the most beneficial way. Source.
The new CFPB director Mick Mulvaney is planning to rollback a key regulation that will allow payday lenders to charge very high interest rates; the current rule was set to be enacted soon and allow for lenders to become compliant by the middle of 2019; the rule limited the amount of money or the amount of times a person could borrow from these short term lenders; with the removal of the rule payday lenders can go back to operating like they did prior to the CFPB; many fear that lower income Americans will become mired in debt. Source.
In a long awaited move, the CFPB proposed a rule to improve consumer access to their financial data and drive the shift to open banking.
In October, CFPB Director Richard Cordray warned banks not to limit access to financial data by third parties working on behalf of the customer; now the bureau he leads is opening an inquiry into a data sharing dispute between banks and fintech companies; the inquiry is focused on consumer choice, security and control; the CFPB believes this will help banks and fintech companies better understand what the customer needs, how to accurately give the customer choice and security, and who ultimately owns the customer's data. Source
When the CFPB was first formed the mission was to better protect consumers from financial products that did not suit...
Acting Consumer Financial Protection Bureau (CFPB) Director Mick Mulvaney has testified on numerous occasions about the risk of data breaches; in December he helped put a freeze on data collection, though collection resumed a few weeks later without much talk or solutions; Mr. Mulvaney has not been clear on the types of breaches that have occurred and what has been done to plug the holes; experts believe this could be more about politics so the bureau is cast in a bad light. Source.
This weeks PeerIQ Weekly Industry Update covers the power struggle at the CFPB and Lending Club’s new pass through security transaction; a federal judge sided with the Trump administration in the CFPB spat and allowed for Mr. Mulvaney to run the agency for now; Lending Club completed a first of it’s kind deal and in turn will help them to expand the market, lower financing costs, address secondary market liquidity and allows valuation agents to calibrate pricing; PeerIQ also took a deep dive on mortgage delinquencies during the 2008 financial crisis. Source.
Yesterday, the CFPB formally rescinded a plan to impose new limits on payday lending; the proposed changes were a signature...