An Overview Of the Regulations of the Consumer Financial Protection Bureau Impacting Banks

The Consumer Financial Protection Bureau is a U.S. government agency that requires banks, lenders, and other financial companies to treat their consumers fairly.

Consumer protection laws and regulations impact most areas of the Retail business of a bank or credit union, including branch operations; lending (including mortgage and auto loan business); marketing; Risk and compliance. If your duties involve any of these, you must understand the consumer protection rules.

Violation of the laws can result in lawsuits, penalties, and other serious consequences. Take a look at CFPB's various enforcement actions here.

This article provides an overview of the major regulations of the CFPB and links to some training resources for detailed understanding of the regulations.

CFPB Regulations

Part 1002 - Reg B: Equal Credit Opportunity Act (ECOA)

This regulation requires creditors to show no discrimination concerning the creditworthiness of applicants based on race, color, religion, national origin, sex, marital status, or age. Creditors are required to notify the applicants of the status of their applications, to obtain some government monitoring details, and to make the copies of appraisals on dwelling secured loans available to the applicants.

The webinar Regulation B - Equal Credit Opportunity Act (ECOA) will help you avoid confusion and inaccurate practices around the Notice of Incompleteness, Adverse Action Notices, and how to properly withdraw applications.

Part 1003 - Reg C - Home Mortgage Disclosure (HMDA)

Regulation C requires many financial institutions to collect, report, and disclose certain information about their mortgage lending activity. Using this regulation and the report of the financial institution, the Government Agencies determine whether the financial agencies are treating consumers fairly.

Attend the webinar The New HMDA Rules for 2018 for a clearer understanding of the rules.

Part 1004 - Reg D - Alternative Mortgage Transaction Parity

'Regulation D preempts any state law to the extent it would prohibit state housing creditors from offering certain mortgage types, with some restrictions.'

Part 1005 - Reg E - Electronic Funds Transfer (EFT) Compliance

Under the Reg-E, financial institutions have responsibilities and liabilities for consumer accounts when there are unauthorized transactions.

To explore the limits of liability and understand who is liable for what amount, aided with real-life scenarios, attend the webinar Regulation E - The Basics and Error Resolution.

Part 1006 - Reg F - Fair Debt Collection Practices Act (FDCPA)

A debt collector must follow some critical procedures when reaching out to both the debtor and others with whom the collector interacts while engaged in debt collection. Unintentional mistakes or not, the courts are bringing down the hammer on companies and individuals.

Part 1007 - Reg G - Secure and Fair Enforcement for Mortgage Licensing Act - S.A.F.E. Act

The registration requirement for Mortgage loan originators is provided in the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 ("S.A.F.E. Act").

Part 1008 - Reg H - S.A.F.E. Act - State Compliance and Bureau Registration System

'The purpose of this part is to enhance consumer protection and reduce fraud by directing states to adopt minimum uniform standards for the licensing and registration of residential mortgage loan originators and to participate in a nationwide mortgage licensing system and registry database of residential mortgage loan originators.'

Part 1009 - Reg I - Disclosure Requirements - Depository Institutions Lacking FDIC Insurance

'This part, known as Regulation I, is issued by the Bureau of Consumer Financial Protection. This part applies to all depository institutions lacking Federal deposit insurance. It requires the disclosure of certain insurance-related information in periodic statements, account records, locations where deposits are normally received, and advertising. This part also requires such depository institutions to obtain a written acknowledgment from depositors regarding the institution's lack of Federal deposit insurance.'

Part 1010 - Reg J - Land Registration

'Regulations J implements registration, disclosure, and anti-fraud requirements under the Interstate Land Sales Full Disclosure Act for the sale or lease of non-exempt lots in a subdivision.'

Part 1011 - Reg K - Purchasers' Revocation Rights, Sales Practices and Standards

This regulation applies to developers or agents concerning the sale or lease of any lot. The Reg K forbids sales and misleading advertising practices.

Part 1012 - Reg L - Special Rules of Practice

'This subpart applies to and governs procedures under which developers may obtain prefiling assistance and be notified of and permitted to correct deficiencies in the Statement of Record.'

Part 1013 - Reg M - Consumer Leasing

Regulation M requires meaningful disclosure of leasing terms by implementing the consumer leasing provisions of the Truth in Lending Act.

Part 1014 - Reg N - Mortgage Acts and Practices - Advertising

'This part, known as Regulation N, is issued by the Bureau of Consumer Financial Protection to implement the 2009 Omnibus Appropriations Act, Public L. 111-8, section 626, 123 Stat. 524 (Mar. 11, 2009), as amended by the Credit Card Accountability Responsibility and Disclosure Act of 2009, Public Law 111-24, section 511, 123 Stat. 1734 (May 22, 2009), and as amended by the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act of 2010, Public Law 111-203, section 1097, 124 Stat. 1376 (July 21, 2010). This part applies to persons over which the Federal Trade Commission has jurisdiction under the Federal Trade Commission Act.'

The webinar Mortgage Acts and Practices - Advertising offers best practices for reviewing mortgage advertisements

Part 1015 - Reg O - Mortgage Assistance Relief Services

'This part, known as Regulation O, is issued by the Bureau of Consumer Financial Protection to implement the 2009 Omnibus Appropriations Act, Public Law 111-8, section 626, 123 Stat. 524 (Mar. 11, 2009), as clarified by the Credit Card Accountability Responsibility and Disclosure Act of 2009, Public Law 111-24, section 511, 123 Stat. 1734 (May 22, 2009), and as amended by the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act of 2010, Public Law 111-203, section 1097, 124 Stat. 1376 (July 21, 2010). This part applies to persons over which the Federal Trade Commission has jurisdiction under the Federal Trade Commission Act.'

Part 1016 - Reg P - Privacy of Consumer Financial Information

'(a) Purpose. This part governs the treatment of nonpublic personal information about consumers by the financial institutions listed in paragraph (b) of this section. This part:(1) Requires a financial institution to provide notice to customers about its privacy policies and practices; (2) Describes the conditions under which a financial institution may disclose nonpublic personal information about consumers to nonaffiliated third parties; and (3) Provides a method for consumers to prevent a financial institution from disclosing that information to most nonaffiliated third parties by "opting out" of that disclosure, subject to the exceptions in B'B'1016.13, 1016.14, and 1016.15.'

Part 1022 - Reg V - Fair Credit Reporting (FCRA) Compliance

'This part generally applies to persons that obtain and use information about consumers to determine the consumer's eligibility for products, services, or employment, share such information among affiliates, and furnish information to consumer reporting agencies.'

The webinar Regulation V - Fair Credit Reporting Act will discuss the Regulation V - Fair Credit Reporting Act(FCRA) in details and explain what types of marketing are allowed, requirements of affiliate marketing, and disclosures required with regard to consumer credit report.

Part 1024 - Reg X - Real Estate Settlement Procedures Act (RESPA) Compliance

The application, settlement, and servicing of 1-4 dwelling secured consumer loans must have specific disclosures and procedures as required by RESPA. The regulation applies to federally related mortgage loans with few exceptions.

This webinar about RESPA will set the stage for preparation and understanding of the Loan Estimate and Closing Disclosure.

Part 1026 - Reg Z - Truth in Lending (TILA) Compliance

'The purpose of this part is to promote the informed use of consumer credit by requiring disclosures about its terms and cost, to ensure that consumers are provided with greater and more timely information on the nature and costs of the residential real estate settlement process, and to effect certain changes in the settlement process for residential real estate that will result in more effective advance disclosure to home buyers and sellers of settlement costs.'

The webinar Disclosure Requirements for Open End Credit Under Regulation Z highlights the practical aspects of complying with the disclosure requirements for open end credit including credit cards and home equity lines of credit.

Regulation DD: Truth in Savings

The purpose of this part is to enable consumers to make informed decisions about accounts at depository institutions. This part requires depository institutions to provide disclosures so that consumers can make meaningful comparisons among depository institutions.'

Consumer deposit products in Truth in Savings is an area covered in this webinar.