CFPB hits Experian with $3 million fine

Experian CFPBOn March 23, 2017, the CFPB announced in a press release that it had entered into a consent order with Experian to resolve allegations that the credit reporting agency had misrepresented the credit scores it marketed and sold to consumers. Under the terms of the consent order, Experian will pay a civil money penalty of $3 million. In addition, the CFPB ordered Experian to “truthfully represent” to customers how its credit scores are used and required it to implement an effective compliance management system.


CFPB set to begin 5-year review of mortgage rules

CFPB review of mortgage rulesEarlier this week, Chris D’Angelo, the CFPB’s Associate Director of Supervision, Enforcement and Fair Lending, discussed the CFPB’s plans to initiate its review of major mortgage regulations, including the qualified mortgage rule which established standards for lenders to follow to ensure that borrowers have the ability to repay their mortgages.

According to the Dodd-Frank Act, the CFPB must assess all of its rules five years after they take effect to ensure they are accomplishing the objectives of Dodd-Frank as well as the impact on financial institutions and consumers. The qualified mortgage rule and other significant mortgage regulations took effect in January 2013.


House engages in heated debate about constitutionality of the CFPB

House debates CFPB constitutionality

On March 21, 2017, the House Financial Services Committee’s Subcommittee on Oversight and Investigations conducted a hearing entitled “The Bureau of Consumer Financial Protection’s Unconstitutional Design.” The hearing featured four witnesses: Ted Olson, Saikrishna Prakash, Adam White, and Brianne Gorod. The hearing is archived and can be viewed here.

Rather than allowing the witnesses to offer their expertise on the CFPB’s constitutionality and design, House Republicans and Democrats on the subcommittee used the hearing as a platform to express their opinions of the virtues of the CFPB’s mission and accomplishments rather than evaluating and critiquing the agency’s constitutionality.


DOJ brief argues that Trump can fire CFPB Director

can Trump fire CFPB DirectorEarlier this month, the DOJ filed an unopposed motion for leave to file an amicus brief which indicated that the Trump Administration might be switching sides in the legal battle, departing from the position that the DOJ took under President Obama. So it came as no surprise when the DOJ submitted its amicus brief in the PHH case last Friday and asked the DC Circuit to declare the CFPB’s leadership structure unconstitutional.


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