What Barney Frank would change about Dodd-Frank (and what he wouldn’t)
Barney Frank, the retired Massachusetts Democrat who coauthored the Dodd-Frank Act, returned to Capitol Hill for a hearing coinciding with the fourth anniversary of the measure’s enactment. Frank, who once chaired the House Financial Services Committee, sparred with the committee’s Republican leaders and shared his views on where Dodd-Frank should change, where it shouldn’t and areas where regulators may be missing the mark. Read on to learn why Frank is troubled by regulators’ plans to equate Dodd-Frank’s qualified mortgage and qualified residential mortgage definitions.
Bipartisan Policy Center suggests Dodd-Frank changes
The Bipartisan Policy Center marked the fourth anniversary of the passage of the Dodd-Frank Act by highlighting areas of financial reform progress while also proposing certain legislative and regulatory changes the group said would improve upon the act. A number of the suggestions pertained to the Consumer Financial Protection Bureau. Read on to learn about some of the ways the BPC said Congress and regulators could improve upon Dodd-Frank.
CFPB floats plan to add narratives to consumer complaint database
The Consumer Financial Protection Bureau is seeking comment on a proposed policy change that would see the bureau add consumer narratives to its complaint database. The CFPB said publishing the narratives would aid consumer decision making and drive improved customer service among industry participants. However, the policy is likely to face pushback from industry participants who have vigorously opposed such a move. Read on to learn about the bureau’s proposed policy and the debate over publicizing consumer complaint narratives.
CFPB should expand QM small creditor definition, industry commenters say
Earlier this year, the Consumer Financial Protection Bureau sought feedback on a limited proposal to amend some of its new mortgage rules. The bureau also asked for public comment on its “small creditor” definition, which intersects with rule provisions intended to preserve consumers’ ability to access credit from community banks and credit unions. Industry commenters responded by urging the CFPB to expand the small creditor definition. They also discussed the impact the bureau’s rules are having on community institutions.
CFPB alleges UDAAP trifecta in payday lending enforcement action
The Dodd-Frank Act gave the Consumer Financial Protection Bureau authority to root out unfair, deceptive and abusive acts or practices in the consumer financial markets, and the agency has fined a payday lender it said engaged in all three in order to drive consumers into a cycle of debt. Irving, Texas-based Ace Cash Express agreed to pay $10 million to resolve CFPB claims that the company used illegal debt collection tactics — including harassment and false threats of lawsuits or criminal prosecution — to pressure overdue borrowers into taking out additional loans they could not afford. Read on to learn about the CFPB’s UDAAP claims.
CFPB failed to make sound business case for headquarters project, IG finds
The inspector general for the Federal Reserve and the Consumer Financial Protection Bureau determined that the CFPB has not provided a sound business case to support the funding of its controversial headquarters renovation project. Republicans on the U.S. House Financial Services Committee said the IG’s report is further evidence that the CFPB is unaccountable and should be restructured. Read on to learn about the report.