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Consumer Financial Protection Bureau (CFPB)

CFPB-logo-300x83The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) was enacted in 2010. One provision of the Dodd-Frank Act established the Consumer Financial Protection Bureau (CFPB), and the CFPB became operational on July 21, 2011. It is charged with the responsibility of providing consumer financial protection services across the financial services industry. The CFPB supervises banks, credit unions, and other financial companies, and it enforces federal consumer financial laws. Prior to its implementation, the Federal Reserve Board (FRB) oversaw rulemaking for most consumer financial laws; however, the Dodd-Frank Act mandated migration of consumer protection regulations and rulemaking from the FRB and some other regulators to the CFPB. The migration to CFPB included:

  • 12 C.F.R. §1002 (Regulation B) Equal Credit Opportunity Act
  • 12 C.F.R. §1003 (Regulation C) Home Mortgage Disclosure Act
  • 12 C.F.R. §1004 (Regulation D) Alternative Mortgage Transaction Parity
  • 12 C.F.R. §1005 (Regulation E) Electronic Fund Transfers Act
  • 12 C.F.R. §1006 (Regulation F) Fair Debt Collection Practices Act 
  • 12 C.F.R. §1007 (Regulation G) S.A.F.E. Mortgage Licensing Act—Federal Registration of Residential Mortgage Loan Originators
  • 12 C.F.R. §1008 (Regulation H) S.A.F.E. Mortgage Licensing Act—State Compliance and Bureau Registration System
  • 12 C.F.R. §1009 (Regulation I) Disclosure Requirements for Depository Institutions Lacking Federal Deposit Insurance 
  • 12 C.F.R. §1013 (Regulation M) Consumer Leasing Act 
  • 12 C.F.R. §1014 (Regulation N) Mortgage Acts and Practices—Advertising
  • 12 C.F.R. §1015 (Regulation O) Mortgage Assistance Relief Services 
  • 12 C.F.R. §1016 (Regulation P) Privacy of Consumer Financial Information 
  • 12 C.F.R. §1022 (Regulation V) Fair Credit Reporting Act
  • 12 C.F.R. §1024 (Regulation X) Real Estate Settlement Procedures Act (previously overseen by HUD)
  • 12 C.F.R. §1026 (Regulation Z) Truth in Lending Act
  • 12 C.F.R. §1030 (Regulation DD) Truth in Savings Act

 CFPB and Examinations – The CFPB supervises banks, credit unions, and other financial companies, and it enforces federal consumer finance compliance. The CFPB exercises direct supervision over banks and credit unions with total assets greater than $10 billion, and it schedules and conducts examinations of them. It also has authority to examine providers of consumer financial products and services that are not depository institutions, such as mortgage lenders, money services businesses, payday lenders, and private education lenders. The CFPB has written and published its own examination procedures and the examination process its examiners follow. The procedures, process and information regarding the regulatory areas covered are published in the CFPB Examination Manual.

Its regulatory authority affects a broad array of financial service companies of all sizes because of its rulemaking authority for the consumer protection laws and regulations listed above. Banks and credit unions with assets equal to or less than $10 billion are supervised and examined by their provincial regulator (for instance, the FRB, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, or state or National Credit Union Administration); however, the CFPB affects those institutions through its administration of the rules.

http://www.consumerfinance.gov/guidance/supervision/manual/

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  1. I recently left one mortgage company to work for another … I had one loan that was originated and underwritten that closed two weeks after I left. The company said that when I left I forfeited the commission even though it was basically ready to close. The branch manager did not re-originate & simply replaced my name with theirs on the final 1003 signed at the closing. I typically would not mind but feel like I have been getting the run around by the ex-company on why they will not pay me the commission and they have so far refused to show anything in writing to support their position. They say it is not allowed per the new CFPB rules but offer nothing to back it up. Basically they just want me to disappear and shut up. I am not looking to get something for nothing and would simply like to be treated with a little respect. I have found nothing related to when a commission is earned by an LO using a GOOGLE search or in reviewing any CFPB material I can get my hands on. Any insight would be appreciated. Thanks.

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