Aug. 24: CFPB Recent Updates

Published 

The CFPB issued a Filing Instructions Guide related to Nonbank Registration.

The Filing Instructions Guide provides technical instructions for entities that must comply with the Nonbank Registration Regulation and must submit required information to the CFPB’s Nonbank Registry.  The CFPB has also issued a sample form and instructions for viewing Regulatory Actions in NMLS.

Additionally, the CFPB is announcing the Nonbank Registry Help email address: [email protected].  Through that email address entities with questions about Nonbank Registration, including regulatory compliance or technical registration requirements, can submit questions to the CFPB for staff assistance.

You can access the Nonbank Registration Filing Instructions Guide, Nonbank Registry Help email address, and other Nonbank Registration resources here: https://www.consumerfinance.gov/data-research/nbr-submission/.


Published

CFPB Takes Action Against Fay Servicing for Illegal Foreclosure Actions and Violating Law Enforcement Order

The Consumer Financial Protection Bureau (CFPB) today ordered Fay Servicing to pay a $2 million penalty for violations of mortgage servicing laws, as well as for violations of a 2017 agency order that addressed its illegal foreclosure practices. The company failed to implement the order’s requirements and continued to break the law. Fay Servicing took prohibited foreclosure actions against borrowers requesting mortgage assistance, failed to offer borrowers mortgage assistance options available to them, and overcharged for private mortgage insurance. In addition to the civil money penalty, the CFPB’s order requires Fay Servicing to pay consumer redress of $3 million and to invest $2 million to update its servicing technology and compliance management systems. The order also puts compensation limits on Edward Fay, the company’s Chairman of the Board and Chief Executive Officer (CEO), if Mr. Fay does not take actions necessary to ensure compliance with the order.

Published 

What Buy Now, Pay Later lenders are doing to be upfront with borrowers

One of the ways that the CFPB promotes more innovation in the market and competition for consumers is by increasing transparency about how existing laws apply to emerging products. That’s why we have issued more guidance, and more specific guidance, to encourage new market entrants to focus on technological or business innovation instead of innovative lawyering to invent new loopholes.

As part of this effort, the agency released an interpretive rule in May that explained how some of the existing federal laws and regulations, like the Truth in Lending Act and Regulation Z, apply to Buy Now, Pay Later loans. While not required by law, we invited the public to submit comments on this interpretive rule.

The Buy Now, Pay Later industry is responding favorably and constructively. Companies understand that they shouldn’t have to compete with lenders that sidestep the law. We received feedback through the comment period and held meetings with Buy Now, Pay Later providers to answer questions, including about which sections of Regulation Z specifically apply to different business models. Many Buy Now, Pay Later lenders are working diligently and in good faith to come into compliance. To support this transition, respond to questions we received in the comments, and ensure all entities benefit from the clarifications provided in those meetings, we plan to issue a set of Frequently Asked Questions next month to help lenders make transitions.

In addition, the CFPB does not intend to seek penalties for violations of the rules addressed in the interpretive rule against any Buy Now, Pay Later lender while it is transitioning into compliance in a good faith and expeditious manner. We expect that other federal and state regulators will follow the same path.

All of this is part of CFPB’s work to ensure consumers can file disputes and have payments paused while those disputes are being investigated, receive refunds when they return products or cancel services, and benefit from helpful periodic billing statements. We’re continuing to work on other ways to make sure that Buy Now, Pay Later doesn’t lead to people drowning in debt.

Learn more about our recent rule.


Published AUG 16, 2024
CFPB Updates Small Business Lending Filing Instructions Guide

Today, the CFPB issued the 2025 Small Business Lending Filing Instructions Guide, which updates the compliance dates used in the filing instructions to correspond with the new compliance dates for the rule.  The 2025 updates include updating:

  • References that use the year 2024 to references that use the year 2025 throughout the guide.
  • The applicable filing period for this guide to reflect the updated Tier 1 compliance dates of July 18, 2025, through December 31, 2025, (as discussed in the Interim Final Rule).
  • The Action Taken Date & Application Date data point examples so that they reflect the new compliance dates and use year 2025.
  • The validation ID E0321 to reflect the updated filing period based on the new Tier 1 compliance dates.

The CFPB has also updated other resources to reflect the extended compliance dates.

You can access the 2025 Small Business Lending Filing Instructions Guide here:  https://www.consumerfinance.gov/data-research/small-business-lending/filing-instructions-guide/.

You can access the other updated resources here: https://www.consumerfinance.gov/compliance/compliance-resources/small-business-lending-resources/small-business-lending-collection-and-reporting-requirements/.