Consumer Financial Protection Bureau Draft Consumer Financial Protection Bureau Irene Skricki April 26, 2012 A

A (very brief) timeline Presentation Title Thursday, April 06, 2017 A (very brief) timeline 2007 The United States starts facing its most significant financial crisis since the Great Depression. 2009 President Obama proposes a consumer-protection bureau as part of Wall Street reform. July 21, 2010 The Dodd-Frank Wall Street Reform and Consumer Protection Act becomes law. Implementation of CFPB begins immediately under the Treasury Department. July 21, 2011 The CFPB becomes a bureau. January 4, 2012 Richard Cordray named the first Director of the CFPB

A consumer finance marketplace… Presentation Title Thursday, April 06, 2017 Our Vision A consumer finance marketplace… where customers can see prices and risks up front and where they can easily make product comparisons; in which no one can build a business model around unfair, deceptive, or abusive practices; that works for American consumers, responsible providers and the economy as a whole.

Many Different Approaches The CFPB Toolbox: Many Different Approaches Supervision/Examination/Enforcement Research, Markets & Regulations Consumer Response Consumer Education & Engagement External Affairs

Scope of Authority Enumerated Statutes that the CFPB can Implement and Enforce (as listed in Sec. 1002(12)) Alternative Mortgage Transaction Parity Act Consumer Leasing Act Electronic Fund Transfer Act Equal Credit Opportunity Act Fair Credit Billing Act Fair Credit Reporting Act Home Owners Protection Act Fair Debt Collection Practices Act Federal Deposit Insurance Act (selected sections) Gramm-Leach-Bliley Act (selected sections) Home Mortgage Disclosure Act Home Ownership and Equity Protection Act Interstate Land Sales Full Disclosure Act Omnibus Appropriations Act of 2009 (section 626) Real Estate Settlement Procedures Act S.A.F.E. Mortgage Licensing Act Truth in Lending Act Truth in Savings Act Alternative Mortgage Transaction Parity Act Governs adjustable rate mortgages Disclosures covered and enforced under TILA Equal Credit Opportunity Act prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because a person receives public assistance Home Owners Protection Act Also known as PMI cancellation Act Protects homeowners from having to pay PMI for the life of the loan Allows cancellation under specified circumstances Home Mortgage Disclosure Act Requires financial institutions to report loan data Showing whether financial institutions are serving the housing needs of their communities; To help identify possible discriminatory lending patterns. Home Ownership and Equity Protection Act Interstate Land Sales Full Disclosure Act (ILSA) Real Estate Settlement Procedures Act (RESPA) -- formerly with HUD Requires that consumers be given clear information about the cost of mortgage settlements and protected from unnecessarily high settlement charges caused by certain abusive practices. Standard GFEs to facilitate shopping Improved disclosures about costs and terms Improved HUD-1 S.A.F.E. Mortgage Licensing Act -- Formerly with HUD encouraging states to establish minimum standards for the licensing and registration of state-licensed mortgage loan originators establish and maintain a nationwide mortgage licensing system and registry for the residential mortgage industry sets a minimum standard for licensing and registering mortgage loan originators. Truth in Lending Act (TILA)

Depository Institution Supervision CFPB has authority to supervise and examine banks and credit unions with assets exceeding $10 billion, their affiliates and their service providers. Dodd-Frank defines "affiliates" to include any person that controls, is controlled by, or is under common control with another person. (Sec. 1002(1)) "Service providers" are defined as companies providing a material service to a covered institution. (Sec. 1002(26)) "Material services" include designing, operating, or maintaining a consumer financial product or service and processing related transactions.

Non-Depository Supervision Firms Subject to CFPB’s Nonbank Supervision Program Under Section 1024 All sizes of nonbank firms that offer or provide: Origination, brokerage, or servicing of residential mortgage loans, or loan modification and foreclosure relief services related to such loans Payday loans Private education loans For other markets of consumer financial products or services, a “larger participants” of these markets as the CFPB defines by rule. Initial rule to be issued by July 21, 2012. Issued Notice and Request for Comment on larger participant rulemaking on June 29th, which asked in part how a larger participant in specific industries should be defined (over 10,400 comments received) Other entities that the CFPB has reasonable cause to determine engage in conduct that poses risks to consumers related to consumer financial products or services, after notice and a reasonable opportunity to respond C Add cites

Research, Markets & Regulation Selected Reports Available on www.consumerfinance.gov: Impact of the CARD Act of 2009 Use of Remittance History for Credit Scores and Remittance Exchange Rates Variation in Credit Scores Fair Debt Collection Practices Act

Consumer Response www.consumerfinance.gov Consumer Response now accepts complaints related to all bank products, including: credit cards mortgages all bank accounts private student loans Help available in 187 languages (855) 411-CFPB (2372) (Eng./Esp.) TTY/TDD (855) 729-CFPB (2372) Tell Your Story portal

CEE’s Offices Financial Education Consumer Engagement Provide targeted educational content Identify and promote effective fin ed practices Consumer Engagement Create interactive, informative relationship with consumers Servicemembers Improve financial protection Escalate complaints Coordinate w/ DoD, etc. 26- 29 million Older Americans Protect against financial abuse Improve financial literacy Planning for life events 50 million aged 62+ Students Increase awareness of debt in college choice Build campus awareness 22-28 million (age 16-26) Empowerment Financial Improve financial stability for working families/new entrants 30 million underbanked 46 million lower income

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Office of Financial Education Objectives: Build a comprehensive approach to financial education in the U.S. Develop knowledge about what works in financial education and provide opportunities for financial educators to learn about effective strategies Promote innovation: Test new ideas and share successful innovations with the field Educate consumers: Provide understandable information to consumers that helps them make informed financial decisions Increase federal coordination: Director of the CFPB serves as the vice chair of the Financial Literacy and Education Commission

Build a comprehensive approach to financial education Build knowledge about what works Strengthen the field Commission evaluations of promising financial education projects Link financial educators and researchers with each other in a learning network Share best practices Four listening sessions with financial education practitioners Additional webinars Tax-time savings materials for VITA sites Title YYYY/MM/DD

Promote Innovation Identify existing innovations in the field Seed new innovations in the field

Educate Consumers Aspires to be a trusted resource for information for consumers and practitioners Identify and share innovative practices and communication strategies in financial education Work to provide consumer-focused materials in everyday language Inform Motivate Help consumers achieve their own financial goals

Improve Federal Coordination FLEC is a 21-member federal commission charged with improving coordination on financial education among federal agencies Dodd-Frank Act names CFPB Director as the vice chair OFE is actively engaged with FLEC working groups Improve Federal Coordination

How to Participate CFPB Blog: http://www.consumerfinance.gov/blog/ : https://help.consumerfinance.gov/app/tellyourstory CFPB Twitter: @CFPB CFPB Facebook: http://www.facebook.com/CFPB Go to ConsumerFinance.gov to sign up for our newsletter. Weigh in on current rulemakings: http://www.consumerfinance.gov/notice-and-comment/

Contact us: financialeducation@cfpb.gov

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