C ONSUMER C REDIT P ROTECTION L AW U PDATE F EATURING THE E QUAL C REDIT O PPORTUNITY A CT AND R EGULATION B AND THE F AIR C REDIT R EPORTING A CT October 30, 2015 Today’s Plan of Attack 1.Consumer Financial Protection Act Regulatory Framework 2.Equal Credit Opportunity Act (ECOA) and Regulation B 3.Fair Credit Reporting Act (FCRA) 4.Unfair, Deceptive or Abusive Acts or Practices 5.RESPA and TILA Integrated Disclosure 6.Ability-to-Repay Residential Mortgages 7.Evidence of Discrimination and Violations of ECOA Fair Lending Requirements 8.Arbitration

Consumer Financial Protection Act Regulatory Framework Consumer Financial Protection Act (CFPA) – Title X of Dodd-Frank Designated Transfer Date – July 21, 2011 Prohibited Acts Offer of financial product or service in violation of Federal consumer financial laws May not engage in any unfair, deceptive or abusive act or practice Bureau of Consumer Financial Protection (CFPB) Rule-making, Supervisory and Enforcement Regime

Equal Credit Opportunity Act (ECOA) and Regulation B Spousal Guarantor as Applicant under ECOA and Regulation B Definition of Applicant under ECOA Definition of Applicant under Reg B Split of Circuit Courts over Application of Chevron Framework Cert granted by Supreme Court

Fair Credit Reporting Act (FCRA) FCRA, Employers and Class Actions FCRA Requirements and Private Cause of Action FCRA requirements on employers using consumer reports FCRA allows private cause of action to enforce employer’s negligent and willful violations of FCRA Damages for Negligent and Willful Violations Class Actions Willful Violations Cert granted - Spokeo, Inc. v. Robins

Unfair, Deceptive or Abusive Acts or Practices (UDAAP) New Substantive Provision Prohibiting UDAAP CFPB Rulemaking and Enforcement Authority to Prevent UDAAP Recent Enforcement Actions

RESPA and TILA Integrated Disclosures Final Rule Went into Effect on October 3, 2015 CFPB Compliance Guide

Ability-to-Repay Residential Mortgages Reasonable Good faith Determination of Ability to Repay Installment Sales of Residences

Evidence of Discrimination and Violations of ECOA Fair Lending Requirements ECOA Discrimination Prohibition Class Actions Based on Disparate Impact After Wal-mart Stores v. Dukes. Commonality Title VII Discriminatory Employment Case Enforcement Actions Inclusive Communities Justice Kennedy’s Opinion Takeaways

Pre-Dispute Binding Arbitration Clauses and Class Action Waivers Mortgages and Home Equity Lines of Credit Movement by CFPB to Prohibit Arbitration Clauses in All Consumer Contracts