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

2. 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

3. 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.

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

5. 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 (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)

6. 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 (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.

7. 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

8. Research, Markets & Regulation
Selected Reports Available on
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

9. 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

10. 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.
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

11. Welcome to the CFPB

12. Feedback?

13. Know Before You Owe: Student Loans

14. ConsumerFinance.gov/askcfpb
SENSITIVE AND PRE-DECISIONAL FOR INTERNAL USE ONLY

15. 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

16. 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

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

18. 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

19. 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

20. How to Participate
CFPB Blog: : CFPB CFPB Facebook: Go to ConsumerFinance.gov to sign up for our newsletter. Weigh in on current rulemakings:

21. Contact us:

22. Questions?