Regulate the financial industry

Has authority over 19 regulations governing consumer finance, including broad enforcement

Analyze and study the financial landscape to make informed improvements

Manage complaints about financial institutions

Restrict unfair, deceptive and abuse acts or practices

“Nondepository Covered Persons”

any covered person providing origination, brokerage or

servicing of consumer real estate loans

“Depository Institutions andCredit Union

Covered Persons” greater than $10 Billion in assets

“Service Providers”any person that provides a material serviceto a covered person in connection with the

offering or provision by such covered personof a consumer financial product or service

Elizabeth Warren, a Harvard law

professor, presents the idea for a

consumer protection agency

2007

Financial Collapse

2009

CFPB first proposed to congress

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010

(Dodd-Frank Act) established the CFPB

with Title X

Priorities include watching over:

Mortgages

Credit Cards

ServiceMembersStudent Loans 2011

President Obama nominates

Richard Cordray, the former

attorney general of Ohio, head of CFPB

Until the appointment of Cordray,

the CFPB has limited authority

Changes to impact servicing standards, including:• Final Rules to RESPA and TILA • Early notice of delinquency• Requirements for direct and ongoing access to servicer personnel• Stricter foreclosure process, especially when conducting a foreclosure sale• Legal obligations for bank and nonbank servicers to protect the consumer while transferring loans

CFPB turns its focus to compliance in the mortgage industry,by issuing final rules

The final version of the Ability-To-Repay Rule including:• Modifications to the Good Faith Determination of Borrower’s Ability to Repay• Revisions to Points and Fees under High Cost Mortgages, Open and Closed End • Transactions impacting the Home Ownership and Equity Protection Act (HOEPA) and defining the Qualified Mortgage (QM)/Ability-to-Repay (ATR) RuleThe QM/ATR Rule is significant because:• This rule will determine the loan products available to consumers for the indefinite future • Intended to protect consumers from mortgages that are too high for them to repay• Also intended to protect borrowers from loans that have lower introductory rates• Requires lenders to obtain and verify information and removes the ability for loans without documentation

Higher-PricedMortgage Loans (HPML)• Expanded escrow account requirements • Additional appraisal requirements• Revised thresholds for determination

High-Cost Mortgages• Modified Counseling requirements • Revised thresholds for determination• Revised points and fees calculations

YOUR BILL

TOTAL: $

CFPB Releases Consumer Complaint DataThe launch expanded the CFPB’s Consumer Complaint Database significantlyfrom about 19,000 credit card complaints to more than 90,000 complaints on mortgages, student loans, bank accounts and services, other consumer loans, and credit cards

2013Some Milestones from

this Year... So Far

Sources:

The CFPB Websitehttp://www.consumerfinance.gov/

AllRegs Compliance Commentary: 2011 - The Year of the Bureau of Consumer Financial Protection. What’s Ahead for 2012?http://solutions.allregs.com/2011-the-year-of-the-bureau-of-consumer-financial-protection/

AllRegs Compliance Commentary: 2012: A Year for Proposals, 2013: A Year for Actionhttp://solutions.allregs.com/2012-a-year-for-proposals-2013-a-year-for-action/

AllRegs Compliance Commentary: 2013 Regulatory Reform Series: Qualified Mortgage, High Cost Mortgages and Higher-Priced Mortgage Loanshttp://solutions.allregs.com/may-the-regulators-be-ever-in-your-favor/

AllRegs Compliance Commentary: CFPB Announces Implementation Plan for New Mortgage Ruleshttp://solutions.allregs.com/cfpb-announces-implementation-plan-for-new-mortgage-rules/

AllRegs Compliance Commentary: CFPB Finalizes Mortgage Servicing Rules under RESPA and TILAhttp://solutions.allregs.com/cfpb-finalizes-mortgage-servicing-rules-under-respa-and-tila/

AllRegs Compliance Commentary: CFPB Issues Ability-to-Repay and Qualified Mortgage Final Rulehttp://solutions.allregs.com/cfpb-issues-ability-to-repay-and-qualified-mortgage-final-rule/

AllRegs Compliance Commentary: CFPB Issues Rule to Protect Consumers from Irresponsible Mortgage Lendinghttp://solutions.allregs.com/cfpb-issues-rule-to-protect-consumers-from-irresponsible-mortgage-lending/

AllRegs Compliance Commentary: CFPB Monitors Mortgage Servicing Transfer Activityhttp://solutions.allregs.com/cfpb-monitors-mortgage-servicing-transfer-activity/

AllRegs Compliance Commentary: CFPB Releases Consumer Complaint Datahttp://solutions.allregs.com/cfpb-releases-consumer-complaint-data/

Consumer Financial Protection Bureau lays out implementation plan for new mortgage rules by the CFPB http://www.consumerfinance.gov/pressreleases/consumer-financial-protection-bureau-lays-out-implementation-plan-for-new-mortgage-rules/

AllRegs Compliance Commentary: Financial Reform: The Bureau of Consumer Financial Protectionhttp://solutions.allregs.com/pages/Bureau-of-Consumer-Financial-Protection.html

The Woman Who Knew Too Muchhttp://www.vanityfair.com/politics/features/2011/11/elizabeth-warren-201111

Servicing Examinations

Alternative Mortgage Transaction Parity Act

Interim Rule

Consumer Complaints

Whistleblower Protection Program

Ombudsman Office

RESPA/TILA disclosures, “Know Before You Owe”

Strong focus on issues related to Servicemembers

Redefined confidential treatment of privileged

information

Re-issuance of existing regulations now governed

by the CFPB for public comment

• Restrictions on compensation including proxies or loan term restrictions on compensation• Origination points and fees and zero-zero alternative• Affiliate fees• The effect of high-cost restrictions• Bona fide discount points• Credit insurances• Mandatory arbitration

Equal Credit Opportunity ActAppraisal Disclosure

modification

Loan Officer Compensation Revisions Include:

2010

2008

2012

Educate the public and consumers about financial decisions and products

“Covered Persons” any person or affiliate

that provides a consumer financial product

What Doesthe CFPB Do?

What Doesthe CFPB Regulate?

The history of the CFPBis relatively short, but the impact

this young bureau has over the mortgage industry is undeniable.

John Doe

Redefined rulemaking procedures by posting of

regulatory documents on its website as official, in lieu of the

federal register publication,began regulating “larger participants,”

such as credit reporting agencies

The CFPB begins

considering reformation to these

mortgage topics

Controversy and a filibuster surround the appointment of Cordray, so President Obama

appoints him during a recess

The CFPB is able to start

lawmaking at full speed

Some Milestones from this Year Include the Following:

Fall 2012:CFPB releases guidance

on a Compliance Management System –

as part of itsexamination manual

AllRegs

AllRegs

Disclaimer: The information presented in this infographic is not meant to be nor should it be construed as advice of legal counsel. The applicability of the information contained herein will vary based on the nature of each lending institution's business, under what law it was created, and its loan products and procedures. Readers are strongly urged to consult with their legal counsel and/or contact local counsel as appropriate in the various states and jurisdictions to determine the applicabilityof the materials contained herein to the specific facts and circumstances of each organization's programs and products and to identify other law applicable to its business operations. The information contained herein was not reviewed or approved by counsel in the respective jurisdictions.

Copyright 2013 AllRegs. All Rights Reserved.

To learn more about AllRegs CFPB Resources, including the Compliance Management System, visit

http://solutions.allregs.com/compliance-management-system/.

www.allregs.com

www.allregs.com