CFPB Report - November 13, 2015

November 13, 2015

CFPB Announces New Planning for Retirement Tool
On Thursday, November 12, 2015, the CFPB, Social Security Administration (SSA) and Brookings Institution held a joint event, in Washington, D.C., on retirement planning.  The event featured remarks from CFPB Director Richard Cordray and SSA Acting Commissioner Carolyn Colvin.
 
The Bureau and SSA introduced an online tool aimed at helping consumers plan when to claim Social Security benefits. The tool uses a formula from the SSA to make a monthly benefit estimate based on the consumer's age and financial situation. The tool also includes tips about retirement specific to certain life factors—including marriage, retirement age, other income sources, and expenses.
 
The CFPB also released a report on Social Security claiming age and retirement security, which indicates a large percentage of Americans opt to receive their Social Security benefits before reaching their full retirement age, despite living longer.
 
"Millions of Americans are likely to face financial insecurity in their retirement years," said Director Cordray. "Deciding when to start claiming Social Security benefits is one of the most important financial choices a consumer will make. The CFPB's 'Planning for Retirement' tool can help consumers clearly see their options."
 
CFPB Files Brief in PHH Case
On Thursday, November 5, 2015, the CFPB filed a response brief with the D.C. Circuit Court of Appeals in the PHH Mortgage case. The brief reiterated the CFPB's argument that PHH violated the Real Estate Settlement Procedures Act (RESPA) each time it accepted a reinsurance payment, and that the amount of the disgorgement was appropriate.
 
In June of 2015, Director Cordray expanded on an Administrative Law Judge's decision, raising the required disgorgement by PHH from $6.4 million to $109 million. PHH appealed to the D.C. Circuit Court of Appeals. On October 5, 2015, CBA filed an amicus brief in support of PHH, asserting Director Cordray failed to give PHH "fair notice" when he neglected to apply long-held HUD guidance.

Midland Files Petition for Review with the Supreme Court
On Tuesday, November 10, 2015, Midland Funding asked the Supreme Court to review the Second Circuit's ruling in Madden v. Midland Funding, that the federal preemption provision of the National Bank Act could not be invoked by a non-national bank assignee. In the petition, Midland claims the need for resolve a split between the Second Circuit and the Eighth and Fifth Circuits concerning the impact of the National Bank Act on assigned loans. Midland contends, if left intact, the Second Circuit's decision would allow states to regulate lending terms when a loan created by a national bank is assigned to a non-national bank entity.

FFIEC Releases Information Technology Examination Handbook
On Tuesday, November 10, 2015, the Federal Financial Institutions Examination Council (FFIEC) released substantial revisions to its Information Technology Examination Handbook. The revisions provide guidance to examiners and outlines governance and risk management principles as they relate to information technology (IT) and IT risk management as part of enterprise –wide risk management.