CFPB Updates Civil Investigative Demands Policy

Phil Hall

Apr 24, 2019

The Consumer Financial Protection Bureau (CFPB) has updated its policies regarding Civil Investigative Demands (CIDs).

According to the agency, the changes were made to ensure they offered more information about the potentially applicable provisions of law that may have been violated, and the CIDs will now specify the business activities subject to the CFPB’s authority. In investigations where determining the extent of the CFPB’s authority over the relevant activity is one of the significant purposes of the investigation, the agency can now specifically include that issue in the CID in the interests of further transparency.

The CFPB added that the new policy was consistent with comments it received in response to the Requests for Information it issued in 2018.

The Mortgage Bankers Association welcomed the update, issuing a statement that praised the agency by noting that from the “perspective of regulated entities, receipt of a CID frequently marks the beginning of an expensive, uncertain process of indeterminable duration. CIDs share many of the consequences of a formal legal action–legal costs, reputational harm, business disruption–but offer few of the protections. In this way, CIDs represent a significant burden.”

Link copied

Published

Apr 24, 2019

Courts

Bank of America Whistleblower Lawsuit Dismissed by Judge

Allegations of fraudulent reporting in the "Down Payment Grant Program" meet their end as the US District Court dismisses the case, with the government choosing not to intervene.

A whistleblower lawsuit alleging that Bank of America Corp. submitted false records for its "Down Payment Grant Program" to receive funding from the government was dismissed last week.  Judge Thomas D. Schroeder of the U.S. District Court for the Middle District of Nor...

Industry News

Rocket Pro TPO Takes the Lead With Early Loan Limit Increase

EVP Mike Fawaz underscores the move's competitive edge, marking the firm's second consecutive year ahead of FHFA's anticipated adjustments.

Rocket Pro TPO said it would increase its conforming loan limits to $750,000 Monday before the Federal Housing Finance Agency (FHFA) in November.  Rocket Pro TPO Executive Vice President Mike Fawaz said they are the first company for the second year in a row to apply t...