CFPB Offers Policy Statement on "Abusiveness" Standard

Jan 24, 2020

The Consumer Financial Protection Bureau (CFPB) has issued a policy statement designed to define the standards for “abusiveness” in supervision and enforcement matters.

In announcing the policy, the agency stated the Dodd-Frank Act’s effort to prohibit “abusive” acts or practices in connection with the provision of consumer financial products or services, includong mortgages, was too broad and created uncertainty. The CFPB said it would apply the concept of abusiveness in supervision and enforcement matters only when the harm to consumers outweighs the benefit, adding that it would seek to avoid “dual pleading” of abusiveness and unfairness or deception violations arising from all or nearly all the same facts.

The CFPB also stated it would seek monetary relief for abusiveness “only when there has been a lack of a good-faith effort to comply with the law.” However, it added that it would still work to obtain “restitution for injured consumers,” regardless of whether a company acted in good faith or bad faith.

“I am committed to ensuring we have clear rules of the road and fostering a culture of compliance–a key element in preventing consumer harm,” said CFPB Director Kathleen Kraninger. “We’ve developed a policy that provides a solid framework to prevent consumer harm while promoting the clarity needed to foster consumer beneficial products as well as compliance in the marketplace, now and in the future.”

About the author

Phil Hall

Link copied

Published

Jan 24, 2020

Analysis and Data

Redfin: Homebuyers Gain Leverage, But Pending Sales Keep Sliding

Pending sales fall 16.4% from a year ago despite lower home prices and mortgage payments, as sellers retreat from a weakening market

Home prices are falling. Mortgage payments are easing. Sellers are becoming more willing to negotiate. Yet the housing market keeps losing buyers.Pending home sales fell 16.4% year over year during the four weeks ending Nov. 1, reaching their lowest level in Redfin's weekly ...

Tech

New AI-Run Mortgage Startup Builds Database Of 224,000 LOs

LenDb.ai is making LO records available to AI assistants, offering a potential new way for borrowers to find originators

A new mortgage technology startup is betting that borrowers will increasingly turn to artificial intelligence to find a loan originator, and it wants to make sure AI knows whom to recommend.LenDb.ai, launched Thursday by venture studio Draper Goren Blockchain, has assembled ...

Jan

Uncasville, CT

More from

Regulation and Compliance

CFPB Closes 40% Of Investigations, Keeps Mortgage Enforcement In Focus

The federal watchdog closed thousands of supervisory and investigative matters as it narrowed oversight

Regulation and Compliance

Nov 05, 2026

Midterms Loom With Mortgage Policy Changes Already In Motion

As voters head to the polls Tuesday, Washington is weighing changes to refinancing costs, loan pricing, and lending regulations

Regulation and Compliance

Nov 02, 2026

UAD 3.6 Deadline Is Monday. Are Brokers Ready?

Wholesale lenders have adopted different rules for appraisal transfers, loan product changes, and reporting formats, adding complications for brokers and appraisers ahead of the Nov. 2 mandate

Regulation and Compliance

Oct 27, 2026

Friday Harbor Expands AI Appraisal Reviews As UAD 3.6 Deadline Nears

The new capability adds more than 350 automated checks as lenders prepare for the November 2 mandate

Tech

Oct 27, 2026

The Hidden Cost Of Appraisal Uncertainty

As home equity lending grows, lenders need a better way to resolve conflicting property evidence before it creates costly setbacks

Regulation and Compliance

Oct 25, 2026