Consumer Financial Protection Bureau

Today, I thought I would talk about Dodd-Frank's 1071 rule.

As you know, a final rule was issued May 1st of 26, and the CFPB issued a financial institution letter in September amending Reg B.

I think that's a great idea, Dean.

I know many lenders have been confused by the actions on those provisions.

Can you unpack that for our audience?

Yeah, sure, Len.

Yeah, based on reactions to the 23 final rule, including continued feedback from stakeholders and the ongoing litigation, On comments received on the 25 proposed rule and on further consideration, the Bureau now believes that at the onset on potentially longer term data collection regime, that it should start with a more modest requirements focusing on those core lending products, lenders and data.

The Bureau believes that reaction to the 23 final rule, I should say, was in part based on its expanded approach, appearing to seek broad coverage of lenders' products, information that they collect, which, again, I would have to say, appears to be the intent of the previous rule.

Is it a different scenario if only the House flips and the Senate does not?

So I'll try to answer it this way, which is I think no matter what, if one of the houses turns over from Republican to Democrat, I think instantly you're going to see a lot of oversight hearings of the current administration, whether it is Treasury, OCC, FDIC, the CFPB.

There's going to be a lot of review of what those agencies have done in the last two years.

That being said, I do think I'd be willing to put money down today.

And so that needs to get passed.

People try to tack things on to that bill, but they try to keep that as clean as possible because that's a critical bill that needs to get passed.

What might happen is that, you know, Brian Johnson's nomination to be the director of the CFPB is always out there.

That will likely get addressed on the Senate floor before the end of the session.

It's going as a social credit score.

So much that the CFPB, Consumer Financial Protection Bureau, this is the bureau that helps you remove and delete items off your credit reports, you know, Experience, TransUnion, and Equifax.

These are the people that you write a letter to to basically clean up your credit and they help protect consumers.

But the chatbots in consumer finance, they issue a strong, strong warning on this.

They can text you if anything is going on.

So I'm just scrolling down.

I mean, this is a huge, huge press release from the CFPB.

And what they're warning is that they can provide inaccurate, unreliable, and insufficient information to the banks.

Great idea.

But at the time, CFPB and a lot of other folks got wary of credit insurance.

And so we had to pivot and go really directly working with schools instead of getting insurance as a feature or another product.

It's an interesting problem to solve when nobody really wants to talk about the difficulties of graduating.

But read it for what it is.

The Consumer Financial Protection Bureau puts it plainly.

A pre-approval says the lender is generally willing to lend you up to an amount, and it's not a guaranteed loan offer.

It's the lender's number, not yours.

I mean, that's been going on for a while.

The U.S. Consumer Financial Protection Bureau, CFPB, is investigating several large banks while the Office of the Comptroller of the Currency, OCC, is considering further rules to prevent future politically and ideologically motivated debanking.

You know, I'm not even going to read this.

This happens all the fucking time.