New Rule Proposed by the CFPB

Since President Obama used a recess “appointment” to name former Ohio attorney general Richard Cordray as the first director of the Consumer Financial Protection Bureau (CFPB) in January, the new director and the bureau have hit the ground running.

New Rule for Third-Party Debt Collectors

In February, the CFPB released a proposed rule that defined third-party debt collectors with more than $10 million in annual receipts and consumer reporting agencies with more than $7 million in receipts as “larger market participants.” This is the first of many proposed rules that will define the larger market participants that will be susceptible to the bureau’s nonbank supervision program.

Know Before You Owe: The Mortgage Disclosure Form

Another of the CFPB’s top priorities for 2012 is promoting greater consumer financial understanding. The bureau has continued its Know Before You Owe program, which aims to make financial disclosure forms shorter, simpler and easier for consumers to understand. Later this year, the CFPB is set to finalize a new mortgage disclosure form that combines and simplifies the forms that borrowers currently receive at closing. In addition, the CFPB is developing a financial aid shopping sheet for students to better understand their loan options, as well as a shorter and simpler model credit card agreement.

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