Now that the Senate has confirmed Richard Cordray as head of the Consumer Financial Protection Bureau (CFPB), the federal bank regulator is expected to be even more aggressive in its third year of existence. Observers expect the CFPB to continue its progress to implement provisions of the Dodd-Frank Act and increase public enforcement actions. The watchdog has already expressed concern about products such as deposit advance and auto loans; actions against institutions in these sectors could grow. The CFPB's top priority may still be mortgages, after its release of final mortgage rules that include requirements that lenders evaluate borrowers' "ability to repay." Experts are expecting a sharper focus on how the industry carries out the new mortgage rules. The CFPB is also expected to issue new mortgage regulations in this third year, including a simpler mortgage disclosure to consolidate requirements of the Truth in Lending Act and the Real Estate Settlement Procedures Act. Additionally, it will boost its supervision of nonbank industries, such as debt collectors and consumer reporting agencies. Some consultants speculate that the CFPB will broaden its monitoring of institutional compliance with fair-lending laws.
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