In This Issue:

In Brief

  • Reactions to Uncertainty: Parties Unsuccessfully Seek To Intervene in PHH Corp. v. CFPB
  • CFPB Rulemaking in the Trump Administration

In Depth

  • Regulatory Risks of In-Game and In-App Virtual Currency
  • FinTech Compliance Resources and Policy Perspectives
  • CFPB Continues to Build Case for Planned Debt Collection Rules

Previous Events

  • Consumer Financial Services 2017 Outlook: Post-Inauguration Day Insights
  • The Present and Future Role of State Attorneys General in Consumer Financial Services Regulation and Enforcement

Upcoming Events

  • Navigating Debt Buying in a 'Regulatory by Enforcement' Environment During a Rulemaking
  • Outlook for Consumer Financial Protection Bureau Reform
  • Lead Generation Regulation and Enforcement: Government Perspectives
  • Consumer Financial Services Legal and Regulatory Update
IN BRIEF

Reactions to Uncertainty: Parties Unsuccessfully Seek To Intervene in PHH Corp. v. CFPB

In October 2016, a three-judge panel of the D.C. Circuit decided PHH Corp. v. CFPB, which was on appeal from Director Cordray's order in an administrative adjudication (discussed further here). The D.C. Circuit’s decision covered three issues: (1) Constitutionality of the CFPB's structure; (2) Scope of the Real Estate Settlement Procedures Act (RESPA) Section 8(c)(2) safe harbor; and (3) Applicability of the RESPA three-year statute of limitations to the CFPB pursuing an enforcement action through administrative adjudication. The court ruled against the CFPB on all three issues. In response, the CFPB is now seeking rehearing before the full D.C. Circuit. If granted, the petition would result in a review of the three-judge panel's decision by the full D.C. Circuit. In the last two weeks, several parties have moved to intervene in the case in support of the CFPB's petition. In a one page per curiam order, the PHH panel of the D.C. Circuit denied these motions.

More Information

CFPB Rulemaking in the Trump Administration

The Trump Administration has taken two actions regarding agency rulemaking. The first, in a document titled "Memorandum for the Heads of Executive Departments and Agencies" (the "regulatory freeze"), the Administration directed recipients to "send no regulation to the Office of the Federal Register (OFR) until a department or agency head appointed or designated by the president after noon on January 20, 2017 reviews and approves the regulation." The memorandum also directs recipients to withdraw "regulations that have been sent to the OFR but not published in the Federal Register."

More Information

IN DEPTH

Regulatory Risks of In-Game and In-App Virtual Currency

So you want to incorporate a virtual currency into your video game or app. No compliance problem, right? Only cryptocurrencies like bitcoin have regulatory issues, right? Wrong. Developers should be aware that, depending on the features they include, an in-app virtual currency may be regulated in the same way as bitcoin under interpretations of U.S. anti-money laundering laws first announced in 2013 by the Financial Crimes Enforcement Network (FinCEN). This article discusses FinCEN's guidance, the obligations imposed by federal anti-money laundering laws, the features of virtual currency that may trigger regulation, and steps to take to avoid such obligations.

More Information

FinTech Compliance Resources and Policy Perspectives

Fintech remains at the forefront of the agenda of many financial services companies, investors, and regulators. The potential to transform how financial services are delivered and to improve underlying processes like payments, platforms, investor opportunities and more, has made fintech one of the most heavily discussed topics in recent years. Balancing the potential for financial innovation with the need to make compliance sense of these new models is the challenge that is front and center in a new publication from the Federal Reserve Bank of Philadelphia. Also, in the closing days of the Obama administration the National Economic Council released a statement of principles as a policy framework for the fintech ecosystem. We take a look at both in this article.

More Information

CFPB Continues to Build Case for Planned Debt Collection Rules

The CFPB continues to take strides toward new regulation of the debt collection industry. In advance of what will likely be a highly-contested proposed rule, on January 12, 2017, the Bureau released several debt collection-related documents, potentially aimed at building support for the upcoming regulations. These include a report on a national survey of consumer experiences with debt collectors, a white paper on consumer risks in online debt sales, and a compilation of stories illustrating consumers' experiences with debt collectors. Read on for more information.

More Information

PREVIOUS EVENTS

Consumer Financial Services 2017 Outlook: Post-Inauguration Day Insights

The presentation materials and recording from our program, Consumer Financial Services 2017 Outlook: Post-Inauguration Day Insights, are available. Listen to a recording of the program and view the corresponding slides, or download the presentation materials.

The Present and Future Role of State Attorneys General in Consumer Financial Services Regulation and Enforcement

The presentation materials and recording from our program, The Present and Future Role of State Attorneys General in Consumer Financial Services Regulation and Enforcement, are available. Listen to a recording of the program and view the corresponding slides, or download the presentation materials.

UPCOMING EVENTS

February 7, 2017: Navigating Debt Buying in a 'Regulatory by Enforcement' Environment During a Rulemaking at the 2017 DBA International Annual Conference

February 8, 2017: Outlook for Consumer Financial Protection Bureau Reform at the 2017 National Council for Higher Education Resources' Legislative Conference

March 21, 2017: Lead Generation Regulation and Enforcement: Government Perspectives at LeadsCon Las Vegas

April 28, 2017: Consumer Financial Services Legal and Regulatory Update at the 2017 Financial Counseling Association of America (FCAA) Annual Conference