Thread Options
#1643944 - 12/28/11 08:08 PM Reg. AA and UDAAP
VRV Offline
100 Club
Joined: Jun 2007
Posts: 173
Hoping someone can help me understand what relationship there is, if any, between Reg. AA (Credit Practices Rule -- Unfair and Deceptive Acts and Practices) and the UDAAP guidance coming out of Dodd-Frank. My belief at this point is that the UDAAP guidance in Dodd-Frank does not currently have any effect on what's contained in Reg AA. Is that correct?

Have rules/regulations around UDAAP been issued? If so, can you tell me where? And will these eventually impact Reg. AA? Thanks.

Return to Top
Lending Compliance
#1643957 - 12/28/11 08:27 PM Re: Reg. AA and UDAAP VRV
Doug Hendrickson Offline
Power Poster
Doug Hendrickson
Joined: Oct 2009
Posts: 3,927
I don't believe that any rules/regulations surrounding a new Reg AA have yet been issued by the Bureau. This thread may be useful:

UDAAP
_________________________
I hear and I forget. I see and I remember. I do and I understand.--Confucius

Return to Top
#1643971 - 12/28/11 08:47 PM Re: Reg. AA and UDAAP VRV
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
You can review the CFPB Exam Manual on UDAAP, along with a helpful narrative, here:

http://www.consumerfinance.gov/guidance/supervision/manual/
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1643996 - 12/28/11 09:37 PM Re: Reg. AA and UDAAP Kathleen O. Blanchard
VRV Offline
100 Club
Joined: Jun 2007
Posts: 173
Thank you both for your input.

So am I safe in saying that there have been no changes, at this point, to Reg. AA as a result of anything out of Dodd-Frank? It is time for me to review and update our Reg. AA policy. and I am not aware of any changes to Reg. AA over the past year. But some within our bank are saying that it needs to be updated due to the UDAAP changes out of Dodd-Frank that become effective 12/1/11.

First, I am not aware of UDAAP changes that become effective 12/1/11. Have I missed something here?

Secondly, even if there are new UDAAP rules effective 12/1/11, I don't believe they would have any impact on our Reg. AA policy, which strictly focuses on the content and provisions in Reg. AA.

Am I thinking correctly here? Thanks.

Return to Top
#1644006 - 12/28/11 09:50 PM Re: Reg. AA and UDAAP VRV
Doug Hendrickson Offline
Power Poster
Doug Hendrickson
Joined: Oct 2009
Posts: 3,927
You are thinking correctly. Reg AA currently remains unchanged.
_________________________
I hear and I forget. I see and I remember. I do and I understand.--Confucius

Return to Top
#1657883 - 01/30/12 06:14 PM Re: Reg. AA and UDAAP VRV
LMP Offline
Member
Joined: Sep 2011
Posts: 74
I am still a little confused. Are we to follow UDAAP as noted at this link: Consumer Laws and Regulations: Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) > Consumer Financial Protection Bureau. When was it effective? Reg AA remains unchanged?

Return to Top
#1658067 - 01/30/12 09:22 PM Re: Reg. AA and UDAAP VRV
InFairness, CRCM Offline
Platinum Poster
InFairness, CRCM
Joined: Nov 2010
Posts: 647
USA
Since the CFPB did not list Regulation AA in the published list of regs transferring to the CFPB from the FRB, some think that Reg AA was effectively repealed by Dodd-Frank's repeal of Section 18(f)(1) of the Federal Trade Commission Act (which empowered the Fed to issue Reg. AA). On the other hand, the FTC's Credit Practices Rule and Telemarketing Sales Rule did transfer to the CFPB, as did rulemaking authority for UDAAP. This summary might help http://www.ballardspahr.com/alertspublic...y_the_cfpb.aspx
_________________________
Opinions are strictly my own, and have nothing to do with my employer.

Return to Top

Moderator:  Andy_Z