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Trump's CHOICE on CFPB


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Jun 19 2017
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Trump's CHOICE on CFPB

Trump’s CHOICE on CFPB? By: Tom Brannon / CEO, Compliance Umbrella _______________________________________________________    Many statutes and regulations have a sponsoring agency, one that is assigned primary rulemaking (and perhaps enforcement) responsibility and authority. Dodd-Frank bundled much of the rulemaking and enforcement authority and passed it solely (or primarily) to the CFPB. The controversy and short history of enforcement (since 2012) by the CFPB led to a stinging rebuke in an early Executive Order by the new administration (EO13772, Core Principles for Regulating the United States Financial System). In its Summary of Recommendations, under “Driving Economic Growth,” the CFPB was referred to as unaccountable, abusive, and unduly broad. The Bureau would be replaced by the pending CHOICE ACT (Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs). Much ...

CFPB Focus on Attorneys and Law Firms


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Mar 17 2017
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Last year, vis-a-vis the relationship between attorneys and the Bureau, the chant that arose was . . . "THE BUREAU'S IN CHARGE OF OUR FIRM? NO WAY"  Lots of folks are saying "Yes Way." After the Hanna case and the way vendor cases are heating up, many firms feel the CFPB is trying to control the practice of law. Of seven Consent Orders issued last year, five deal with vendor relations and two were issued against law firms in New Jersey and New York. And 2015 featured, of course, the CFPB actions involving Hanna, Pressler, et al. What’s going on here? When a paralegal works on a case, the attorney is responsible for that person’s work. And the ABA defines your legal assistants/paralegals as: A legal assistant or paralegal is a person, qualified by education, training or work experience who is employed or retained by a lawyer, law office, corporation, governmental agency or otherentity an ...

Obfuscation Strategy at one Regulatory Branch


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Mar 17 2017
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A major change in the way our government functions began in 2012 and is today a powerful ad hoc 4th branch of our federal government, the Regulatory Branch. The output of this branch and the bureaucracy driving it creates new laws - it’s their primary goal. These new laws are referred to as regulations, guidance, interpretations, rulemaking, amicus briefs, supervisions, and administrative acts or enforcements. In virtually every case, the new 4th branch has far more effect on us than what comes from Congress. It’s easy to see that the greatest risks are visited upon small and medium-sized businesses. There are about 1,000 times more SMBs than enterprises. SMBs have never before been audited for federal consumer laws while enterprises have long been active in the compliance (GRC) space. Up until recently SMBs have chosen to largely ignore this risk – the CFPB is changing their focus with ...

Governance by Stealth


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Mar 01 2017
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Governance by Stealth

I have a friend in IT at a Fortune 20 company. He did system upgrade testing (black box, white box, walk around). One day a new version of a subsystem was launched with no testing. How could that be? He called the development manager - "What, no testing?" His answer, "We used stealth testing on this one." He explained that stealth testing saved a lot of money, a lot of time. They were short on time so they launched first and let help-desk tickets replace pre-launch testing. That was brave but who could test better than users? So here's another stealth process many of us can benefit from. If you're a small-medium business and can't budget a full-blown G.R.C. product, just buy the "C". If it's a complete compliance system with quality procedures and training, along with the complaint database, reports, etc. YOU WILL RECEIVE GOVERNANCE BENEFITS and RISK MANAGEMENT BENEFITS, DELIVERED BY A S ...

Piling On - Trump Considers the Mountain of Regs


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Mar 01 2017
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Piling On - Trump Considers the Mountain of Regs

Recent conversations on regulations – along with the new administration – has centered on reducing regulations. For years, the government has been adding to the mountain of regs – will they stop now? Some housecleaning is possible, especially when federal courts step up to say that the most powerful regulator is operating unconstitutionally. The CFPB earned that distinction and we can expect remediation somewhere between reforming the CFPB to function the way other agencies do – to a whole new agency to replace it (The CHOICE Bill). If you listen closely, reform is centered on “new” regulations, Dodd-Frank and the five years after that. The other point to remember is that the real discussion is about enforcement. Many of the laws that piled up were passed years ago – some 30-50 years ago. Most importantly, regulators are primarily enforcers, although the last few years have revealed the ...

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