“The cost of compliance obviously is going to be a big issue,” Ballard Spahr law firm attorney John Culhane Jr. said. In September, the CFPB proposed a rule that would regulate nonbanks originating 10,000 or more auto loans and leases a year.
The proposed regulation would include automakers’ captive finance arms and independent lenders, Henry reports.
Mission Creep?
The larger-participants rule could be used to give the CFPB authority to act on cases of alleged “unfair, deceptive or abusive acts or practices…”
MH industry sources speculate this move by the CFPB could lead to outreach efforts between auto lenders, MH Industry finance firms, associations and others seeking to collaborate for regulatory relief. ##
(Image Credit: Automotive News)
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