Removing Barriers Blog

BCFP Intends to Pursue UDAAP Rulemaking
Posted October 16, 2018 by CUNA Advocacy

During remarks at a mortgage industry event, Acting Director Mick Mulvaney announced the BCFP plans to pursue in the near future a rulemaking creating standards for unfair, deceptive, or abusive acts or practices (UDAAP).

The rulemaking would likely aim to provide clarity for financial institutions as to what practices fall under UDAAP.  This could include defining some key terms under the Dodd-Frank Act for the first time, including practices falling under “abusive.”

Since its inception, the Bureau has refrained from engaging in a UDAAP rulemaking instead opting to “regulate through enforcement.”  This approach has created significant uncertainty and increased litigation risk.   As a result, CUNA has consistently called on the Bureau to clarify its overly-subjective approach to UDAAP through a rulemaking or other regulatory action.