What is the CFPB's stake in this issue? -

The FDCPA is a very powerful statute. It touches a lot of areas of consumer protection. The CFPB is really just exploring it and flexing its muscles in that area. It's working on rulemaking for the statute, which it is in power to do under DoddFrank, and it's taking its time doing that. The CFPB recently put up a complaints database and has been trumpeting data that it received about complaints, which not surprisingly was largely onesided. Consumers complain about debt collection a lot because it's a difficult situation to be in. In the meantime, the FTC has really continued to dominate the enforcement in this area. So I think in the long term, we see the CFPB moving more aggressively into the space and wielding the tool that is powerful, especially once it implements rules, in part because the penalties that are available under the FDCPA can be significant.

So how does that relate to the more specific issue and technical issue of a trustee in a nonjudicial foreclosure? The specific issue could arguably be seen as relatively minor in comparison by trustee, because the CFPB has targeted lenders and servicers more forcefully. But it's an important position statement because the CFPB has taken a broad approach that has broad impacts for other entities. Also, (the CFPB's filing of the amicus brief) reflects a lack of understanding of state foreclosure law that is somewhat disturbing and doesn't bode well for the CFPB's rulemaking and enforcement efforts in that area.

Originally published in DSNews on August 28, 2015.