Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32For more information, please visit or 3 some 2015 Highlights Much of the regulatory, litigation and enforcement activity remained focused on the mortgage industry in 2015, with the year seeing resolutions to much of what still remains of crisis-era claims. Similarly, 2015 saw the plaintiff’s bar and government enforcement agencies continue to focus on credit card add-on products and auto finance, while the long-expected spike in activity fo- cused on student lending and servicing practices finally materialized. The year’s major developments included: • The first-ever appeal of a CFPB administrative en- forcement action, in which the CFPB Director modified the order of an administrative law judge and, among other things, increased the amount assessed against the lender by over $100 million for alleged Real Estate Settlement Procedures Act (RESPA) violations. • Expanding its jurisdiction, the CFPB announced a new rule that it would start regulating certain large, non-bank auto finance companies. This expansion of regulatory oversight means that the CFPB may enforce federal consumer protection laws against these non-bank auto finance companies. • The CFPB proposed to establish new rules for payday lending that would vastly change the current largely state-regulated landscape. The CFPB offered two pro- posals, known as “Debt Trap Prevention” and “Debt Trap Protection,” that force mini-underwriting onto the payday lenders. Regulations are expected this year. • The new TILA-RESPA Integrated Disclosure (“TRID” or “Know Before You Owe”) went into effect on Octo- ber 3, 2015, and the effects of the new rules continue to manifest. Initial reports determined that, despite the anxiety leading up to their implementation, the imple- mentation might not have not hit the mortgage lending industry as hard as expected. However, as time passed, vendor implementation complications have arisen and new applications totals have fluctuated. • The CFPB continued to heighten scrutiny of student lending and student loan servicing, coupling significant enforcement activity in the space with the release of a joint statement of general principles for student loan ser- vicing. The CFPB issued a 152 page report that recom- mended servicing reforms, and announced its intent to write rules governing the student loan servicing industry in “The Joint Statement of Principles on Student Loan Servicing.” 80 Fed. Reg.67389 (Nov. 11, 2015). • The servicing of troubled loans continued to be a focus for regulators, with regulators forcing a large servicer to pay out over $60 million for alleged “abusive practices.” Looking Ahead to 2016 In 2016, we anticipate the CFPB and plaintiff’s bar will significantly increase scrutiny of student lending and servicing practices, while they continue to police the mortgage, credit card and debt collection markets. We also anticipate that the CFPB will reinforce its expansive interpretation of RESPA with new enforcement activity, paying particular attention to Marketing Service Agree- ments. In 2016, we also expect the CFPB to continue to scru- tinize how institutions market and sell add-on products, though we expect that scrutiny to move across the con- sumer finance asset classes from credit cards to auto loans and other products. On the litigation front, we expect that key rulings from the U.S. Supreme Court, decisions in certain TCPA appeals, and possibly the D.C. Circuit’s decision in the PHH matter will bring more certainty to class action and TCPA law and practice as well as the contours of RESPA and, potentially, the authority of the CFPB itself. Finally, as the FinTech boom continues, the sector, which has thus far enjoyed a relative degree of freedom from heavy regulation and enforcement, will begin to face increased regulatory burdens and scrutiny.