UDAAP Clarity is Coming, Mulvaney Tells Mortgage Bankers

Bureau of Consumer Financial Protection (BCFP) Acting Director Mick Mulvaney said the Bureau is working on a rulemaking to better clarify its definition of unfair, deceptive or abusive acts or practices (UDAAP).

Mulvaney made the announcement Monday during the Mortgage Bankers Association's annual conference in Washington.

The Dodd-Frank Act provides broad definitions of prohibited behaviors under UDAAP and gives the Bureau primary rule-making authority over the standard. In the past, financial institutions generally had to rely on individual enforcement actions to define what "abusive" meant. But Mulvaney said that while the Bureau will continue with its investigations and bring lawsuits based on alleged rule violations, "regulation by enforcement is done."

in Compliance & Regulatory News