Legal Blog

The Consumer Financial Protection Bureau’s Document Retention Requirements

Consumer Financial Protection BureauOver the past month, we have touched a good deal on the Consumer Financial Protection Bureau (CFPB) and its recent crusade to keep small businesses compliant. In our blog, “Your Small Business is not too small for the CFPB,” we outlined how the Bureau will extend its regulatory reach throughout each state, paying particular attention to small financial institutions, including non-depositories. In another blog, “Financial Institution Compliance and Loan Officer Compensation,” we explained how the CFPB was targeting non-depository lenders and community banks for failing to document loan officer compensations in its written employee agreements. Well, the CFPBH is still at it…

The Consumer Financial Protection Bureau’s Document Retention Requirements

The CFPB’s new document retention requirements mandate that lenders must document why and how a loan officer’s ultimate total compensation was calculated. Remember, the burden falls on lenders to prove their compensation plans and practices are fully compliant. And the easiest way to do this is through written documentation, including written policies and the documentation demonstrating such policies were in fact implemented and adhered to.

“Thus, any policies which affect compensation, which are not otherwise set forth in the compensation agreement, must be in writing,” explains Offit Kurman labor and employment attorney Ari Karen.

Consumer Financial Protection BureauIf you have questions about Financial Institution Compliance or the Consumer Financial Protection Bureau’s Document Retention Requirements, please Mr. Karen at Mr. Karen is an experienced litigator and speaker who has focused his practice in representing financial institutions in both government investigations and litigation before state and federal trial and appellate courts nationwide.

Offit Kurman Attorneys at Law: Financial Institutions Compliance Practice Group

At Offit Kurman Attorneys At Law, the attorneys in our Financial Institutions Compliance Practice Group offer legal representation and counseling for commercial and corporate transactions, regulatory compliance, government enforcement, public policy and governmental affairs and litigation and arbitration. We continuously monitor legal developments, publish articles and participate in industry and bar association groups on consumer finance issues. In addition, we are active members of various national and local organizations involved in the consumer financial services industry.

If you would like to learn more about Offit Kurman’s Financial Institutions Compliance Practice Group to see what we can do for you, please fill out our contact form to access the knowledgeable legal guidance that our experienced team of attorneys has to offer. You can also connect with Offit Kurman via FacebookTwitterGoogle+YouTube, and LinkedIn.


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