Sometimes regulators deliver broad pronouncements, but any confusion is clarified through their enforcement. They say what they mean and mean what they say.
This is why is it so incredibly important to remember that following the “letter of the law” may not necessarily mean that your financial institution is in the clear. As this article in the WSJ states, “Part of the problem with the financial crisis . . . is that people were following rules and regulations but still weren’t being ethical.”
This is what the CFPB and other regulators are focusing on. They look at the substance and intent behind business relationships and do not hesitate in their investigations.
If you like our blogs, sign up for our newsletter to get monthly updates delivered to your inbox!