12 USC § 5531 — Prohibiting unfair, deceptive, or abusive acts or practices
Dodd-Frank Title X CFPB UDAAP authority. Grants CFPB authority to prevent covered persons (which includes [LENDER] as a consumer financial product provider) from engaging in unfair, deceptive, or abusive acts or practices, and to make rules identifying such acts as unlawful. Defines the operative legal standards: (c) "unfair" requires substantial injury not reasonably avoidable and not outweighed by benefits; (d) "abusive" requires material interference with consumer understanding or unreasonable advantage of consumer lack-of-understanding, inability-to-protect, or reasonable reliance. (f) requires seasonal-income consideration for residential real estate credit. [LENDER]'s compliance program must operationalize the abstract UDAAP standards as concrete review of practices.
Verbatim regulatory text
Verbatim provisions from 12 USC § 5531 — Prohibiting unfair, deceptive, or abusive acts or practices — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
12 USC § 5531(a) — Prohibition on unfair, deceptive, or abusive acts and practices
The Bureau may take any action authorized under part E to prevent a covered person or service provider from committing or engaging in an unfair, deceptive, or abusive act or practice under Federal law in connection with any transaction with a consumer for a consumer financial product or service
12 USC § 5531(f) — Consideration of seasonal income in residential real estate underwriting
if documented income of the borrower, including income from a small business, is a repayment source for an extension of credit secured by residential real estate or a dwelling, the creditor may consider the seasonality and irregularity of such income in the underwriting of and scheduling of payments for such credit