source:
  type: regulation
  id: udaap-12usc-5531
  authority: 12 USC § 5531 — Prohibiting unfair, deceptive, or abusive acts or practices
  description: '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.

    '
obligations:
- id: udaap-12usc-5531-a
  canonical_id: udaap-12usc-5531-a
  section: 12 U.S.C. §5531(a)
  description: '(a): (a) In general 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 …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 USC § 5531(a)
    source_class: udaap-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/5531
    snapshot_id: a8ef34a395b12ade
    fetched_at: '2026-05-24T19:33:27Z'
    content_hash: sha256:a8ef34a395b12adea8ef34a395b12adea8ef34a395b12adea8ef34a395b12ade
    paragraph_quote: (a) In general 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 , or the offering of a consumer financial product or service .
    drafter_attestation: Verbatim subsection of 12 U.S.C. §5531 from Cornell LII snapshot a8ef34a395b12ade;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: udaap-12usc-5531-b
  canonical_id: udaap-12usc-5531-b
  section: 12 U.S.C. §5531(b)
  description: '(b): (b) Rulemaking The Bureau may prescribe rules applicable to a covered person or service
    provider identifying as unlawful unfair, deceptive, or abusive acts or practices in connection with
    any transaction with a consumer for a consumer financial product or service , or the offering of a
    consumer fina…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 USC § 5531(a)
    source_class: udaap-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/5531
    snapshot_id: a8ef34a395b12ade
    fetched_at: '2026-05-24T19:33:27Z'
    content_hash: sha256:a8ef34a395b12adea8ef34a395b12adea8ef34a395b12adea8ef34a395b12ade
    paragraph_quote: (b) Rulemaking The Bureau may prescribe rules applicable to a covered person or service
      provider identifying as unlawful unfair, deceptive, or abusive acts or practices in connection with
      any transaction with a consumer for a consumer financial product or service , or the offering of
      a consumer financial product or service . Rules under this section may include requirements for
      the purpose of preventing such acts or practices.
    drafter_attestation: Verbatim subsection of 12 U.S.C. §5531 from Cornell LII snapshot a8ef34a395b12ade;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: udaap-12usc-5531-c
  canonical_id: udaap-12usc-5531-c
  section: 12 U.S.C. §5531(c)
  description: '(c): (c) Unfairness (1) In general The Bureau shall have no authority under this section
    to declare an act or practice in connection with a transaction with a consumer for a consumer financial
    product or service , or the offering of a consumer financial product or service , to be unlawful on
    the grounds …'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 USC § 5531(a)
    source_class: udaap-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/5531
    snapshot_id: a8ef34a395b12ade
    fetched_at: '2026-05-24T19:33:27Z'
    content_hash: sha256:a8ef34a395b12adea8ef34a395b12adea8ef34a395b12adea8ef34a395b12ade
    paragraph_quote: (c) Unfairness (1) In general The Bureau shall have no authority under this section
      to declare an act or practice in connection with a transaction with a consumer for a consumer financial
      product or service , or the offering of a consumer financial product or service , to be unlawful
      on the grounds that such act or practice is unfair, unless the Bureau has a reasonable basis to
      conclude that— (A) the act or practice causes or is likely to cause substantial injury to consumers
      which is not reasonably avoidable by consumers ; and (B) such substantial injury is not outweighed
      by countervailing benefits to consumers or to competition. (2) Consideration of public policies
      In determining whether an act or practice is unfair, the Bureau may consider established public
      policies as evidence to be considered with all other evidence. Such public policy considerations
      may not serve as a primary basis for such determination.
    drafter_attestation: Verbatim subsection of 12 U.S.C. §5531 from Cornell LII snapshot a8ef34a395b12ade;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: udaap-12usc-5531-d
  canonical_id: udaap-12usc-5531-d
  section: 12 U.S.C. §5531(d)
  description: '(d): (d) Abusive The Bureau shall have no authority under this section to declare an act
    or practice abusive in connection with the provision of a consumer financial product or service ,
    unless the act or practice— (1) materially interferes with the ability of a consumer to understand
    a term or condition…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 USC § 5531(a)
    source_class: udaap-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/5531
    snapshot_id: a8ef34a395b12ade
    fetched_at: '2026-05-24T19:33:27Z'
    content_hash: sha256:a8ef34a395b12adea8ef34a395b12adea8ef34a395b12adea8ef34a395b12ade
    paragraph_quote: (d) Abusive The Bureau shall have no authority under this section to declare an act
      or practice abusive in connection with the provision of a consumer financial product or service
      , unless the act or practice— (1) materially interferes with the ability of a consumer to understand
      a term or condition of a consumer financial product or service ; or (2) takes unreasonable advantage
      of— (A) a lack of understanding on the part of the consumer of the material risks, costs, or conditions
      of the product or service; (B) the inability of the consumer to protect the interests of the consumer
      in selecting or using a consumer financial product or service ; or (C) the reasonable reliance by
      the consumer on a covered person to act in the interests of the consumer.
    drafter_attestation: Verbatim subsection of 12 U.S.C. §5531 from Cornell LII snapshot a8ef34a395b12ade;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: udaap-12usc-5531-e
  canonical_id: udaap-12usc-5531-e
  section: 12 U.S.C. §5531(e)
  description: '(e): (e) Consultation In prescribing rules under this section, the Bureau shall consult
    with the Federal banking agencies, or other Federal agencies, as appropriate, concerning the consistency
    of the proposed rule with prudential, market, or systemic objectives administered by such agencies.'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 USC § 5531(a)
    source_class: udaap-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/5531
    snapshot_id: a8ef34a395b12ade
    fetched_at: '2026-05-24T19:33:27Z'
    content_hash: sha256:a8ef34a395b12adea8ef34a395b12adea8ef34a395b12adea8ef34a395b12ade
    paragraph_quote: (e) Consultation In prescribing rules under this section, the Bureau shall consult
      with the Federal banking agencies, or other Federal agencies, as appropriate, concerning the consistency
      of the proposed rule with prudential, market, or systemic objectives administered by such agencies.
    drafter_attestation: Verbatim subsection of 12 U.S.C. §5531 from Cornell LII snapshot a8ef34a395b12ade;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: udaap-12usc-5531-f
  canonical_id: udaap-12usc-5531-f
  section: 12 U.S.C. §5531(f)
  description: '(f): (f) Consideration of seasonal income The rules of the Bureau under this section shall
    provide, with respect to an extension of credit secured by residential real estate or a dwelling,
    if documented income of the borrower, including income from a small business, is a repayment source
    for an extension…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 USC § 5531(a)
    source_class: udaap-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/5531
    snapshot_id: a8ef34a395b12ade
    fetched_at: '2026-05-24T19:33:27Z'
    content_hash: sha256:a8ef34a395b12adea8ef34a395b12adea8ef34a395b12adea8ef34a395b12ade
    paragraph_quote: (f) Consideration of seasonal income The rules of the Bureau under this section shall
      provide, with respect to an extension of credit secured by residential real estate or a dwelling,
      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 . ( Pub. L. 111–203, title X, § 1031 , July 21, 2010 , 124 Stat. 2005 .)
    drafter_attestation: Verbatim subsection of 12 U.S.C. §5531 from Cornell LII snapshot a8ef34a395b12ade;
      body isolated between nav and notes; substring-verified.
  judgment: false
