Mortgage Rates for May 19, 2023: Rates Move Higher

A number of important mortgage rates rose over the last seven days. The average 15-year fixed and 30-year fixed mortgage rates both grew fairly quickly. We also saw an increase in the average rate of 5/1 adjustable-rate mortgages.

FCC says more action on the way to stop illegal robocalls

MIAMI - Americans received 4.5 billion robocalls in April, according to the call block app company YouMail. And if you're tired of receiving them, you are not alone. "These calls are so annoying, and it's the number one consumer complaint at the Federal Communications Commission," says Jessica Rosenworcel, Chairwoman of the Federal Communications Commission.

The new rules of venture debt are already being written

The collapse of Silicon Valley Bank (SVB) was not the end of venture debt, but it was likely the end of companies raising venture debt with the same ease that many were accustomed to. TechCrunch+ recently spoke to five different VCs about the state of venture debt in the wake of SVB and then First Republic Bank’s collapse, and all of them said they don’t think the recent bank failures signaled the end of venture debt. Rather, they expect the process of raising this kind of debt will start to look a lot different.

Lenders are still losing money on each home loan

Mortgage lenders again lost money on each loan originated in the first quarter of the year, after recording record losses in the last quarter of 2022, according to data from the Mortgage Bankers Association (MBA).

Pennsylvania AG Settles With Snap for $11.4 Million: The Importance of Compliance for Consumer Finance Companies Operating in the Virtual Marketplace

On May 15, Pennsylvania Attorney General Michelle Henry (AG Henry) announced an $11.4 million settlement against Snap Finance LLC and its affiliates (Snap RTO LLC, Snap Second Look LLC, and Snap Finance Holdings, LLC) (Snap) for alleged violations of Pennsylvania consumer protection laws relating to personal property lease-purchase (aka "rent-to-own") transactions.

US senator introduces bill to create a federal agency to regulate AI

Days after OpenAI CEO Sam Altman testified in front of Congress and proposed creating a new federal agency to regulate artificial intelligence, a US senator has introduced a bill to do just that.

Maryland Moves to Eliminate Branch License Requirements for Non-Depository Institutions

As of July 1, 2023, Maryland will no longer require consumer finance company licensees to license their branch locations. Maryland House Bill 686 was signed into law by Governor Wes Moore on May 8, 2023 to effectuate the regulatory change.

Consumer experiences with overdraft programs

The CFPB held interviews and focus groups with low- and moderate-income consumers during the summer of 2022 to better understand their experiences with overdraft programs. For this engagement, 36 participants—14 in individual interviews and 22 across four focus groups—were asked about their use of deposit accounts and debit cards, their understanding of overdraft, specific incidents they experienced resulting in being charged an overdraft or NSF fee, their perceptions of ways to avoid such fees, and other related topics.

Health Breach Notification Rule: FTC wants your insights into proposed changes

The Health Breach Notification Rule has been in place since 2009. Given the pace of innovation, that seems like a century in tech years. Since then, we’ve seen an explosion in the popularity of health apps, fitness trackers, and other health-related monitors.

FTC Warns About Misuses of Biometric Information and Harm to Consumers

The Federal Trade Commission today issued a warning that the increasing use of consumers’ biometric information and related technologies, including those powered by machine learning, raises significant consumer privacy and data security concerns and the potential for bias and discrimination.

CFPB Issues Advisory Opinion on Collection of Time-Barred Debt

The CFPB recently issued an Advisory Opinion affirming that a covered debt collector who brings or threatens to bring a state court foreclosure action to collect a time-barred debt may violate the Fair Debt Collection Practices Act (FDCPA) and its implementing regulation (Regulation F).  The Advisory Opinion is effective May 1, 2023.

Board Determines Amendment to Wisconsin Member Business Loan Rule Is Permissible

ALEXANDRIA, Va. (May 19, 2023) – The National Credit Union Administration Board unanimously determined, by notation vote, that an amendment(opens new window) to section DFI-CU 72.02 of the Wisconsin Member Business Loan rule, which defines a “member business loan,” is no less restrictive than the NCUA’s definition of the same, as required by Section 723.10(a) of the NCUA’s Member Business Loan and Commercial Lending rule. This change aligns Wisconsin’s definition of “member business loan” with the NCUA’s definition of the same.

Global debt nears record highs as rate hikes trigger ‘crisis of adaptation,’ top trade body says

The global debt pile grew by $8.3 trillion in the first quarter to a near-record high of $305 trillion as the global economy faced a “crisis of adaptation” to rapid monetary policy tightening by central banks, according to a closely-watched report from the Institute of International Finance.

OCC Enforcement Actions and Terminations

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today released new enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations. All Cease and Desist Orders, Civil Money Penalty Orders, and Removal/Prohibition Orders are issued with the consent of the parties, unless otherwise indicated.

Acting Comptroller of the Currency Testifies on Bank Supervision

WASHINGTON—Acting Comptroller of the Currency Michael J. Hsu today testified on bank supervision before the Committee on Banking, Housing, and Urban Affairs of the U.S. Senate. In his testimony, Mr. Hsu shared his observations on recent bank failures and discussed the resiliency of the federal banking system. He also discussed the Office of the Comptroller of the Currency’s efforts in support of agency priorities to guard against complacency by banks, reduce inequality, adapt to digitalization, and manage climate-related financial risk.

FCC Further Expands Its Robocall Blocking Rules

FCC Adopts Expanded Robocall Rules That Require One-Day Traceback Support from All Voice Service Providers and Expand Traffic Blocking Obligations for Originating Providers

Attorney General Mayes Urges U.S. Supreme Court to Preserve Consumer Protection Watchdog

PHOENIX–Attorney General Mayes joined a multistate coalition in submitting an amicus brief to the Supreme Court, urging the Court to overturn a decision of the U.S. Court of Appeals for the Fifth Circuit that threatens the future operation of the Consumer Financial Protection Bureau (CFPB) and the viability of more than ten years of the agency’s regulatory and enforcement actions

EEOC Releases New Resource on Artificial Intelligence and Title VII

WASHINGTON – Today the Equal Employment Opportunity Commission (EEOC) released a technical assistance document, “Assessing Adverse Impact in Software, Algorithms, and Artificial Intelligence Used in Employment Selection Procedures Under Title VII of the Civil Rights Act of 1964,” which is focused on preventing discrimination against job seekers and workers. 

SVB’s ‘Twitter-Fueled’ Collapse Makes Banks Reassess Social Media

Banks around the country have begun coming up with plans to counter online threats — including internet rumors about the health of their institutions — Reuters reported Thursday (May 18), citing interviews with industry executives and analysts.

Heads of Failed Banks Mostly Blame Social Media, Not Themselves

(Bloomberg) -- Facing a second day of grilling from US lawmakers, the once top executives at recently failed banks coalesced around a culprit for their firms’ spectacular collapses: social media.

Many Americans eye buy now, pay later to gain more financial flexibility: Survey

Most Americans want financial flexibility when it comes to financing major life milestones and many are considering buy now, pay later (BNPL) installment loans to help finance big purchases, a recent survey said. 

ACA International Files Amicus Brief in 11th Circuit TCPA Case

On May 15, ACA International filed an amicus brief supporting GoDaddy.com, LLC in an 11th Circuit case on issues of Article III standing under the Telephone Consumer Protection Act.

Americans continue to pile up credit card debt, edging close to $1 trillion

Americans continue to bury themselves in credit card debt this year, with the latest total balance inching close to $1 trillion. U.S. consumers now owe $986 billion on their charge cards, according to Federal Reserve Bank of New York data released Monday.

Washington Federal Court Rejects Hunstein; Holds Article III Standing Exists in FDCPA Letter-Vendor Claim

Nearly two years after the Supreme Court’s 2021 decision in Transunion v. Ramirez, courts and litigants continue to grapple with standing issues in Fair Debt Collection Practices Act (FDCPA) cases brought by plaintiffs alleging intangible harms to reputation and privacy interests.

CFPB’s Small Business Lending Rules Headed for More Scrutiny on Capitol Hill 

Small business lending’s new data-driven approach may be headed for more scrutiny on Capitol Hill. To that end, Rep. Maxine Waters (California), the top Democrat ranking member on the House Financial Services Committee, and Rep. Nydia Velázquez (D-New York), ranking member on the House Small Business Committee, weighed in on the latest changes in a letter to Consumer Financial Protection Bureau Director Rohit Chopra asking for a briefing among House Democrats.

ARM Industry Claim Numbers Rose in March

WebRecon’s latest report shows litigation made some ground in March in Fair Debt Collection Practices Act, Telephone Consumer Protection Act and Fair Credit Reporting Act claims, compared to the much lower numbers in February.

US Bank Regulators Vow Tougher Rules, Oversight After Bank Failures

WASHINGTON (Reuters) -The Federal Reserve will unveil its plan to ratchet up capital rules for banks this summer and will ensure supervisors more aggressively police lenders following several recent bank failures, its top regulatory official told Congress on Tuesday.

Debt Collector Credit Control Corporation Notifies 286,699 Individuals of Recent Data Breach

On May 15, 2023, R&B Corporation of Virginia d/b/a Credit Control Corporation (“CCC”) filed a notice of data breach with the Maine Attorney General after learning that an unauthorized illegally copied certain files from the company’s computer network.

Attorney General Bonta Calls for California Legislature to Ban Hidden Fees (AKA Junk Fees)

SAN DIEGO — California Attorney General Rob Bonta today held a press conference to highlight the importance of Senate Bill 478 (SB 478). Coauthored by Senator Bill Dodd (D-Napa) and Senator Nancy Skinner (D-Berkeley), the legislation would prohibit in California hidden fees (also called ‘junk fees’) — fees in which a seller uses an artificially low headline price to attract a customer and usually either discloses additional required fees in smaller print, or reveals additional unavoidable charges later in the buying process. SB 478 is currently pending before the Senate Appropriations Committee.

Building resilience and durability into mortgage rules

Since 2021, the CFPB has been reviewing a number of its rules and guidance documents, including those published by predecessor agencies like the Federal Reserve Board of Governors and the Federal Trade Commission. We have found that many of these policies were drafted in ways that are unnecessarily complex, often to accommodate the preferences of dominant industry incumbents, rather than the market as a whole. We identified a particularly serious problem in federal mortgage rules that has major implications for the market.

Mortgage demand drops as interest rates hit a 2-month high

Higher mortgage rates and a severe shortage of homes for sale are taking their toll on mortgage demand. Mortgage applications to purchase a home dropped 4.8% last week, compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 26% lower than the same week one year ago.

CNBC Daily Open: Inflation weighed on consumer spending

Any positive momentum stocks had on Monday dissipated yesterday, as downbeat economic signs weighed on indexes. Individual technology stocks had a good day — both Microsoft and Nvidia hit a 52-week high, while Alphabet jumped 2.6% and Meta added 2% — but even those large-cap stocks couldn’t stop the tech-heavy Nasdaq Composite from declining 0.2%.

FTC Sues VoIP Service Provider for Allegedly Aiding and Abetting Illegal Telemarketing Robocalls

Just last week, Federal Trade Commission (FTC) sued XCast Labs, Inc., a Voice over Internet Protocol (VoIP) provider, for its alleged involvement in facilitating illegal robocalls. Despite receiving multiple warnings, the company continued to allow hundreds of millions of these unlawful calls to flow through its network. The complaint, filed on May 12, 2023 by the Department of Justice in the Central District of California on behalf of the FTC, seeks to put an end to XCast Labs' activities.

AG HENRY SECURES $11 MILLION SETTLEMENT WITH PREDATORY RENT-TO-OWN LENDER THAT TARGETED LOW-INCOME BORROWERS

HARRISBURG– Attorney General Michelle Henry today announced a settlement of a lawsuit filed against Snap Finance LLC and its affiliates for $11.4 million.

Attorney General Bonta Files Multistate Amicus Brief in Defense of CFPB

OAKLAND — California Attorney General Rob Bonta, as part of a coalition of 24 attorneys general, filed an amicus brief in the U.S. Supreme Court in support of the Consumer Financial Protection Bureau (CFPB). In their amicus brief, the attorneys general support the CFPB’s contention that the agency’s funding structure is constitutional and argue that the court should not invalidate the CFPB’s past and ongoing regulatory and enforcement actions even if it determines that the agency’s current funding structure is not constitutional.

FTC Sends More than $3.3 Million to Consumers Harmed by Passport Auto’s Illegal Junk Fees and Discriminatory Practices

The Federal Trade Commission is sending payments totaling more than $3.3 million to customers of Passport Auto, a Washington D.C.-area auto dealer. In October 2022, the FTC charged Passport with adding hundreds, or even thousands, of dollars in illegal junk fees to car prices and for discriminating against Black and Latino consumers by charging them higher fees and financing costs.

Today’s mortgage rates rise, but 10- and 15-year terms stay below 6% | May 16, 2023

Based on data compiled by Credible, mortgage rates for home purchases are mixed, with two key rates rising, one falling and another remaining unchanged since yesterday.

Consumer debt passes $17 trillion for the first time despite slide in mortgage demand

Total consumer debt hit a fresh new high in the first quarter of 2023, pushing past $17 trillion even amid a sharp pullback in home borrowing. The total for borrowing across all categories hit $17.05 trillion, an increase of nearly $150 billion, or 0.9% during the January-to-March period, the New York Federal Reserve reported Monday. That took total indebtedness up about $2.9 trillion from the pre-Covid period ended in 2019.

New Washington state law should mean fewer spam robocalls

A new Washington state law will make it easier to sue scammers who engage in illegal robocalling — and hold cell phone providers accountable if they knowingly allow the scam calls on their networks.

Debt Collectors (And Not Just Banks) Are Responsible For Accurate Consumer Credit Reporting

A large debt collection company in the United States was recently accused of violating federal consumer protection laws. The Consumer Financial Protection Bureau filed a proposed order that, if entered by the court, would require the company to pay over $12 million to consumers affected by what the CFPB claims are illegal debt collection practices, as well as a civil penalty of $12 million.

Acting Comptroller of the Currency Testifies on Prudential Regulation

WASHINGTON—Acting Comptroller of the Currency Michael J. Hsu today testified before the U.S. House of Representatives’ Committee on Financial Services on the agency’s actions and responses to recent market stress and how the agency is ensuring that national banks and federal savings associations operate in a safe, sound, and fair manner.

FTC Sends More than $3.3 Million to Consumers Harmed by Passport Auto’s Illegal Junk Fees and Discriminatory Practices

The Federal Trade Commission is sending payments totaling more than $3.3 million to customers of Passport Auto, a Washington D.C.-area auto dealer. In October 2022, the FTC charged Passport with adding hundreds, or even thousands, of dollars in illegal junk fees to car prices and for discriminating against Black and Latino consumers by charging them higher fees and financing costs.

Washington Federal Court Rejects Hunstein; Holds Article III Standing Exists in FDCPA Letter-Vendor Claim

Nearly two years after the Supreme Court’s 2021 decision in Transunion v. Ramirez, courts and litigants continue to grapple with standing issues in Fair Debt Collection Practices Act (FDCPA) cases brought by plaintiffs alleging intangible harms to reputation and privacy interests. Prominent among these post-Ramirez FDCPA cases was Hunstein v. Preferred Collection & Management Services. (11th Cir. 2022),

Maryland eliminates separate licensing requirement for branches

On May 8, the Maryland governor signed HB 686 to eliminate a requirement that collection agencies and certain non-depository financial institutions must maintain separate licenses for branch locations. The Act now allows such entities to conduct business at multiple licensed locations under a single license.

Attorney General Bonta Announces President of a Mortgage Company Found Guilty on 100 Felony Counts in $7 Million Statewide Mortgage Fraud Scheme

OAKLAND —  California Attorney General Rob Bonta today announced that the former president of a purported mortgage “investment” company, Robert Sedlar, has been convicted of 100 felony counts for operating a mortgage fraud scheme throughout California. The scheme resulted in a combined loss of over $7 million.

Washington State Amends State Cybersecurity Law to Create Advisory Committee and Technology Service Board

On April 21, 2023, the Governor of Washington State signed Second Substitute Bill 5518 into law, establishing a cybersecurity advisory committee and related subcommittees to provide recommendations for identifying and responding to cybersecurity breaches.

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RMAi 2023 Executive Summit

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CA Credit Union Collectors Council – 36th Annual Conference

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