At a glanceFriday, March 29, 2019

Collection Industry News At A Glance - March 29, 2019
Friday March 29, 2019
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OCC: Mortgage Performance Improved in Fourth Quarter

The share of current and performing first-lien mortgages in the fourth quarter of 2018 was 95.8 percent, up slightly from 94.5 percent a year ago, according to the Mortgage Metrics Report released today by the OCC. The report is generated from data from seven large national banks representing 31 percent of all outstanding residential mortgages. Foreclosure activity increased 3.5 percent from the previous quarter, with 29,515 new foreclosures initiated, and was down 14.5 percent from a year ago. Mortgages that were considered seriously delinquent held steady at 1.8 percent in the fourth quarter. Loans that were 30 to 59 days delinquent fell to 2 percent, down from 2.3 percent in the third quarter.

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FCC Reportedly Collected Only 0.003% of Robocall Fines Since 2015

As late as last month, FCC Chairman Ajit Pai was on the Fox News Channel boasting about having imposed on robocalls some of the “biggest fines in the FCC’s history.” Documents obtained this week by reporters at the Wall Street Journal, however, put the agency’s milquetoast enforcement in a more authentic light. As the paper reported:

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Consumer Bankers Association favors CFPB reform initiatives

In advance of the Consumers First Act markup, the Consumer Bankers Association (CBA) forwarded a series of Consumer Financial Protection Bureau (CFPB) reform measures to the House Financial Services Committee.

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Third Party Vendor Auditing Workshop is a two-day session scheduled May 6 – 7 in Las Vegas, NV at the Four Season Hotel, right before the Collection and Recovery Solutions 2019 conference.  Auditing Third Party Vendors is a case in point. Without a solid, practical and insightful audit program, you may not be getting what you expect from your third party vendors.  At the Third Party Vendor Auditing Workshop, learn skills and techniques to audit your third party vendors to comply with CFPB requirements, to validate consumer protection and to verify that your own vendor contract requirements are being met.

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Equifax and FICO introduce strategic partnership to deliver the Data Decisions Cloud

ATLANTAMarch 27, 2019 /PRNewswire/ -- To increase velocity for deploying predictive models, FICO and Equifax are introducing the Data Decisions Cloud. The new Data Decisions Cloud is an end-to-end data and analytics suite that addresses key needs across risk, marketing, and fraud to enable financial institutions to meet the needs of consumers faster and more precisely than ever before. 

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In The Age Of AI, The Human Factor Still Matters For Cybersecurity

It’s no secret that both the public and private sector are turning to AI and automation in their fight against cyber-attacks. However, while it’s important to use every tool in the arsenal to be effective, this strategy must not be at the expense of people – rather, it must be blended with them.  

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CUNA to Congress: Data Security is a National Security Issue

Credit Union National Association (CUNA) is urging Congress to recognize data security as an issue of national security. The trade organization advocating for America’s 115 million credit union members today sent letters for the record ahead of two data privacy hearings on Capitol Hill.  

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FTC shuts down four groups responsible for billions of illegal robocalls

Four companies that made billions of illegal robocalls have been caught and fined. The Federal Trade Commission on Tuesday said the agency reached settlements with four operations responsible for billions of illegal robocalls pitching debt-relief services, home security systems, fake charities, auto warranties and Google search results services. The companies were charged with violating the FTC Act, as well as the agency's Telemarketing Sales Rule and its Do Not Call provisions. "We have brought dozens of cases targeting illegal robocalls, and fighting unwanted calls remains one of our highest priorities," said Andrew Smith, director of the Bureau of Consumer Protection at the FTC, in a release. "We also have great advice on call-blocking services and how to reduce unwanted calls at [our website.]"

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Executive Order on Education Addresses Federal Student Lending

The White House last week issued an executive order entitled “Executive Order on Improving Free Inquiry, Transparency, and Accountability at Colleges and Universities.”  In addition to pronouncements regarding free speech in the higher education context, the Executive Order makes several policy statements involving federal student lending and directs the Department of Education to take certain steps to implement specific action items that could affect both schools and federal student loan servicers.

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A Closer Look at FinTech for Mortgage Professionals

National Mortgage Professional Magazine recently had a chance to sit down to speak with Alok Datta, President of Dallas-based SLK Global America, a technology, business consulting and outsourcing provider to some of the largest Fortune 500 companies.  Alok has more than 20 years of experience in the banking and financial services industry and in business consulting. He has managed large operations across banking, mortgage lending, title insurance and other sectors within the financial services industry, including as head of mortgage operations at a leading U.S. bank.

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Auto Lending Trends in an Uber World

Financial institutions have to maintain perspective as the relationship between Americans and their wheels evolves — or they’ll react too soon to coming hot trends while missing practical challenges that are right in front of them.

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Payday lending bill will be changed; how is the question

INDIANAPOLIS (Statehouse File) — There is zero chance the payday lending bill will advance in the form it passed the Senate, House Financial Institutions Chairman Woody Burton said after a lengthy hearing on the controversial bill. But what will happen to Senate Bill 613 is unclear. Burton urged those who support the measure and opponents who want it dead to seek compromise. The result could be a substantially amended bill that still keeps some form of payday lending, a bill reduced to just a summer study committee of the issue, or no bill at all.

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Collection and Recovery Solutions 2019 is pleased to announce Rich Karlgaard, Publisher and Futurist, Forbes Media, as the Keynote Speaker, on “Best Practices in Business Adaptability”, at the Four Seasons Hotel, Las Vegas May 8 – 10, 2019.  Forbes publisher and global futurist, Rich Karlgaard, cuts through the clutter. He forecasts the business and technology world as it is likely to unfold over the next two, five, and ten years.

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Climate Change and the Federal Reserve

Climate change describes the current trend toward higher average global temperatures and accompanying environmental shifts such as rising sea levels and more severe storms, floods, droughts, and heat waves. In coming decades, climate change—and efforts to limit that change and adapt to it—will have increasingly important effects on the U.S. economy. These effects and their associated risks are relevant considerations for the Federal Reserve in fulfilling its mandate for macroeconomic and financial stability.

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Report: Half of Breaches Trace to Hacking, Malware Attacks

Beazley Breach Response Services, a unit of global insurance company Beazley, reports that nearly half of the more than 3,300 breaches it investigated last year traced to a hack attack or malware infection. And half of those hacking/malware attacks were tied to business email compromise schemes. The rise of business email compromise - aka CEO fraud - has been well documented. By last July, global losses due to BEC attacks had reached at least $12.5 billion, the FBI warned (see: CEO Fraud: Barriers to Entry Falling, Security Firm Warns). David Stubley, who heads security testing firm and consultancy 7 Elements in Edinburgh, Scotland, says attackers increasingly target cloud-based email environments, including Office 365 email inboxes

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GAO: Equifax-Like Breaches Require Greater Civil Penalties

One way to ensure greater protection for consumers and their personal information following massive data breaches is to give the U.S. Federal Trade Commission the ability to impose greater civil penalties against consumer reporting agencies, such as Equifax, a new government report concludes. That conclusion is part of the report issued on Tuesday by the Government Accountability Office, "Consumer Data Protection: Actions Needed to Strengthen Oversight of Consumer Reporting Agencies." The document is in response to questions raised by Sen. Elizabeth Warren, D-Mass., and Rep. Elijah Cummings, D-Md., about the Equifax data breach. The report also comes as the House Committee on Oversight and Reform is conducting hearings about data security at consumer reporting agencies.

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Citi to Build Digital Consumer Payments Business for Institutions

New York – Citi’s Treasury and Trade Solutions (TTS) is developing a new business line for consumers to make digital payments to institutions. This is part of TTS’s overall strategy to enable digital commerce for clients and extend its significant presence and capabilities beyond the wholesale payments space. Under this umbrella, a new planned service will be made available to offer institutional merchants the ability to collect from a wide range of payment methods including cards, e-wallets and new and innovative bank transfers such as Request to Pay and Open Banking—as they gain traction. In turn, their consumers will have access to a wide variety of payments methods of their choice.

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EOS USA, a leader in the accounts receivable management (ARM) and business process outsourcing industry, has announced the appointment of Tod Dillon as Chief Executive Officer.   Most recently, Mr. Dillon served as the Company’s Chief Financial Officer and Chief Administrative Officer, and has been with EOS USA since 2010. Previously, he held a variety of senior financial and operational management positions with Fidelity Investments, American Management Systems and Chubb. He received his B.A, magna cum laude, in Economics and Government from Bowdoin College and an MBA from the D’Amore-McKim School of Business at Northeastern University.  In addition to his nearly 30 years of financial services industry experience, Mr. Dillon has been a member of the EOS USA Board of Directors since 2013.

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FTC Seeks to Examine the Privacy Practices of Broadband Providers

The Federal Trade Commission issued orders to seven U.S. Internet broadband providers and related entitiesseeking information the agency will use to examine how broadband companies collect, retain, use, and disclose information about consumers and their devices.

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Tim Cook says Apple Card is a game changer. Experts are not so sure

New York (CNN Business)Apple CEO Tim Cook said Monday that the tech company's new credit card would be "the most significant change in the credit card experience in 50 years." But not everyone's buying it. The card, which will push users toward Apple Pay, offers a run-of-the-mill suite of spending rewards, and the security features — while laudable — don't move the needle, according to analysts. Apple's first credit card will debut this summer in partnership with Mastercard (MA) and Goldman Sachs (GS), the issuing bank. Notably, the card is built into the iPhone's Apple Wallet app, and a physical, laser-etched titanium card is optional. The card has no annual or foreign transaction fees, and will allow users to track spending by category on their phones. Cash back registers daily.

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Stay On CFPB Payday Lending Rule Upheld

A federal judge late last week ordered a stay on the August 2019 compliance date tied to the “payday lending rule” mandated roughly two years ago by the Consumer Financial Protection Bureau (CFPB). As reported late last week across outlets such as American Banker, the rule had been drafted under the tenure of Richard Cordray, who had served as the previous director. The new Director Kathleen Kraninger has proposed eliminating one of the components of the rule, which put in place new underwriting requirements for lenders (such as verifying borrowers’ ability to repay the payday loans). The rule also had another component, focused on how often a lender can try to debit payments from a customer’s bank account.

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Consumer Backlash Meets Indiana Senate’s Payday Loan Bill

(Indianapolis, Ind.) - A coalition is urging Indiana lawmakers to stop a bill that would significantly expand high interest loans in the state.  Senate Bill 613 would allow loans with interest rates above 72 percent, which is currently considered felony loan sharking. Indiana veterans groups, faith organizations and social service agencies say the bill would open the door to predatory lending practices. But supporters maintain it fills a gap for borrowers, between traditional bank or credit union loans and payday lending. Erin Macey, a senior policy analyst with the Indiana Institute for Working Families, says the only winners would be the payday lenders.

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The Asset Management Industry Should Take the Lead on A.I. Standards

The increased sophistication of fintech poses many policy concerns, especially when harnessing A.I. in asset management. Currently, there is a lack of international regulatory standards for A.I. and machine learning in asset management. Since A.I. is already being used by investment managers to improve operational structure, investment strategy, and trading efficiency, the need to address this policy gap is urgent.

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Proposed Amendment to FTC Cybersecurity Rules Could Affect Retirement Plans

The Federal Trade Commission is considering amendments to cybersecurity rules that could have an impact on retirement plan professionals. Earlier this month, the FTC voted 3-2 to propose amendments to the Standards for Safeguarding Customer Information, which became effective in 2003 and require that financial institutions develop, implement and maintain a comprehensive information security program. They also propose to amend the Privacy of Consumer Information Rule under the Gramm-Leach-Bliley Act, which went into effect in 2000 and requires financial institutions to inform customers about their information-sharing practices and allow customers to opt out of having their information shared with certain third parties.

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Payday lenders get unexpected reprieve from CFPB rule

A federal judge delivered another victory to payday lenders by leaving in place a stay on the compliance date for the Consumer Financial Protection Bureau’s 2017 payday lending rule. That rule, drafted under former CFPB Director Richard Cordray, had two key components: new underwriting requirements for high-cost, small-dollar lenders, and limits on how often a lender can attempt debiting payments from a borrower's bank account.

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The 2019 MIT Fintech Conference: A Show Review

On Friday, March 8, I attended the 2019 MIT Fintech Conference at the Aloft Boston Seaport Hotel in downtown Boston. This was the fifth annual conference planned and hosted entirely by a team of graduate students, primarily from the MIT Sloan School of Management and Harvard Business School. I was impressed by the quality and professionalism of the event, which exceeded some professional events I have attended. Most of all, I was impressed by the energy and enthusiasm of the students for the fintech space; one of the bank panelists during the event lamented that banking had become perceived as “boring” by students over the years, hindering recruitment.  I think that is changing; the conference sold out well in advance, and had about an equal mix of students and professionals. If incumbent financial institutions can find a home for these students, they will be well positioned for the future.

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Industry Events

LendIt Fintech USA 2019

LendIt Fintech

San Francisco , CA
April 08 - 09 , 2019


NCUCA – National Credit Union Collection Alliance

NCUCA - National Credit Union Collection Alliance

April 15 - 17 , 2019

Collection & Recovery Solutions 2019

Resource Management Services, Inc.

Four Seasons Hotel
3960 Las Vegas Blvd South
Las Vegas , NV
May 08 - 10 , 2019


National Creditors Bar Association 2019 Spring Conference

National Creditors Bar Association

Hilton Minneapolis
1001 S. Marquette Avenue
Minneapolis, MN 55403

May 15 - 18 , 2019


PrivacyCon 2019

Federal Trade Commission

400 7th St., SW
Washington , DC
June 27 - 27 , 2019

(202) 326-2222

NACTT 54th Annual Seminar Registration Open


JW Marriott Indianapolis 10 S. West Street Indianapolis, IN 46204
Indianapolis , IN
July 16 - 19 , 2019

800-445-8629 | 803-765-0860

ACA International 2019 Annual Convention & Expo

ACA International

Event Location TBA

July 17 - 16 , 2019


Debt Connection Symposium & Expo 2019

Resource Management Services, Inc.

Red Rock Casino Resort & Spa
11011 W Charleston Blvd
Las Vegas, Nevada

September 10 - 12 , 2019

(562) 906-1101

National Creditors Bar Association 2019 Fall Conference

National Creditors Bar Association

Marriott Marquis
Washington, Washington, DC

October 16 - 19 , 2019


More information about Resource Management Services, Inc.
More information about Debt Connection Symposium
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