Here’s why America’s $1.5 trillion student-loan crisis has spiralled out of control

With the growth in student loans continuing to soar, politicians and borrowers struggling with an issue that’s become both a financial and political problem.   Presidential candidates are proposing to cancel student debt and make public college free, state legislators are cracking down on student-loan companies and, recently, government agencies have offered another approach — teaching students and borrowers more about finances.

Senate passes NDAA; NAFCU remains ‘staunchly opposed’ to nominal lease provision

The Senate Thursday passed its version of the 2020 National Defense Authorization Act (NDAA), which includes a NAFCU-opposed provision that could allow big banks to be treated the same as a military installation's local not-for-profit defense credit union. NAFCU will maintain its advocacy efforts to prevent this provision from being included in any final bill passed by both chambers.

BOOK YOUR ROOM TODAY AT THE RED ROCK HOTEL FOR THE DEBT CONNECTION SYMPOSIUM AND EXPO 2019 CONFERENCE

Have you booked your room at the Red Rock Hotel?   We have insured that all Debt Connection Symposium and Expo 2019 conference attendees get a conference-discounted rate of $190 for a standard room.  So if you do not have your room reserved, please act fast, space is limited, and we expect to sell out.   Debt Connection Symposium and Expo 2019 will be held on September 10-12, 2019 at the Red Rock Hotel in Las Vegas, NV.   to book your room today, please click "Here" to guarantee the conference standard room rate.  

A New ‘Fixer Upper’ Mortgage Program Suggests Shifts In Lending Landscape

Mortgages may be on the pivot again. They have made it through a period of tight lending conditions all the way to our current phase where lenders have had to come up with dozens of iterations of low downpayment programs. While the low downpayment trend hasn't ebbed completely, it may be shifting towards a lending landscape that provides even more cash to buyers—particularly first-time buyers and those who want to age in place.  Freddie Mac announced last week a new CHOICERenovationproduct that joins the other home renovation mortgage options out there which encourage buyers to purchase old housing stock.

OCC Reports Improvement in Mortgage Performance

WASHINGTON —The Office of the Comptroller of the Currency (OCC) reported a slight improvement in the performance of first-lien mortgages in the federal banking system during the first quarter of 2019.   The OCC Mortgage Metrics Report, First Quarter 2019 showed 96.2 percent of mortgages included in the report were current and performing at the end of the quarter, compared to 95.6 percent a year earlier.

CFPB Files Amicus Brief in Support of Plaintiff in Fourth Circuit FDCPA case

The CFPB has filed an amicus brief in Bender v. Elmore & Throop, P.C., an appeal before the Fourth Circuit involving the application of the FDCPA’s one-year statute of limitations.  The brief supports the position of the plaintiff-appellant that the one-year period runs separately for each discrete FDCPA violation.  It represents the first CFPB amicus brief filed under Director Kraninger’s leadership.

Fearful of another recession, Americans are losing sleep over their finances

Some Americans are feeling uneasy. Consumer confidence fell to a two-year low in June, the Conference Board announced this week. It fell to 121.5 this month from a 131.3 in May. That’s the lowest level since September 2017.  “The escalation in trade and tariff tensions earlier this month appears to have shaken consumers’ confidence,” Lynn Franco, senior director at the Conference Board, said in a statement. Continued uncertainty could “diminish” people’s confidence in the economic expansion, she added.

CFPB Extends Comment Period For ANPR on HMDA Data Points

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) announced today that it is extending the comment period on its Advance Notice of Proposed Rulemaking (ANPR) relating to the Home Mortgage Disclosure Act (HMDA). The extension will give interested parties an opportunity to review the Bureau’s annual overview of residential mortgage lending based on the HMDA data financial institutions collected in 2018, as requested by a variety of stakeholders. In late summer, the Federal Financial Institutions Examination Council will release the national loan level dataset and the Bureau will release an overview of that dataset.

KeyBank launches Financial Wellness Review

KeyBank is launching Financial Wellness Review, a new tool aimed at helping customers better understand and address their financial pictures.  The review combines advanced analytics with personalised expertise giving clients deeper insight into their financial behaviours and identifies real solutions.   “We know that each person’s financial wellness journey is unique. Behaviours vary, and needs differ. Personalised banking experiences are truly valuable,” says Dennis Devine, President of Key’s Consumer Bank.

Congress moves to make IRS more customer-friendly by passing Taxpayer First Act

Congress recently took a stab at revamping the Internal Revenue Service to improve customer service and mend its tattered reputation so that deciding between dealing with the agency and having one’s teeth drilled isn’t such a difficult choice.  Key provisions in the Taxpayer First Act —  passed by the House and Senate earlier this month — range from improvements in technology systems and the strengthening of taxpayer rights, to creation of an independent office of appeals and expansion of a program that will let all taxpayers obtain a personal identification number to better guard against tax refund fraud.

Artificial Intelligence Makes Boosting ID Theft Protection Critical, House AI Task Force Chair Warns

Artificial intelligence is making improving identity theft protections imperative, House Financial Services Committee AI Task Force Chair Bill Foster warned Wednesday.  The Congressman said AI has become an increasingly popular tool for crooks to swipe assets and sensitive financial information from consumers.  AI is being used to help steal Social Security numbers, credit card numbers and other personal identity factors can be stolen and sold on the dark web, or used by criminals for quick and easy profit gain, Foster explained.

Second Florida city pays giant ransom to ransomware gang in a week

Less than a week after a first Florida city agreed to pay a whopping $600,000 to get their data back from hackers, now, a second city's administration has taken the same path.   On Monday, in an emergency meeting of the city council, the administration of Lake City, a small Florida city with a population of 65,000, voted to pay a ransom demand of 42 bitcoins, worth nearly $500,000.

JPMorgan’s Jamie Dimon: Student lending in the U.S. is a ‘disgrace’ and it’s ‘hurting America’

JPM) CEO Jamie Dimon says student lending in the U.S. has been "a disgrace" and it's "hurting America."" style="margin: 0px 0px 1em; color: #26282a; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 15px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-decoration-style: initial; text-decoration-color: initial;">JPMorgan Chase (JPM) CEO Jamie Dimon says student lending in the U.S. has been "a disgrace" and it's "hurting America."  "Is there an issue with student debt? There is, but you’ve got to stop the creation of bad debt," Dimon told Yahoo Finance's Andy Serwer in an exclusive interview at the unveiling of JPMorgan’s new flagship bank branch in Midtown Manhattan.  Dimon added that the government has "irresponsibly" lent more than $1 trillion since taking over in 2010.  “And now they want to forgive it,” he said.

FTC roundup: Actions involving active duty military, credit repair scheme and robocalls

WASHINGTON, D.C. - The past seven days have been quite active at the Federal Trade Commission. The regulator made moves involving credit reporting and active military personnel, took action in connection with an alleged credit repair scheme and worked with and its law enforcement partners for a major crackdown on illegal robocalls. What might be most pressing for auto finance companies is the FTC finalized the rule implementing a 2018 law that requires the nationwide consumer reporting agencies (CRAs) to provide free electronic credit monitoring services for active duty military consumers.

FinTech Stocks Burn Rubber in 2019

There is a relatively new and deep small-cap banking niche to know about - and it is experiencing a solid 2019 stock market rally. At Zacks, we label this 22-company strong banking group as Financial - Consumer Loans. But the classic buzzword floating around here is FinTech. In brief, FinTech is the use of Big Data, and other forms of Artificial Intelligence, to enhance the process of lending to millions of everyday consumers.

95,000 Delawareans impacted in data breach that lasted nearly nine years

The personal data of roughly 95,000 Delawareans may have been compromised in a nine-year security breach at Dominion National, a large vision and dental insurer, Delaware's Department of Insurance said. Dominion National discovered the breach in April, it said on its website....

Early Bird Registration for the Debt Connection Symposium and Expo 2019 Ends July 19!

Debt Connection Symposium and Expo 2019 will be held on September 10-12, 2019 at the Red Rock Hotel in Las Vegas, NV.  There is an early bird rate of $1,295 that will end on July 19, 2019, on July 20, 2019 the rate goes up to $1,395.  Register today to get that early bird rate!

Registration is open to Industry Professionals, both Operational and Marketing, from Creditors, Debt Sellers, Collection Agencies, Collection Attorneys, Debt Buyers, Scoring & Analytics Vendors, Skip/Locate Vendors, Collection/Recovery Software and Hardware Vendors. This conference represents a solid opportunity for substantive interaction between clients and vendors, and a comfortable setting to discuss new opportunities.   Click here to register today: https://debtconnectionsymposium.com/registration.html

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Weekly mortgage rates fall further, but only refinance applications rise

It’s almost as if falling mortgage rates are becoming hum-drum, at least for homebuyers. Total mortgage application volume increased 1.3% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 40% higher than a year ago, largely because lower mortgage rates are strengthening the refinance market. Rates have fallen in three of the last four weeks and are now at the lowest level since September 2017. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 4.06% from 4.14%, with points decreasing to 0.35 from 0.38 (including the origination fee) for loans with a 20% down payment. That is 78 basis points lower than a year earlier.

Overseeing the Fintech Revolution: Domestic and International Perspectives on Fintech Regulation

Thank you, Chairman Lynch, Ranking Member Hill and distinguished members of the Task Force. My name is Charles Clark. I am the Director of the Washington State Department of Financial Institutions. My department is responsible for the regulation, supervision and examination of Washington’s more than 17,000 state-licensed non-depository entities and more than 90 state-chartered depository institutions, including 38 state-chartered banks. Our department also provides education and outreach to protect consumers from financial fraud.

PSECU Announced as a Forbes Magazine Best-In-State Credit Union for 2019

Yesterday, Forbes Magazine released its list of Best-In-State Credit Unions for 2019, honoring the top 3.3% of credit unions nationwide. PSECU, Pennsylvania’s largest credit union, is proud to announce that it was included as one of just three credit unions on the list for the state. 

Loan rate-cap bill would harm consumers

The California Senate Banking Committee is scheduled to hold a hearing Wednesday (June 26) on a bill that caps consumer loan rates and threatens to sever a vital credit lifeline for many. Oddly, three commercial lenders who offer the kind of loans subject to this regulation support it.

FDIC and CFPB Host Webinar on Elder Financial Abuse Prevention

The Federal Deposit Insurance Corporation (FDIC) and Consumer Financial Protection Bureau (CFPB) are co-hosting a webinar to outline strategies to address and prevent elder financial abuse. In particular, the webinar will focus on the benefits of appropriate collaboration between financial institutions and law enforcement regarding this issue, and will provide financial institutions with resources and strategies to develop strategic relationships. The webinar will take place on July 25, 2019 from 2:00 p.m. to 3:00 p.m. ET.

Fintechs must offer same consumer protections as CUs, banks

Technology has improved consumer access to financial services, but certain new financial technologies, or fintech, does not have the regulatory structure in place that exists with credit unions and other financial institutions, CUNA wrote to the House Financial Services Task Force on Financial Technology Tuesday, the task force conducted a hearing featuring domestic and international regulators sharing their perspective on fintech regulation. “Although CUNA supports the innovations developed and brought into the marketplace by fintech, we remain concerned the regulatory environment might create an environment in which consumers do not receive the same protections from unregulated businesses that offer services traditionally offered by credit unions and banks,” writes CUNA President/CEO Jim Nussle. “A regulatory scheme that ensures consumers receive the same protections and those offering these services are subject to similar regulations and supervision credit unions and banks is important to safeguard consumers and the banking system.”

Robocall ‘crackdown’: FTC blocks more than a billion illegal calls, but problem festers

The Federal Trade Commission said Tuesday that it had blocked more than a billion illegal robocalls in a "crackdown" coordinated with the Justice Department as well as state and local law enforcement agencies. The agencies collectively took 94 actions against robocallers touting bogus services such as credit card interest rate reduction and medical alerts. The actions included seven new FTC cases, including four settlements. Consumers get "tens of billions" of illegal robocalls annually, according to the FTC. So, the latest enforcement action is admittedly a "drop in the bucket," said Andrew Smith, the FTC's Consumer Protection Bureau director.

Texas Breach Law Will Change in 2020, To Require Attorney General Notification

New requirements to the Texas data breach statute, including a requirement to notify the Texas attorney general of a breach, are set to go into effect January 1, 2020. The legislation, signed by Texas Governor, Greg Abbot, on June 14, 2019, requires that the Texas attorney general be notified of a breach within 60 days. The AG notification is required only if 250 or more Texas residents are affected. The notification to the attorney general must include a description of the breach, number of residents affected, measures taken in response to the breach, measures planned to be taken after notification and whether law enforcement has been engaged with the investigation.  The legislation also adds a 60 day timing requirement for notice, from the current “as quickly as possible” standard.

News CFPB Signals Greater Clarity Coming for Abusive Standard (1)

The Consumer Financial Protection Bureau appears poised to give companies more information about how it uses its unique authority to sue companies for abusive practices. CFPB Director Kathleen Kraninger said at a June 25 symposium that the bureau’s power to bring claims of abusiveness along with traditional unfairness and deception claims has resulted in confusion in the marketplace. She indicated that the CFPB is likely to consider guidance or even a rule that would provide a more firm definition of...

Texas Amends Debt Collection Law to Add New Requirements for Debt Buyers

On June 14, 2019, Texas Governor Greg Abbott signed HB 996, which amends Chapter 392 of the Texas Finance Code dealing with debt collection.  The amendments are effective September 1, 2019.

The Impact of the Receivables Management Certification Program on Litigation

June 24, 2019 (Sacramento, CA) – Today, the Receivables Management Association International (RMAI) releases a white paper analysis of the impact of the Receivables Management Certification Program (RMCP) on litigation.  A before-and-after analysis of lawsuits filed against businesses certified through the RMCP found that after certification, litigation against RMAI’s certified businesses, as an average, decreased by 20.8% in the seven-year span from 2012 to 2018. Looking at a breakdown of the litigation by areas of law, the lawsuits filed against violations to the Fair Debt Collection Practices Act (FDCPA), the Fair Credit Reporting Act (FCRA), and the Telephone Consumer Protection Act (TCPA) experienced similar declines after certification.

FTC, Law Enforcement Partners Announce New Crackdown on Illegal Robocalls

The Federal Trade Commission and its law enforcement partners today announced a major crackdown on illegal robocalls, including 94 actions targeting operations around the country that are responsible for more than one billion calls pitching a variety of products and services including credit card interest rate reduction services, money-making opportunities, and medical alert systems.

Berger, Hunt address misconceptions about CUs’ bank acquisitions

Contrary to some bank lobbyists' arguments, the increase in credit unions' acquisitions of banks is "a strategic decision" – both for credit unions to grow and banks to benefit financially – according to an S&P Global article featuring NAFCU's Dan Berger and Carrie Hunt. Instead of targeting their displeasure about these acquisitions towards credit unions, bankers should reflect on the shortcomings of their industry and look to their own to understand why banks are selling to credit unions.

THE AUDIT BENCHMARKING OVERSIGHT SURVEY FOR CREDITORS AND SERVICERS ENDS JULY 15!

You still have time to participate in the Audit Benchmarking Oversight Survey for Creditors and Servicers, which ends July 15.  We’ve kept these short, but meaningful.  All responses are confidential, and can be anonymous.  All participants can receive a copy of the results by providing their contact information to us.  No individual company information or contact information will be provided in the analysis and results.

Audit oversight survey for creditors
To participate in the Creditor Audit Oversight Survey, please use the link below https://www.surveymonkey.com/r/2019CreditSurvey

Audit oversight survey for agencies, attorneys and specialty vendors
To participate in the Agency Audit Oversight Survey, please use the link below: https://www.surveymonkey.com/r/2019ServicerSurvey

There is no cost to participate.  If you’d like to remain anonymous with your responses, but still get a copy of the results, you can write me directly that you participated, but didn’t provide any contact info.

Microsoft: We’re fighting Windows malware spread via Excel in email with bad macro

Microsoft is drawing attention to a cybercrime campaign that relies on Office features to compromise Windows systems. Office applications remain a favorite tool for cyber criminals to exploit to compromise Windows PCs en masse. Earlier this month Microsoft warned that attackers were firing spam that exploited an Office flaw to install a trojan. The bug meant the attackers didn't require Windows users to enable macros. However, a new malware campaign that doesn't exploit a specific vulnerability in Microsoft software takes the opposite approach, using malicious macro functions in an Excel attachment to compromise fully patched Windows PCs.    

Bill That Limits Payday Lenders’ Profits Might Actually Hurt The Poor

A California bill that was already passed by the Assembly and is now in the Senate would put a cap on how much payday lenders may charge Californians for loans between $2,500 and $10,000. It would also bar California Financing Law (CFL) licensees from imposing penalties for prepayments. According to AB 539’s co-author, Assemblywoman Monique Limón (D-Santa Barbara), the bill fixes a loophole that allows payday lenders to charge higher interest rates on loans that are higher than $2,500. This, she wrote in an op-ed, prompted lenders to “push consumers toward much larger loans.”

FTC and Law Enforcement Partners to Announce Robocall Enforcement Sweep Tomorrow in Chicago

The Federal Trade Commission, in conjunction with other federal, state, and local law enforcement, will announce “Operation Call it Quits,” the latest joint-agency crackdown on telemarketers responsible for more than a billion illegal robocalls.

FTC Announces Final Rule Implementing Law Providing Free Credit Monitoring for Active Duty Military Consumers

The Federal Trade Commission has finalized the rule implementing a 2018 law that requires the nationwide consumer reporting agencies (CRAs) to provide free electronic credit monitoring services for active duty military consumers. The Free Electronic Credit Monitoring for Active Duty Military Rule, which will be published in the Federal Register shortly, implements legislation included in the 2018 Economic Growth, Regulatory Relief, and Consumer Protection Act, which amended the Fair Credit Reporting Act (FCRA) by requiring CRAs to notify active duty military consumers about any “material” additions or modifications to their credit files.

New York moves to ban confessions of judgment for out-of-state loans

New York lawmakers took steps to prevent predatory lenders from using the state's court system to seize the assets of small businesses nationwide. The state Assembly approved a bill late Thursday prohibiting the use of confessions of judgment against individuals and businesses located outside of the state. The Senate passed the measure earlier this week.

PENNSYLVANIA OFFICE OF THE ATTORNEY GENERAL: AG Shapiro Secures $5.3 Million in Debt Relief for 570 Pennsylvania ITT Tech Students in Multistate Settlement

Attorney General Josh Shapiro announced that a bipartisan coalition of 44 Attorneys General reached a settlement with Student CU Connect CUSO, LLC (“CUSO”) that includes more than $168 million in debt relief for more than 18,000 former students of ITT Tech schools nationwide. In Pennsylvania, 570 former ITT Tech students are eligible for $5.3 million in debt relief. The settlement holds CUSO accountable for its participation with now-defunct ITT Tech in subjecting students to deceptive and abusive lending practices. ITT Tech filed for bankruptcy in 2016.

Agencies Issue Final Amendments to Regulation CC Regarding Funds Availability

WASHINGTON, D.C. – The Consumer Financial Protection Bureau and the Federal Reserve Board today jointly published amendments to Regulation CC that implement a statutory requirement to adjust for inflation the amount of funds depository institutions must make available to their customers. The amendments apply in circumstances ranging from next business day withdrawal of certain check deposits to setting the threshold amount for determining whether an account has been repeatedly withdrawn. Regulation CC implements the Expedited Funds Availability Act of 1987 (EFA Act). The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) amended the EFA Act to grant the Bureau and the Board joint rulemaking authority for funds-availability schedules, disclosure policies, payment of interest, and other EFA Act provisions implemented by Regulation CC.

Married to debt: Couples are taking out loans to pay for their weddings

Skyler Ramirez has a loan for his house, his car — and now his fiancee’s engagement ring. The 26-year-old had already picked out the diamond solitaire from Tiffany & Co., when he happened upon an ad for wedding-related loans while he was checking his credit score on Credit Karma. “I thought, ‘Hey, I’m going to be making a pretty sizable purchase,’" said Ramirez, a general contractor in Fort Myers, Fla., who proposed on Valentine’s Day. “I didn’t want to be using cash or pulling money from savings or investments accounts.” It took about 15 minutes to get approval for the five-figure loan. At an interest rate of about 8 percent, it will take more than three years — and $300 a month — to pay it off. And it might not be the last loan he takes out as he prepares to get married.

FTC Stops Operators of Fake Credit Repair Scheme

At the Federal Trade Commission’s request, a federal court has temporarily halted and frozen the assets of Grand Teton Professionals, an alleged credit repair scheme that charged illegal upfront fees and falsely claimed to repair consumers’ credit. The company and other defendants are charged with violating the FTC Act and several provisions of the Credit Repair Organizations Act, the Telemarketing Sales Rule, the Consumer Review Fairness Act, the Truth in Lending Act, and the Electronic Funds Transfer Act.

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NACTT 54th Annual Seminar Registration Open

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ACA International 2019 Annual Convention & Expo

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National Creditors Bar Association 2019 Fall Conference

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