CFPB considering changes to loan originator compensation rules

The Consumer Financial Protection Bureau revealed recently that it is considering making changes to the Loan Originator Compensation rule. Late last week, the CFPB released its semiannual regulatory agenda, which stated that the bureau is considering a rulemaking to “address certain concerns” about the LO Comp rule. According to the bureau, it has received feedback that parts of the LO Comp rule are “unnecessarily restrictive,” and is considering making some changes to address those concerns.

Stopping scams cold turkey

It’s the Business Blog equivalent of a Thanksgiving tradition: our annual reminder to share tips at your holiday gathering about avoiding those other kinds of turkeys – consumer scams. We’ve introduced you to the FTC’s interactive Age & Fraud Loss graphicon our Tableau Public page. As the green bean casserole bakes, take a moment to explore the page for advice tailored to family members of every generation.

US home prices rose 2.1% from a year ago

WASHINGTON (AP) — U.S. home prices increased modestly in September from a year ago, as roughly seven years of rising home values have hurt affordability. The S&P CoreLogic Case-Shiller 20-city home price index rose 2.1% in September from a year ago, up from a 2% annual gain in August, according to a Tuesday report. “For many buyers, the fall housing market provides several challenges and opportunities,” said George Ratiu, senior economist at realtor.com. “While lower financing costs and a rising number of new homes are welcome signs in a market parched for inventory, prices are still climbing and the number of existing houses in the affordable price range is down by double-digits.”

9 big items on regulators’ to-do list (including CRA reform)

WASHINGTON — The federal bank regulators are trying to close out 2019 with a bang. With about a month left until the new year, a proposal to reform the Community Reinvestment Act could be just one piece of a busy rulemaking agenda, according to an administration document predicting regulatory developments. The fall 2019 unified agenda of regulatory actions, published by the Office of Management and Budget, mentions not only an upcoming proposal to reform CRA policy but also actions on a Federal Reserve capital measure, the Volcker Rule and brokered deposits as items in the docket for the remainder of this year.

Rural areas suffer brunt of U.S. bank branch closings: Fed report

More than half of U.S. counties lost access to bank branches between 2012 and 2017, with rural counties that have less educated and minority residents especially hurt, the Federal Reserve said in a new report. Nearly 800 rural counties lost 1,533 bank branches, representing 14% of their total branches, the Fed said Monday. While urban counties also lost branches, they lost just 9% of the branches, according to the report. The findings highlight a broader U.S. trend of the widening gap between rural areas and better-served and more prosperous urban centers.

U.S. bank regulator further cuts supervision costs for banks

WASHINGTON (Reuters) - A leading U.S. bank regulator announced on Monday it was further slashing how much it charges large banks to cover the costs of monitoring them. The Office of the Comptroller of the Currency said banks would pay 10% less in fees in 2020, the second straight year it has cut costs by that amount. The move is expected to save banks $85 million, according to an agency spokesman. The OCC estimated it would collect $1.1 billion in such fees in fiscal 2019, according to its annual budget request.

Consumer Financial Protection Bureau Settles with Military Travel Lender and Servicer

Today the Consumer Financial Protection Bureau (Bureau) announced settlements with Edmiston Marketing, LLC, also called Easy Military Travel, its principal, Brandon Edmiston, and USA Service Finance, LLC (USASF). Easy Military Travel, which was located in Murray, Kentucky and is no longer operating, offered and extended financing for airline tickets to military servicemembers and their families and was owned and managed by Edmiston. USASF, which is located in Mayfield, Kentucky, is a company that services travel-related loans, including loans made by Easy Military Travel, for servicemembers. 

NAFCU’s 2019 Fed Report outlines challenges, recommends relief for CUs

The 2019 NAFCU Report on Credit Unions is now available online, detailing the latest issues and trends affecting credit unions as the industry continues to grow and strengthen, despite regulatory burdens and challenges. Members of NAFCU's Board of Directors last week shared the results of the report during the association's annual meeting at the Federal Reserve.

Consumer Financial Protection Bureau Settles with Employment Background Screening Company

Today the Consumer Financial Protection Bureau (Bureau) filed a proposed stipulated judgment with Sterling Infosystems, Inc. to resolve allegations that Sterling violated the Fair Credit Reporting Act (FCRA). Sterling is a privately-held Delaware corporation headquartered in New York whose primary business is to prepare background screening reports on individual job applicants to assist employers in employment-making decisions. If entered by the court, the stipulated judgment will require Sterling to pay monetary relief to consumers and a civil money penalty and prevent Sterling from engaging in the allegedly illegal conduct again.

Consumer Agency Failed To Protect Student Loan Borrowers, Lawsuit Says

A nonprofit student loan group is suing the nation's most powerful consumer watchdog agency. The lawsuit, first obtained by NPR, alleges the Consumer Financial Protection Bureau has abandoned its obligation to oversee companies that manage student loans, in particular a troubled loan forgiveness program. "We are suing the Department of Education and the CFPB because they are not doing their jobs," says Natalia Abrams, the founder of Student Debt Crisis. Abram's group works both on policy issues and directly with borrowers.

U.S. Bank invests $4.8 million in affordable housing

U.S. Bank announced this week that it is investing $4.8 million with the goal of advancing affordable housing. The investment comes from the bank’s Community Possible grants as well as corporate contributions. “We believe that every individual and family deserve access to safe, accessible and affordable homes,” said Tim Welsh, vice chairman of consumer and business banking at U.S. Bank.

Data Point: Borrower Experiences on Income-Driven Repayment

Our data point reports are prepared by our Office of Research to provide an evidence-based perspective on consumer financial markets, consumer behavior, and regulations to inform the public discourse. This data point documents which student loan borrowers use income-driven repayment (IDR) and how their delinquencies on student loans and other credit products evolve as they transition onto IDR plans. The report follows borrowers throughout their first year on IDR and shows how some borrowers continue to pursue lower payments while others transition back to standard repayment. 

Director Kraninger’s Remarks at TCH-BPI Conference

While Treasury, the FDIC, and the OCC have been around for decades—the youngest of the three being 80 years old, the Bureau is the new kid on the block with roughly 8 years under our belt.  Further, the Bureau went through its first leadership transition within the last two years. As we continue to mature the agency, we are focused on using all of the tools that Congress gave us to carry out our mission of protecting consumers.  I also believe that in carrying out our mission, our focus should be to prevent harm in the first place.  This saves consumers the headaches of trying to get their money back after they have been harmed and avoids the very injuries that consumer finance laws seek to address.

CFPB, Federal Reserve Board: AI bias can’t be ignored

Following a recent backlash resulting from allegedly discriminatory underwriting methods for the Apple Card, lenders’ moves are facing scrutiny from regulators. In light of the increased oversight, however, industry practitioners emphasize the role of AI as a catalyst for a more inclusive process.

How Banks & Credit Unions Can Regain Ground Lost to Fintech Lenders

Midsize and community financial institutions have several advantages over fintechs. However, the reality is that the newcomers have brought radical innovation to the table. The best way for traditional lenders to compete is by using a two-pronged approach of leveraging their advantages and matching the fintechs' innovations. Fintech consumer lending has more than doubled in just four years, growing from a 22.4% share of personal loan originations in March of 2015 to 49.4% of that market in March of 2019, according to Experian.

Payday lenders attempt to “sneak” into regulation-light sandbox, legal aid attorneys warn

A national trade group for payday lenders is asking state officials to ignore state laws governing high-interest loans while it works to implement regulations for a pilot program allowing a limited number of companies to offer unique financial products outside of existing regulations.

FTC Takes Student Debt Relief Company to Court

The Federal Trade Commission has blocked the operations of a group of companies allegedly portraying themselves as being affiliated with the U.S. Department of Education, charging that they promoted student loan debt-relief services but did not follow through as promised.

CFPB Releases New Report Exploring Differences between Large and Small Mortgage Servicers

Washington, D.C. –The Consumer Financial Protection Bureau (Bureau) released today a report examining the differences between large and small mortgage servicers. The report explores the role servicers of different sizes play in the mortgage market where size is defined by the number of loans serviced. Because of differences in the resources, capabilities, customer base, and business models of financial institutions of varying sizes, the impact of consumer finance regulations can vary as well.  

How to tell the difference between a legitimate debt collector and scammers

Dealing with debt collection issues can be challenging—especially when you’re not sure if the person you’re being contacted by is legitimate or trying to scam you.   When an account like a credit card, auto loan, or cell phone bill becomes past due, the original creditor may attempt to collect the amount owed. The creditor may also hire a debt collector or sell the debt to someone who may try to collect the debt. While there are many legitimate debt collectors in the financial marketplace, there are also scammers who may try to get you to pay on debts that you don’t owe or on debts that don’t even exist.

Fed minutes show worries about economy had eased a bit

Federal Reserve officials were more upbeat about the economy in late October than they had been only six weeks earlier, according to minutes of their policy discussion released Wednesday.  Officials “generally viewed the economic outlook as positive,” the minutes said.   “Uncertainties associated with trade tensions as well as geopolitical risks had eased somewhat, although they remained elevated,” the summary said. Officials talked about a “resilient” economy in the face of headwinds. At their meeting, the Fed voted 8 to 2 to trim rates by a quarter-point. It was the third straight meeting with a cut, bringing the benchmark fed funds rate to a range of 1.5%-1.75%.

Gen Z FICO scores beat Millennials and Gen X

Of the three American generations following the Baby Boomers, the youngest is doing better at managing its credit.  Gen Z, meaning people born in 1995 or later, has an average FICO score of 637, above the all-age average of 634, according to a report from LendingPoint, a consumer lending platform.  Gen X, the 1965 to 1980 generation that followed the Baby Boomers, has an average FICO score of 632, the report said. Millennials, born between 1981 and 1996, have an average FICO score of 629.

CFPB to consider changing or eliminating TRID rule

Millennials Most Likely to Outspend Other Generations This Holiday Season

RIVERWOODS, Ill.--(BUSINESS WIRE)-- Over a third of millennials plan to spend more money this holiday season compared to last year, and they will likely outspend other generations this gift-giving season, according to Discover’s annual Holiday Shopping Survey.   Millennials say higher income and more people on their shopping list are two reasons for their boost in spending. And they also will overwhelmingly use their mobile devices to shop.

CFPB Fall 2019 rulemaking agenda

The Bureau published its Fall 2019 Agenda as part of the Fall 2019 Unified Agenda of Federal Regulatory and Deregulatory Actions,  which is coordinated by the Office of Management and Budget under Executive Order 12866.  The agenda lists the regulatory matters that the Bureau reasonably anticipates having under consideration during the period from October 1, 2019 to September 30, 2020, as described further below.  As an independent regulatory agency, the Bureau’s participation in the Unified Agenda is voluntary.  

Consumer Financial Protection Bureau to Assess Integrated Mortgage Disclosure Rule

The Consumer Financial Protection Bureau (Bureau) is requesting public comment on an assessment it will conduct on the TRID Integrated Disclosure Rule (the Truth in Lending Act and Real Estate Settlement Procedures Act). 

International Recovery Associates, Inc.

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FTC and CFPB to Host December Workshop on Accuracy in Consumer Reporting

FTC and CFPB

2019 CFPB Research Conference

Consumer Financial Protection Bureau

RMAi Annual Conference

The Payments Summit 2020

The Payments Summit

2020 Annual Utilities Credit & Collections Symposium

Conferences By Monticello

ACA International 2020 Spring Forum & Expo

ACA International

Commercial Payments International

EuroFinance

AFCC Spring Conference – 2020

NAPCP Commercial Card and Payment Conference: P-Card, Travel Card, ePayables

NAPCP

NCUCA – National Credit Union Collection Alliance 2020

NCUCA National Credit Union Collections Alliance

Collection and Recovery Solutions 2020

Collection & Recovery Solutions - produced by Resource Management Services, Inc.

National Association of Chapter 13 Trustees 2020

National Association of Chapter 13 Trustees (NACTT)

Debt Connection Symposium & Expo 2020

Resource Management Services, Inc.

Auto finance Summit 2020

Royal Media