What’s Behind the Subprime Consumer Loan Implosion?

OK, we’ve got a situation in subprime consumer loans. The delinquency rate on credit-card loan balances at the nearly 5,000 smaller commercial banks in the United States – this means all banks except the largest 100 – is blowing out, according to Federal Reserve data. In the third quarter, the delinquency rate at these banks rose to 6.25%. That’s higher even than during the peak of the Financial Crisis.

CFPB constitutionality case gets March date in Supreme Court

The Supreme Court will hear oral arguments March 3 in a case that challenges the constitutionality of the Consumer Financial Protection Bureau (CFPB), according to the high court's calendar. The court agreed to take the case in October.   In Seila Law v. CFPB, a California debt collection law firm argues the CFPB's leadership structure is unconstitutional, and therefore it should not have to comply with a civil investigative demand from the bureau.

The Future of the CFPB: the Executive Branch and Separation of Powers

On October 18, 2019 the Supreme Court granted certiorari in Seila Law v. Consumer Financial Protection Bureau (CFPB). SCOTUS  will answer the question of “whether the substantial executive authority yielded by the CFPB, an independent agency led by a single director, violates the separation of powers,” and the Justices requested that the parties brief and argue an additional issue: “If the Consumer Financial Protection Bureau is found unconstitutional on the basis of the separation of powers, can 12 U.S.C. § 5491(c)(3) [the for-cause removal provision] be severed from the Dodd-Frank Act?”

How Credit Unions Can Win The FinServ Innovation Game

In addressing the innovation gap that exists between credit unions and their larger financial institution (FI) brethren, credit unions (CUs) may be perceived to be at a disadvantage, at least when it comes to dollars.  At first glance, that gap may seem insurmountable in the age of mobile banking, where technology is a vital component of financial services.   The bigger the IT budget, it would seem, the more can be spent on bringing innovation to market that grabs consumers’ minds and wallets.

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. 

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