Watch Out for California – State Stepping Up Fintech and Lending Regulatory Enforcement

A recent legal conference in Washington, DC, highlighted newly proposed and ongoing regulatory changes in California concerning consumer and commercial lending. In short, one of the conference’s messages was that lending enforcement is increasing and the California Department of Business Oversight (DBO) is becoming much more aggressive in its enforcement posture (including with respect to treating retail installment sales contracts and merchant cash-advance products as loans).

U.S. Bank to take over State Farm banking operations

In a move to exit the banking business, State Farm later this year will begin turning over its deposit and credit card accounts to U.S. Bank in a strategic alliance the insurance company  announced on Thursday.    "State Farm has been committed to helping people for nearly 98 years," president and CEO Michael Tipsord said. "U.S. Bank is an outstanding institution that shares our commitment to strong customer relationships. When we combine State Farm’s deep customer relationships with the scale and capabilities of companies like U.S. Bank, we can help significantly more people."

CFPB Takes Key Steps to Prevent Consumer Harm; Proposes Whistleblower Award Program, Other Measures

Implementing an advisory opinion program to provide clear guidance to assist companies in better understanding their legal and regulatory obligations through advisory opinions;  Amending and reissuing its responsible business conduct bulletin, which articulates that the Bureau intends to provide credit to entities for their responsible conduct based on its extent and significance;  and Engaging with Congress to advance proposed legislation that would authorize the Bureau to award whistleblowers who report violations of Federal consumer financial law.

Fifth Third Faces CFPB Probe Over Fake Accounts

Fifth Third Bank said it’s facing enforcement action from the Consumer Financial Protection Bureau (CFPB) over alleged openings of unauthorized accounts. The CFPB said it plans to file enforcement action over the generation of fake accounts allegedly done by employees of Fifth Third. There was a filing Monday with the U.S. Securities and Exchanges Commission, though no timeline on further action was given yet. Fifth Third said it did not know how big the enforcement action would be and that it had set aside “reasonable reserves” for whatever comes next.

Pre-Conference Skip Strategies Added to CRS2020 for May 5th

Join other industry leaders at a pre-conference Skip Strategies session for creditors.  On May 5th, from 1:30 p.m. – 5:30 p.m., this in-depth discussion will include the art of skiptracing as well as the practical and operational techniques, combining people resources and technology options. Discuss the challenges and operational impacts of evolving technology solutions. Watch as we put Vendors on the “Hot Seat” with questions on guarantees, controls and processes. Learn how to measure success and determine when to stop. Hear tips and techniques as our various expert panels delve into the details you need to maximize your ROI from skip efforts.  CRS2020 is an invitation-only event for creditors.  Write to:  crs@resourcemanagement.com for more information.

FDIC Offers Voluntary Retirement and Early Separation Program

WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) today announced it will offer voluntary retirement and early separation opportunities to approximately 20 percent of its employees to help reshape the agency's workforce for the future and to enhance preparedness.

Luetkemeyer introduces NAFCU-supported CFPB commission bill

House Financial Services Committee Member Blaine Luetkemeyer, R-Mo., Thursday introduced NAFCU-supported legislation that would reform the CFPB's governance structure from a single director to a bipartisan commission. NAFCU has consistently advocated that the bureau's leadership structure should be reformed to a commission-based model to ensure transparency and accountability.

Fed Beige Book reports first negative impact of coronavirus on U.S. economy

The outlook: The coronavirus outbreak was starting to have an impact on the U.S. economy, especially the travel and tourism industry, according to the Federal Reserve’s Beige Book report released Wednesday.

DEBTTRADER® TO EXHIBIT AND SPONSOR AT CRS2020, MAY 6-8 IN LAS VEGAS

We are happy to announce that DebtTrader® will exhibit at the Collection and Recovery Solutions Conference, May 6-8 in Las Vegas, NV at the Four Seasons Hotel Las Vegas.  Not only is DebtTrader® exhibiting but they are also an Specialty Sponsor.  Be sure to visit them in booth 23 in the Expo Hall.

House report slams Wells Fargo, regulators’ failure to rein in ‘reckless’ bank

The House Financial Services Committee says Wells Fargo's board and senior management failed to comply with consent orders issued by regulators in response to the bank’s widespread consumer abuses, according to a document released by committee Democrats Wednesday evening. 

Lowest mortgage rates since 2012 spur refinancing wave

Concerns that the coronavirus could slam the U.S. economy are pushing down mortgage rates to their lowest level since 2012. That's spurring a growing number of homeowners to refinance their loans as well as enticing house-hunters to apply for mortgages. A Mortgage Bankers Association survey of lenders released Wednesday shows that refinancing activity is up 224% from a year ago, while applications for home loans have risen 10% compared with the same period last year.

Analysis finds a ‘tipping point’ for Americans struggling with household debt

household debt has reached a new pinnacle of $14.15 trillion, a separate analysis by American Consumer Credit Counseling (ACCC) found that American households seeking financial help are usually carrying more than $20,000 in credit card debt. " data-reactid="16" 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;">At a time when U.S. household debt has reached a new pinnacle of $14.15 trillion, a separate analysis by American Consumer Credit Counseling (ACCC) found that American households seeking financial help are usually carrying more than $20,000 in credit card debt. “Most of the people in our study are using credit cards to just get by and are living paycheck to paycheck,” Madison Block, a marketing communications and program associate at ACCC, told Yahoo Money.

Weekly mortgage refinances spike 26% as interest rates tank on coronavirus fears

A sharp drop in mortgage interest rates had borrowers rushing to their lenders last week. Refinance volume spiked, sending total mortgage application volume up 15.1% for the week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) decreased to 3.57% from 3.73%, with points decreasing to 0.26 from 0.27 (including the origination fee) for loans with a 20% down payment. Rates are even lower now. One year ago, the average rate was 4.67%, 110 basis points higher. 

House Passes Four Bipartisan Financial Services Bills

Yesterday, the U.S. House of Representatives passed bipartisan financial services bills to protect servicemembers from predatory debt collectors, improve the availability of affordable housing and mortgage credit, and address concerns that China is trapping developing nations in a cycle of predatory debt. The bills passed include:

DoD’s latest interpretive rule explained in Compliance Blog

The Department of Defense (DoD) last week issued a third interpretative rule for its Military Lending Act (MLA) regulations that reverts language for Question No. 2 to guidance originally issued in 2016. NAFCU Vice President of Regulatory Compliance Brandy Bruyere breaks down what this means for credit union operations and how it adds to clarification in a new post on the Compliance Blog.

Recovery Management Network Meets at CRS2020

Recovery Management Network (RMN) is an organization for collection and recovery peers to network and discuss areas of importance / concern / challenges in their collection and recovery world. Collection oversight, due diligence, text and email, compliance, vendor management, etc. are all topics of teleconferences, which are held monthly. The group meets monthly by teleconference, and has an annual tie-in meeting with Collection and Recovery Solutions (CRS). This group is for creditors only. There is no membership fee, but members agree to abide by Anti-Trust rules, and no include vendors on any calls. This group is meeting at Collection and Recovery Solutions 2020 (CRS2020) in Las Vegas, May 6th - 8th at the Four Seasons, from 7:30 a.m. to 2:00 p.m. (May 6th), moderated by Craig Paterson of GM Financial.  For information on the CRS tie-in agenda, see: http://www.collectionrecoverysolutions.com/rmn_schedule.html

Supreme Court looks likely to weaken Consumer Financial Protection Bureau but leave it standing

WASHINGTON — The Supreme Court looked likely to weaken the Consumer Financial Protection Bureau, but leave it standing, as the justices heard oral arguments Tuesday in a major business regulation case. The case concerned whether the regulatory agency established in the wake of the 2008 financial crisis was structured unconstitutionally by giving too much power to its director. Under the legislation that established the bureau, the head of the CFPB, who serves a five-year term, may only be removed by the president for “inefficiency, neglect of duty, or malfeasance in office.”

Consumer data-sharing debate highlights bank, fintech divide

Banks and fintechs have been partnering for years, a symbiotic relationship that has allowed fintechs to scale and traditional financial institutions to expand the suite of products they offer to consumers. But a growing debate over how consumer financial data should be shared has pitted industry incumbents against fintechs in recent months. Screen scraping and Application Programming Interfaces (APIs) were among the topics discussed at the Consumer Financial Protection Bureau’s (CFPB) symposium on Consumer Access to Financial Records on Wednesday, and several panels highlighted the opposing views of banks and fintechs when it comes to collecting consumer data.

RYAN LLC TO EXHIBIT AND PRESENT AT THE CRS2020 “FIRESIDE CHAT BOOTH-SIDE”

We are happy to announce that Ryan LLC will exhibit at the Collection and Recovery Solutions Conference, May 6-8 in Las Vegas, NV at the Four Seasons Hotel Las Vegas.  Not only is Ryan LLC exhibiting but they are also a presenter at our newest event, Fireside Chat Booth-Side presentation.  Be sure to visit them in booth 14 in the Expo Hall.

FTC to Host Workshop Examining Issues Related to Proposed Amendments to the Safeguards Rule

The Federal Trade Commission will hold a public workshop on May 13, 2020 seeking research, testimony, and other input on the proposed changes to the Safeguards Rule under the Gramm-Leach-Bliley Act.   The workshop will explore some of the issues raised in response to amendments the FTC has proposed making to the Safeguards Rule, which requires financial institutions to develop, implement, and maintain a comprehensive information security program. In 2019, the FTC sought comments on the proposed amendments to the Safeguards Rule.

Argument analysis: Justices divided in challenge to CFPB structure

The Consumer Financial Protection Bureau is headed by a single director, who is appointed by the president and confirmed by the Senate to serve a five-year term. Once that director is in office, she can only be removed by the president for “inefficiency, neglect of duty, or malfeasance in office.” This morning both a California law firm under investigation by the CFPB and the CFPB itself told the Supreme Court that these restrictions on the removal of the bureau’s director are unconstitutional. If the justices agree, they must then decide what the remedy should be for the constitutional violation. The fate of the CFPB, as well as other agencies with similar structures, could hinge on their answer.

SCOTUS rules City of Miami FHA case moot

The Supreme Court Monday vacated a previous decision ruling plaintiffs can no longer rely on the Eleventh Circuit Court's decision in City of Miami v. Wells Fargo & Co as a source of support in similar cases. The City of Miami last month filed the Suggestion of Mootness following its voluntarily dismissal of pending lawsuits against Bank of America, Wells Fargo, Citigroup, and JPMorgan Chase related to discriminatory practices under the Fair Housing Act.

Remitter USA Inc. hires Jennifer Cummings, CPA as its Chief Financial Officer.

Remitter USA Inc.  is pleased to announce Jennifer Cummings as the newest member of its Executive team.  Jennifer brings over 15 years’ experience with her, having experience working with a vast array of privately held companies in start-up, growth, and turnaround situations in various industries working in both public accounting and private sector over the course of her career.

Spike in fintech M&A shows industry is maturing

Less than two months into 2020, fintech M&A is dominating headlines in the financial services industry.   Visa kicked off the momentum when it announced its planned $5.3 billion acquisition of data aggregator Plaid in mid-January.    Last week online credit marketplace LendingClub announced plans to buy Boston-based Radius Bank in a $185 million cash-and-stock transaction, a deal that would allow LendingClub to secure a bank charter. 

CFPB Structure To Get Supreme Court Hearing

The The Wall Street Journal reported that the Supreme Court will hear oral arguments this week about the structure of the Consumer Financial Protection Bureau (CFPB). The case focuses on whether the creation of the bureau roughly a decade ago overstepped constitutional boundaries, with a structure in place that includes a single director serving a five-year term. That director can only be removed by the president for neglect of duty or malfeasance. “I will be surprised if there aren’t five votes to invalidate the CFPB’s current structure,” WSJ quoted University of Illinois law-school dean Vikram Amar as stating.

Spring 2020 CFPB Advisory Committee meetings in Washington, DC (March 12)

Join us for CFPB Advisory Committee meetings in Washington, D.C., to discuss broad policy matters related to the Bureau’s Unified Regulatory Agenda and general scope of authority.

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ACA International 2020 Spring Forum & Expo

ACA International

BUMP Collections! Dallas

A "CollectoRMSeries" course by Resource Management Services, Inc.

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.

LendIt Fintech USA

Save 15% with our Discount Code: DC15%

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