At a glanceFriday, May 01, 2020

Collection Industry News At A Glance - May 1, 2020
Friday May 1, 2020
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Consumer Financial Protection Bureau Report Shows Substantial Decline in Credit Applications in March

WASHINGTON, D.C. – A Consumer Financial Protection Bureau (Bureau) report examining the effects of the COVID-19 pandemic found that consumer credit applications declined substantially in March. Applications are measured by the number of credit pulls or “hard inquiries” that lenders perform when a consumer applies for new credit.

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Attorney General Becerra Urges Secretary Ben Carson to Further Protect Senior Homeowners with Reverse Mortgages Affected by COVID-19

SACRAMENTO – California Attorney General Xavier Becerra today, as part of a coalition of 26 attorneys general, sent a letter to U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson requesting further action to protect senior homeowners during the COVID-19 public health emergency. In today’s letter, the coalition argues that action is necessary so that senior homeowners who have a HUD-insured Home Equity Conversion Mortgage (HECM) – also known as a “reverse mortgage” – are given a fair opportunity to retain their home amidst the public health emergency.

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FTC to Co-Host Second Conference on Marketing and Consumer Protection on October 2

The Federal Trade Commission Bureau of Economics and the INFORMS Society for Marketing Science’s journal Marketing Science will co-organize the second FTC-Marketing Science Conference on Marketing and Consumer Protection on October 2, 2020 in Washington, D.C.

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CFPB makes more enhancements to consumer complaint database

WASHINGTON, D.C. -This week, the Consumer Financial Protection Bureau enhanced its consumer complaint database with the addition of a geospatial view. The CFPB explained consumers now will be able to view complaints by state with a U.S. map visualization. Previously, the regulator indicated consumers have been able to view complaints by using date, company name, key words and other filters. The bureau also has added new options, including the ability to:

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Wells Fargo to stop granting home equity lines amid uncertainty: sources

(Reuters) - Wells Fargo & Co, the largest U.S. mortgage lender, said on Thursday it will temporarily stop accepting applications for home equity loans given the economic uncertainty fueled by the COVID-19 pandemic. The suspension will stay in place until bank executives have better sense into what the economic recovery will look like, bank spokesman Tom Goyda said in a statement.

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NCUA chairman backs NAFCU’s call for CU CECL exemption

NCUA Chairman Rodney Hood Thursday called on the Financial Accounting Standards Board (FASB) to exempt credit unions from the current expected credit loss (CECL) standard. Since 2016, when the standard was issued, NAFCU has continuously urged FASB to exempt credit unions from the standard due to their unique capital framework and the negative impact the standard could have on the industry.

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Biggest U.S. banks says they submitted $45.8 billion in loans for emergency aid program

NEW YORK/WASHINGTON (Reuters) - The two largest U.S. banks, JPMorgan Chase & Co and Bank of America, said on Thursday that they submitted almost half a million applications worth nearly $46 billion to the Small Business Administration’s Paycheck Protection Program for small businesses hurt by the coronavirus shutdown.

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New SBA PPP, CFPB rules for CUs to be aware of

As credit unions work to secure paycheck protection program (PPP) loans for small businesses in their community and provide financial assistance for members impacted by the coronavirus pandemic, there are several new updates and resources for credit unions to be aware of.

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Governor Northam Announces Expansion of Payment Relief for Student Loan Borrowers

RICHMOND—Governor Ralph Northam today announced that Virginia has secured relief options for more than 200,000 Virginians with privately held student loans. The payment relief is the result of a new initiative by Virginia and several other states to work with the major private student loan servicers to expand on protections for federal student loan borrowers through the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

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Wall Street uniform to get a new accessory – the face mask

HONG KONG/PARIS/LONDON (Reuters) - Face masks, temperature checks and packaged sandwiches could all become part of the daily routine for bankers as their employers work out how to get them safely back into the office.

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CFPB Paves Way for Consumers Facing Financial Emergencies to Obtain Access to Mortgage Credit More Quickly

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (Bureau) took steps to make it easier for consumers with urgent financial needs to obtain access to mortgage credit more quickly in the middle of the COVID-19 pandemic.  “The steps we are taking today will help consumers facing financial emergencies obtain access to mortgage credit faster,” said CFPB Director Kathleen L. Kraninger. “The pandemic is resulting in consumers facing various challenges, and our temporary and targeted solutions are intended to ensure that consumers receive the credit they need in a timely manner.”

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US consumer spending plunges record 7.5%, reflecting virus

WASHINGTON -- U.S. consumer spending plunged 7.5% in March, reflecting the growing impact of the coronavirus pandemic as Americans complied with stay-at-home orders.
The Commerce Department said that the spending decline was the sharpest monthly drop on records that go back to 1959, exceeding the previous record, a decline of 2.1% in January 1987.

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AG Neronha Issues Guidance to Protect CARES payments for Rhode Islanders

Attorney General Peter F. Neronha issued guidance today, reminding creditors, debt collectors and financial institutions that stimulus payments resulting from the federal government's Coronavirus Aid, Relief, and Economic Security (CARES) Act are exempt from seizure or garnishment by debt collectors.
"The purpose of the guidance issued by our Office today is to ensure that these relief payments can be used by Rhode Islanders for essential needs, such as food and housing, during these extraordinary circumstances," said Attorney General Neronha.

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5 fintech war stories from the front lines of PPP lending

Fintechs in the payments industry saw problems coming when the CARES Act’s SBA Paycheck Protection Program opened the floodgates for millions of coronavirus-stricken small businesses to apply for loans via largely unprepared financial institutions.
When lender requirements were announced on March 30, fintechs raced to develop streamlined digital solutions as alternatives to time-consuming, manual loan-application steps.

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FTC warning about making money fast from home schemes

The Federal Trade Commission (FTC) is warning consumers to be smart when looking at job opportunities amid the coronavirus pandemic, especially ones claiming you can make money quickly from home.

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Coronavirus loan program approves more than $52 billion in relief

The Trump administration said it’s approved more than $52 billion in loan requests for small businesses so far in the relaunch of a coronavirus relief program, even as lenders said they’ve struggled to submit applications and advocates worry that funds will run out before many mom-and-pop businesses get help.

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Berger, Calabria talk forbearances, GSE fees

NAFCU President and CEO Dan Berger spoke with Federal Housing Finance Agency (FHFA) Director Dr. Mark Calabria Tuesday about the agency's efforts to support mortgage borrowers impacted by the coronavirus and to provide relief to credit unions and other mortgage servicers.

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Kaulkin Ginsberg Gets Experts Together to Discuss Strategies for Reopening ARM Firms as States Begin to Soften Restrictions

Accounts receivable management (ARM) companies responded rapidly to the worldwide Coronavirus (COVID-19) pandemic. Many collection agencies, collection law firms, and debt buyers quickly incorporated work-from-home models and now must address their reopening strategies. As a trusted voice in the ARM industry for 30 years, Kaulkin Ginsberg once again assembled some of the most well informed experts to share their viewpoints on reopening operations and collections while the unemployment rate soars to levels not seen since the Great Depression. This free webinar will take place on Thursday, April 30 at 12:00 PM EST.  The panelists will be discussing, among other things:  Whether Federal restrictions will be imposed upon bill collectors; State regulatory updates as some states extend stay-at-home requirements until May 30; Different plans and strategies to re-open call centers; What to do when your agency is back to work but the debtor is not. Participation in this live webinar is encouraged from all facets of the ARM industry. Registration is free, so please invite your staff, colleagues, and friends. The webinar will last about 90 minutes, including live Q&A.

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PhantomLance spying campaign breaches Google Play security

Kaspersky has warned of an ongoing campaign in which malicious apps hosted by Google Play are covertly spying and stealing Android user data. On Tuesday, cybersecurity researchers said the campaign, dubbed PhantomLance, has been active for at least four years and is ongoing.  According to the team, "dozens" of malicious apps connected to PhantomLance and harboring a new Trojan have been discovered in Google Play, the tech giant's official Android mobile application repository. 

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Attorney General James Leads Multistate Coalition Fighting to Protect Consumer Credit During Coronavirus Pandemic

NEW YORK – New York Attorney General Letitia James today co-led a coalition of 22 attorneys general warning the nation’s three Consumer Reporting Agencies (CRAs) that they will not hesitate to enforce safeguards set in place to ensure consumers’ credit is properly protected and that their credit reports are fairly and accurately reported as Americans continue to struggle from the economic fallout of the coronavirus disease 2019 (COVID-19) public health crisis. In a letter to Experian Information Solutions, Inc.; Equifax Information Services, LLC; and TransUnion LCC.

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Extra $2 billion available for U.S. coronavirus relief loans: SBA

WASHINGTON (Reuters) - The United States will be able to lend an additional $2 billion to small businesses through its Paycheck Protection Program, after a number of borrowers in the first round of funding for the coronavirus relief declined or returned their loans, the top official on the program said on Monday.

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Collection Industry Trade Group Sues Massachusetts Attorney General to Halt Emergency Regulations

We recently reported on Massachusetts Attorney General Maura Healey's implementation of temporary regulations halting collection of debt from Massachusetts' consumers in the wake of the COVID-19 crisis. With certain exemptions, the regulations declare the performance of many regular debt collection activities—including placing telephone calls to debtors or initiating collection actions—an unfair or deceptive practice under the Massachusetts Consumer Protection Act.

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Nearly 10% of FHA and VA borrowers are in forbearance

Thanks to the continued impact of COVID-19 on the economy, approximately 10% of borrowers whose mortgages are backed by the Federal Housing Administration or the Department of Veterans Affairs are in forbearance. The data comes courtesy of a new report from the Mortgage Bankers Association, which polled more than 50 mortgage servicers that collect payments on nearly 77% of the mortgage market. According to those servicers, nearly 7% of the 38.3 million loans they service were in forbearance as of April 19, 2020.

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Consumer Financial Protection Bureau Adds Enhancements to Consumer Complaint Database

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) today announced the addition of a geospatial view to the Consumer Complaint Database. With this addition, consumers will now be able to view complaints by state with a U.S. map visualization.

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CFPB Issues Guidance on Residential Mortgage Transfers

The Consumer Financial Protection Bureau on Friday issued guidance for transferring mortgage servicing rights to a servicer or sub-servicer. “As consumers do not have a choice with respect to the transfer of servicing, compliance with regulatory requirements is especially important in risk mitigation and consumer harm,” the CFPB said.

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Industry Events

Digital Banking 2020

American Banker

Austin Convention Center 500 East Cesar Chavez Street
Austin , TX
June 08 - 10 , 2020

(212) 803-8456

NACTT 55th Annual Seminar 2020

National Association of Chapter 13 Trustees (NACTT)

Marriott Marquis San Diego Marina 333 West Harbor Drive San Diego, CA 92101
San Diego , CA
July 08 - 11 , 2020

800-445-8629 | 803-765-0860

Debt Connection Symposium & Expo 2020

Resource Management Services, Inc.

Red Rock Casino Resort & Spa
11011 W Charleston Blvd , Las Vegas, NV 89135
September 15 - 17 , 2020


LendIt Fintech USA

Save 15% with our Discount Code: DC15%

Javits Center, New York
New York
September 30 - October 01 , 2020

LendIt Fintech Europe 2020

LendIt Fintech Europe

Hilton London Angel Islington 53 Upper Street
London , N1 0UY, UK
October 19 - 20 , 2020


Auto Finance Summit 2020

Royal Media

Wynn Las Vegas
3131 S Las Vegas Blvd , Las Vegas, NV 89109
October 20 - 22 , 2020

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