At a glanceWednesday, May 27, 2020

Collection Industry News At A Glance - May 27, 2020
Wednesday May 27, 2020
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CFPB makes it easier for mortgage servicers to digitize loss mitigation process amid pandemic

Mortgage servicers will soon be able to embrace a digital loss mitigation process without fear of punishment by the Consumer Financial Protection Bureau. The CFPB announced Friday that it is issuing a “No-Action Letter Template,” which will enable mortgage servicers that are “seeking to assist struggling borrowers to avoid foreclosure and engage in loss mitigation efforts” to apply for their own no-action letter.

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Dimon sees good chance for rapid U.S. economic recovery

Jamie Dimon sees “pretty good odds” of a fast economic rebound starting in the third quarter thanks to the U.S. government’s stimulus programs and the strength of the consumer going into the pandemic. “You could see a fairly rapid recovery,” the JPMorgan Chase chairman and chief executive said Tuesday at a virtual conference hosted by Deutsche Bank AG. “The government has been pretty responsive, large companies have the wherewithal, hopefully we’re keeping the small ones alive.” Dimon, who runs the largest U.S. bank, pointed to economists’ forecasts that show unemployment spiking to around 18% this quarter, then falling to 14% in the third quarter and declining to about 10% or 11% by the end of the year.

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U.S. new home sales unexpectedly rise in April

WASHINGTON (Reuters) - Sales of new U.S. single-family homes unexpectedly rose in April, but the gains are likely temporary as the coronavirus crisis ravages the economy, unleashing record unemployment.

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5 principles for effective cybersecurity leadership in a post-COVID world

As more people are working from home during the COVID-19 pandemic, cybersecurity operations are facing tremendous new challenges. Cybersecurity leaders, particularly Chief Information Security Officers (CISOs), must take stronger and more strategic leadership roles within their businesses during the crisis. Five cybersecurity leadership principles would ensure effective business continuity in the "new normal." COVID-19 is forcing business leaders to adapt operating models faster than ever before to ensure existential survival. The large-scale adoption of work-from-home technologies, exponentially greater use of cloud services and explosion of connectivity allow companies to continue operations even with social distancing and “stay at home” orders. However, the paradigm shift is putting immense pressure on cybersecurity operations. As organizations are making extraordinary efforts to protect their workers and serve their customers during the pandemic, exposure to cyberthreats is increasing significantly.

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Extension of Temporary Regulatory Guidance Regarding Working from Home Due to Coronavirus/COVID-19 Concerns or Quarantines

On March 12, 2020, the Idaho Department of Finance issued a Temporary Regulatory Guidance pertaining to the ability of individual employees of licensees to work from their own residence, without obtaining an Idaho branch license or registration for the location, and under specific requirements. The intent of the Guidance was to offer licensees the ability to continue business operations remotely while taking precautions to avoid the risk of exposure to COVID-19, and to comply with any quarantine requirements or stay-at-home orders.

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Millions of PPP loan-forgiveness requests are about to rain on banks

Banks are preparing for a flood of applications for loan forgiveness under the U.S. Paycheck Protection Program, marshaling staff to help borrowers navigate a complicated process that recalls the fraught early days of the COVID-19 small-business relief effort.

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Fintech Lenders are Better Equipped to Issue Loans to SMEs, Compared to Traditional Lending Platforms: Report

A blog post recently published by the World Economic Forum notes that SMEs throughout the world have been struggling to maintain operations due to the COVID-19 outbreak, nationwide lockdowns, and resulting economic challenges. WEF’s blog acknowledges that traditional lending models have been an obstacle preventing small businesses from accessing financial services, particularly in developing economies.

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CFPB Reaches $18 Million Settlement with Mortgage Lender for Alleged FCRA Violations

The Consumer Financial Protection Bureau (CFPB) reached an $18 million settlement with Monster Loans and a number of related companies and individuals for illegally obtaining credit reports to further an alleged student loan debt relief scam.

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Robocalls are spiking as fraudsters prey on Covid-19 fears

Add robocalls to scammers' methods of capitalizing on the coronavirus crisis. As Americans adjust to life in the midst of a global pandemic, roughly a quarter of individuals say they've experienced an increase in robocalls and about 20% have received a call or text regarding the illness, according to a survey from Provision Living, a retirement community company.

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CFPB data shows Americans were terrified about their finances as pandemic raged

Despite the efforts of the government over the last few months, there are still a great number of people confused about their financial relief options in the wake of the pandemic. Things have likely gotten at least a little better in the last few weeks as Fannie Mae, Freddie Mac, and the government itself have taken a more proactive stance on addressing issues involving people’s mortgages and other financial services. But, new data from the Consumer Financial Protection Bureau shows just how scared and absolutely befuddled people were about their finances as the pandemic raged across the U.S. The CFPB revealed Friday that it received the highest number of complaints it’s ever received in both March and April.

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CFPB Takes Action to Help Struggling Homeowners Seeking Mitigation Efforts; Consumers Seeking Small-Dollar Loans

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today announced that it issued two No-Action Letter (NAL) Templates under its innovation policies. Regulatory uncertainty can hinder the development of innovative products and services with the potential to benefit consumers. To encourage innovation, last year the Bureau introduced an improved NAL Policy that includes, among other things, a more streamlined review process focusing on the consumer benefits and risks of the applicant’s product or service. NALs provide increased regulatory certainty through a statement that the Bureau will not bring a supervisory or enforcement action against a company for providing a product or service under certain facts and circumstances.

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Connecticut: No Action Position Regarding Temporarily Working from Home Due to COVID-19

On March 9, 2020, the Banking Commissioner issued a no action position to address branch licensing issues in light of temporary mitigation actions licensees needed to take to continue business in light of COVID-19. On April 16, 2020, the Commissioner issued a revised memorandum extending the no action position through May 31, 2020. This revised memorandum reiterates the original no action position and extends the no action position through June 30, 2020.

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Mnuchin sees ‘strong likelihood’ of needing another COVID-19 relief bill

Treasury Secretary Steven Mnuchin on Thursday said there is a "strong likelihood" that another coronavirus relief bill will be needed as more states start to reopen and the economy struggles to stabilize.

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Consumer Financial Protection Bureau Issues Consumer Complaint Bulletin

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today issued a report analyzing the complaints received during the COVID-19 pandemic. The bulletin shows that mortgage and credit card complaints top the list of complaints the Bureau has received that mention coronavirus or related terms. In April and May, the Bureau received historically higher complaints, however, complaints mentioning COVID-related terms amounted to a total of 4,500 complaints during those two months.

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Student loan borrowers face ‘increased stress, anxiety, and depression’ amid coronavirus shock, survey finds

A new survey illustrates the confusion, stress, and anxiety student loan borrowers are experiencing amid the coronavirus pandemic.   The survey, shared exclusively with Yahoo Finance, analyzed responses from around 39,000 respondents from all 50 states. Advocacy organization Student Debt Crisis and social-impact startup Savi conducted the survey between May 8 and May 19, 2020.

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NCUA approves NAFCU-sought changes to PCA requirements

The NCUA Board during its meeting yesterday unanimously approved an interim final rule on prompt corrective action (PCA) to provide temporary regulatory capital relief to federally-insured credit unions (FICUs). Earlier this year, NAFCU urged the agency provide capital relief during the pandemic, including changes to PCA requirements.

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Ontario Systems Accelerates Consumer Payment Engagement Strategy With SwervePay® Acquisition

MUNCIE, Ind.--(BUSINESS WIRE)--Ontario Systems, a leading provider of enterprise software that automates complex workflows and accelerates revenue recovery for clients in the healthcare, government, and accounts receivable management (ARM) markets, announced the acquisition of SwervePay®, an innovative payment facilitator in the ARM and healthcare industries. The acquisition of SwervePay offers Ontario Systems customers a simplified consumer payment engagement platform that helps drive revenue, reduce operational costs, and improve compliance.

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Mortgage delinquencies surge by 1.6M in April, the biggest monthly jump ever

Delinquencies among borrowers for past-due mortgages are soaring, a sign that Americans are struggling to pay their bills amid a wave of layoffs and lost income from the coronavirus pandemic.  Mortgage delinquencies surged by 1.6 million in April, the largest single-month jump in history, according to a report from Black Knight, a mortgage technology and data provider. The data includes both homeowners past due on mortgage payments who aren’t in forbearance, along with those in forbearance plans and who didn’t make a mortgage payment in April.

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Active Duty Servicemembers are More likely to Report Identity Theft than Other Adults, New FTC Data Shows

Active duty servicemembers are 76 percent more likely than other adults to report that an identity thief misused existing accounts, such as a bank account or credit card, according to the Federal Trade Commission’s latest Consumer Protection Data Spotlight.

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Mortgage lenders are getting stricter, but you still don’t need a perfect 850 credit score

Just 1.6% of the U.S. population with a credit score has a perfect 850, but some experts say you only really need a 760 to qualify for the best rates on credit cards, auto loans and mortgages. However, one representative from the mortgage lending field argues that you can still get a mortgage with a fair or average score as long as you’re gainfully employed.

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FTC: Credit reports are now free every week

If you’re feeling anxious about your financial health during these uncertain times, you’re not alone. That’s why the three national credit reporting agencies are giving people weekly access to monitor their credit report for free.  This is some helpful news because staying on top of your credit report is one important tool to help manage your financial data. Your credit report has information about your credit history and payment history — information that lenders, creditors, and other businesses use when giving you loans or credit.

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Industry Events

Digital Banking 2020 – Postponed to December 7 – 9

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


Receivables Management Association International

The Lodge at Spruce Peak
July 28 - 30 , 2020
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 – Virtual

Royal Media

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

More information about Debt Connection Symposium
More information about Oversight Without Travel - Call Monitoring
More information about Resource Management Services, Inc.
More information about Debt Connection Symposium
More information about RMN Networking
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