At a glanceWednesday, August 26, 2020

Collection Industry News At A Glance - August 26, 2020
Wednesday August 26, 2020
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US consumer confidence falls in August to lowest in 6 years

WASHINGTON -- U.S. consumer confidence fell for the second consecutive month, sinking to the lowest levels in more than six years as a resurgence of COVID-19 infections in many parts of the country heightened pessimism.

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Mortgage lending will beat 2019 by $1 trillion, Fannie says

Mortgage lending this year likely will total $3.4 trillion, about $1 trillion higher than 2019, as low rates boost refinancings, Fannie Mae said in a forecast.   That would be the highest level of originations since 2003’s $3.8 trillion, according to data from the Mortgage Bankers Association. Fannie Mae’s forecast put refinancings at $2.1 trillion in 2020, compared with $1.1 trillion a year earlier, and lending for home purchases at $1.3 trillion, level with 2019.

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Most Telemarketer Fees to Access the FTC’s National Do Not Call Registry to Increase in FY 2021

The Federal Trade Commission has announced FY 2021 fees for telemarketers accessing phone numbers on the National Do Not Call (DNC) Registry. Most of the annual fees will increase slightly from FY 2020, and are set forth in a proposed Federal Register notice.

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California Assembly Advances Debt Collection Licensing Act with Amendments

The California Assembly Appropriations Committee ordered a second reading of the Debt Collection Licensing Act (SB 908)  after a 13-5 vote to not pass the bill as amended  on Aug. 20.

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Federal agency delays surprise mortgage refinancing fee

After intense criticism about a new fee on homeowners who refinance their mortgages, the Federal Housing Finance Agency said it would delay the move for three months. The 0.5 percent fee on refinances now begins Dec. 1 rather than Sept. 1, the agency said today.

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CFPB Launches Public Service Announcements to Reach Consumers Eligible for Compensation in Siringoringo Case

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today released a series of public service announcements targeting consumers who were harmed by Siringoringo Law Firm, Stephen Lyster Siringoringo, Clausen & Cobb Management Company, Inc., and Joshua Cobb. Eligible consumers include all consumers who paid the Siringoringo Law Firm fees from July 22, 2011 through July 26, 2013.

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Experian hand over personal details in data breach

Dalily Maverick has revealed that credit bureau Experian handed over personal details of as many as 24-million consumers and nearly 800,000 businesses to a suspected fraudster. 

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What you need to know about the payment pause for student loan borrowers

Most student loan borrowers don’t have to start making payments on their debt again until January 2021. With Republicans and Democrats locked in a stalemate on the details of another coronavirus stimulus package, President Donald Trump signed an executive order earlier this month that granted people with student debt another three-month break from their bills, during which interest will not accrue. There have been some questions over whether such a move is constitutional, but the U.S. Department of Education has now announced that it will fully implement the president’s memorandum.

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Student loan refinancing rates drop to dramatic new lows

In an effort to ease some of the economic strain caused by the coronavirus pandemic, the Federal Reserve opted to slash interest rates to historic lows early in 2020. The decision to cut the Fed Funds Rate could have a direct impact on your bottom line if you owe private student loans. Student loan refinancing rates have dropped dramatically according to Credible, with rates on 10-year fixed-rate loans down 31% from their April 17 peak. Rates on variable rate loans are down 63% from their February 2018 high. If you have private student loans, refinancing now could help you save money and potentially lower your monthly payments.

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Reverse Mortgage Complaints to CFPB Slow During Pandemic

The amount of consumer complaints to the Consumer Financial Protection Bureau (CFPB) related to the reverse mortgage product category have slowed since the beginning of the national emergency stemming from the COVID-19 coronavirus pandemic, RMD has learned. When averaged out to the amount of complaints received per month, the figure is lower than the typical monthly average seen over the past three years.

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FTC Seeks Comment on Changes, Effectiveness of Five FCRA Rules

The Federal Trade Commission is seeking comment on proposed changes that would bring several rules implementing parts of the Fair Credit Reporting Act (FCRA) in line with the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).

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Home sales surged 24.7% in July, with prices hitting an all-time high

(CNN)Buoyed by record low mortgage rates and an influx of remote workers seeking more living space, existing home sales surged by a record setting 24.7% month-over-month in July with prices hitting an all-time high, according to the National Association of Realtors (NAR). This is the second month in a row of double-digit percentage sales gains. After months of plummeting sales due to the coronavirus shutdowns, existing home sales had jumped 20.7% in June, which was previously the largest month-over-month increase since NAR began tracking in 1968.

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Mortgage delinquencies of at least 90 days rise to highest level in 10 years

The number of serious mortgage delinquencies rose to a 10-year high in July, according to a report released Friday by financial data firm Black Knight. The number of homes with mortgage payments more than 90 days past due but not in foreclosure rose by 376,000 in July to a total of 2.25 million, according to Black Knight. Serious mortgage delinquencies are now at the highest level 10 years and have increased by 1.8 million since July 2019.

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Federal Student Loan Payments Officially Suspended Until 2021

Federally held student loan payments have officially been suspended until at least 2021 due to the coronavirus pandemic. The payments on these loans were suspended by the CARES Act back in March, but this measure was set to expire at the end of September. Now, as the negotiation for other forms of financial relief drags on, this at least has been passed under President Donald Trump's executive order.

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CFPB proposes a new category of qualified mortgages: Seasoned QM

The Consumer Financial Protection Bureau is proposing a new category of qualified mortgages called Seasoned QM, which would require loans to meet certain performance requirements over a 36-month seasoning period. The CFPB said they hope this new category will “encourage innovation and help ensure access to responsible, affordable mortgage credit.” In order to qualify as a Seasoned QM, loans would have to be first-lien, fixed rate transactions that comply with general restrictions on product features and points and fees and meet certain underwriting requirements.

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More Than 6,500 Teachers Have Had Unfair Student Debts Erased

More than 6,500 current and former teachers have gotten a second chance to shed millions of dollars in unfair student debts, according to new data from the U.S. Department of Education. The educators had enrolled in the department's troubled TEACH Grant program, which provides grants to help aspiring teachers pay for college. In exchange, they agreed to teach a high-need subject for four years in a school that serves low-income families.

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“Oversight Options” – Fresh Insights on Oversight – Virtual Class Announced – October 20

Fresh insights on Oversight of third party vendors is provided in this newly developed and scheduled class for compliance managers, vendor managers, auditors and/or recovery managers.  A solid, practical and insightful oversight program is essential for compliance with regulations and well as to validate consumer protection and verify contract requirements, in addition to maximizing results.  Hear collection industry experts, Bev Evancic and Ken Evancic, as they provide strategy, process and practical tips for the oversight of your vendors.  Hear "Oversight Options" fresh insights on oversight with concentration of four key risk areas: Financial Risk, Operational Risk, Contractual Risk and Compliance Risk.  Virtual Class - special 2 for 1 pricing for registrations received prior to September 20.

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Consumer Financial Protection Bureau Announces Settlement with TD Bank for Illegal Overdraft Practices

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today announced a settlement with TD Bank, N.A. regarding its marketing and sale of its optional overdraft service: Debit Card Advance (DCA). TD Bank is headquartered in Cherry Hill, New Jersey, and operates about 1,250 locations throughout much of the eastern part of the country.

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Colorado Attorney General’s Office settles lawsuit against lenders for exceeding state interest rate limits on consumer loans

Aug. 18, 2020 (DENVER, Colo.)—Attorney General Phil Weiser today announced that his office has reached a settlement in two precedent-setting lawsuits involving Colorado’s right to enforce its interest rate limits on consumer loans to protect residents from predatory lending practices.

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U.S. weekly jobless claims jump back above 1 million

The number of people filing for unemployment benefits last week was greater than expected, raising concern about the state of the economy as lawmakers struggle to move forward on a new pandemic stimulus package.

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TD Bank will pay $122M to settle CFPB charges of overdraft abuse

TD Bank has agreed to pay $97 million in customer restitution and a $25 million fine as part of a settlement with the Consumer Financial Protection Bureau of claims that the Cherry Hill, N.J., bank deceptively charged overdraft fees for certain ATM and one-time debit card transactions.

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States Challenge FDIC Rule Change on Interest-Rate Caps

SAN FRANCISCO (CN) — Denouncing the Federal Deposit Insurance Corporation for enabling unscrupulous creditors, California Attorney General Xavier Becerra filed a federal lawsuit Thursday to challenge its rule allowing more lenders to skirt interest rate caps.

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Colorado Establishes Safe Harbor for Bank/Fintech Lending Programs

The Administrator of the Colorado Uniform Consumer Credit Code (an officer within the Colorado Attorney General's office) (the "Colorado Administrator") has announced a settlement with Avant LLC and Avant of Colorado LLC (together, "Avant") and Marlette Funding LLC ("Marlette")1 in its suit challenging the "bank partnership model" for providing consumer credit services. The settlement has far-reaching implications for bank/fintech lending programs.

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Attorney General Becerra Challenges FDIC Rule that Allows Predatory Lenders to Bypass State Interest-Rate Caps

SACRAMENTO – California Attorney General Xavier Becerra today, leading a coalition of eight attorneys general, filed a lawsuit challenging the Federal Deposit Insurance Corporation’s (FDIC) final rule that creates a loophole allowing predatory lenders to evade state laws that forbid excessive interest-rate charges. These caps on interest rates play a critical role in regulating payday loans and other high-cost lending throughout the state. Under existing federal law, federally insured state-chartered banks are exempt from state interest-rate caps.

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Mortgage delinquencies moderate after hitting nine-year high in the second quarter

The share of homeowners behind on their mortgages is starting to abate after reaching a nine-year high in the second quarter when delinquencies increased at a historic pace.

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10 cybersecurity myths you need to stop believing

Ransomware attacks, data breaches, and scams – along with a steady stream of extortion and phishing emails – have taken over the internet. We hear about cybercrime so often that it can quickly turn into white noise. That's a mistake.

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New data from Microsoft shows how the pandemic is accelerating the digital transformation of cyber-security

The importance of cybersecurity in facilitating productive remote work was a significant catalyst for the two years-worth of digital transformation we observed in the first two months of the COVID-19 pandemic. In this era of ubiquitous computing, security solutions don’t just sniff out threats, they serve as control planes for improving productivity and collaboration by giving end-users easier access to more corporate resources.

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Probate Finder OnDemand® Celebrates 10-Year Milestone

MINNEAPOLIS (DATE)DCM Services, LLC (“DCMS”) and its sister company, Forte, LLC, the industry leaders in data and contact management solutions for the estate and specialty receivables recovery market, celebrate 10 years of the nation’s only online probate claim filing solution, Probate Finder OnDemand. 

Probate Finder OnDemand was launched in 2010. Since then, its Software-as-a-Service (SaaS) model has grown to serve an expansive client base spanning several end-markets including financial services, auto, retail, credit unions, and healthcare. Probate Finder OnDemand allows users to access our patented Probate Finder® technology and automate robust and complex probate location, matching, and claim presentation processes.

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CFPB Extends Comment Period on Request for Information on Ways to Prevent Credit Discrimination and Build a More Inclusive Financial System

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) announced today that it will provide an additional 60 days for public comment on its Request for Information (RFI) on how best to create a regulatory environment that expands access to credit and ensures that all consumers and communities are protected from discrimination in all aspects of a credit transaction. The extension for submission of comments provides interested parties with more time to conduct outreach to relevant constituencies and to address the many issues raised in the RFI. The original deadline for submissions was October 2, 2020. The comment period will now close on December 1, 2020.

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Portfolios For Sale

$6,095,866 Medical
Capital Asset Management, Inc.

(317) 633-6633

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$3,872,654 Medical
Capital Asset Management, Inc.

(317) 633-6633

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Industry Events

NCUCA 6th Annual Conference

October 28 - 30 , 2020
LendIt Fintech USA – Virtual

Save 15% with our Discount Code: DC15%

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

LendIt Fintech Europe 2020 – Virtual

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